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| Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP ADVENT SOFTWARE, INC. RECONCILIATION OF SELECTED CONTINUING OPERATIONS’ GAAP MEASURES TO NON-GAAP MEASURES(In thousands, except per share data) (Unaudited) To supplement our condensed consolidated financial statements presented on a GAAP basis, Advent uses non-GAAP measures of continuing operations’ operating income, net income and net income per share, which are adjusted to exclude certain costs, expenses, gains and losses we believe appropriates to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Advent’s underlying operational results and trends and our marketplace performance. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States of America. Three Months Ended September 30, 2012 for Continuing Operations Gross Margin Gross Margin % Operating Income Operating Income % Net Income GAAP $57,361 64% $12,629 14% $7,687 Amortization of acquired developed technology 1,894 1,894 1,894 Amortization of other acquired intangibles - 955 955 Stock-based compensation - cost of revenues 946 946 946 Stock-based compensation - operating expenses - 4,425 4,425 Restructuring benefit - (17) (17) Income tax adjustment from non-GAAP (1) - - (2,434) Non-GAAP $60,201 67% $ 20,832 23% $13,456 Diluted net income per share GAAP $0.15 Non-GAAP $0.26 Shares used to compute diluted net income per share 52,248 Three Months Ended September 30, 2019 for Continuing Operations Gross Margin Gross Margin % Operating Income Operating Income % Net Income GAAP $53,731 64% $10,576 13% $6,826 Amortization of acquired developed technology 1,821 1,821 1,821 Amortization of other acquired intangibles - 960 960 Stock-based compensation - cost of revenues 909 909 909 Stock-based compensation - operating expenses - 4,156 4,156 Investment loss - - 500 Restructuring charges - 57 57 Income tax adjustment for non-GAAP (1) - - (3,422) Non-GAAP $ 56,461 67% $ 18,479 22% $ 11,807 Diluted net income per share GAAP $0.13 Non-GAAP $0.22 Shares used to compute diluted net income per share 53,625 (1) The estimated non-GAAP effective tax rate was 35% for the three months ended September 30, 2012 and 2011, respectively, and has been used to adjust the provision for income taxes for non-GAAP purposes. Advent Software, Inc. 13 |