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Advent Software Reports Fourth Quarter and Full Year 2013 Results

Companies mentioned in this article: Advent Software

SAN FRANCISCO, CA -- (Marketwired) -- 02/03/14 -- Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the global investment management industry, announced today its financial results for the fourth quarter and year ended December 31, 2013.

"The fourth quarter capped off a year of record revenue and operating cash flow, while we also expanded non-GAAP operating margin to 30% for the year," said Pete Hess, Chief Executive Officer of Advent. "Advent's success, including our strong renewal rates, demonstrates our ability to help customers respond to the evolving trends in investment management. We are excited about our solutions and ability to expand the value we provide to clients and shareholders."

FOURTH QUARTER AND FULL YEAR 2013 RESULTS

GAAP Results for Continuing Operations
The Company reported quarterly revenue of $97.6 million for the fourth quarter of 2013, compared to $92.0 million in the fourth quarter of 2012, a 6% increase. Total annual revenue for the year ended December 31, 2013 was $383.0 million, compared to $358.8 million recorded in 2012, a 7% increase.

Operating income for the fourth quarter of 2013 was $18.4 million, or 18.9% of revenue, compared to $12.7 million or 13.8% of revenue for the fourth quarter of 2012. Operating income for the year ended December 31, 2013 was $46.1 million, or 12.0% of revenue, compared to $49.2 million, or 13.7% of revenue, for 2012. Our operating income for fiscal year 2013 included recapitalization charges of $6.0 million, and stock compensation expense of $48.2 million, of which $26.7 million was due to the modification of equity awards.

Net income for the fourth quarter of 2013 was $11.0 million compared to $8.0 million in the fourth quarter of 2012. Net income for the year ended December 31, 2013 was $28.8 million compared to $30.2 million for 2012, a 5% decrease. On a fully diluted basis, earnings per share in the fourth quarter of 2013 were $0.20, compared to $0.16 in the fourth quarter of 2012. On a fully diluted basis, earnings per share for the year ended December 31, 2013 was $0.54, compared to $0.58 for 2012.

Operating cash flow in the fourth quarter of 2013 was $36.7 million, compared with $32.8 million in the fourth quarter of 2012. Operating cash flow for the year ended December 31, 2013 totaled $98.6 million, compared with $86.6 million in 2012, a 14% increase.

Cash, cash equivalents, and marketable securities totaled $34 million as of December 31, 2013, compared to $231 million as of December 31, 2012. Total outstanding debt as of December 31, 2013 was $305 million compared to $95 million as of December 31, 2012. In 2013, the Company paid a one-time special dividend totaling $470 million that was partially financed by long-term debt proceeds.

Deferred revenue as of December 31, 2013 was $194 million, compared to $183 million as of December 31, 2012.

Non-GAAP Results for Continuing Operations
Non-GAAP operating income for the fourth quarter of 2013 was $28.9 million, or 29.6% of revenue. This represents a 17% increase compared to $24.6 million, or 26.7% of revenue, in the fourth quarter of 2012. Non-GAAP operating income for the year ended December 31, 2013 was $115.3 million, or 30.1% of revenue. This represents a 36% increase compared to $85.0 million of non-GAAP operating income, or 23.7% of revenue, for 2012.

On a fully diluted basis, non-GAAP earnings per share were $0.32 in the fourth quarter of 2013 and they represent a 5% increase from non-GAAP diluted net income per share of $0.30 in the fourth quarter of 2012. On a fully diluted basis, non-GAAP net income per share was $1.32 for the year ended December 31, 2013, a 28% increase compared to $1.03 per share for 2012.

The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.

FOURTH QUARTER AND FULL YEAR 2013 HIGHLIGHTS

  • Strong Renewal Rate: Advent delivered a strong initially reported renewal rate for Q3 2013 of 97%, compared to 94% the same period last year. This is the highest initial renewal rate reported in five years.
  • International Success: Advent saw enhanced success in the international market, signing SMT Fund Services, part of Sumitomo Mitsui Bank Group, as well as Nordea Bank AB in the fourth quarter.
  • Solid Growth in Black Diamond: Total assets on the platform increased 64% for the year to over $220 billion and the number of clients increased 29%, including many large advisory firms, such as McGladrey Wealth Management and Essex Financial. Black Diamond also achieved its highest renewal rate and client satisfaction scores in its history.
  • New Releases Across the Product Portfolio: Advent announced global availability of new releases to several key products that includes compelling new functionality for asset and wealth management firms, alternative managers, family offices, and administrators. The updated products include Geneva®, Advent Portfolio Exchange® (APX), Moxy®, Advent Rules Manager®, and Advent Revenue Center®.

FINANCIAL GUIDANCE

Advent updates the following financial guidance for the first quarter and fiscal year 2014:


----------------------------------------------------------------------------
                      Guidance                       Q1 2014      FY 2014
----------------------------------------------------------------------------
 Total Revenue ($M)                                  $95 -$97    $395-$403
----------------------------------------------------------------------------
 GAAP Operating Margin                                 n/a     21.0% - 21.5%
----------------------------------------------------------------------------
 Stock Compensation Expense (% of revenue)             n/a          8%
----------------------------------------------------------------------------
 Amortization of Intangibles (% of revenue)            n/a          2%
----------------------------------------------------------------------------
 Non-GAAP Operating Margin                             n/a     31.0% - 31.5%
----------------------------------------------------------------------------
 Operating Cash Flow ($M)                              n/a      $105 - $115
----------------------------------------------------------------------------
 Capital Expenditures ($M)                             n/a       $8 - $11
----------------------------------------------------------------------------
 Effective Tax Rate (GAAP)                             n/a       35% - 40%
----------------------------------------------------------------------------
 Effective Tax Rate (non-GAAP)                         n/a          35%
----------------------------------------------------------------------------

INVESTOR CALL
Advent Software, Inc. will host its Q4 2013 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q4 2013 earnings presentation and trended disclosures file, which include highlights and detailed financial information, are currently available at http://investor.advent.com. To participate via phone, please dial 866-578-5771 and request conference ID #16791928. Telephone replay will be available through midnight February 10, 2014. The replay number for domestic callers is 888-286-8010, and for international callers is 617-801-6888, with the conference ID of #88334133. The conference call will also be webcast live and then archived on http://investor.advent.com.

ABOUT ADVENT
Over the last 30 years of industry change, our core mission to help our clients focus on their unique strategies and deliver exceptional investor service has never wavered. With unparalleled precision and ahead of the curve solutions, we've helped over 4,300 firms in nearly 60 countries -- from established global institutions to small start-up practices -- to grow their business and thrive. Advent technology helps firms minimize risk, work together seamlessly, and discover new opportunities in a constantly evolving world. Together with our clients, we are shaping the future of investment management. For more information on Advent products visit http://www.advent.com.

ABOUT NON-GAAP FINANCIAL INFORMATION
This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), please see the accompanying tables entitled "Reconciliation of Selected Continuing Operations' GAAP Measures to Non-GAAP Measures."

FORWARD-LOOKING STATEMENTS
The financial projections under Financial Guidance and any other forward-looking statements included in this presentation reflect management's best judgment based on factors currently known and involve risks and uncertainties; our actual results may differ materially from those discussed here. These risks and uncertainties include: potential fluctuations in new contract bookings, renewal rates, operating results and future growth rates; continued market acceptance of our products; the successful development, release and market acceptance of new products and product enhancements; uncertainties and fluctuations in the financial markets; the Company's ability to satisfy contractual performance requirements and other risks detailed from time to time in our SEC reports including, but not limited to, our quarterly reports on Form 10-Q and our 2012 Annual Report on Form 10-K. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements including any guidance, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Advent, the Advent logo, and Advent Software, are registered trademarks of Advent Software, Inc. Any other company names or marks mentioned herein are those of their respective owners.



                           ADVENT SOFTWARE, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                             (GAAP, Unaudited)
                                                  December 31   December 31
                                                     2013          2012
                                                 ------------  ------------
ASSETS
Current assets:
  Cash and cash equivalents                      $     33,828  $     58,217
  Short-term marketable securities                          -       111,192
  Accounts receivable, net                             58,717        61,069
  Deferred taxes, current                              24,898        18,934
  Prepaid expenses and other                           30,114        25,868
  Current assets of discontinued operation                100            88
                                                 ------------  ------------
    Total current assets                              147,657       275,368
Property and equipment, net                            31,698        37,269
Goodwill                                              207,818       206,932
Other intangibles, net                                 27,392        38,205
Long-term marketable securities                             -        61,552
Deferred taxes, long-term                              23,020        24,524
Other assets                                           17,372        12,994
Noncurrent assets of discontinued operation             1,337         1,609
                                                 ------------  ------------

    Total assets                                 $    456,294  $    658,453
                                                 ============  ============

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities:
  Accounts payable                               $      5,348  $      5,190
  Accrued liabilities                                  41,625        37,096
  Deferred revenues                                   186,107       174,388
  Income taxes payable                                      -         5,593
  Current portion of long-term debt                    20,000        10,000
  Current liabilities of discontinued operation           600           262
                                                 ------------  ------------
    Total current liabilities                         253,680       232,529
Deferred revenues, long-term                            7,809         8,787
Long-term income taxes payable                          7,667         5,335
Long-term debt                                        285,000        85,000
Other long-term liabilities                            11,171        13,139
Noncurrent liabilities of discontinued operation        2,782         3,804
                                                 ------------  ------------

    Total liabilities                                 568,109       348,594
                                                 ------------  ------------


Stockholders' (deficit) equity:
  Common stock                                            513           505
  Additional paid-in capital                           42,533       453,585
  Accumulated deficit                                (165,870)     (154,261)
  Accumulated other comprehensive income               11,009        10,030
                                                 ------------  ------------
    Total stockholders' (deficit) equity             (111,815)      309,859
                                                 ------------  ------------

    Total liabilities and stockholders'
     (deficit) equity                            $    456,294  $    658,453
                                                 ============  ============




                           ADVENT SOFTWARE, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except per share data)
                             (GAAP, Unaudited)


                                  Three Months Ended    Twelve Months Ended
                                      December 31           December 31
                                 --------------------  --------------------
                                    2013       2012       2013       2012
                                 ---------  ---------  ---------  ---------
Net revenues:
Recurring revenues               $  89,019  $  83,875  $ 349,881  $ 324,627
Non-recurring revenues               8,560      8,142     33,078     34,192
                                 ---------  ---------  ---------  ---------

  Total net revenues                97,579     92,017    382,959    358,819

Cost of revenues (1):
Recurring revenues                  18,417     16,991     70,590     68,953
Non-recurring revenues               8,956      9,890     40,044     43,505
Amortization of developed
 technology                          1,682      2,558      9,087     10,258
                                 ---------  ---------  ---------  ---------

  Total cost of revenues            29,055     29,439    119,721    122,716
                                 ---------  ---------  ---------  ---------

  Gross margin                      68,524     62,578    263,238    236,103

Operating expenses (1):
Sales and marketing                 20,098     18,566     79,065     74,688
Product development                 17,464     16,637     69,718     67,014
General and administrative          10,842     10,144     54,737     37,763
Amortization of other
 intangibles                           912        958      3,775      3,825
Recapitalization costs                   -          -      6,041          -
Restructuring charges                  811      3,581      3,770      3,634
                                 ---------  ---------  ---------  ---------

  Total operating expenses          50,127     49,886    217,106    186,924
                                 ---------  ---------  ---------  ---------

Income from continuing
 operations                         18,397     12,692     46,132     49,179
Interest and other income
 (expense), net                     (2,603)      (515)    (7,213)    (1,620)
                                 ---------  ---------  ---------  ---------

Income from continuing
 operations before income taxes     15,794     12,177     38,919     47,559
Provision for income taxes           4,777      4,147     10,167     17,328
                                 ---------  ---------  ---------  ---------

  Net income from continuing
   operations                    $  11,017  $   8,030  $  28,752  $  30,231

Discontinued operation:
  Net (loss) income from
   discontinued operation (net
   of applicable taxes of $(11),
   $(8), $34 and $126,
   respectively)                       (18)       (49)        50        184

                                 ---------  ---------  ---------  ---------
Net income                       $  10,999  $   7,981  $  28,802  $  30,415
                                 =========  =========  =========  =========

Basic net income (loss) per
 share (2):
  Continuing operations          $    0.22  $    0.16  $    0.56  $    0.60
  Discontinued operation             (0.00)     (0.00)      0.00       0.00
                                 ---------  ---------  ---------  ---------
    Total operations             $    0.22  $    0.16  $    0.56  $    0.60
                                 =========  =========  =========  =========

Diluted net income (loss) per
 share (2):
  Continuing operations          $    0.20  $    0.16  $    0.54  $    0.58
  Discontinued operation             (0.00)     (0.00)      0.00       0.00
                                 ---------  ---------  ---------  ---------
    Total operations             $    0.20  $    0.15  $    0.54  $    0.58
                                 =========  =========  =========  =========

Weighted average shares used to
 compute net income (loss) per
 share:
  Basic                             51,105     50,276     51,207     50,614
  Diluted                           53,844     51,802     53,378     52,425

(1) Includes stock-based
 employee compensation expense
 as follows:

  Cost of recurring revenues     $     844  $     595  $   3,491  $   2,405
  Cost of non-recurring revenues       563        310      3,253      1,236
                                 ---------  ---------  ---------  ---------
    Total cost of revenues           1,407        905      6,744      3,641

  Sales and marketing                2,345      1,902     13,265      7,165
  Product development                1,922      1,483      8,863      5,821
  General and administrative         1,908      1,167     19,307      4,174
                                 ---------  ---------  ---------  ---------
    Total operating expenses         6,175      4,552     41,435     17,160
                                 ---------  ---------  ---------  ---------

  Total stock-based employee
   compensation expense          $   7,582  $   5,457  $  48,179  $  20,801
                                 =========  =========  =========  =========

(2) Net income (loss) per share is based on actual calculated values and
 totals may not sum due to rounding.




                           ADVENT SOFTWARE, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                (Unaudited)

                                                        Twelve Months Ended
                                                            December 31
                                                       --------------------
                                                          2013       2012
                                                       ---------  ---------
Cash flows from operating activities:
  Net income                                           $  28,802  $  30,415
  Adjustment to net income for discontinued operation
   net income                                                (50)      (184)
                                                       ---------  ---------
  Net income from continuing operations                   28,752     30,231

  Adjustments to reconcile net income to net cash
   provided by operating activities from continuing
   operations:
    Stock-based compensation                              48,179     20,801
    Excess tax benefit from stock-based compensation      (7,477)    (7,785)
    Depreciation and amortization                         24,393     25,879
    Amortization of debt issuance costs                      947        381
    Provision for doubtful accounts                          278        403
    (Reduction of) provision for sales reserves             (306)     1,154
    Deferred income taxes                                  4,589      5,230
    Other                                                     29       (252)
                                                       ---------  ---------
      Effect of statement of operations adjustments       70,632     45,811
  Changes in operating assets and liabilities:
    Accounts receivable                                    2,074        575
    Prepaid and other assets                              (1,762)       822
    Accounts payable                                          27     (5,368)
    Accrued liabilities                                   (6,089)    (2,055)
    Deferred revenues                                     11,047      7,151
    Income taxes payable                                  (6,117)     9,453
                                                       ---------  ---------
      Effect of changes in operating assets and
       liabilities                                          (820)    10,578
                                                       ---------  ---------

Net cash provided by operating activities from
 continuing operations                                    98,564     86,620

Cash flows from investing activities:
  Cash used in acquisition                                     -       (700)
  Purchases of property and equipment                     (5,616)    (6,369)
  Capitalized software development costs                  (1,995)    (2,137)
  Purchases of marketable securities                     (57,863)  (220,994)
  Sales and maturities of marketable securities          228,619    118,588
  Change in restricted cash                                    -         95
                                                       ---------  ---------

Net cash provided by (used in) investing activities
 from continuing operations                              163,145   (111,517)

Cash flows from financing activities:
  Proceeds from common stock issued from exercises of
   stock options                                          19,495      5,173
  Proceeds from common stock issued under the employee
   stock purchase plan                                     6,293      6,661
  Excess tax benefits from stock-based compensation        7,477      7,785
  Withholding taxes related to equity award net share
   settlement                                            (11,833)    (5,496)
  Proceeds from debt                                     375,000     50,000
  Repayment of debt                                     (165,000)    (5,000)
  Debt issuance costs                                     (5,725)         -
  Repurchase of common stock                             (41,256)   (41,275)
  Payment of cash dividend                              (470,133)         -
                                                       ---------  ---------

Net cash (used in) provided by financing activities
 from continuing operations                             (285,682)    17,848

Net cash transferred to discontinued operation              (375)      (561)

Effect of exchange rate changes on cash and cash
 equivalents                                                 (41)       302
                                                       ---------  ---------

Net change in cash and cash equivalents from
 continuing operations                                   (24,389)    (7,308)
Cash and cash equivalents of continuing operations at
 beginning of period                                      58,217     65,525
                                                       ---------  ---------

Cash and cash equivalents of continuing operations at
 end of period                                         $  33,828  $  58,217
                                                       =========  =========

                                                        Twelve Months Ended
                                                            December 31
                                                       --------------------
                                                          2013       2012
                                                       ---------  ---------
Supplemental disclosure of cash flow information:
Cash flows from discontinued operation:
  Net cash used in operating activities                $    (375) $    (561)
  Net cash transferred from continuing operations            375        561
                                                       ---------  ---------
  Net change in cash and cash equivalents from
   discontinued operation                                      -          -
  Cash and cash equivalents of discontinued operation
   at beginning of period                                      -          -
                                                       ---------  ---------
  Cash and cash equivalents of discontinued operation
   at end of period                                    $       -  $       -
                                                       =========  =========

    The cash flows from the discontinued operation, as presented in the
  condensed consolidated statement of cash flows, relate to the operations
                             of MicroEdge, Inc.




                           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 in
 accordance with generally accepted accounting principles in the United
 States of America (or GAAP), Advent uses non-GAAP measures of continuing
 operations' gross margin, operating income, net income and net income per
 share, which are adjusted to exclude certain costs, expenses and income we
 believe appropriate 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 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 GAAP.

                                        Three Months Ended December 31
                                   ----------------------------------------
                                           2013                 2012
                                   -------------------  -------------------
                                              % of Net             % of Net
                                     Amount   Revenues    Amount   Revenues
                                   ---------  --------  ---------  --------

GAAP gross margin                  $  68,524      70.2% $  62,578      68.0%
  Amortization of acquired
   intangibles                         1,177                1,908
  Stock-based compensation             1,407                  905
                                   ---------            ---------
Non-GAAP gross margin              $  71,108      72.9% $  65,391      71.1%
                                   =========            =========

GAAP operating income              $  18,397      18.9% $  12,692      13.8%
  Amortization of acquired
   intangibles                         2,089                2,866
  Stock-based compensation             7,582                5,457
  Restructuring charges                  811                3,581
                                   ---------            ---------
Non-GAAP operating income          $  28,879      29.6% $  24,596      26.7%
                                   =========            =========

GAAP net income                    $  11,017            $   8,030
  Amortization of acquired
   intangibles                         2,089                2,866
  Stock-based compensation             7,582                5,457
  Restructuring charges                  811                3,581
  Income tax adjustment (1)           (4,420)              (4,281)
                                   ---------            ---------
Non-GAAP net income                $  17,079            $  15,653
                                   =========            =========

GAAP net income                    $  11,017            $   8,030
  Net interest                         2,510                  408
  Provision for income taxes           4,777                4,147
  Depreciation expense                 2,895                2,991
  Amortization expense                 2,594                3,516
  Stock-based compensation             7,582                5,457
                                   ---------            ---------
Adjusted EBITDA                    $  31,375            $  24,549
                                   =========            =========

Diluted net income per share
  GAAP                             $    0.20            $    0.16
  Non-GAAP                         $    0.32            $    0.30

Shares used to compute diluted net
 income per share                     53,844               51,802

(1) The estimated non-GAAP effective tax rate was 35% for the three months
 ended December 31, 2013 and 2012, respectively, and has been used to
 adjust the provision for income taxes for non-GAAP net income and non-GAAP
 diluted net income per share purposes.




                           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 in
 accordance with generally accepted accounting principles in the United
 States of America (or GAAP), Advent uses non-GAAP measures of continuing
 operations' gross margin, operating income, net income and net income per
 share, which are adjusted to exclude certain costs, expenses and income we
 believe appropriate 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 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 GAAP.

                                        Twelve Months Ended December 31
                                   ----------------------------------------
                                           2013                 2012
                                   -------------------  -------------------
                                              % of Net             % of Net
                                     Amount   Revenues    Amount   Revenues
                                   ---------  --------  ---------  --------

GAAP gross margin                  $ 263,238      68.7% $ 236,103      65.8%
  Amortization of acquired
   intangibles                         6,841                7,599
  Stock-based compensation             6,744                3,641
                                   ---------            ---------
Non-GAAP gross margin              $ 276,823      72.3% $ 247,343      68.9%
                                   =========            =========

GAAP operating income              $  46,132      12.0% $  49,179      13.7%
  Amortization of acquired
   intangibles                        10,616               11,424
  Stock-based compensation            48,179               20,801
  Restructuring charges                3,770                3,634
  Recapitalization costs               6,041                    -
  Transaction related fees               565                    -
                                   ---------            ---------
Non-GAAP operating income          $ 115,303      30.1% $  85,038      23.7%
                                   =========            =========

GAAP net income                    $  28,752            $  30,231
  Amortization of acquired
   intangibles                        10,616               11,424
  Stock-based compensation            48,179               20,801
  Restructuring charges                3,770                3,634
  Recapitalization costs               6,692                    -
  Transaction related fees               565                    -
  Income tax adjustment (1)          (27,892)             (11,868)
                                   ---------            ---------
Non-GAAP net income                $  70,682            $  54,222
                                   =========            =========

GAAP net income                    $  28,752            $  30,231
  Net interest                         6,949                1,732
  Provision for income taxes          10,167               17,328
  Depreciation expense                11,531               11,796
  Amortization expense                12,862               14,083
  Stock-based compensation            48,179               20,801
                                   ---------            ---------
Adjusted EBITDA                    $ 118,440            $  95,971
                                   =========            =========

Diluted net income per share
  GAAP                             $    0.54            $    0.58
  Non-GAAP                         $    1.32            $    1.03

Shares used to compute diluted net
 income per share                     53,378               52,425

(1) The estimated non-GAAP effective tax rate was 35% for the twelve months
 ended December 31, 2013 and 2012, respectively, and has been used to
 adjust the provision for income taxes for non-GAAP net income and non-GAAP
 diluted net income per share purposes.




                            ADVENT SOFTWARE, INC.
 RECONCILIATION OF PROJECTED CONTINUING OPERATIONS' GAAP OPERATING INCOME %
                       TO NON-GAAP OPERATING INCOME %
                         (Preliminary and unaudited)



Advent provides projections for the non-GAAP measure of its continuing
 operations' operating income percentage. This non-GAAP measure excludes
 certain costs and expenses which we believe is appropriate to enhance an
 overall understanding of our past financial performance and also our
 prospects for the future. Adjustments to our projected continuing
 operations' GAAP results are made with the intent of providing 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 projections are among the information
 management uses as a basis for 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.

                                      Twelve Months Ending December 31, 2014
                                              Continuing Operations
                                                Operating Income %
                                     ---------------------------------------

  Projected GAAP                         21.0%          to         21.5%
                                     =======================================

    Projected stock-based
     compensation adjustment                           8.0%
    Projected amortization of
     acquired developed technology
     and other acquired intangible
     asset adjustment                                  2.0%

                                     ---------------------------------------
  Projected non-GAAP                     31.0%          to         31.5%
                                     =======================================



Contact:

CONTACTS
Media Contact:
Amanda Diamondstein-Cieplinska
Advent Software, Inc.
(415) 645-1668
Email Contact

Investor Relations Contact:
Justin Ritchie
Advent Software, Inc.
(415) 645-1683
Email Contact