QUOTE AND NEWS
TheStreet.com  Jul 29  Comment 
NEW YORK (TheStreet) -- Shares of Advent Software  are surging 8.28% to $33.82 today to a six month high after posting upbeat second quarter results. The company reported non-GAAP net income for the latest second quarter of $20.3 million, or 38...
Market Intelligence Center  Jul 29  Comment 
After closing Monday at $31.23, Advent Software Inc (ADVS) presents an attractive opportunity to get a 5.89% return in just 116 days, which is an annualized return of 18.55% (for comparison purposes only). To enter this trade, sell one Nov. '14...
SeekingAlpha  Jul 29  Comment 
Advent Software, Inc. (NASDAQ:ADVS) Q2 2014 Earnings Conference Call July 28, 2014 5:00 PM ET Executives Justin Ritchie – Senior Director-Investor Relations David Peter F. Hess Jr. – President and Chief Executive Officer ...
SeekingAlpha  Jul 28  Comment 
The following audio is from a conference call that will begin on July 28, 2014 at 17:00 PM ET. The audio will stream live while the call is active, and can be replayed upon its completion. Listen now Complete Story »
Market Intelligence Center  Jun 13  Comment 
Advent Software Inc (ADVS) traded between $30.40 and $30.93 before closing at $30.51 Thursday and presents some attractive trading opportunities today. MarketIntelligenceCenter.com’s patented algorithms selected a Aug. '14 $30.00 covered call...
DailyFinance  Jun 4  Comment 
Assets on the Platform More Than Triple Since 2011 AcquisitionSAN FRANCISCO, CA -- (Marketwired) -- 06/04/14 -- Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services for the global investment management industry, today...
DailyFinance  Jun 3  Comment 
Advent Portfolio Exchange(R) Recognized as "Best Client Reporting Solution"SAN FRANCISCO, CA -- (Marketwired) -- 06/03/14 -- Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services for the global investment management...
DailyFinance  May 29  Comment 
Industry Leader Recognized by Hedgeweek Readers for Alternatives SolutionSAN FRANCISCO, CA -- (Marketwired) -- 05/29/14 -- Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services for the global investment management...
DailyFinance  May 28  Comment 
Advent Direct(R) Community Contributes to Product EnhancementsSAN FRANCISCO, CA -- (Marketwired) -- 05/28/14 -- Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the global investment management industry, today...
DailyFinance  May 20  Comment 
SAN FRANCISCO, CA -- (Marketwired) -- 05/20/14 -- Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services for the global investment management industry, today announced that McGladrey Wealth Management LLC, an...




 
TOP CONTRIBUTORS

Advent Software (NASDAQ: ADVS) produces software for investment management organizations and offers dozens of software products in addition to customized packages for individual clients.

Business Overview

ADVS's revenues flow from the sale of its software products - the more customers it wins, the higher its top-line revenues. The company spent $48.4 million on product development in 2009, which helped to build enhancements to preexisting software as well as new software products.[1]

Advent's most popular software products are "Advent Portfolio Exchange" ("APX") and "Geneva." APX is a portfolio management product that allows multiple users in a firm to manage client holdings, completes back-office operations like accounting, and provides reports through a web-based user interface. Targeted more towards hedge funds and larger asset managers, Geneva provides users portfolio management, accounting, reporting, and other relevant services for their daily activities.[2]

In order to better predict its revenue stream for future years, Advent converted the majority of its software contracts to long-term licenses, most of which are about 3 years long.[1]

Business & Financial Metrics[3]

In 2009, ADVS earned a net income of $36.9 million on $259.5 million in total revenues. This represents a 95.2% increase in net income on a 9.1% increase in revenues from 2008, when the company earned $18.9 million on revenues of $237.9 million. This significant increase in operating margin came from the reappearance of customer demand after the slow quarters following the American financial crisis. In addition, the acquisition of Tamale, the company behind research software "Tamale RMS," made a positive impact on Advent's profitability.[4]

Business Segments

Advent operates in a single reportable business segment. The company derives most of its revenues (37.9% in 2009) from licensing its software products.[5]

IMAGE:ADVS-Segments2009.jpg[5]

Key Trends & Forces

Demand is linked to financial services and general economy

Because Advent's software is sold to financial firms, the health of the financial services sector directly impacts Advent's revenue stream - when the American financial crisis hit, for example, new customer acquisition nearly halted and contract renewals dropped. When the sector performed better in 2010, however, the company saw the resurgence of demand for its software.[4]

The "software as a service" product model is gaining popularity

Advent's most popular products, Geneva and Advent Portfolio Exchange, follow the traditional software model; they must be installed on a computer to be used and save files locally. Companies like Google are pushing consumers and businesses alike towards cloud computing software. This software does not require installation but instead is accessed remotely from any computer with an internet connection.

Advent has developed Advent OnDemand as a cloud computing alternative to its other products.[4]

Competition[6]

Advent's primary competition actually comes from its own potential clients; because so many financial service companies develop their own proprietary software to meet their specific needs, Advent sometimes has trouble persuading target clients to switch out the software they developed themselves (often at great expense) to license its own software.

Other financial services software companies with which Advent competes include:

References

  1. 1.0 1.1 ADVS 2009 10-K pg. 13  
  2. ADVS 2009 10-K pg. 8  
  3. ADVS 2009 10-K pg. 35  
  4. 4.0 4.1 4.2 Advent Software, Inc. Q4 2009 Earnings Call Transcript. Seeking Alpha (February 1, 2010).
  5. 5.0 5.1 ADVS 2009 10-K pg. 39  
  6. ADVS 2009 10-K pg. 14  
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