QUOTE AND NEWS
Reuters  Jan 28  Comment 
Bullish activity in Advent Software Inc's options surged weeks ahead of a report on Wednesday that U.S. financial software company SS&C Technologies Holdings Inc plans to buy...
Reuters  Jan 28  Comment 
Financial software company SS&C Technologies Holdings Inc is in talks to buy accounting software maker Advent Software Inc for about $2.3 billion, Bloomberg reported, citing a...
TheStreet.com  Jan 28  Comment 
NEW YORK (TheStreet) --Shares of Advent Software Inc. are higher by 7.63% to $40.79 on heavy volume in mid-afternoon trading on Wednesday, due to a Bloomberg report suggesting SS&C Technologies Holdings Inc. is interested in buying the...
MarketWatch  Jan 28  Comment 
Shares of Advent Software Inc. were up about 7% in afternoon trade Wednesday, after a report that it could be a takeover candidate. SS&C Technology Holdings Inc. , which provides software for the financial services industry, is looking to acquire...
Benzinga  Jan 15  Comment 
Advent Software, Inc. (NASDAQ: ADVS) shares reached a new 52-week high of $35.71. Advent Software's trailing-twelve-month operating margin is 21.59%. Neurocrine Biosciences Inc. (NASDAQ: NBIX) shares rose 1.68% to touch a new 52-week high of...
Forbes  Dec 26  Comment 
Looking at the universe of stocks we cover at Dividend Channel, on 12/30/14, Monotype Imaging Holdings Inc (NASD: TYPE), Atlantic Tele-Network, Inc. (NASD: ATNI), and Advent Software, Inc. (NASD: ADVS) will all trade ex-dividend for their...
Mondo Visione  Nov 18  Comment 
Further securing its position as a leading provider of global risk analysis and management solutions, Investor Analytics LLC today announced a significant new partnership with Advent Software – empowering customers with a highly integrated...




 
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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