QUOTE AND NEWS
Benzinga  Feb 3  Comment 
SS&C Technologies Holdings Inc (NASDAQ: SSNC) gained more than 9 percent Tuesday after it predicted 2016 earnings well ahead of Wall Street's expectations. SS&C, which unveiled plans Monday to acquire Advent Software, Inc. (NASDAQ: ADVS) for...
TheStreet.com  Feb 3  Comment 
Shares of SS&C Technologies Holdings Inc. jumped in Tuesday morning trading after the financial software group said it would pay $2.7 billion for investment management applications developer Advent Software Inc. SS&C shares rose $5, or more...
TheStreet.com  Feb 3  Comment 
NEW YORK (TheStreet) -- Advent Software shares are up 5.57% to $43.69 in trading on Tuesday after the investment management work flows, data software and service provider was purchased by rival SS&C Technologies for about $2.7 billion...
Benzinga  Feb 3  Comment 
Advent Software, Inc. (NASDAQ: ADVS) surged 5.56% to $43.69. The volume of Advent Software shares traded 4246% higher than normal. SS&C Technologies Holdings announced its plans to acquire Advent Software for $2.7 billion in cash. Esperion...
Benzinga  Feb 3  Comment 
Analysts at Credit Suisse downgraded Hornbeck Offshore Services, Inc. (NYSE: HOS) from Outperform to Neutral. The price target for Hornbeck Offshore has been lowered from $36 to $18. Hornbeck Offshore's shares closed at $23.63...
Motley Fool  Feb 2  Comment 
The investment-management software-services company continues to do well, but a buyout could leave shareholders out of any future growth.
New York Times  Feb 2  Comment 
By buying Advent, SS&C will gain a big provider of software used by 4,300 investment fund managers, including hedge funds and family offices.
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...




 
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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