SS&C Announces Profit for Third Quarter 2000 ASP/BPO Revenue Up 238%.Business/Technology Editors WINDSOR, Conn.--(BUSINESS WIRE)--Oct. 25, 2000 SS&C Technologies, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : SSNC SSNC Swedish Society for Nature Conservation (Stockholm, Sweden) SSNC Signaling System Network Control SSNC Status, Entity Data Not Consistent (Alcatel) ) announced today results for the third quarter and nine months ended September 30, 2000. Third quarter 2000 total revenues were $15.3 million, as compared to $15.2 million in Q3 1999. Net income excluding non-recurring expenses for Q3 2000 was $1.2 million, or $0.07 earnings per share, as compared to a net loss of $2.1 million, or $0.14 diluted loss per share in Q3'99. As previously announced, during the third quarter 2000, SS&C recorded a performance payment, based upon certain revenue attainment goals, of $750,000 associated with the 1998 acquisition of Savid International. Including the performance payment, net income for Q3 2000 was $0.6 million, or $0.04 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . For the nine months ended September 30, 2000, total revenues were $45.8 million, compared to $51.3 million for the same period in 1999. Net income excluding non-recurring expenses for the nine months ended September 30, 2000 was $1.8 million, or $0.11 diluted earnings per share, compared with net loss excluding non-recurring expenses of $3.1 million, or $0.20 diluted loss per share, for the same period in 1999. Including the acquisition and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. related expenses, net income for the nine months ended September 30, 2000 was $1.3 million, or $0.08 diluted earnings per share, as compared with a net loss of $12.5 million, or $0.80 diluted loss per share for the same period in 1999. "We are pleased to announce continued progress, highlighted by 238% growth in our ASP/BPO (Application Service Provider/Business Process Outsourcing) business, and pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.07 for the third quarter 2000. We also increased our cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has position to $60.7 million, or $3.81 per share. This number is up $3.4 million, or $0.21 per share in the third quarter, and $10.4 million, or $0.65 per share year-to-date. We continue to believe our shares are undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. , and we have continued to repurchase shares - a total of 385,000 shares during the third quarter. We expect to continue to buy back shares going forward," said William C. Stone, President, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , and Chairman of the Board of SS&C. "We are executing our planned marketing campaigns, which include ongoing direct-mail efforts for our SS&C DirectSM and SKYLINE(R) II businesses, radio advertising on Bloomberg radio in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , and a new SS&C Direct print campaign highlighting our `Build Business, Not Infrastructure' tagline. We continue to accelerate our ASP/BPO business, and we have made some positive inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ in the European and Asian markets," continued Stone. "In addition, we are generating positive cash flow and making progress in a soft client/server license business." ASP/BPO Business Continues Growth - Revenues Up 238% SS&C saw substantial revenue growth from its ASP/BPO business, SS&C Direct. SS&C Direct's revenue increased to $1.7 million, versus $.5 million in Q3'99, an increase of 238%. Total SS&C Direct revenue for the nine months ended September 30, 2000 was $4.2 million, versus $1.9 million for the same period in 1999, an increase of 123%. "Our ASP/BPO business continues to see significant growth as an alternative delivery mechanism to licensing our software. Difficulties hiring, training, and retaining talent among clients and prospective clients plays to our strengths and Best Practices processes. We believe this business will become profitable sometime within the next two quarters," Stone continued. Hedge Fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" and Private Wealth Business Sees Steady Growth Demonstrating its commitment to the Hedge Fund and Private Wealth markets, SS&C announced the appointment of Scott Alderson as Vice President and Director of its Hedge Fund & Family Wealth products, and named Gary Mills Gary Mills is the name of:
LLC - Logical Link Control of White Plains, NY, an independent provider of consulting and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services to the Hedge Fund and Private Wealth community. SS&C enjoyed continued steady growth in its Hedge Fund and Private Wealth business, and during the quarter presented to more than 200 hedge funds at the MAR/Hedge conference in Bermuda. International Growth Highlighted by New Malaysian Client Tabung Haji Tabung Haji or Lembaga Tabung Haji (Malay Jawi: تابوڠ حاج ; Arabic please fill in) is the Malaysian hajj pilgrims fund board. It was formerly known as Lembaga Urusan dan Tabung Haji (LUTH). During the quarter, SS&C added two new Malaysian clients; Kuala Lumpur-based Lembaga Tabung Haji licensed SS&C's CAMRA 2000(TM) and Antares 2000(TM) systems, and Selangor-based MCIS (Microsoft Commercial Internet System) A family of Web server software products from Microsoft that runs on Windows NT and works with Internet Information Server (IIS). Insurance Berhad licensed CAMRA 2000. Lembaga Tabung Haji is a leading provider of savings and investments for the Muslim investment community, with approximately US$2.1 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . "Establishing a relationship with such a prestigious investment operation as Tabung Haji is a major milestone in SS&C's presence in the Southeast Asian marketplace," commented Stone. "Two new licenses from this marketplace also presents us with further evidence of market potential in Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. ." In July, SS&C announced the appointment of Jerrold M. Shames as Managing Director of EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. operations. Shames has taken measures to add sales staff in the region and bolster the sales pipeline. "As we have stated, we have a high level of confidence in Jerry's management and sales abilities. He has made significant inroads in jumpstarting our efforts in the EMEA region, and we are pleased with our prospects," said Stone. New Licenses for LMS 2000(TM) and SKYLINE(R) II Loan and Property Management Systems SS&C's LMS 2000 and SKYLINE II systems for mortgage loan management and property management, remain market leaders. During the third quarter, Lincoln Investment Group, a subsidiary of Philadelphia-based Lincoln National Corporation Lincoln National Corporation (NYSE: LNC) is a holding company, which operates multiple insurance and investment management businesses through subsidiary companies. LNC was organized under the laws of the state of Indiana in 1968, and maintains its principal executive offices (NYSE NYSE See: New York Stock Exchange : LNC LNC Legal Nurse Consultant LNC Libertarian National Committee LNC Low Noise Converter LNC Lloyd Noble Center (University of Oklahoma, Norman campus) LNC Local Node Clock LNC Chief Legalman (Naval Rating) ), selected SS&C's LMS 2000 to manage approximately $5 billion in mortgage loans. Also in the third quarter, SS&C initiated its Client Service Excellence Program for LMS 2000 clients, aimed at raising client service to exceptional standards and assisting clients in their transition from its legacy FILMS 2000(TM) and MLMS MLMS Mount Logan Middle School MLMS Multipurpose Lightweight Missile System MLMS Multiple-Training Least Mean Squares (TM) systems to LMS 2000. Also, during the third quarter 2000, SS&C sold ninety-nine copies of the SKYLINE II system. Increased Focus on DFA DFA - Deterministic Finite-state Automaton. See Finite State Machine. and Capital Planning Boosts Analytics Business SS&C's Analytics business has benefited from the property-casualty insurance industry's increased attention to capital management and Dynamic Financial Analysis (DFA). The Company's Finesse 2000(TM) product is one of the most complete DFA decision support systems on the market. DFA enables insurers to simultaneously analyze the impact of multiple risks and forecast their financial condition and performance in today's changing business environment. During the quarter, SS&C licensed Finesse 2000 to the Insurance Services Office Insurance Services Office, Inc. (ISO) is a provider of data, underwriting, risk management and legal/regulatory services to property-casualty insurers and other clients. Headquartered in Jersey City, New Jersey, the organization serves clients with offices throughout the United , Inc. (ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. ). SS&C intends to work with the ISO to integrate ISO's proprietary Underwriting Model and incorporate their loss and exposure data into the product. Working with another strategic partner, SS&C recently announced that Finesse 2000 will now incorporate industry benchmark data distributed by A.M. Best Company. Also during the quarter, Ernst & Young LLP LLP - Lower Layer Protocol renewed its licenses for both PTS PTS put to sleep; a common euphemism for euthanasia, but also used to describe general anesthesia. 2000(TM) and Finesse 2000 and now has more than one hundred actuaries using these products. Acquisition Performance Payments SS&C acquired Mabel Systems B.V. in 1997 and Savid International in 1998. As previously disclosed, the Company was obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to certain performance payments based upon attainment of specified revenue targets. As a result, SS&C recorded charges of $750,000 during the third quarter and expects to record an additional charge of approximately $1.3 million in Q4'00. Earnings Call and Webcast SS&C's Q3'00 earnings call will take place at 5:30 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today, October 25, 2000. Interested parties may dial 800-230-1092 (US) or 612-332-0630 (international), and request the "SS&C Third Quarter Earnings Call." The call will be accompanied by a Webcast, which can be accessed at SS&C's Web site, www.ssctech.com/investor.asp , or at www.streetfusion.com; log on to the Webcast five to ten minutes before the Webcast. The Webcast will be accessible for one month following the call. A replay of SS&C's teleconference can be heard after 9:00 p.m. on October 25, until midnight on November 1, 2000. Dial-in numbers are 800-475-6701 (US), or 320-365-3844, (international), access code 542548. About SS&C Technologies, Inc. Headquartered in Windsor, Connecticut Windsor was the first English settlement in the State of Connecticut, the 5th Colony to receive Statehood in the United States of America. Windsor is a suburban community in Hartford County, adjacent to the north to Connecticut's Capital, Hartford, with a relatively diverse , with offices in the U.S., Canada, Europe, and Asia, SS&C (Nasdaq: SSNC) is a leading provider of financial software solutions, services, and expertise to asset managers worldwide. SS&C primarily targets its products and services to large-scale, sophisticated investment enterprises. Clients use SS&C's trading, accounting, reporting, and analysis solutions to manage, in aggregate, more than $3 trillion in assets. This document contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc SS&C's expected marketing plans, the acceleration of SS&C's ASP/BPO business, including the expected profitability of such business, SS&C's business in EMEA, the integration of ISO's Underwriting Model into Finesse 2000 and incorporation of ISO's loss and exposure data into such product, and the attainment of performance targets in connection with the Mabel Acquisition. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, fluctuations in customer demand, the timing, size, and nature of ASP/BPO transactions, intensity of competition from other vendors, timing and acceptance of new product introductions, delays in implementing the Company's Internet initiatives, continued acceptance of existing products, and general economic and industry conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999. SS&C assumes no obligation to update any forward-looking statements. SKYLINE is a registered trademark, CAMRA 2000, Antares 2000, Finesse 2000, PTS 2000, LMS 2000, MLMS, and FILMS 2000 are trademarks, and SS&C Direct is a service mark of SS&C Technologies, Inc. Other names may be trademarks of their respective holders.
SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
(unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
Revenues:
Software licenses $4,507 $3,029 $12,713 $15,418
Maintenance and other
recurring revenues 6,373 6,731 19,544 18,979
Professional services 2,740 4,967 9,411 15,031
Outsourcing 1,692 501 4,167 1,868
Total revenues 15,312 15,228 45,835 51,296
Cost of revenues:
Software licenses 227 1,121 722 3,211
Maintenance and other
recurring revenues 1,573 1,315 4,878 4,436
Professional services 1,915 3,617 7,005 10,772
Outsourcing 1,721 918 4,850 2,603
Total cost of revenues 5,436 6,971 17,455 21,022
Gross profit 9,876 8,257 28,380 30,274
Operating expenses:
Selling and marketing 2,814 4,261 9,277 13,501
Research and development 3,380 4,837 11,190 14,239
General and administrative 2,843 4,107 8,277 10,324
Litigation settlement
costs / special charges 750 -- 750 9,330
Total operating expenses 9,787 13,205 29,494 47,394
Operating income (loss) 89 (4,948) (1,114) (17,120)
Interest income, net 815 660 2,121 1,754
Other income, net 41 (49) 811 329
Income (loss) before
income taxes 945 (4,337) 1,818 (15,037)
Provision (benefit)
for income taxes 311 (2,224) 564 (2,568)
Net income (loss) $634 $(2,113) $1,254 $(12,469)
Basic earnings (loss)
per share $0.04 $(0.14) $0.08 $(0.80)
Basic weighted average
number of common
shares outstanding 15,867 15,643 16,005 15,550
Diluted earnings
(loss) per share $0.04 $(0.14) $0.08 $(0.80)
Diluted weighted average
number of common
and common equivalent
shares outstanding 15,922 15,643 16,047 15,550
Net income (loss) excluding
non-recurring
expenses (1) $1,152 $(2,113) $1,772 $(3,139)
Diluted earnings (loss)
per share excluding
non-recurring expenses $0.07 $(0.14) $0.11 $(0.20)
(1)Net income for the quarter and six months ended September 30, 2000
is calculated excluding acquisition related expenses. Net loss for
the nine months ended September 30, 1999 is calculated excluding
litigation settlement expenses.
SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
(unaudited)
Sept. 30, Dec. 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 9,057 $ 14,304
Investments in marketable securities 51,677 36,034
Accounts receivable, net 10,861 11,079
Income taxes receivable 167 2,722
Prepaid expenses and other current assets 2,255 2,360
Deferred income taxes 3,314 4,271
Total current assets 77,331 70,770
Property and equipment:
Building and leasehold improvements 2,978 2,872
Equipment, furniture and fixtures 15,331 14,145
18,309 17,017
Less accumulated depreciation (9,650) (7,105)
Net property and equipment 8,659 9,912
Accounts receivable 229 301
Deferred income taxes 7,613 7,211
Goodwill, net 145 296
Intangible and other assets, net 2,142 1,227
Total assets $ 96,119 $ 89,717
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 131 $ 131
Accounts payable 1,595 1,503
Accrued employee compensation and benefits 1,514 1,695
Other accrued expenses 1,406 2,459
Deferred maintenance and other revenues 11,406 11,376
Total current liabilities 16,052 17,164
Total liabilities 16,052 17,164
Stockholders' equity 80,067 72,553
Total liabilities and stockholders' equity $ 96,119 $ 89,717
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion