SS&C Posts Strong Results; Q1 GAAP EPS up 200% to $0.18 vs. $0.06 in Q1 2002.Business Editors/High-Tech Writers WINDSOR Windsor, British royal family Windsor (wĭn`zər), family name of the royal house of Great Britain. The name Wettin, family name of Albert of Saxe-Coburg-Gotha, consort of Queen Victoria, was changed to Windsor by George V in 1917. , Conn.--(BUSINESS WIRE)--April 16, 2003 SS&C Technologies, Inc. (Nasdaq: SSNC SSNC Swedish Society for Nature Conservation (Stockholm, Sweden) SSNC Signaling System Network Control SSNC Status, Entity Data Not Consistent (Alcatel) ) today announced results for the quarter ended March 31, 2003. Revenues were $15.7 million compared with $15.2 million for the first quarter of 2002. Net income was $2.3 million, or $0.18 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 , compared with $0.9 million, or $0.06 diluted earnings per share, for the first quarter of 2002. Included in the first quarter of 2002 was an IPR&D charge of $1.7 million. "We are pleased to announce first quarter earnings of $0.18 per share," remarked 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. Bill Stone. "Our ability to significantly increase our profits over last year's first quarter in today's tough market indicates that our strategies remain on target. Our recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue streams continue to grow and our recent acquisitions are showing positive results." Revenue, Balance Sheet, Cash Flow and Operating Earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before Strong "Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in Q1 was $3.6 million, up from $0.7 million in Q1 2002, an increase of 439%," said Stone. "Total revenues increased 3% in the period. Maintenance revenues, however, increased by 12% and we have over $18 million of deferred revenue on our balance sheet. Our annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on equity for the first quarter was 16%. We continue to manage expenses wisely and are close to completing the consolidation efforts related to our acquisitions." "Our balance sheet remains healthy and we are generating strong cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses ," said Stone. "Total cash, cash equivalents and investments in 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 at quarter end were $48.4 million. We increased cash and marketable securities by $8.2 million, or $0.65 per basic share, excluding stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. of $1.9 million and proceeds from option exercises of $0.4 million. Our strong cash position of $3.84 per share gives us the capacity to aggressively pursue accretive acquisitions Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. , which add to our value and reinforce our recurring revenue model." "At present, we expect Q2 2003 revenues to be in the range of $16.0 to $17.0 million and net income to be between $0.18 and $0.20 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share," stated Stone. "For 2003, we anticipate revenue will be between $65 and $70 million and diluted earnings per share between $0.77 and $0.82." First Quarter Highlights SS&C Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. Norm Boulanger Bou·lan·ger , Nadia Juliette 1887-1979. French music teacher of several modern American composers, including Virgil Thomson and Aaron Copland. praised the performance of the municipal finance group, which was just acquired last November November: see month. . "The transition after the DBC See dBA. (language, parallel) DBC - A data-parallel bit-serial C based on MPL. SRC, Bowie MD. E-mail: <maya@super.org>. transaction has gone smoothly," said Boulanger. "The group has made an immediate contribution and remains focused on serving its clients. We quickly reached out to this new market segment and have had good feedback right out of the box." With respect to other markets, Boulanger remarked, "Performance was balanced. Our 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" business had a solid quarter and added Andor Andor may refer to:
The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real system to our LMS (Learning Management System) An information system that administers instructor-led and e-learning courses and keeps track of student progress. Used internally by large enterprises for their employees, an LMS can be used to monitor the effectiveness of the loan management system. We also launched a new reporting and data visualization See information visualization. tool for actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin software called AnalyticsExpress and signed several clients to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. deals. At the beginning of April, we entered into an agreement to distribute LiveVault, a new online data backup and recovery service, with our products. We expect this service to be a nice complement to our product lines." Earnings Call SS&C's Q1 2003 earnings call will take place at 6:00 p.m. Eastern Time today, April 16, 2003. Interested parties may dial 706-643-7858 (US, Canada and International) and request the "SS&C First Quarter Earnings Call". A replay will be available by dialing 706-645-9291 and entering the access code 9530986 after 9:00 p.m. today until April 30, 2003. A replay of the call will also be available after April 22, 2003 on our website at www.ssctech.com/about/earnings.asp. This press release contains 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 , among other things, the Company's expected revenues and earnings per share for the second quarter and full year of 2003. Such statements reflect management's best judgment based on factors currently known but 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, the Company's ability to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... large client contracts, fluctuations in customer demand for the Company's products and services, intensity of competition from other application vendors, terrorist activities, delays in product development, the Company's ability to control expenses, general economic and industry conditions, and those risks described 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, 2002. SS&C cautions investors that it may not update any or all of the foregoing forward-looking statements.
SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
(unaudited)
Three Months Ended
March 31, March 31,
2003 2002
Revenues:
Software licenses $3,382 $3,205
Maintenance 7,618 6,815
Professional services 1,657 1,940
Outsourcing 3,081 3,255
Total revenues 15,738 15,215
Cost of revenues:
Software licenses 519 323
Maintenance 1,488 1,430
Professional services 1,154 1,392
Outsourcing 1,982 2,152
Total cost of revenues 5,143 5,297
Gross profit 10,595 9,918
Operating expenses:
Selling and marketing 2,105 2,660
Research and development 3,003 2,861
General and administrative 1,922 1,992
Write-off of purchased in-process
research and development - 1,744
Total operating expenses 7,030 9,257
Operating income 3,565 661
Interest income, net 249 442
Other income, net 5 455
Income before income taxes 3,819 1,558
Provision for income taxes 1,490 623
Net income $2,329 $935
Basic earnings per share $0.18 $0.07
Basic weighted average number of common
shares outstanding 12,616 13,905
Diluted earnings per share $0.18 $0.06
Diluted weighted average number of common
and common equivalent shares outstanding 13,235 14,436
SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, December 31,
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $21,561 $18,336
Investments in marketable securities 26,883 23,383
Accounts receivable, net 12,324 10,983
Prepaid expenses and other current assets 810 1,065
Deferred income taxes 1,064 1,142
Total current assets 62,642 54,909
Property and equipment, net 5,284 5,745
Deferred income taxes 6,731 6,762
Intangible and other assets, net 7,684 8,064
Total assets $82,341 $75,480
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $561 $844
Income taxes payable 1,915 646
Accrued employee compensation and benefits 1,314 3,462
Other accrued expenses 1,919 2,044
Deferred maintenance and other revenue 18,474 11,214
Total current liabilities 24,183 18,210
Total liabilities 24,183 18,210
Total stockholders' equity before treasury
stock 95,759 92,992
Less: cost of common stock in treasury 37,601 35,722
Total stockholders' equity 58,158 57,270
Total liabilities and stockholders'
equity $82,341 $75,480
SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three months ended
March 31, March 31,
2003 2002
Cash flow from operating activities:
Net income $2,329 $935
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 934 1,091
Net realized gains on equity investments (2) (486)
Loss on sale of property and equipment 1 1
Deferred income taxes 108 172
Purchased in-process research and
development - 1,744
Provision for doubtful accounts 348 146
Changes in operating assets and
liabilities, excluding effects
from acquisitions:
Accounts receivable (1,683) (1,704)
Prepaid expenses and other assets 265 268
Accounts payable (283) (169)
Accrued expenses (2,280) (1,733)
Taxes payable 1,265 (347)
Deferred maintenance and other
revenues 7,251 5,742
Total adjustments 5,924 4,725
Net cash provided by operating activities 8,253 5,660
Cash flow from investing activities:
Additions to property and equipment (105) (132)
Cash paid for business acquisitions, net
of cash acquired - (3,943)
Purchases of marketable securities (8,951) (5,526)
Sales of marketable securities 5,421 3,713
Net cash used in investing activities (3,635) (5,888)
Cash flow from financing activities:
Repayment of debt and acquired debt - (146)
Exercise of options 384 430
Purchase of common stock for treasury (1,879) (12,139)
Net cash provided used in financing
activities (1,495) (11,855)
Effect of exchange rate changes on cash 102 (45)
Net increase (decrease) in cash and cash
equivalents 3,225 (12,128)
Cash and cash equivalents, beginning of period 18,336 28,425
Cash and cash equivalents, end of period $21,561 $16,297
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