SS&C Technologies Announces Q3 Numbers.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. -- 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) ) today announced results for the quarter ended September September: see month. 30, 2005. Q3 revenues were $46.1 million, up from $25.2 million for Q3 2004. Net income and 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. for Q3 2005 were $7.0 million and $11.9 million, respectively, increases of 44% and 59% from the $4.8 million and $7.5 million for the third quarter of last year. 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 Q3 were $0.28, 40% higher than the $0.20 diluted earnings per share for the same period in 2004. Merger costs related to the pending sale of SS&C were $0.04 per diluted earnings per share in the quarter. Bill Stone, SS&C's Chairman and 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. , said, "We are pleased with our third quarter numbers. We had solid revenues in all segments. In Q3, license revenues were $7.6 million, up 84% over Q3 last year. 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. revenues, which includes both maintenance and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. revenues, grew to $34.9 million, an increase of 93% over the $18.1 million in Q3 2004." Stone continued, "In all business lines, we are seeing positive results from both organic growth and acquisitions. In Q3 2005, several of our products recorded an increase in license revenue over Q3 2004, including CAMRA, 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 , SKYLINE, Antares Antares (ăntâr`ēz), brightest star in the constellation Scorpius; Bayer designation Alpha Scorpii; 1992 position R.A. 16h27.6m, Dec. −26°22'. , Altair Altair (ăltä`ĭr), brightest star in the constellation Aquila (Eagle); Bayer designation α Aquilae; 1992 position R.A. 19h50.5m, Dec. +8°51'. Its apparent magnitude is 0. , Sylvan sylvan emanating from or pertaining to woods. See also sylvatic. , and FundRunner." "This quarter, we reached a new benchmark A performance test of hardware and/or software. There are various programs that very accurately test the raw power of a single machine, the interaction in a single client/server system (one server/multiple clients) and the transactions per second in a transaction processing system. in outsourcing revenues at $21.6 million, a 153% increase over Q3 2004," said Stone. "Outsourcing revenues are growing organically and through acquisitions, as asset managers and hedge funds 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" continue to recognize the benefits of outsourcing their back-offices. Growth can be attributed primarily to FMC's outsourcing business, and fund administration services we provide to hedge funds." "In Q3 we continued to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution on integrating our acquisitions and implementing economy-of-scale initiatives," said Stone. "Our focus is on managing our expenses closely and implementing operational efficiencies. As a result, our Q3 net income increased to $7.0 million, a 44% increase over the $4.8 million in Q3 last year; and Q3 operating income rose by 59% over Q3 2004 to $11.9 million." Earnings Call SS&C's Q3 2005 earnings call will take place at 5:00 p.m. Eastern Time today, October October: see month. 20, 2005. The call will discuss Q3 results and the current status of the Carlyle transaction. Interested parties may dial 706-643-7858 (US, Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and International) and request the "SS&C Third Quarter Earnings Call", conference ID #1420935. A replay will be available after 8:00 pm on October 20, until midnight on November November: see month. 20, 2005. To hear the replay, dial 706-645-9291 and enter the access code 1420935. A replay of the call will also be available after October 21, 2005 on our website at www.ssctech.com/about/investor.asp#c. Important Additional Information Filed with the SEC On October 19, 2005, SS&C Technologies, Inc. filed a definitive proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. with the SEC in connection with the proposed merger transaction. SS&C is mailing the proxy statement to its stockholders on or about October 21, 2005. The proxy statement contains important information about SS&C, the merger, and related matters. Investors and security holders are urged to read the proxy statement. Investors and security holders may obtain free copies of the proxy statement and other documents filed with the SEC by SS&C through the web site maintained by the SEC at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . In addition, investors and security holders may obtain free copies of the proxy statement from SS&C by contacting Investor Relations Investor relations The process by which the corporation communicates with its investors. , SS&C Technologies, Inc., 80 Lamberton Lamberton can refer to: People
The Company and its directors and executive officers may be deemed to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies in respect of the transactions contemplated by the merger agreement. Information regarding the Company's directors and executive officers is contained in 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 December: see month. 31, 2004 and its proxy statement dated April 26, 2005, which are filed with the SEC. Additional information regarding the interests of the potential participants is included in the merger proxy statement and other relevant documents on file with the SEC.
SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
(unaudited)
Three Months Nine Months
Ended Ended
Sep- Sep- Sep- Sep-
tember tember tember tember
30, 30, 30, 30,
2005 2004 2005 2004
-------- ------ -------- -------
Revenues:
Software licenses $7,567 $4,116 $17,884 $12,444
Maintenance 13,263 9,521 35,067 26,742
Professional services 3,633 2,973 9,565 7,550
Outsourcing 21,647 8,553 51,723 22,100
------- ------- -------- --------
Total revenues 46,110 25,163 114,239 68,836
------- ------- -------- --------
Cost of revenues:
Software licenses 913 600 2,267 1,630
Maintenance 3,199 2,173 8,224 6,162
Professional services 2,171 1,769 6,377 4,842
Outsourcing 12,958 4,613 28,808 11,701
------- ------- -------- --------
Total cost of revenues 19,241 9,155 45,676 24,335
------- ------- -------- --------
Gross profit 26,869 16,008 68,563 44,501
------- ------- -------- --------
Operating expenses:
Selling and marketing 4,167 2,844 10,540 7,791
Research and development 5,772 3,703 15,195 10,211
General and administrative 3,820 1,947 9,814 5,785
Merger costs related to
the pending sale of SS&C 1,171 - 1,171 -
------- ------- -------- --------
Total operating expenses 14,930 8,494 36,720 23,787
------- ------- -------- --------
Operating income 11,939 7,514 31,843 20,714
Interest income (expense) (677) 472 (556) 837
Other income (expense), net 211 (5) 326 (21)
------- ------- -------- --------
Income before income taxes 11,473 7,981 31,613 21,530
Provision for income taxes 4,478 3,138 12,060 8,504
------- ------- -------- --------
Net income $6,995 $4,843 $19,553 $13,026
======= ======= ======== ========
Basic earnings per share $0.30 $0.21 $0.84 $0.63
======= ======= ======== ========
Basic weighted average number of
common shares outstanding 23,533 23,019 23,232 20,525
======= ======= ======== ========
Diluted earnings per share $0.28 $0.20 $0.80 $0.60
======= ======= ======== ========
Diluted weighted average number of
common and common equivalent shares
outstanding 24,729 24,176 24,408 21,873
======= ======= ======== ========
SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
(unaudited)
September December
30, 31,
2005 2004
--------------------
ASSETS
Current assets:
Cash and cash equivalents $14,853 $28,913
Investments in marketable securities 8,700 101,922
Accounts receivable, net 31,967 13,545
Prepaid expenses and other current assets 3,499 1,607
--------------------
Total current assets 59,019 145,987
Property and equipment, net 10,727 5,353
Deferred income taxes - 5,894
Intangible and other assets, net 238,882 28,429
--------------------
Total assets $308,628 $185,663
====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long term debt $17,018 $-
Accounts payable 3,732 1,073
Income taxes payable 651 609
Accrued employee compensation and benefits 7,167 6,248
Other accrued expenses 6,240 3,549
Deferred income taxes 735 188
Dividend payable - 1,850
Deferred maintenance and other revenue 24,875 16,052
--------------------
Total current liabilities 60,418 29,569
Long-term debt 50,000 -
Deferred income taxes 7,761 -
--------------------
Total liabilities 118,179 29,569
--------------------
Total stockholders' equity before treasury stock 249,453 209,514
Less: cost of common stock in treasury 59,004 53,420
--------------------
Total stockholders' equity 190,449 156,094
--------------------
Total liabilities and stockholders' equity $308,628 $185,663
====================
SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine months ended
------------------
Sep- Sep-
tember tember
30, 30,
2005 2004
------------------
Cash flow from operating activities:
Net income $19,553 $13,026
------------------
Adjustments to reconcile net income to net cash
provided
by operating activities:
Depreciation and amortization 7,277 3,322
Amortization of loan origination costs 59 -
Net realized losses (gains) on equity
investments (197) 26
Loss (gain) on sale or disposal of property and
equipment 15 (7)
Deferred income taxes 650 970
Income tax benefit related to exercise of stock
options 2,375 2,409
Provision for doubtful accounts 930 (168)
Changes in operating assets and liabilities
excluding effects
from acquisitions:
Accounts receivable (8,143) 522
Prepaid expenses and other assets (343) 232
Accounts payable 801 (382)
Accrued expenses (2,506) 813
Taxes payable 578 (58)
Deferred maintenance and other revenues (9) (1,271)
------------------
Total adjustments 1,487 6,408
------------------
Net cash provided by operating activities 21,040 19,434
------------------
Cash flow from investing activities:
Additions to property and equipment (2,092) (588)
Proceeds from sale of property and equipment 3 7
Cash paid for business acquisitions, net of
cash acquired (183,604) (23,540)
Cash paid for long-term investment (2,000) -
Purchases of marketable securities (88,250)(112,889)
Sales of marketable securities 181,037 50,708
------------------
Net cash used in investing activities (94,906) (86,302)
------------------
Cash flow from financing activities:
Repayment of debt and acquired debt (8,013) -
Net proceeds from note payable 75,000 -
Issuance of common stock 343 74,627
Exercise of options 2,279 1,897
Purchase of common stock for treasury (5,584) -
Common stock dividends (3,718) (2,944)
------------------
Net cash provided by financing activities 60,307 73,580
------------------
Effect of exchange rate changes on cash (501) (57)
------------------
Net increase (decrease) in cash and cash equivalents (14,060) 6,655
Cash and cash equivalents, beginning of period 28,913 15,261
------------------
Cash and cash equivalents, end of period $14,853 $21,916
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