Advent Software Reports Profit

The company's shares are higher following its earnings.
Author:
Publish date:

Advent Software

(ADVS)

reported a profit for the fourth quarter ended Dec. 31, reversing a loss in the corresponding period a year ago.

The San Francisco-based company earned $3.9 million, or 12 cents a share, in the quarter, compared with a loss of $717,000, or 2 cents a share, in the same quarter last year. Analysts polled by Thomson First Call were estimating earnings of 11 cents a share.

Fourth-quarter revenue rose by 10% from a year ago to $45.1 million. The lone estimate provided by a Wall Street analyst was for revenue of $42.4 million. Maintenance and other recurring revenue, which contributed 63% to the total, grew by 14%.

"We also made significant progress in transitioning our business model to term pricing, signing a total of $22.8 million in new term license contracts during 2005. We see this transition accelerating in 2006 and believe it to be extremely important for the long term," the company said.

The company earned $14.2 million on sales of $169 million for all of 2005.

Advent expects revenue to be in the range of $39 million to $41 million in first quarter and $175 million to $180 million for 2006. The company forecast first-quarter expenses of $43 million to $45 million and full-year costs of $177 million to $181 million.

Excluding any stock repurchases, common shares outstanding are going to increase by 1% in the first quarter of 2006 from the existing 31.1 million shares.

Advent's shares were trading up $1.73, or 6.6%, to $27.99.

This story was created through a joint venture between TheStreet.com and IRIS.