SS&C Technologies Reports Record Q2 Revenues, Operating Income, and Net Income - Up 54%, 72%, and 61%
Monday July 19, 4:10 pm ET
WINDSOR, Conn.--(BUSINESS WIRE)--July 19, 2004--SS&C Technologies, Inc. (Nasdaq: SSNC - News) today announced results for the quarter ended June 30, 2004. Q2 revenues were $24.5 million, an increase of 54% from the $15.9 million for Q2 2003. Q2 operating earnings and net income were $7.2 and $4.4 million, respectively, increases of 72% and 61% from the $4.2 million and $2.7 million, respectively, for Q2 last year. Diluted earnings per share for Q2 were $0.21, 50% higher than the $0.14 diluted earnings per share for the same period in 2003.
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Bill Stone, SS&C's President and CEO, said, "We are pleased with our strong Q2 operating results. Our operating income hit a record high $7.2 million, increasing $3.0 million, or 72%, and representing a 29.3% operating margin. We experienced a solid 13% increase in our organic revenue growth, and we continue to benefit from robust acquisition revenue numbers. Our Q2 overall gross profit margin was 63%, with outsourcing gross profit margin at 48%, an improvement of 1200 basis points from Q2 2003."
Stone stated, "We continue to see gains in our recurring revenue stream, which includes both maintenance and outsourcing revenues. In Q2, recurring revenues increased to $17.6 million, a 61% increase over the $10.9 million posted in Q2 of 2003. We are particularly excited by our outsourcing revenue for Q2, which increased 160% over Q2 2003, a result of revenues from acquisitions as well as significant organic growth for our existing outsourcing services."
Balance Sheet and Cash Flow Strong
"Our balance sheet and cash flow remain very healthy," said Stone. "We generated $12.3 million in net cash from operations in the six-month period ending June 30, 2004, a 26% increase over the same period in 2003. We completed our secondary offering in Q2, selling 4.05 million shares and adding $74.4 million to our cash position. Total cash, cash equivalents and investments in marketable securities at quarter end were $115.9 million, or $5.48 per share."
Guidance
"We currently expect Q3 2004 revenues to be in the range of $24.5 to $25.0 million and net income to be between $0.19 and $0.20 per diluted share," stated Stone. "For 2004, our expectation is for revenue to be $93 to $95 million and diluted earnings per share to be between $0.78 and $0.80. We expect Q3 2004 total diluted shares to be approximately 24.5 million."
Leveraging Product Offerings
"SS&C's broad array of products and services are unique in the financial services industry," said Stone. "We continually invest to support our clients across front- middle- and back-office functions as well as across asset classes. We are increasingly leveraging our technology by introducing exciting new packages of products, services, platforms and messaging. The solutions we offer are fully customizable to meet clients' needs and are designed to produce meaningful straight-through processing results. For example, we have integrated our data visualization application, Heatmaps®, with our Antares(TM) trading system, and, tied with our Debt & Derivatives(TM) processing software, our CAMRA(TM) or Total Return(TM) portfolio management software, and our Xe(TM) messaging technology, we can offer one packaged solution. Clients realize greater efficiencies and cost savings."
Promoting SS&C Fund Services
"Increased marketing efforts are underway to highlight SS&C Fund Services. We offer a complete solution to on- and offshore hedge funds," said Stone. "One of the upcoming spotlight events is a seminar SS&C is co-sponsoring for senior-level hedge fund executives titled 'Derivatives: How the Risk Landscape Has Changed.' The seminar will be held in Stamford, Connecticut on July 28, 2004. Presentations will include both strategic and tactical topics on how to use derivatives to manage the explosive asset growth in the hedge fund industry."
SS&C Technologies/UConn Financial Accelerator
SS&C has entered into a five-year commitment with the University of Connecticut School of Business to develop and support the school's Financial Accelerator. Named the SS&C Technologies Financial Accelerator at The University of Connecticut, it will be located in downtown Hartford, Connecticut. The Financial Accelerator concept was developed by SS&C's CEO Bill Stone, and UConn's School of Business Associate Dean, Rich Dino. The Financial Accelerator program will include multiple public and private partnerships with the investment, insurance and financial community. MBAs looking to leverage their academic experience will work on real business problems. Examples include: optimization of portfolios which are subject to constraints; technology solutions to the fiduciary responsibilities in financial services; efficient organizational platforms; adroit uses of cutting edge technology; identifying and acting on market inefficiencies; and employing Dynamic Financial Analysis. "At SS&C we have acquired tens of millions of dollars of cutting edge technology which is in use by over 5,000 financial services firms across the globe," said Stone. "Seeding the Accelerator with SS&C's technology, and searching for and deciding on additional technologies, will both jump start the Accelerator and position it as a leading Center of higher learning." |
