Advent Software Inc. (ADVS), Monday reported a significant rise in profit for the fourth quarter, benefiting from higher margins that more than offset a decline in revenues. The company also provided revenue guidance for the next quarter and fiscal year 2010.
The San Francisco, California-based integrated software solutions provider's net income for the fourth quarter was $17.96 million or $0.67 per share, compared to $6.19 million or $0.23 per share in the same quarter last year.
Net income from continuing operations for the quarter was $4.35 million or $0.17 per share, compared to $5.64 million or $0.21 per share in the previous year.
Results for the quarter include amortization of acquired developed technology of $0.78 million, amortization of other acquired intangibles of $0.35 million, stock-based compensation on cost of revenues of $0.66 million and stock-based compensation on operating expenses of $3.52 million.
Non-GAAP earnings per share for the quarter remained the same at $0.28 in the fourth quarter of 2008.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.
Quarterly revenue from continuing operations was $66.33 million, compared to $66.48 million in the fourth quarter of 2008. Six analysts had a consensus revenue estimate of $65.90 million for the quarter.
Term license, maintenance and other recurring revenues increased to $56.34 million from $53.11 million in the year-ago period. Perpetual license fees declined to $3.64 million from $5.32 million in the previous year. Professional services and other revenues were $6.35 million, down from $8.06 million a year ago.
Total cost of revenues declined to $20.23 million from $22.54 million a year ago. Gross margin was $46.11 million, compared to $43.95 million in the previous year.
For the fiscal 2009, net income rose to $36.88 million or $1.39 per share from $18.89 million or $0.68 per share in the previous year. Non-GAAP net income was $32.60 million or $1.23 per share, compared to $23.72 million or $0.85 per share last year. Total net revenues for the year were $259.51 million, up 9% from $237.88 million a year ago.
Analysts expected earnings of $1.26 per share on revenues of $259.36 million for the full year. For the first-quarter, total revenue from continuing operations is expected to be in the range of $65 million to $67 million. Analysts have a revenue estimate of $67.79 million for the quarter.
For fiscal 2010, the company expects total revenue from the continuing operations to be between $272 million and $280 million. Seven analysts have a consensus revenue estimate of $285.22 million for the fiscal 2010.
ADVS closed Monday's regular trading at $38.55, up 0.80 or 2.12%, on a volume of 0.13 million shares on the Nasdaq. In after hours, the stock declined 1.86 or 4.82%, trading at $36.69.
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