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SS&C Technologies Announces Results for Q3 2008
Dec 02, 2008
WINDSOR, CT – December 2, 2008,  — SS&C Technologies, Inc.(www.ssctech.com), a global provider of financial services software and software-enabled services, today announced results for the quarter ended September 30, 2008. Revenue on a GAAP basis for the third quarter of 2008 was $71.0 million. This represents a 11.8% increase in revenues over the same period in 2007.  Revenue for the first nine months of 2008 was $211.7 million, a 17.8% increase from the same period in 2007. Net income, on a GAAP basis, for the third quarter of 2008, was $4.8 million. 


Adjusted operating income (a non-GAAP financial measure defined in note 1 to the attached Consolidated Condensed Financial Information) was $27.2 million for the three months ended September 30, 2008, compared to $23.3 million in the third quarter of the prior year. The adjusted operating income increase was 16.6%. GAAP operating income in the third quarter of 2008 was $15.6 million and includes amortization of $7.5 million and stock based compensation of $2.1 million. Consolidated EBITDA (a non-GAAP financial measure defined in note 2 of the Consolidated Condensed Financial Information) for the third quarter of 2008 was $28.8 million, compared to $25.5 million in the third quarter of 2007. Consolidated EBITDA for the nine months ended September 30, 2008 was $84.9 million compared to $69.7 million for the same period in 2007, a 21.7% increase.  

Revenues/Operating Income
"During the course of 2008, SS&C has fared well, despite the impact economic conditions have had on our customers' businesses. We continue to receive positive feedback about our product suite and service offerings,” noted Bill Stone, Chairman and CEO, SS&C Technologies. “We believe if we focus on delivering world-class service to our customers, they will continue to select us as they launch new investment mandates and upgrade their infrastructures.”

Software-Enabled Services
“Demand for our products and services is most evident in the institutions that are consolidating and driving operating efficiencies. Revenue from our software-enabled services was $43.7 million during the third quarter of 2008, a 17.0% increase over the third quarter of 2007,” added Stone.

Micro Design Services Acquisition
During the fourth quarter, SS&C acquired Micro Design Services (MDS) for $17.8 million in cash and assumed certain liabilities.  The company specializes in the design and development of real-time, mission-critical order routing and execution services. 

Balance Sheet and Cash Flow
SS&C ended the quarter with $30.3 million cash and $414.6 million in debt for a net debt balance of $384.3 million.   We generated net cash from operating activities of $43.1 million for the nine months ended September 30, 2008, which is after paying $10.7 million in income taxes compared to an income tax refund of $1.6 million in 2007.  Excluding the effects of income tax, our nine month operating cash increased by 39.5%.

“We will continue to use cash to acquire new businesses, and pay down our debt and deleverage our business. Our consolidated total leverage, as defined in our senior credit facilities is now 3.4 times consolidated EBITDA compared to 6.8 times when we went private,” said Stone. 

Earnings Call
SS&C's Q3 2008 earnings call will take place at 10:00 a.m. eastern time on December 3, 2008. The call will discuss Q3 2008 results. Interested parties may dial 877-680-2259 (US and Canada) or 706-679-6413 (International) and request the "SS&C Third Quarter 2008 Earnings Call", conference ID #75668588. A replay will be available after 1:00 p.m. eastern time on December 3rd, until midnight on December 10th 2008. To hear the replay, dial 800-642-1687 or 706-645-9291 and enter the access code #75668588.

This press release contains forward-looking statements relating to, among other things, the market's continued acceptance of the Company's products and services. 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 large client contracts, fluctuations in customer demand for the Company's products and services, intensity of competition from application vendors, delays in product development, the Company's ability to control expenses, general economic and industry conditions, terrorist activities, the Company's ability to integrate acquired businesses, the effect of the acquisitions on customer demand for the Company's products and services, 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 for the year ended December 31, 2007. The Company cautions investors that it may not update any or all of the foregoing forward-looking statements.

About SS&C Technologies
SS&C delivers investment and financial management software and related services focused exclusively on the financial services industry. By leveraging expertise in common investment business functions, SS&C cost effectively serves clients in the different industry segments, including: 1) insurance entities and pension funds, 2) institutional asset management, 3) hedge funds and family offices, 4) financial institutions, 5) municipal finance, 6) real estate property management, 7) commercial lending and 8) corporate treasury. Additional information is available at www.ssctech.com.

Click here to view the financial earnings statement in PDF format.

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Patrick Pedonti 
Chief Financial Officer, SS&C Technologies 
Tel: 1-860-298-4738 
E-mail: InvestorRelations@sscinc.com

Justine Stone Investor, Relations, SS&C Technologies
Tel: 1- 212-367-4705
E-mail: InvestorRelations@sscinc.com

Media Contacts 
Sean Welch 
PAN Communications
Tel: (407) 734-7330
E-mail: ssc@pancomm.com