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SS&C Technologies Announces 2008 Fourth Quarter and Year End Results
Mar 16, 2009
WINDSOR, CT – March 16, 2009 — SS&C Technologies, Inc.(www.ssctech.com), a global provider of financial services software and outsourcing solutions, today announced financial results for the fourth quarter and full year ended December 31, 2008.  Revenue for the fourth quarter and the year 2008 was $68.3 million and $280.0 million respectively.   Revenue for the full year 2008 increased $31.8 million, or 13%, compared to 2007. Revenue for the fourth quarter of 2008 was essentially flat at $68.3 million compared with $68.4 million in Q4 2007. Net income, on a GAAP basis, for the fourth quarter and the year 2008, was $6.5 million and $18.8 million, respectively.

 

Adjusted operating income (a non-GAAP financial measure defined in note 1 to the attached Consolidated Condensed Financial Information) for the year was $103.9 million, compared to $89.3 million for the prior year, an increase of 16%.  GAAP operating income for the year 2008 was $65.1 million and includes amortization of $30.2 million, stock-based compensation costs of $7.3 million and other adjusted items of $1.3 million.  Adjusted operating income in the fourth quarter of 2008 was $25.3 million, compared to $26.2 million in the fourth quarter of 2007, a decrease of 3%. GAAP operating income in the fourth quarter of 2008 was $16.4 million and includes amortization of $7.5 million, stock-based compensation costs of $1.9 million and other adjusted gains of $0.5 million. Consolidated EBITDA (a non-GAAP financial measure defined in note 2 of the Consolidated Condensed Financial Information) for 2008 was $115.5 million, compared to $98.7 million in 2007, an increase of 17%. Consolidated EBITDA for the fourth quarter of 2008 was $28.3 million, compared to $29.0 million in the fourth quarter of 2007, a decrease of 2%.

Revenues/Operating Income
"Despite challenging markets, we managed to maintain our trend of double digit revenue growth in 2008.  Our recurring revenue, which includes both maintenance and Software as a Service (SaaS) revenue, continued to grow to $230.8 million, an increase of 14% over 2007," says Bill Stone, chairman and CEO of SS&C Technologies, Inc.  "Our consolidated EBITDA of $115.5 million in 2008 over $98.7 million in 2007 reflects not only the year-over-year growth we accomplished, but also our diligence in managing expenses.  We anticipated a slowdown in the fourth quarter   and moved quickly to reduce headcount by 9% on November 1, 2008.  The associated costs of this reduction have been expensed in the fourth quarter; the impact net of savings was $0.2 million."

Balance Sheet and Cash Flow
"We ended the year with $29.3 million cash on our balance sheet and a total debt position of $408.7 million for a net debt of $379.4 million. We generated net cash from operating activities of $61.7 million for the year and have used that cash to invest in our business, acquire the MDS business and pay down $25.6 million of our debt. Our consolidated total leverage, as defined in our senior credit facility, is now 3.3 times consolidated EBITDA as compared with 6.8 in 2005," says Stone.

Business Environment
"Despite the environment, we see opportunities as financial institutions begin to evaluate their technology spend, which is their largest discretionary expense item.  SS&C products and services have a tremendous return on investment and a low risk of implementation.  Our Software as a Service (SaaS) offerings represent proprietary know-how with an extremely well-trained, knowledgeable workforce," Stone explained.

"Independent fund administration is in high demand today and SS&C is built on accounting breadth and depth, delivered on a highly controlled, flexible platform.  We feel very confident with our competitive position."

MDS Acquisition
"On October 1, 2008, we acquired Micro Design Services in Parsippany, NJ for $17.9 million.  The company specializes in real-time order routing and execution services for the large exchanges and brokerage firms around the world.  This deal provides us access to cross sell our products to the stock exchanges and brokerage community, segments that have not traditionally been strong for us.  We are pleased with the progress of the integration thus far."

Earnings Call
SS&C's Fourth Quarter and 2008 earnings call will take place at 1:00 p.m. eastern time on March 16, 2008. The call will discuss Fourth Quarter and 2008 results. Interested parties may dial 877-680-2259 (US and Canada) or 706-679-6413 (International) and request the "2008 4th Quarter Earnings Conference Call", conference ID #90060764. A replay will be available after 4:00 p.m. eastern time on March 16, until midnight on March 23, 2009. To hear the replay, dial 800-642-1687 or 706-645-9291 and enter the access code #90060764.

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 services and software 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) treasury, banks and credit unions, 5) municipal finance, 6) real estate property management, 7) commercial lending and 8) financial markets. Additional information is available at www.ssctech.com.

 

Click here to view the finncial earnigns 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