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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): July 17, 1998
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SS&C Technologies, Inc.
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(Exact Name of Registrant as Specified in Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
000-28430 06-1169696
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(Commission File Number) (I.R.S. Employer Identification No.)
80 Lamberton Road
Windsor, Connecticut 06095
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(Address of Principal Executive Offices) (Zip Code)
(860) 298-4500
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
On July 16, 1998, SS&C Technologies, Inc. (the "Company") announced record
license and total revenues for its quarter ended June 30, 1998. The Company
reported second quarter revenues of $18.1 million, representing a 73% increase
from the $10.5 million reported for the same quarter of the prior year, and a
56% increase over the $11.6 million for first quarter 1998. License revenues
increased to $9.0 million in the second quarter 1998, from $5.8 million for the
same quarter of the prior year, and from $5.8 million for the first quarter
1998, representing an increase of 55% over both periods. Net income for the
second quarter 1998, excluding one-time charges primarily related to the
previously announced acquisition of Savid International, Inc., was $1.4 million
or $0.09 diluted earnings per share, as compared with $0.9 million or $0.07
diluted earnings per share for the same period in 1997. Including one-time
charges, net income and diluted earnings per share for second quarter 1998 were
$0.9 million and $0.06, respectively.
For the six months ended June 30, 1998, total revenues were $29.7 million,
a 65% increase over the $18.0 million reported for the comparable period of
1997. Net income for the first six months of 1998, excluding one-time
acquisition-related charges, was $2.2 million or $0.14 diluted earnings per
share, as compared with $0.7 million or $0.05 diluted earnings per share for the
comparable period in 1997. Including one-time charges, the net loss and diluted
loss per share for the first six months of 1998 were $3.1 million and $0.20,
respectively.
The full text of the Company's press release is filed as Exhibit 99 to this
Current Report on Form 8-K and is incorporated herein by reference.
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits.
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99 Press Release
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SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 17, 1998 SS&C TECHNOLOGIES, INC.
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(Registrant)
By: /s/ John S. Wieczorek
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John S. Wieczorek
Vice President, Chief Financial
Officer and Treasurer
-4-
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EXHIBIT INDEX
Exhibit
Number Description
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99 Press Release
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EXHIBIT 99
SS&C Reports 73% Increase in Total Revenues for Q2 '98 Over Q2 '97- License
Revenues for Q2 Increase 55%
WINDSOR, Conn.--(BUSINESS WIRE)--July 16, 1998--SS&C Technologies, Inc.
(NASDAQ:SSNC - news) today announced record license and total revenues for its
quarter ended June 30, 1998. The Company reported second quarter revenues of
$18.1 million, representing a 73% increase from the $10.5 million reported for
the same quarter of the prior year, and a 56% increase over the $11.6 million
for first quarter 1998. License revenues increased to $9.0 million in the second
quarter 1998, from $5.8 million for the same quarter of the prior year, and from
$5.8 million for the first quarter 1998, representing an increase of 55% over
both periods. Net income for the second quarter 1998, excluding one-time charges
primarily related to the previously announced acquisition of Savid
International, Inc., was $1.4 million or $0.09 diluted earnings per share, as
compared with $0.9 million or $0.07 diluted earnings per share for the same
period in 1997. Including one-time charges, net income and diluted earnings per
share for second quarter 1998 were $0.9 million and $0.06, respectively.
For the six months ended June 30, 1998, total revenues were $29.7 million, a 65%
increase over the $18.0 million reported for the comparable period of 1997. Net
income for the first six months of 1998, excluding one-time acquisition-related
charges, was $2.2 million or $0.14 diluted earnings per share, as compared with
$0.7 million or $0.05 diluted earnings per share for the comparable period in
1997. Including one-time charges, the net loss and diluted loss per share for
the first six months of 1998 were $3.1 million and $0.20, respectively.
"We are pleased about our continued momentum and results for the second quarter.
In addition to record license and total revenues, maintenance and professional
services revenues were up 118% and 74% over Q2 last year,'' said William C.
Stone, Chairman & CEO. "Our operating and financial numbers are robust; cash and
marketable securities and current ratio remain strong, with minimal debt levels.
DSOs, for instance, during the quarter, dropped from 155 days to 100 days as we
collected on receivables which included those associated with the Quantra
acquisition, and negotiated favorable terms on new license sales.''
Earnings announced for the quarter and year-to-date periods do not include any
results attributable to SS&C's equity investment in GFI Caminus, which closed on
May 1, 1998, including any write-off of in-process research and development
attributable to GFI Caminus' acquisition of two companies. SS&C will report its
share of the results of GFI Caminus on the equity method with a delay of one
quarter from GFI Caminus' actual results.
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Company Expansion
The company moved into new world headquarters in Windsor, CT in June to
facilitate organic growth and growth due to the recent acquisitions. The London
and New York offices, which are also growing rapidly, also moved into larger
space. The total workforce for SS&C is now over 450 employees.
"SS&C continues to strengthen our international development operations in
Toronto, Amsterdam, Malaysia, and London. We are rapidly putting into place a
global infrastructure to continue to compete on a global level. The strong
growth and market demand we've seen give us optimism that our strategy is
working,'' remarked Bill Stone.
New Clients
During the quarter, New York-based Metropolitan Life Insurance Company
(MetLife), Los Angeles-based SunAmerica Inc. [NYSE:SAI - news], and New York-
based Rabobank International N.A., as well as San Francisco-based Osterweis
Capital Management, Inc., another former WinDX user, selected CAMRA 2000(tm) as
their investment management solution.
"We conducted a thorough analysis of our portfolio accounting, management, and
trading requirements and an extensive market search of software vendors. We
concluded that the wide range of SS&C products, especially with the addition of
Shepro Braun, offered the most comprehensive and versatile functionality
currently available,'' stated Pamela Jones, Chief Financial Officer at
Osterweis. "We have chosen to partner with SS&C due to the strength of their
products, and we have confidence that the management team at SS&C can continue
to meet the growing needs of the financial community.''
SS&C's international business continues to grow as well, highlighted by new
clients, including: Milan-based San Paolo Fondi Gestioni Mobiliari SpA, and
Kuala Lumpur-based Permodalan RISDA Berhad.
Product Upgrades & Releases
SS&C continues to invest heavily in research and development - in the quarter,
28 cents of every revenue dollar was invested in the Company's extensive product
line. The Company continues to execute on its long-term plan of adding powerful
new products for the institutional investor, and on delivering its Straight-
Through Processing (STP) solution.
During the quarter, SS&C signed two new Antares(tm) licenses, and began shipping
Antares, its real-time, event-driven trade order management and P&L reporting
system. In addition, several beta sites moved into production. Antares is fully
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integrated with SS&C's Total Return(tm) hedge fund accounting system, and the
Company expects integration with CAMRA 2000 this fall.
During the second quarter, the Company also continued distribution of its CAMRA
2000 ``S,'' version among its CAMRA 2000 client base. CAMRA 2000 S offers the
Microsoft SQL Server database option. SS&C also rolled out PTS 2000(tm) version
98.0, which features a five-factor model, equity indexed annuity modeling
capabilities, and an enhanced liability model generator.
"We are seeing our vision of Straight-Through Processing become reality as
Antares has moved into production,'' stated Mr. Stone. "Antares is now generally
available, and our continued heavy investment in R&D is the key to delivering
new and updated software to meet the changing needs of institutional
investors.''
SS&C's third quarter development plans include bringing SKYLINE(R) for Windows
and PRO-Ject(R) 2.0 to market, both scheduled for release during the middle of
the third quarter. Later in the third quarter, SS&C plans to roll out CAMRA 2000
version 3.0, which will include upgrades to several key modules.
Corporate Alliances
During the second quarter, SS&C completed the acquisition of New York-based
Savid International, Inc., a leading supplier of PC/LAN-based financial software
specifically for corporate and institutional debt and derivative portfolios. The
acquisition brings to SS&C enhanced capabilities for CAMRA 2000, specifically in
handling derivative instruments, and extends the Company's client base in the
corporate treasury, banking, government, and financial institution markets. SS&C
recently announced several clients who have upgraded to new versions of the new
product, CAMRA 2000 Derivatives(tm), also known as The Savid System(tm).
SS&C also announced a strategic alliance with GFI Caminus, a new enterprise
providing comprehensive consulting services and software technology to the power
and gas trading business. The strategic alliance includes an exclusive license
with GFI Caminus to market SS&C's asset management software products within the
energy-related markets. SS&C is an equity investor in the venture.
"We continue to pursue acquisitions and strategic alliances which enhance our
ability to deliver Straight-Through Processing to a broad range of sophisticated
asset managers,'' continued Mr. Stone. "The Savid acquisition increases our
capabilities in the area of derivative STP. And, we believe the tremendous
activity in the electric power and gas trading markets has created, essentially,
the raw material for a new asset class, which we expect will require the
comprehensive technology capabilities of SS&C, and which will be enhanced by our
relationship with GFI Caminus.''
Headquartered in Windsor, CT, with offices in the US, Canada, Europe, and Asia,
SS&C is a leading provider of financial software solutions, services, and
expertise to
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asset managers worldwide. SS&C primarily targets its products and services to
large-scale, sophisticated investment enterprises who use the trading,
accounting, reporting, and analysis solutions to manage, in aggregate, more than
$2 trillion in assets. Full Company information is located at www.ssctech.com
This document contains certain forward-looking statements relating to the
integration of Antares with CAMRA 2000 and the introduction of SKYLINE for
Windows, PRO-Ject, and CAMRA 2000 Version 3.0. Such forward-looking statements
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, delays in product development, undetected software
errors or bugs, fluctuations in customer demand, timing, size and nature of
individual license transactions, intensity of competition from other application
vendors, and general economic and industry conditions, as well as other risks
detailed in the Company's filings with the Securities and Exchange Commission,
including without limitation, the Company's Annual Report and Form 10-K for the
year ended December 31, 1997.
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SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents $11,402 $23,660
Marketable securities 35,649 35,058
Accounts receivable, net 9,510 7,591
Unbilled accounts receivable, net 9,595 5,472
Income taxes 478 1,157
Other 2,977 1,563
Total current assets 69,611 74,501
Property and equipment, net 7,458 4,018
Unbilled accounts receivable -
related party 316 420
Unbilled accounts receivable, net 794 828
Deferred income taxes 5,919 3,205
Intangibles, investments and
other assets 8,617 2,336
Total assets $92,715 $85,308
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
- related party $ 527 $ 668
Current portion of long-term debt - 313
Accounts payable 1,917 1,440
Accrued bonus payable 839 1,663
Deferred licensing and professional
services revenues 1,622 1,618
Accrued expenses 3,195 4,077
Deferred maintenance revenues 9,485 7,528
Total current liabilities 17,585 17,307
Long-term debt
Related party 250 250
Total liabilities 17,835 17,557
Stockholders' equity:
Common stock 145 137
Additional paid-in capital 79,297 69,089
Accumulated deficit (4,562) (1,475)
Total stockholders' equity 74,880 67,751
Total liabilities and
stockholders' equity $92,715 $85,308
</TABLE>
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SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except share and per share information)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Revenues:
Software licenses $ 8,971 $ 5,797 $14,765 $ 8,801
Maintenance 4,802 2,200 8,009 4,355
Professional services 4,365 2,508 6,954 4,880
Total revenues 18,138 10,505 29,728 18,036
Cost of revenues:
Software licenses 42 329 313 604
Maintenance 1,438 785 2,210 1,621
Professional services 2,881 1,429 4,667 2,886
Total cost of revenues 4,361 2,543 7,190 5,111
Gross profit 13,777 7,962 22,538 12,925
Operating expenses:
Selling and marketing 4,136 2,932 7,955 5,130
Research and development 5,091 2,382 7,930 4,631
General and administrative 3,013 1,984 4,458 3,047
Write-off of purchased
in-process research
and development 720 -- 7,980 --
Total operating expenses 12,960 7,298 28,323 12,808
Operating income (loss) 817 664 (5,785) 117
Interest and other income, net 519 572 1,111 1,021
Income before income taxes 1,336 1,236 (4,674) 1,138
Provision for income taxes 454 334 (1,587) 404
Net income (loss) $ 882 $ 902 $(3,087) $ 734
Basic earnings per share $ 0.06 $ 0.07 $ (0.22) $ 0.05
Basic weighted average
number of common
shares outstanding 14,501 13,506 14,198 13,462
Diluted earnings per share $ 0.06 $ 0.07 $ (0.20) $ 0.05
Diluted weighted average
number of common and common
equivalent shares outstanding 15,702 13,841 15,229 13,817
</TABLE>
Contact:
SS&C Technologies, Inc.
Peg Berry, 860-298-4551
Cindy Lawrence, 212-303-7611
