SS&C Technologies Reports 57% Increase in Revenue For Fourth Quarter — License Revenues for Q4 Increase 98%

Business Wire, Feb 25, 1998

BLOOMFIELD, Conn.--(BUSINESS WIRE)--Feb. 25, 1998--SS&C Technologies, Inc. (NASDAQ:SSNC) today announced record revenues and earnings for the fourth quarter and year ended December 31, 1997. Fourth quarter 1997 total revenue and license revenue were $13.6 million and $8.4 million, as compared to $8.7 million and $4.3 million in 1996, representing increases of 57% and 98%, respectively. Fourth quarter 1997 net income, excluding a one-time charge for purchased in-process research and development related to the Mabel Systems BV acquisition, was $1.7 million - a 444% increase over the same quarter in 1996, or $.12 diluted earnings per share versus $.02 diluted earnings per share a year ago. Including the one-time charge, net income and diluted earnings per share for the fourth quarter 1997 were $873,000 and $.06 respectively.

Revenues for 1997 increased 34% to $42.2 million from $31.5 million in 1996. Net income for the year was $3.5 million, excluding the in-process research and development charge and the previously announced restructuring charge - a 582% increase over 1996, or $.25 diluted earnings per share compared to $.04 diluted earnings per share in 1996. Including such one-time charges, net income and diluted earnings per share for 1997 were $1.8 million and $.13 respectively.

Revenues, net income and diluted earnings per share for the fourth quarter 1997, excluding the results of the acquisitions and related charge, were $12.2 million, $1.8 million and $.14, respectively.

For the year ended December 31, 1997, revenues, net income and diluted earnings per share excluding the special items were $36.5 million, $3.7 million and $.29 respectively. License revenues prior to the acquisitions for the fourth quarter and 1997 were $7.8 million and $20.3 million respectively, more than double the $3.6 million reported for the fourth quarter of 1996, and a 47% increase from $13.8 million for 1996.

The Mabel Systems, BV acquisition, which was completed November 14, 1997 was accounted for as a purchase. Accordingly, its results have been included with those of the Company since the date of the acquisition. The Shepro Braun Systems, Inc. acquisition was completed on December 31, 1997. It was accounted for as a pooling of interests and, therefore, the current and all prior years' financial statements of the Company presented include the results of Shepro Braun Systems, Inc.

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                SS&C Prior to Acquisitions      SS&C Post Acquisitions
$ Millions         Fourth          Fourth          Fourth      Fourth
(except EPS)       Quarter         Quarter         Quarter     Quarter
                   1997(1)          1996           1997(1)       1996

License Rev      $    7.8         $   3.6        $    8.4     $   4.3
Total Rev            12.2             7.5            13.6         8.7
Operating Inc.        1.7             0.3             1.6         0.2
Net Income            1.8             0.5             1.7         0.3
Diluted EPS           .14             .04             .06         .02
Adjusted EPS          .14             .04             .12         .02
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           SS&C Prior To Acquisitions        SS&C Post Acquisitions
$ Millions          Full Year     Full Year     Full Year    Full Year
(except EPS)         1997(1)         1996         1997(1)      1996

License Rev         $   20.3     $   13.8       $   22.9     $   16.4
Total Rev               36.5         26.4           42.2         31.5
Operating Inc.           2.9         (0.2)           2.7         (0.1)
Net Income               3.7          0.5            3.5          0.5
Diluted EPS              .22          .04            .13          .04
Adjusted EPS             .29          .04            .25          .04

(1) Operating Income, Net Income, and Adjusted EPS exclude
restructuring and in-process research and development charges.