SS&C Technologies Announces Q2 2006 Results

Business Wire, August 14, 2006

WINDSOR, Conn. -- SS&C Technologies, Inc.(www.ssctech.com), a global provider of financial services software and outsourcing solutions, today announced record revenues for the quarter ended June 30, 2006. Reported revenue on a GAAP basis for the second quarter of 2006 was $50.7 million. Included in reported revenue for the second quarter is a $1.5 million reduction in revenue caused by purchase accounting adjustments to reflect November 23, 2005 deferred revenue at its estimated fair value. Excluding the purchase accounting adjustment, adjusted revenue (a non-GAAP financial measure defined in note 3 to the attached Consolidated Condensed Financial Information) for the second quarter of 2006 was $52.2 million, a 28% increase from the second quarter of 2005. Net profit, on a GAAP basis, for the second quarter of 2006, was $1.8 million.

Adjusted operating income (a non-GAAP financial measure defined in note 1 to the attached Consolidated Condensed Financial Information) was $18.4 million for the three months ended June 30, 2006, compared to $12.6 million in the second quarter of the prior year. The adjusted operating income increase is 47%. GAAP operating income in the second quarter of 2006 was $11.3 million and includes amortization of $5.7 million and deferred revenue adjustment and other purchase accounting items of $1.4 million. GAAP operating income in the second quarter of 2005 was $10.7 million and includes amortization of $1.8 million.

Consolidated EBITDA (a non-GAAP financial measure defined in note 2 of the Consolidated Condensed Financial Information) for the second quarter of 2006 was $21.0 million, compared to $17.1 million in the second quarter of 2005.

Revenues/Operating Income

Bill Stone, SS&C's Chairman and CEO, commenting on recent results said, "We are pleased with our second quarter results. Revenues reached a record high, with solid contributions from our recurring revenues. Recurring revenues, which includes both maintenance and outsourcing revenues, grew to $40.5 million, an increase of 28% over Q2 2005, and now represent 80% of total revenues. We continue to stay focused on our expenses and our operating margins; adjusted operating income was 36% of revenues in the second quarter compared with 31% in the second quarter of 2005, a 500 basis point improvement."

Outsourcing Solutions

"Outsourcing continues to be a key strategy of our growth, and in Q2 outsourcing revenues reached a record high of $27.2 million, a 39% increase over Q2 2005," said Stone. "Growth came in several areas, including FMC's outsourcing business to asset managers, fund administration services we provide to hedge funds, and treasury operations, particularly Foreign Exchange trading and clearance provided by our TradeThru product."

Balance Sheet and Cash Flow

"We ended the quarter with $14.6 million cash on our balance sheet and have a total debt position of $486.6 million. We generated net cash from operating activities of $16.8 million and have used that cash to acquire a new business, pay down our debt and deleverage our business. In the first quarter we acquired Cogent Management, Inc. for $11.9 million, and we paid down $4.8 million in debt," said Stone.

Earnings Call

SS&C's Q2 2006 earnings call will take place at 10:00 a.m. Eastern Time on August 15, 2006. The call will discuss Q2 2006 results. Interested parties may dial 706-643-7858 (US, Canada and International) and request the "SS&C Second Quarter Earnings Call", conference ID #4345869. A replay will be available after 8:00 pm on August 15th, until midnight on August 22, 2006. To hear the replay, dial 706-645-9291 and enter the access code 4345869. A replay of the call will also be available after August 16, 2006 on our website at www.ssctech.com/about/investor.asp.>