SS&C Technologies Announces Results for Q3 for 2006

Business Wire, Nov 8, 2006

WINDSOR, Conn. -- SS&C Technologies, Inc.(www.ssctech.com), a global provider of financial services software and outsourcing solutions, today announced results for the quarter ended September 30, 2006. Reported revenue on a GAAP basis for the third quarter of 2006 was $52.4 million. Included in reported revenue for the third quarter is a $0.5 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 third quarter of 2006 was $52.9 million, a 15% increase from the third quarter of 2005. Net profit, on a GAAP basis, for the third quarter of 2006, was $0.4 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 September 30, 2006, compared to $15.3 million in the third quarter of the prior year. The adjusted operating income increase is 20%. GAAP operating income in the third quarter of 2006 was $10.6 million and includes amortization of $5.7 million, stock-based compensation of $1.7 million and deferred revenue adjustment and other purchase accounting items of $0.4 million. GAAP operating income in the third quarter of 2005 was $11.9 million and includes amortization of $2.2 million and merger costs of $1.2 million.

Consolidated EBITDA (a non-GAAP financial measure defined in note 2 of the Consolidated Condensed Financial Information) for the third quarter of 2006 was $20.8 million, compared to $18.8 million in the third quarter of 2005. Consolidated EBITDA for the twelve months ended September 30, 2006 was $82.4 million.

Revenues/Operating Income

"Our third quarter results reflect consistent growth in revenue, over 2005. For the third consecutive quarter, we have achieved record revenue. We have solid performance across the business, with recurring revenues, which includes both maintenance and outsourcing revenues, of $41.4 million, an increase of 19% over Q3 2005. We are focused on our operating margins while ensuring that we continue to build our outsourcing capability. The adjusted operating income was 35% of revenues compared to 33% in Q3 2005 which reflects a 200 basis point improvement from the same period last year," says Bill Stone, Chairman and CEO, SS&C Technologies Inc.

Outsourcing Solutions

"We continue to see strong demand for our products and services as evidenced by the new customers added during the quarter. Particularly strong is the demand for our outsourcing services. In Q3 outsourcing revenues was $27.3 million, a 26% increase over Q3 2005," said Stone. "We are pleased to see both an increase in new outsourcing customers and additional services for existing outsourcing customers. These two metrics validate our reliability and the strength of our offering."

Zoologic Acquisition

"We are pleased with the progress of the integration of Zoologic, the acquisition we completed in Q3. We have introduced the Zoologic Learning Solutions to many of our financial services software and services clients and are delighted with the response. Our clients' personnel as well as SS&C's staff can access the curriculum, course materials and tests anywhere in the world. The swift integration of people, products and capability is a testament to the synergy of the Zoologic solutions with our core business," adds Stone. "This is consistent with our long term strategy to fully integrate all of our businesses and ensure we maximize the cross sell opportunities."

Balance Sheet and cash Flow

"We ended the quarter with $10.6 million cash on our balance sheet, total debt position of $476.4 million and net debt of $465.8. We generated net cash from operating activities of $25.8 million for the nine months ended September 30, 2006 and have used that cash to acquire new businesses, invest in our growing outsourcing business, pay down our debt and deleverage our business. During 2006, we have paid down $12.2 million in debt," said Stone.

Earnings Call

SS&C's Q3 2006 earnings call will take place at 9:00 a.m. eastern time on November 9, 2006. The call will discuss Q3 2006 results. Interested parties may dial 706-643-7858 (US, Canada and International) and request the "SS&C Third Quarter Earnings Call", conference ID #1739796. A replay will be available after 12:00 pm on November 9th, until midnight on November 16th, 2006. To hear the replay, dial 706-645-9291 and enter the access code 1739796. A replay of the call will also be available on November 10th, 2006 on our website at www.ssctech.com/about/investor.asp.>

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