SSNC ==> The President's Day Winner

[jiesen]

SSNC income up 52% on 43% Rev increase.

WOW! We're back in business on this one...

http://biz.yahoo.com/bw/050420/205945.html?.v=1

SS&C Technologies Reports Record Q1 Numbers
Wednesday April 20, 4:10 pm ET
Total Revenues up 43%, Outsourcing Revenues up 100% and Operating Income Up 52%
Finalizes Acquisition of Financial Models Company Inc.

WINDSOR, Conn.--(BUSINESS WIRE)--April 20, 2005-- SS&C Technologies, Inc. (Nasdaq: SSNC - News) today announced record results for the quarter ended March 31, 2005. Q1 revenues were $27.4 million, an increase of 43% from the $19.2 million for Q1 2004. Net income and operating income for Q1 were $6.0 million and $9.2 million, respectively, increases of 58% and 52% from the $3.8 million and $6.0 million for the first quarter of last year. Diluted earnings per share for Q1 were $0.25, 32% higher than the $0.19 diluted earnings per share for the same period in 2004. https://
Bill Stone, SS&C's Chairman and CEO, said, "We are very pleased with our first quarter results. Our revenues reached a new record high, with a healthy contribution from outsourcing revenues. In Q1, recurring revenues, which includes both maintenance and outsourcing revenues, hit a new high watermark at $20.3 million, an increase of 54% over the $13.2 million in Q1 2004, and represented 74% of total revenues. We continue to execute on our strategy to grow our outsourcing revenues, both organically and through our acquisitions, and in Q1 we achieved a record high of $10.5 million, a 100% increase over Q1 2004."

Stone continued, "In 2005, we are focusing on closely managing our expenses, and we are seeing economies of scale as we integrate our acquisitions. As a result, in Q1, our operating income rose by 52% over Q1 2004 to $9.2 million. The $9.2 million represents a 33% operating margin. Our Q1 net income increased to $6.0 million, a 58% increase over the $3.8 million in Q1 last year."

Balance Sheet and Cash Flow

"Our balance sheet and cash flow position is strong and the quality of our earnings remains high," said Stone. "We generated $12.8 million in net cash from operations during the first quarter. In Q1, we drew on our liquid resources and bought back $5.6 million of our common stock, as well as paid $25.8 million in cash for two acquisitions. At quarter end, our total cash, cash equivalents and investments in marketable securities were $108.2 million. In April, SS&C borrowed $75 million under its line of credit with Fleet National Bank, a Bank of America company, and used the Fleet borrowings and approximately $84 million from cash on hand to finance the acquisition of Financial Models Company Inc. (FMC)."

Guidance

"We currently expect Q2 2005 revenues to be in the range of $39.5 to $42.5 million and net income to be between $0.25 and $0.27 per diluted share," stated Stone. "For 2005, our expectation is for revenues to be $157.0 to $165.0 million and diluted earnings per share to be between $1.07 and $1.15."

Acquisition Activity

"SS&C completed two acquisitions in February," said Stone. "We acquired all of the membership interests in Eisnerfast LLC, a fund accounting and administration affiliate of Eisner LLP. Located in New York City, Eisnerfast delivers back-office accounting and administration services to on- and off-shore hedge and private equity funds, funds of funds, and investment advisors. This acquisition is part of our plan to build our fund administration outsourcing business, and we are excited about this strategic fit and future opportunities."

"We also acquired substantially all of the assets of Achievement Technologies, LLC (ATLLC)," continued Stone. "ATLLC's SamTrak software is a comprehensive facilities maintenance and work order processing solution for real estate property managers. SamTrak is fully integrated with our property management solution, SKYLINE, adding an important layer of functionality. SamTrak is also offered as a stand-alone solution for enterprises with multiple properties."

Financial Models Company Inc.

"Yesterday, April 19, 2005, we closed the acquisition of Financial Models Company Inc., a Mississauga, Ontario-based investment systems and application service provider," said Stone. "FMC was a publicly traded company on the Toronto Stock Exchange with 374 employees and CAD 71.9 million in revenue for the fiscal year ended February 28, 2005. SS&C paid CAD 17.70 per share, or an aggregate of approximately USD 159 million in cash for FMC."

"The acquisition of FMC met three key aspects of our acquisition strategy: focus on recurring revenues, expand our market reach and strengthen our existing product offerings," said Stone. "FMC's recurring revenue, which consists of application services and license maintenance revenue, was 81% of its total revenue for the fiscal year ended February 28, 2005. FMC is a significant player in the Canadian investment management market. FMC expands our presence in London and New York, and we gain a presence in Australia. The FMC product and service array: FMCNet, SVC, Pacer, Recon, Pages and FMCSuite, gives us an excellent expansion of our intellectual property."

Stone commented on the integration plans for FMC, stating, "This acquisition propels SS&C to an organization which is over 800 people strong, with a significant presence in a number of foreign markets, powerful products and services to offer virtually every segment of the financial services industry, and a blue-chip client base that uses SS&C's technology and services to manage approximately $7 trillion in assets. Our integration planning teams are already in place and moving forward in a disciplined and deliberate fashion, while our management team remains focused on day-to-day execution, servicing existing clients and implementing growth strategies. We expect the combined strength of SS&C and FMC to create potential for significant growth, benefiting shareholders, clients and employees."

Earnings Call

SS&C's Q1 2005 earnings call will take place at 5:00 p.m. Eastern Time today, April 20, 2005. Interested parties may dial 706-643-7858 (US, Canada and International) and request the "SS&C First Quarter Earnings Call", conference ID #5537716. A replay will be available after 8:00 pm on April 20, until midnight on May 20, 2005. To access, dial 706-645-9291 and enter the access code 5537716. A replay of the call will also be available after April 21, 2005 on our website at www.ssctech.com/about/earnings.asp.

This press release contains forward-looking statements relating to, among other things, the Company's expected revenues and earnings per share for the second quarter and full year of 2005, the expected benefits of the Company's recent acquisitions, including the acquisition of Financial Models Company Inc. 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, 2004. The Company cautions investors that it may not update any or all of the foregoing forward-looking statements.

SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)

(unaudited)
Three Months Ended
-----------------------
March 31, March 31,
2005 2004
----------- -----------
Revenues:
Software licenses $4,495 $4,140
Maintenance 9,843 7,982
Professional services 2,621 1,850
Outsourcing 10,457 5,217
----------- -----------
Total revenues 27,416 19,189
----------- -----------
Cost of revenues:
Software licenses 595 445
Maintenance 2,148 1,648
Professional services 1,654 1,279
Outsourcing 5,411 2,742
----------- -----------
Total cost of revenues 9,808 6,114
----------- -----------
Gross profit 17,608 13,075
----------- -----------

Operating expenses:
Selling and marketing 2,443 2,220
Research and development 3,483 2,956
General and administrative 2,519 1,869
----------- -----------
Total operating expenses 8,445 7,045
----------- -----------
Operating income 9,163 6,030

Interest income 572 183
Other income (expense), net 50 (32)
----------- -----------
Income before income taxes 9,785 6,181
Provision for income taxes 3,816 2,411
----------- -----------
Net income $5,969 $3,770
=========== ===========

Basic earnings per share $0.26 $0.20
=========== ===========
Basic weighted average number of common
shares outstanding 23,018 18,687
=========== ===========
Diluted earnings per share $0.25 $0.19
=========== ===========
Diluted weighted average number of common
and common equivalent shares outstanding 24,169 20,201
=========== ===========


SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)

(unaudited)
March 31, Dec. 31,
2005 2004
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $22,965 $28,913
Investments in marketable securities 85,284 101,922
Accounts receivable, net 15,764 13,545
Prepaid expenses and other current assets 1,966 1,607
----------- -----------
Total current assets 125,979 145,987

Property and equipment, net 5,137 5,353

Deferred income taxes 5,866 5,894
Intangible and other assets, net 55,868 28,429
----------- -----------

Total assets $192,850 $185,663
=========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 1,411 1,073
Income taxes payable 3,312 609
Accrued employee compensation and benefits 2,632 6,248
Other accrued expenses 2,987 3,549
Deferred income taxes 289 188
Dividend payable - 1,850
Deferred maintenance and other revenue 25,329 16,052
----------- -----------
Total current liabilities 35,960 29,569
----------- -----------

Total stockholders' equity before treasury
stock 215,894 209,514
Less: cost of common stock in treasury 59,004 53,420
----------- -----------
Total stockholders' equity 156,890 156,094
----------- -----------

Total liabilities and stockholders'
equity $192,850 $185,663
=========== ===========


SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)

(unaudited)
Three months ended
----------------------
March 31, March 31,
2005 2004
----------- ----------

Cash flow from operating activities:
Net income $5,969 $3,770
----------- ----------
Adjustments to reconcile net income to net
cash provided
by operating activities:
Depreciation and amortization 1,373 908
Net realized losses on equity investments - 26
Deferred income taxes (14) 128
Income tax benefit related to exercise of
stock options 487 1,116
Provision for doubtful accounts (143) 137
Changes in operating assets and
liabilities, excluding effects
from acquisitions:
Accounts receivable (1,181) (289)
Prepaid expenses and other assets (322) 130
Accounts payable 340 (273)
Accrued expenses (4,193) (2,006)
Income taxes payable 2,707 1,065
Deferred maintenance and other
revenues 7,793 4,087
----------- ----------
Total adjustments 6,847 5,029
----------- ----------
Net cash provided by operating activities 12,816 8,799
----------- ----------

Cash flow from investing activities:
Additions to property and equipment (30 (177)
Cash paid for business acquisitions, net
of cash acquired (25,793) (3,855)
Cash paid for long-term investment (2,000) -
Purchases of marketable securities (78,175) (11,300)
Sales of marketable securities 94,572 22,834
----------- ----------
Net cash provided by (used in) investing
activities (11,704) 7,502
----------- ----------

Cash flow from financing activities:
Exercise of options 520 817
Purchase of common stock for treasury (5,584) -
Common stock dividends (1,836) (1,333)
----------- ----------
Net cash used in financing activities (6,900) (516)
----------- ----------

Effect of exchange rate changes on cash (160) (72)
----------- ----------

Net increase (decrease) in cash and cash
equivalents (5,94 15,713
Cash and cash equivalents, beginning of period 28,913 15,261
----------- ----------
Cash and cash equivalents, end of period $22,965 $30,974
=========== ==========

[jiesen]

SSNC finally in the black again

http://finance.yahoo.com/q/bc?s=SSNC&t=2y

it's about time!

[mrmarket]

http://finance.yahoo.com/q/bc?s=SSNC&t=2y

it's about time!

what was that mantra again??

[jiesen]

what was that mantra again??

Earnings, earnings, earnings!

http://finance.yahoo.com/q/is?s=SSNC&annual

[mrmarket]

IBD likes SSNC also

Investor's Business Daily
Software Firm Digs Deep Into Its Wallet In Effort To Expand Reach
Friday May 20, 7:00 pm ET
Marilyn Much


When SS&C Technologies bought Financial Models last month, it marked the biggest acquisition in company history.
SS&C (NasdaqNM:SSNC - News) shelled out $159 million for Financial Models. That was more than six times the $25.3 million it paid for February's purchase of Eisnerfast, its second biggest buy.

Financial Models was well worth the price, says SS&C founder and Chief Executive Bill Stone. He credits the acquisition with strengthening his firm's product offerings and expanding its market reach.

SS&C provides investment and financial management software and outsourcing services to the financial services industry.

The company's software can handle everything from portfolio management and trade modeling to property and casualty insurance risk management.

Cross-Selling Opportunity

Financial Models, which previously traded on the Toronto Stock Exchange, also offers investment management software and services to the investment management industry.

Its software performs duties such as portfolio analysis and trade order management.

The acquired firm brings a lot to the table, including about 500 customers worldwide and offices in Toronto, Montreal, the U.S., Australia and Europe.

Financial Models also expands SS&C's geographic reach into Canada and Australia, two areas where SS&C previously had no offices. And it ups SS&C's presence in New York and London.

"We're trying to get a deeper relationship with large-scale financial services companies, and (Financial Models) brings us a lot of new products," Stone said. "It also brings those 500 customers and allows us to cross-sell (products), and it gives us geographic depth that lets us really help large multinational companies."

Financial Models posted about $50 million in revenue last year. Stone says SS&C can attain that level of revenue on an annual basis and improve on it through cross selling opportunities.

Another benefit of the buy is that it brings a complementary customer base, says analyst Christopher Rowen of SunTrust Robinson Humphrey.

"SS&C has solutions for all kinds of asset managers, but tends to be strongest in insurance and pension funds," said Rowen, whose employer has an investment banking relationship with SS&C. "Financial Models (has a) big presence within standard equity funds. It will give SS&C more marketing reach and the ability to do some cross selling."

Financial Models fits all the criteria SS&C looks for in buyouts, CEO Stone says. In addition to adding new employees and products to the mix, it boasts a large stream of recurring revenue. Last year 81% of Financial Models' revenue was on a recurring basis, Stone says.

Rowen estimates Financial Models will add about 10 cents a share to SS&C's annual earnings on an ongoing basis.

SS&C is no stranger to acquisitions. Since January 2002 it's made nine buys.

The company made two other buys this year, both in February. It acquired the membership interests in Eisnerfast LLC, an affiliate of accounting firm Einser LLP. Einserfast offers back-office accounting and administration services to hedge funds and private equity funds, among others.

SS&C also bought nearly all the assets of Achievement Technologies for $470,000 and the assumption of certain liabilities. Achievement's SamTrak software is used by real estate property managers for facilities maintenance and work-order processing.

One benefit of the buy: SamTrak enhances SS&C's Skyline product for property managers.

On May 17, SS&C announced another buyout: a stock deal, valued at around $13 million, to acquire Financial Interactive.

Financial Interactive provides investor relationship management solutions to fund managers and fund administrators. It does so with its FundRunner software and Web system.

Look for more deals in the future.

"Hopefully we will have a couple more opportunities we'll do before the end of the year," Stone said.

Rowen sees SS&C buying more businesses tied to its field -- all with a strong recurring revenue stream.

"They've demonstrated a great ability to make acquisitions and strip out costs," Rowen said.

That's reflected in the company's financial results. First-quarter earnings grew 32% from the prior year to 25 cents a share. Revenue was up 43% to $27.4 million.

Analysts polled by First Call expect full-year earnings to rise 33% to $1.13 a share, then gain 24% to $1.40 a share in 2006.

"The overall investment management business ... is very active, and financial assets continue to grow in the U.S. and around the world," Stone said.

Lightening The Load

Stone says financial services firms are willing to spend on software to manage offerings such as online bill paying and online brokerage.

SS&C's products automate many of the functions financial institutions need to do to comply with rules and regulations.

"Every time the government layers on a new set of regulations, it makes more (financial) firms want to (turn to) companies like SS&C," Rowen said.

[jiesen]

go SSNC!

I was so busy trying to sell my CME, I didn't even notice the HUGE move SSNC has been making today.

http://finance.yahoo.com/q/bc?s=SSNC&t=5d

check it out, only 5% left to go on this one! we'll see 34 for sure, just a matter of time.

news which might be responsible for today's action:

NEW YORK, June 6 /PRNewswire/ -- Standard & Poor's will make the following changes to the S&P SmallCap 600 indices:
* SS&C Technologies Inc. (NASD: SSNC - News) will replace Concord Communications
Inc. (NASD: CCRD - News) in the S&P SmallCap 600 after the close of trading on a date to be announced. Concord is being acquired by S&P 500 constituent Computer Associates International Inc. (NYSE: CA - News) in a deal still pending final approvals

[mrmarket]

I think I have 5 that might pop soon. My model will be busy this month.

[B.J]

DW, CME, CMTL, SSNC

$$MM$$, which other one?

[jiesen]

DW, CME, CMTL, SSNC

$$MM$$, which other one?

I could see ARLP charging past 80 in a heartbeat.

[B.J]

ARLP, of course... I home $$MM$$ clears his schedule

[jiesen]

SSNC now at 34!

better watch this one, it's about to become the next $$MM winner!

let's hear it for #69! $$MR MARKET$$ is HUGE!!!!

[mrmarket]

If I pay attention, maybe I'll finally get out of this one this week.

[mrmarket]

I think my target will be $34.15 if my math is correct.

[jiesen]

that's right, unless you adjust for the 0.22 dividends paid over the past 16 months. Then your target would be 33.93, which is only a dime away!

[mrmarket]

$$$MR. MARKET$$$ expects this awesome value added service to customers to continue. I almost pissed my pants when I saw that ANALysts have pegged SSNC to net $1.10/share for 2004. Baa haa haa! Are you KIDDING ME??? $$$MR. MARKET$$$ sees 2004 revenues at $80 million and this will allow them to pocket $1.35/share. At today’s P/E of 49, this translates to a stock price of $66.15, which is well past my sell target.



http://www.mrmarketishuge.com

Forgot to mention that 2004 earnings were $95 million, even beating my original prediction. What a great stock!