Advent Software has a market cap of $1.35 billion; its shares were traded at around $25.73 with a P/E ratio of 45.1 and P/S ratio of 4.1. Advent Software had an annual average earning growth of 43.8% over the past 5 years.
Highlight of Business Operations:Revenues from recurring sources have grown from 88% in 2009, to 89% in 2010 and 89% in 2011, respectively. During fiscal 2011, term license revenues comprised approximately 46% of recurring revenues as compared to approximately 43% and 43% in fiscal 2010 and 2009, respectively. Term license contracts are comprised of both software licenses and maintenance services.
The 15% increase in total net revenues during 2011 was driven by significant growth in term license revenue and other recurring revenues. Term license revenues increased by $26.4 million due to the implementation of our bookings activity from the previous 12 months, growth in sales of our APX, Geneva, Moxy and Tamale products and $3.2 million from Syncova which we acquired on February 28, 2011. Other recurring revenues increased by $15.5 million, as we experienced growth in revenue from our data services, outsourced services, Assets Under Administration ("AUA") fees and $7.5 million of revenues from our Black Diamond SaaS-based products which we acquired on June 1, 2011. These increases were partially offset by a decrease in perpetual maintenance revenues of $2.5 million primarily resulting from perpetual license customers' migration to term licenses, maintenance downgrades and de-activations. Professional services and other revenues also increased due to greater consulting activity as a result of the continued growth in bookings driving additional implementations during 2011. Perpetual license fees in 2011 were down compared to 2010, as we licensed fewer additional seats and modules to our existing perpetual client base and clients continue to migrate to time-based term licenses.
Our operating income from continuing operations in 2011 increased to $42.6 million or 13% of revenue from $36.3 million or 13% of revenue in 2010. Although we were able to grow revenues and operating income in 2011, our operating margins remained flat primarily resulting from the impact of our term implementation deferral, which caused a $5.2 million reduction to operating profit compared to a $2.4 million reduction to operating profit in the same period last year. Additionally, various costs from our two acquisitions in 2011, such as acquisition-related fees, amortization of acquired intangible assets and payroll costs from additional headcount, also contributed to our operating margin remaining flat during 2011.
We have experienced continued growth in our new and incremental term license bookings over the last three years. Our bookings in 2009, 2010 and 2011 will contribute approximately $25.5 million, $31.8 million and $33.9 million in annual revenue once they are fully implemented. In 2009, we experienced a 9% decline in bookings reflecting the dramatic market downturn and global economic volatility that began in the fourth quarter of 2008 and continued through most of 2009. In 2010 and 2011, bookings increased by 25% and 6%, respectively.
Our cash provided by operating activities from continuing operations of $72.4 million during fiscal 2009 was primarily the result of our net income of $20.8 million and non-cash charges including stock-based compensation of $18.2 million and depreciation and amortization of $16.7 million, partially offset by a gain from our equity investment activity of $2.1 million. Cash flows resulting from changes in assets and liabilities included increases in deferred revenue and accrued liabilities. The increase in deferred revenue reflected customer renewals and additional bookings. The increase in accrued liabilities primarily reflects an increase in accrued bonuses. Other changes in assets and liabilities include a decrease in accounts receivable, which primarily reflects an overall improvement in collections during 2009 of invoices billed in our previous fourth quarter. Days' sales outstanding were 62, 60, 55, and 61 days during the first, second, third and fourth quarters of 2009, respectively, compared to 67, 60, 70 and 64 days during the first, second, third and fourth quarters of 2008.
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