67 WALL STREET, New York - December 18, 2012 - The Wall Street Transcript has just published its Business and Application Software Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Application Software Consolidation Activity - Cloud Computing and SaaS Trends - Health Care Transition to ICD-10 - Outsourcing and Offshoring Trends
Companies include: Advent Software, Inc. (ADVS)
In the following excerpt from the Business and Application Software Report, the CEO of Advent Software discusses the outlook for his company for investors:
TWST: What's the differentiator for Advent? What makes people choose the company? What is it as far as their needs that Advent Software addresses?
Mr. Hess: In our business, there is a pretty competitive, crowded field, but Advent has stood out largely given the complexity of what we do. We develop the core portfolio accounting and trading solutions along with the associated integration of data that our clients - investment managers - need. Advent has focused on doing those core functions really well, expanding our business internationally over time and broadening our capabilities gradually, so that we have deep, robust solutions that work.
I think that Advent has been respected for so long in the industry because we have been innovative, with one of the largest footprints of solutions in the market and the deepest functionality, but we can also be trusted. We have always had this great reputation for reliability to go along with that innovation. I would say, overall, that's been the key to our success. A lot of what has fueled this has been a disciplined strategy to "stick to our knitting," and also our ability to retain our employees. We have a lot of long-tenured, knowledgeable employees, which are really important in this very deep niche domain where we play.
TWST: What does the client space look like today? Is it changing or evolving? How are their needs changing or evolving?
Mr. Hess: The client space has certainly been evolving a lot more quickly in the last five years than it had previously. If you look at the buy side and go back 10 or 15 years ago, you had mostly traditional asset managers who serviced high net worth institutional clients around the globe. What you see today is a lot more specialization in the buy-side landscape. You have dedicated hedge funds, dedicated, traditional asset managers, and people who manage mutual funds and long-only investment portfolios.
In addition, you have wealth managers, some of whom are financial planners, others who are multifamily offices or are more traditional asset managers but are just focusing on high net worth individuals. Essentially, there has just been a lot of specialization.
From the 1990s until about 2009, we saw a lot of firms that were single-product specialists. Since the market crisis, it seems that a lot of those firms are now diversifying into other products, which has created an opportunity for Advent since we can help our clients leverage multiple Advent solutions so that they can diversify their business, helping them grow in what has been a tougher market environment.
In addition, there has been a significant increase in regulation as well as a consolidation in the industry, so a lot of things have changed.
TWST: What do you see as the best internal investment at this point? Is it to bring in new clients, maybe new products and services for the customer base Advent has established or is it perhaps to bring in whole new lines to the merger and acquisition process?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.