SS&C Technologies Holdings Inc. announced an 82 percent jump in first-quarter earnings Monday, driven partly by the software-enabled services it sells to financial-services companies.
Net income was $17.9 million, or 22 cents per share, for the first three months of the year, compared with $9.8 million, or 12 cents per share, during the same period last year.
"Our software-enabled services business continues to grow, up 12 percent," said company chairman and CEO Bill Stone. "Fund administration is where we see a lot of potential and we believe we are in an excellent position. We continue to see big opportunities in the fund services marketplace and we have won a number of large mandates in the second quarter . . . Although SS&C had a weak license quarter, we were able to recognize this and manage our expenses to continue to drive our earnings."
The company recorded transaction costs of $4.2 million during the first three months of the year related to a proposed acquisition of GlobeOp Financial Services and the pending acquisition of Thomson Reuters PORTIA business. SS&C reported a gain of $4.4 million related to a currency hedge that it put in place for the GlobeOp acquisition.
The financial-services software company reported revenue of $93.7 million during the quarter, up from $89 million in the first quarter of 2011. Operating income during the quarter was $22.1 million, down from $23.1 million during the same quarter last year.