##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission File Number 000-28430
 SS&C TECHNOLOGIES, INC.
 (Exact name of Registrant as specified in its charter)
 Delaware
(State or other jurisdiction of 
incorporation or organization)
    
    06-1169696
(I.R.S. Employer Identification No.)
 80 Lamberton Road
Windsor, CT 06095
(Address of principal executive offices, including zip code)
 860-298-4500
(Registrants telephone number, including area code)
 o þ
 o o
  Large accelerated filer o
Accelerated filer o
Non-accelerated filer þ(Do not check if a smaller reporting company)
Smaller reporting company o o þ




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##### 



SS&C TECHNOLOGIES, INC.
 INDEX
 PageNumberPART I.
    
    FINANCIAL INFORMATIONItem 1.
    
    Financial StatementsCondensed Consolidated Balance Sheets at September 30, 2009 and December 31, 2008
    
    
    3Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2009 and 2008
    
    
    4Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2009 and 2008
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    17Item 3.
    
    Quantitative and Qualitative Disclosures About Market  Risk
    
    
    26Item 4T.
    
    Controls and Procedures
    
    
    26PART II.
    
    OTHER INFORMATIONItem 1.
    
    Legal Proceedings
    
    
    27Item 1A.
    
    Risk Factors
    
    
    27Item 6.
    
    Exhibits
    
    
    27SIGNATURE
    
    
    28EXHIBIT INDEX
    
    
    29EX-31.1 Section 302 Certification of Chief Executive OfficerEX-31.2 Section 302 Certification of Chief Financial OfficerEX-32 Section 906 Certification of Chief Executive Officer and Chief Financial Officer
   2




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##### Table of Contents



Part I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 
 
 September 30,
    
    
    December 31,2009
    
    
    2008ASSETSCurrent assetsCash and cash equivalents
    
    $
    52,461
    
    
    $
    29,299Accounts receivable, net of allowance for
doubtful accounts of $1,657 and $1,444,
respectively
    
    
    37,628
    
    
    
    38,318Prepaid expenses and other current assets
    
    
    4,892
    
    
    
    4,327Deferred income taxes
    
    
    914
    
    
    
    3,777Total current assets
    
    
    95,895
    
    
    
    75,721Property and equipmentLeasehold improvements
    
    
    5,067
    
    
    
    4,852Equipment, furniture, and fixtures
    
    
    23,576
    
    
    
    20,97828,643
    
    
    
    25,830Less accumulated depreciation
    
    
    (15,851
    )
    
    
    (11,800
    )Net property and equipment
    
    
    12,792
    
    
    
    14,030Goodwill
    
    
    853,147
    
    
    
    822,409Intangible and other assets, net of accumulated
amortization of $108,339 and $82,520,
respectively
    
    
    204,020
    
    
    
    215,193Total assets
    
    $
    1,165,854
    
    
    $
    1,127,353LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilitiesCurrent portion of long-term debt
    
    $
    2,264
    
    
    $
    2,101Accounts payable
    
    
    1,769
    
    
    
    1,821Income taxes payable
    
    
    2,578
    
    
    
    4,898Accrued employee compensation and benefits
    
    
    10,275
    
    
    
    13,640Other accrued expenses
    
    
    13,463
    
    
    
    11,561Interest payable
    
    
    8,091
    
    
    
    2,007Deferred maintenance and other revenue
    
    
    36,435
    
    
    
    30,844Total current liabilities
    
    
    74,875
    
    
    
    66,872Long-term debt, net of current portion
    
    
    400,300
    
    
    
    406,625Other long-term liabilities
    
    
    8,842
    
    
    
    9,991Deferred income taxes
    
    
    47,019
    
    
    
    56,612Total liabilities
    
    
    531,036
    
    
    
    540,100Commitments and contingencies (Note 7)Stockholders equityCommon stock
    
    
    
    
    
    
    Additional paid-in capital
    
    
    581,999
    
    
    
    577,861Accumulated other comprehensive income (loss)
    
    
    12,541
    
    
    
    (17,890
    )Retained earnings
    
    
    40,278
    
    
    
    27,282Total stockholders equity
    
    
    634,818
    
    
    
    587,253Total liabilities and stockholders equity
    
    $
    1,165,854
    
    
    $
    1,127,353
  3




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Three Months
    
    
    Three Months
    
    
    Nine Months
    
    
    Nine MonthsEnded
    
    
    Ended
    
    
    Ended
    
    
    EndedSeptember 30,
    
    
    September 30,
    
    
    September 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenues:Software licenses
    
    $
    5,829
    
    
    $
    5,669
    
    
    $
    15,632
    
    
    $
    18,353Maintenance
    
    
    16,959
    
    
    
    16,348
    
    
    
    48,565
    
    
    
    48,986Professional services
    
    
    4,283
    
    
    
    5,316
    
    
    
    14,872
    
    
    
    18,695Software-enabled services
    
    
    41,826
    
    
    
    43,668
    
    
    
    120,801
    
    
    
    125,685Total revenues
    
    
    68,897
    
    
    
    71,001
    
    
    
    199,870
    
    
    
    211,719Cost of revenues:Software licenses
    
    
    2,133
    
    
    
    2,262
    
    
    
    6,304
    
    
    
    6,868Maintenance
    
    
    7,025
    
    
    
    6,844
    
    
    
    20,352
    
    
    
    20,104Professional services
    
    
    3,170
    
    
    
    3,774
    
    
    
    10,659
    
    
    
    11,906Software-enabled services
    
    
    22,473
    
    
    
    23,092
    
    
    
    65,079
    
    
    
    68,433Total cost of revenues
    
    
    34,801
    
    
    
    35,972
    
    
    
    102,394
    
    
    
    107,311Gross profit
    
    
    34,096
    
    
    
    35,029
    
    
    
    97,476
    
    
    
    104,408Operating expenses:Selling and marketing
    
    
    4,962
    
    
    
    4,761
    
    
    
    15,229
    
    
    
    14,701Research and development
    
    
    6,969
    
    
    
    6,597
    
    
    
    19,593
    
    
    
    20,341General and administrative
    
    
    4,502
    
    
    
    8,092
    
    
    
    14,683
    
    
    
    20,689Total operating expenses
    
    
    16,433
    
    
    
    19,450
    
    
    
    49,505
    
    
    
    55,731Operating income
    
    
    17,663
    
    
    
    15,579
    
    
    
    47,971
    
    
    
    48,677Interest expense, net
    
    
    (9,147
    )
    
    
    (10,295
    )
    
    
    (27,791
    )
    
    
    (31,132
    )Other (expense) income, net
    
    
    (334
    )
    
    
    1,057
    
    
    
    (1,256
    )
    
    
    278Income before income taxes
    
    
    8,182
    
    
    
    6,341
    
    
    
    18,924
    
    
    
    17,823Provision for income taxes
    
    
    2,575
    
    
    
    1,531
    
    
    
    5,928
    
    
    
    5,491Net income
    
    $
    5,607
    
    
    $
    4,810
    
    
    $
    12,996
    
    
    $
    12,332
  4




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Nine Months
    
    
    Nine MonthsEnded
    
    
    EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008Cash flow from operating activities:Net income
    
    $
    12,996
    
    
    $
    12,332Adjustments to reconcile net income to net cash provided by
operating activities:Depreciation and amortization
    
    
    26,707
    
    
    
    26,292Stock-based compensation
    
    
    4,363
    
    
    
    5,405Amortization of loan origination costs
    
    
    1,724
    
    
    
    1,756Equity losses on long-term investment
    
    
    
    
    
    
    1,039Loss on sale or disposal of property and equipment
    
    
    13
    
    
    
    1Deferred income taxes
    
    
    (8,727
    )
    
    
    (7,433
    )Provision for doubtful accounts
    
    
    300
    
    
    
    703Changes in operating assets and liabilities, excluding effects from acquisitions:Accounts receivable
    
    
    2,594
    
    
    
    (8,437
    )Prepaid expenses and other assets
    
    
    132
    
    
    
    (1,004
    )Accounts payable
    
    
    (184
    )
    
    
    1,014Accrued expenses
    
    
    3,491
    
    
    
    4,528Income taxes payable
    
    
    (2,224
    )
    
    
    2,892Deferred maintenance and other revenues
    
    
    3,815
    
    
    
    4,034Net cash provided by operating activities
    
    
    45,000
    
    
    
    43,122Cash flow from investing activities:Additions to property and equipment
    
    
    (1,192
    )
    
    
    (6,203
    )Proceeds from sale of property and equipment
    
    
    3
    
    
    
    2Cash paid for business acquisitions, net of cash acquired
    
    
    (10,327
    )
    
    
    Additions to capitalized software
    
    
    (46
    )
    
    
    Net cash used in investing activities
    
    
    (11,562
    )
    
    
    (6,201
    )Cash flow from financing activities:Repayment of debt
    
    
    (11,735
    )
    
    
    (25,050
    )Transactions involving SS&C Technologies Holdings, Inc. common stock
    
    
    (225
    )
    
    
    12Net cash used in financing activities
    
    
    (11,960
    )
    
    
    (25,038
    )Effect of exchange rate changes on cash
    
    
    1,684
    
    
    
    (728
    )Net increase in cash and cash equivalents
    
    
    23,162
    
    
    
    11,155Cash and cash equivalents, beginning of period
    
    
    29,299
    
    
    
    19,175Cash and cash equivalents, end of period
    
    $
    52,461
    
    
    $
    30,330
  5




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SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES
         6




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Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Statements of operations classification:Cost of maintenance
    
    $
    33
    
    
    $
    42
    
    
    $
    89
    
    
    $
    104Cost of professional services
    
    
    59
    
    
    
    71
    
    
    
    163
    
    
    
    178Cost of software-enabled services
    
    
    315
    
    
    
    448
    
    
    
    875
    
    
    
    1,201Total cost of revenues
    
    
    407
    
    
    
    561
    
    
    
    1,127
    
    
    
    1,483Selling and marketing
    
    
    259
    
    
    
    342
    
    
    
    754
    
    
    
    872Research and development
    
    
    169
    
    
    
    228
    
    
    
    467
    
    
    
    572General and administrative
    
    
    734
    
    
    
    966
    
    
    
    2,015
    
    
    
    2,478Total operating expenses
    
    
    1,162
    
    
    
    1,536
    
    
    
    3,236
    
    
    
    3,922Total stock-based compensation expense
    
    $
    1,569
    
    
    $
    2,097
    
    
    $
    4,363
    
    
    $
    5,405
  Shares of HoldingsUnder OptionOutstanding at January 1, 2009
    
    
    1,513,193Granted
    
    
    30,005Cancelled/forfeited
    
    
    (23,784
    )Exercised
    
    
    (29,893
    )Outstanding at September 30, 2009
    
    
    1,489,521
    Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Net income
    
    $
    5,607
    
    
    $
    4,810
    
    
    $
    12,996
    
    
    $
    12,332Foreign currency translation gains (losses)
    
    
    17,869
    
    
    
    (11,498
    )
    
    
    29,410
    
    
    
    (16,642
    )Unrealized gains (losses) on interest rate
swaps, net of tax
    
    
    238
    
    
    
    195
    
    
    
    1,021
    
    
    
    (47
    )Total comprehensive income (loss)
    
    $
    23,714
    
    
    $
    (6,493
    )
    
    $
    43,427
    
    
    $
    (4,357
    )
 7




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September 30,
    
    
    December  31,2009
    
    
    
    2008Senior credit facility, term loan
portion, weighted-average interest rate
of 2.43% and 3.54%, respectively
    
    $
    197,279
    
    
    $
    203,72611 3/4% senior subordinated notes due 2013
    
    
    205,000
    
    
    
    205,000Capital leases
    
    
    285
    
    
    
    402,564
    
    
    
    408,726Current portion of long-term debt
    
    
    (2,264
    )
    
    
    (2,101
    )Long-term debt
    
    $
    400,300
    
    
    $
    406,625
       Three Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2009
    
    2008
    
    2009
    
    2008Interest rate swaps
    
    $
    1,070
    
    
    $
    814
    
    
    $
    2,815
    
    
    $
    1,545
  Three Months Ended
    
    Nine Months EndedSeptember 30,
    
    September  30,2009
    
    2008
    
    2009
    
    2008Amount of gain
(loss) recognized
in AOCI, net of tax
    
    $
    238
    
    
    $
    195
    
    
    $
    1,021
    
    
    $
    (47
    )
  8




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9




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MAXIMIS
    
    
    EvareAccounts receivable, net of $11 reserve for Evare
    
    $
    
    
    
    $
    928Tangible assets acquired, net of cash received
    
    
    143
    
    
    
    1,090Completed technology
    
    
    1,485
    
    
    
    Trade name
    
    
    110
    
    
    
    150Acquired client relationships and contracts
    
    
    5,420
    
    
    
    1,720Goodwill
    
    
    766
    
    
    
    500Deferred revenue
    
    
    (910
    )
    
    
    (28
    )Other liabilities assumed
    
    
    (108
    )
    
    
    (810
    )Consideration paid, net of cash received
    
    $
    6,906
    
    
    $
    3,550
  Three Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2009
    
    2008
    
    2009
    
    2008Revenues
    
    $
    68,897
    
    
    $
    74,774
    
    
    $
    202,922
    
    
    $
    222,638Net income
    
    
    5,607
    
    
    
    5,595
    
    
    
    13,823
    
    
    
    14,362
    Balance at December 31, 2008
    
    $
    822,4092009 acquisitions
    
    
    1,266Adjustments to previous acquisitions
    
    
    (147
    )Effect of foreign currency translation
    
    
    29,619Balance at September 30, 2009
    
    $
    853,147
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Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008United States
    
    $
    43,078
    
    
    $
    43,468
    
    
    $
    127,213
    
    
    $
    125,665Canada
    
    
    10,774
    
    
    
    11,071
    
    
    
    30,437
    
    
    
    34,103Americas, excluding
United States and
Canada
    
    
    2,674
    
    
    
    812
    
    
    
    5,924
    
    
    
    3,791Europe
    
    
    10,898
    
    
    
    13,411
    
    
    
    30,723
    
    
    
    41,775Asia Pacific and Japan
    
    
    1,473
    
    
    
    2,239
    
    
    
    5,573
    
    
    
    6,385$
    68,897
    
    
    $
    71,001
    
    
    $
    199,870
    
    
    $
    211,719
  Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Portfolio management/accounting
    
    $
    57,225
    
    
    $
    57,535
    
    
    $
    163,715
    
    
    $
    171,955Trading/treasury operations
    
    
    5,379
    
    
    
    6,591
    
    
    
    17,455
    
    
    
    20,056Financial modeling
    
    
    2,296
    
    
    
    2,205
    
    
    
    6,592
    
    
    
    6,691Loan management/accounting
    
    
    981
    
    
    
    1,314
    
    
    
    3,271
    
    
    
    3,715Property management
    
    
    1,327
    
    
    
    1,392
    
    
    
    3,819
    
    
    
    4,167Money market processing
    
    
    993
    
    
    
    1,169
    
    
    
    2,894
    
    
    
    2,929Training
    
    
    696
    
    
    
    795
    
    
    
    2,124
    
    
    
    2,206$
    68,897
    
    
    $
    71,001
    
    
    $
    199,870
    
    
    $
    211,719
  3 4
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Condensed Consolidating Balance Sheet at September 30, 2009Total Non-
    
    
    ConsolidatingSS&C
    
    
    Total Guarantors
    
    
    Guarantors
    
    
    Adjustments
    
    
    TotalCash and cash equivalents
    
    $
    33,564
    
    
    $
    2,956
    
    
    $
    15,941
    
    
    $
    
    
    
    $
    52,461Accounts receivable, net
    
    
    19,714
    
    
    
    5,989
    
    
    
    11,925
    
    
    
    
    
    
    
    37,628Income taxes receivable
    
    
    1,469
    
    
    
    
    
    
    
    
    
    
    
    (1,469
    )
    
    
    Prepaid expenses and other current assets
    
    
    1,746
    
    
    
    615
    
    
    
    2,531
    
    
    
    
    
    
    
    4,892Deferred income taxes
    
    
    485
    
    
    
    90
    
    
    
    339
    
    
    
    
    
    
    
    914Property and equipment, net
    
    
    7,947
    
    
    
    735
    
    
    
    4,110
    
    
    
    
    
    
    
    12,792Investment in subsidiaries
    
    
    164,066
    
    
    
    
    
    
    
    
    
    
    
    (164,066
    )
    
    
    Intercompany balances
    
    
    119,171
    
    
    
    (8,542
    )
    
    
    (110,629
    )
    
    
    
    
    
    
    Deferred taxes, long-term
    
    
    
    
    
    
    188
    
    
    
    
    
    
    
    (188
    )
    
    
    Goodwill, intangible and other assets, net
    
    
    739,460
    
    
    
    33,775
    
    
    
    283,932
    
    
    
    
    
    
    
    1,057,167Total assets
    
    $
    1,087,622
    
    
    $
    35,806
    
    
    $
    208,149
    
    
    $
    (165,723
    )
    
    $
    1,165,854Current portion of long-term debt
    
    $
    1,834
    
    
    $
    
    
    
    $
    430
    
    
    $
    
    
    
    $
    2,264Accounts payable
    
    
    796
    
    
    
    87
    
    
    
    886
    
    
    
    
    
    
    
    1,769Accrued expenses and other liabilities
    
    
    25,814
    
    
    
    1,326
    
    
    
    4,689
    
    
    
    
    
    
    
    31,829Income taxes payable
    
    
    
    
    
    
    2,569
    
    
    
    1,478
    
    
    
    (1,469
    )
    
    
    2,578Deferred maintenance and other revenue
    
    
    25,928
    
    
    
    3,368
    
    
    
    7,139
    
    
    
    
    
    
    
    36,435Long-term debt, net of current portion
    
    
    359,459
    
    
    
    
    
    
    
    40,841
    
    
    
    
    
    
    
    400,300Other long-term liabilities
    
    
    2,787
    
    
    
    
    
    
    
    6,055
    
    
    
    
    
    
    
    8,842Deferred income taxes, long-term
    
    
    36,187
    
    
    
    
    
    
    
    11,020
    
    
    
    (188
    )
    
    
    47,019Total liabilities
    
    
    452,805
    
    
    
    7,350
    
    
    
    72,538
    
    
    
    (1,657
    )
    
    
    531,036Stockholders equity
    
    
    634,817
    
    
    
    28,456
    
    
    
    135,611
    
    
    
    (164,066
    )
    
    
    634,818Total liabilities and stockholders equity
    
    $
    1,087,622
    
    
    $
    35,806
    
    
    $
    208,149
    
    
    $
    (165,723
    )
    
    $
    1,165,854Condensed Consolidating Balance Sheet at December 31, 2008Total Non-
    
    
    ConsolidatingSS&C
    
    
    Total Guarantors
    
    
    Guarantors
    
    
    Adjustments
    
    
    TotalCash and cash equivalents
    
    $
    10,329
    
    
    $
    5,180
    
    
    $
    13,790
    
    
    $
    
    
    
    $
    29,299Accounts receivable, net
    
    
    19,945
    
    
    
    6,397
    
    
    
    11,976
    
    
    
    
    
    
    
    38,318Prepaid expenses and other current assets
    
    
    1,342
    
    
    
    530
    
    
    
    2,455
    
    
    
    
    
    
    
    4,327Deferred income taxes
    
    
    673
    
    
    
    92
    
    
    
    340
    
    
    
    2,672
    
    
    
    3,777Property and equipment, net
    
    
    8,574
    
    
    
    1,007
    
    
    
    4,449
    
    
    
    
    
    
    
    14,030Investment in subsidiaries
    
    
    126,555
    
    
    
    
    
    
    
    
    
    
    
    (126,555
    )
    
    
    Intercompany balances
    
    
    134,025
    
    
    
    (20,441
    )
    
    
    (113,584
    )
    
    
    
    
    
    
    Deferred income taxes, long-term
    
    
    
    
    
    
    606
    
    
    
    489
    
    
    
    (1,095
    )
    
    
    Goodwill, intangible and other assets, net
    
    
    747,894
    
    
    
    35,702
    
    
    
    254,006
    
    
    
    
    
    
    
    1,037,602Total assets
    
    $
    1,049,337
    
    
    $
    29,073
    
    
    $
    173,921
    
    
    $
    (124,978
    )
    
    $
    1,127,353Current portion of long-term debt
    
    $
    1,724
    
    
    $
    
    
    
    $
    377
    
    
    $
    
    
    
    $
    2,101Accounts payable
    
    
    448
    
    
    
    132
    
    
    
    1,241
    
    
    
    
    
    
    
    1,821Accrued expenses
    
    
    20,127
    
    
    
    1,472
    
    
    
    5,609
    
    
    
    
    
    
    
    27,208Deferred income taxes
    
    
    
    
    
    
    125
    
    
    
    
    
    
    
    (125
    )
    
    
    Income taxes payable
    
    
    1,102
    
    
    
    2
    
    
    
    3,794
    
    
    
    
    
    
    
    4,898Deferred maintenance and other revenue
    
    
    20,643
    
    
    
    2,788
    
    
    
    7,413
    
    
    
    
    
    
    
    30,844Long-term debt, net of current portion
    
    
    370,551
    
    
    
    
    
    
    
    36,074
    
    
    
    
    
    
    
    406,625Other long-term liabilities
    
    
    4,294
    
    
    
    
    
    
    
    5,697
    
    
    
    
    
    
    
    9,991Deferred income taxes, long-term
    
    
    43,195
    
    
    
    
    
    
    
    11,715
    
    
    
    1,702
    
    
    
    56,612Total liabilities
    
    
    462,084
    
    
    
    4,519
    
    
    
    71,920
    
    
    
    1,577
    
    
    
    540,100Stockholders equity
    
    
    587,253
    
    
    
    24,554
    
    
    
    102,001
    
    
    
    (126,555
    )
    
    
    587,253Total liabilities and stockholders equity
    
    $
    1,049,337
    
    
    $
    29,073
    
    
    $
    173,921
    
    
    $
    (124,978
    )
    
    $
    1,127,353
 12




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##### Table of Contents



Condensed Consolidating Statement of Operationsfor the Three Months Ended September 30, 2009Total Non-
    
    
    ConsolidatingSS&C
    
    
    Total Guarantors
    
    
    Guarantors
    
    
    Adjustments
    
    
    TotalRevenue
    
    $
    32,074
    
    
    $
    17,062
    
    
    $
    20,119
    
    
    $
    (358
    )
    
    $
    68,897Cost of revenue
    
    
    16,691
    
    
    
    10,572
    
    
    
    7,896
    
    
    
    (358
    )
    
    
    34,801Gross profit
    
    
    15,383
    
    
    
    6,490
    
    
    
    12,223
    
    
    
    
    
    
    
    34,096Operating expenses:Selling & marketing
    
    
    3,039
    
    
    
    599
    
    
    
    1,324
    
    
    
    
    
    
    
    4,962Research & development
    
    
    4,079
    
    
    
    897
    
    
    
    1,993
    
    
    
    
    
    
    
    6,969General & administrative
    
    
    3,322
    
    
    
    311
    
    
    
    869
    
    
    
    
    
    
    
    4,502Total operating expenses
    
    
    10,440
    
    
    
    1,807
    
    
    
    4,186
    
    
    
    
    
    
    
    16,433Operating income
    
    
    4,943
    
    
    
    4,683
    
    
    
    8,037
    
    
    
    
    
    
    
    17,663Interest expense, net
    
    
    (6,153
    )
    
    
    
    
    
    
    (2,994
    )
    
    
    
    
    
    
    (9,147
    )Other (expense) income, net
    
    
    384
    
    
    
    (147
    )
    
    
    (571
    )
    
    
    
    
    
    
    (334
    )(Loss) income before income taxes
    
    
    (826
    )
    
    
    4,536
    
    
    
    4,472
    
    
    
    
    
    
    
    8,182Provision for income taxes
    
    
    560
    
    
    
    973
    
    
    
    1,042
    
    
    
    
    
    
    
    2,575Equity in net income of subsidiaries
    
    
    6,993
    
    
    
    
    
    
    
    
    
    
    
    (6,993
    )
    
    
    Net income
    
    $
    5,607
    
    
    $
    3,563
    
    
    $
    3,430
    
    
    $
    (6,993
    )
    
    $
    5,607
 Condensed Consolidating Statement of Operationsfor the Three Months Ended September 30, 2008Total Non-
    
    
    ConsolidatingSS&C
    
    
    Total Guarantors
    
    
    Guarantors
    
    
    Adjustments
    
    
    TotalRevenues
    
    $
    29,434
    
    
    $
    19,859
    
    
    $
    22,067
    
    
    $
    (359
    )
    
    $
    71,001Cost of revenues
    
    
    16,399
    
    
    
    11,034
    
    
    
    8,898
    
    
    
    (359
    )
    
    
    35,972Gross profit
    
    
    13,035
    
    
    
    8,825
    
    
    
    13,169
    
    
    
    
    
    
    
    35,029Operating expenses:Selling & marketing
    
    
    2,917
    
    
    
    411
    
    
    
    1,433
    
    
    
    
    
    
    
    4,761Research & development
    
    
    3,552
    
    
    
    1,004
    
    
    
    2,041
    
    
    
    
    
    
    
    6,597General & administrative
    
    
    6,686
    
    
    
    375
    
    
    
    1,031
    
    
    
    
    
    
    
    8,092Total operating expenses
    
    
    13,155
    
    
    
    1,790
    
    
    
    4,505
    
    
    
    
    
    
    
    19,450Operating (loss) income
    
    
    (120
    )
    
    
    7,035
    
    
    
    8,664
    
    
    
    
    
    
    
    15,579Interest expense, net
    
    
    (6,462
    )
    
    
    
    
    
    
    (3,833
    )
    
    
    
    
    
    
    (10,295
    )Other expense, net
    
    
    371
    
    
    
    151
    
    
    
    535
    
    
    
    
    
    
    
    1,057(Loss) income before income taxes
    
    
    (6,211
    )
    
    
    7,186
    
    
    
    5,366
    
    
    
    
    
    
    
    6,341(Benefit) provision for income taxes
    
    
    (1,928
    )
    
    
    1,582
    
    
    
    1,877
    
    
    
    
    
    
    
    1,531Equity in net income of subsidiaries
    
    
    9,093
    
    
    
    
    
    
    
    
    
    
    
    (9,093
    )
    
    
    Net income
    
    $
    4,810
    
    
    $
    5,604
    
    
    $
    3,489
    
    
    $
    (9,093
    )
    
    $
    4,810
 13




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##### Table of Contents



Condensed Consolidating Statement of Operationsfor the Nine Months Ended September 30, 2009Total
    
    
    Total Non-
    
    
    ConsolidatingSS&C
    
    
    Guarantors
    
    
    Guarantors
    
    
    Adjustments
    
    
    TotalRevenue
    
    $
    87,097
    
    
    $
    54,046
    
    
    $
    59,958
    
    
    $
    (1,231
    )
    
    $
    199,870Cost of revenue
    
    
    47,326
    
    
    
    33,430
    
    
    
    22,869
    
    
    
    (1,231
    )
    
    
    102,394Gross profit
    
    
    39,771
    
    
    
    20,616
    
    
    
    37,089
    
    
    
    
    
    
    
    97,476Operating expenses:Selling & marketing
    
    
    9,056
    
    
    
    2,179
    
    
    
    3,994
    
    
    
    
    
    
    
    15,229Research & development
    
    
    11,376
    
    
    
    2,584
    
    
    
    5,633
    
    
    
    
    
    
    
    19,593General & administrative
    
    
    11,034
    
    
    
    792
    
    
    
    2,857
    
    
    
    
    
    
    
    14,683Total operating expenses
    
    
    31,466
    
    
    
    5,555
    
    
    
    12,484
    
    
    
    
    
    
    
    49,505Operating income
    
    
    8,305
    
    
    
    15,061
    
    
    
    24,605
    
    
    
    
    
    
    
    47,971Interest expense, net
    
    
    (18,967
    )
    
    
    
    
    
    
    (8,824
    )
    
    
    
    
    
    
    (27,791
    )Other (expense) income, net
    
    
    1,013
    
    
    
    (480
    )
    
    
    (1,789
    )
    
    
    
    
    
    
    (1,256
    )Income (loss) before income taxes
    
    
    (9,649
    )
    
    
    14,581
    
    
    
    13,992
    
    
    
    
    
    
    
    18,924(Benefit) provision for income taxes
    
    
    (1,595
    )
    
    
    2,863
    
    
    
    4,660
    
    
    
    
    
    
    
    5,928Equity in net income of subsidiaries
    
    
    21,050
    
    
    
    
    
    
    
    
    
    
    
    (21,050
    )
    
    
    Net income
    
    $
    12,996
    
    
    $
    11,718
    
    
    $
    9,332
    
    
    $
    (21,050
    )
    
    $
    12,996
 Condensed Consolidating Statement of Operationsfor the Nine Months Ended September 30, 2008Total
    
    
    Total Non-
    
    
    ConsolidatingSS&C
    
    
    Guarantors
    
    
    Guarantors
    
    
    Adjustments
    
    
    TotalRevenues
    
    $
    87,814
    
    
    $
    56,684
    
    
    $
    68,338
    
    
    $
    (1,117
    )
    
    $
    211,719Cost of revenues
    
    
    48,665
    
    
    
    32,584
    
    
    
    27,179
    
    
    
    (1,117
    )
    
    
    107,311Gross profit
    
    
    39,149
    
    
    
    24,100
    
    
    
    41,159
    
    
    
    
    
    
    
    104,408Operating expenses:Selling & marketing
    
    
    9,087
    
    
    
    1,152
    
    
    
    4,462
    
    
    
    
    
    
    
    14,701Research & development
    
    
    10,707
    
    
    
    3,196
    
    
    
    6,438
    
    
    
    
    
    
    
    20,341General & administrative
    
    
    15,235
    
    
    
    804
    
    
    
    4,650
    
    
    
    
    
    
    
    20,689Total operating expenses
    
    
    35,029
    
    
    
    5,152
    
    
    
    15,550
    
    
    
    
    
    
    
    55,731Operating income
    
    
    4,120
    
    
    
    18,948
    
    
    
    25,609
    
    
    
    
    
    
    
    48,677Interest expense, net
    
    
    (19,403
    )
    
    
    
    
    
    
    (11,729
    )
    
    
    
    
    
    
    (31,132
    )Other (expense) income, net
    
    
    (821
    )
    
    
    162
    
    
    
    937
    
    
    
    
    
    
    
    278(Loss) income before income taxes
    
    
    (16,104
    )
    
    
    19,110
    
    
    
    14,817
    
    
    
    
    
    
    
    17,823(Benefit) provision for income taxes
    
    
    (3,659
    )
    
    
    4,250
    
    
    
    4,900
    
    
    
    
    
    
    
    5,491Equity in net income of subsidiaries
    
    
    24,777
    
    
    
    
    
    
    
    
    
    
    
    (24,777
    )
    
    
    Net income
    
    $
    12,332
    
    
    $
    14,860
    
    
    $
    9,917
    
    
    $
    (24,777
    )
    
    $
    12,332
 14




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##### Table of Contents



Condensed Consolidating Statement of Cash Flowsfor the Nine Months Ended September 30, 2009Total
    
    
    Total Non-
    
    
    ConsolidatingSS&C
    
    
    Guarantors
    
    
    Guarantors
    
    
    Adjustments
    
    
    TotalCash Flow from Operating Activities:Net income
    
    $
    12,996
    
    
    $
    11,718
    
    
    $
    9,332
    
    
    $
    (21,050
    )
    
    $
    12,996Non-cash adjustments
    
    
    (4,275
    )
    
    
    2,600
    
    
    
    5,005
    
    
    
    21,050
    
    
    
    24,380Changes in operating assets and liabilities
    
    
    8,883
    
    
    
    3,344
    
    
    
    (4,603
    )
    
    
    
    
    
    
    7,624Net cash provided by operating activities
    
    
    17,604
    
    
    
    17,662
    
    
    
    9,734
    
    
    
    
    
    
    
    45,000Cash Flow from Investment Activities:Intercompany transactions
    
    
    28,685
    
    
    
    (19,963
    )
    
    
    (8,722
    )
    
    
    
    
    
    
    Additions to property and equipment and
software
    
    
    (936
    )
    
    
    (52
    )
    
    
    (250
    )
    
    
    
    
    
    
    (1,238
    )Cash paid for business acquisitions, net
of cash acquired
    
    
    (10,456
    )
    
    
    129
    
    
    
    
    
    
    
    
    
    
    
    (10,327
    )Proceeds from sale of property and
equipment
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    3Net cash provided by (used in) investing
activities
    
    
    17,293
    
    
    
    (19,886
    )
    
    
    (8,969
    )
    
    
    
    
    
    
    (11,562
    )Cash Flow from Financing Activities:Net repayments of debt
    
    
    (11,437
    )
    
    
    
    
    
    
    (298
    )
    
    
    
    
    
    
    (11,735
    )Transactions involving SS&C Technologies
Holdings, Inc. common stock
    
    
    (225
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (225
    )Net cash used in financing activities
    
    
    (11,662
    )
    
    
    
    
    
    
    (298
    )
    
    
    
    
    
    
    (11,960
    )Effect of exchange rate changes on cash
    
    
    
    
    
    
    
    
    
    
    1,684
    
    
    
    
    
    
    
    1,684Net increase (decrease) in cash and cash
equivalents
    
    
    23,235
    
    
    
    (2,224
    )
    
    
    2,151
    
    
    
    
    
    
    
    23,162Cash and cash equivalents, beginning of
period
    
    
    10,329
    
    
    
    5,180
    
    
    
    13,790
    
    
    
    
    
    
    
    29,299Cash and cash equivalents, end of period
    
    $
    33,564
    
    
    $
    2,956
    
    
    $
    15,941
    
    
    $
    
    
    
    $
    52,461
 Condensed Consolidating Statement of Cash Flowsfor the Nine Months Ended September 30, 2008Total
    
    
    Total Non-
    
    
    ConsolidatingSS&C
    
    
    Guarantors
    
    
    Guarantors
    
    
    Adjustments
    
    
    TotalCash Flow from Operating Activities:Net income
    
    $
    12,332
    
    
    $
    14,860
    
    
    $
    9,917
    
    
    $
    (24,777
    )
    
    $
    12,332Non-cash adjustments
    
    
    (4,713
    )
    
    
    1,912
    
    
    
    5,787
    
    
    
    24,777
    
    
    
    27,763Changes in operating assets and liabilities
    
    
    1,022
    
    
    
    1,284
    
    
    
    721
    
    
    
    
    
    
    
    3,027Net cash provided by operating activities
    
    
    8,641
    
    
    
    18,056
    
    
    
    16,425
    
    
    
    
    
    
    
    43,122Cash Flow from Investing Activities:Intercompany transactions
    
    
    16,429
    
    
    
    (18,224
    )
    
    
    1,795
    
    
    
    
    
    
    
    Additions to property and equipment
    
    
    (2,543
    )
    
    
    (648
    )
    
    
    (3,012
    )
    
    
    
    
    
    
    (6,203
    )Proceeds from sale of property and
equipment
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2Net cash provided by (used in) investing
activities
    
    
    13,888
    
    
    
    (18,872
    )
    
    
    (1,217
    )
    
    
    
    
    
    
    (6,201
    )Cash Flow from Financing Activities:Net repayments of debt
    
    
    (10,324
    )
    
    
    
    
    
    
    (14,726
    )
    
    
    
    
    
    
    (25,050
    )Transactions involving SS&C Technologies
Holdings, Inc. common stock
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12Net cash used in financing activities
    
    
    (10,312
    )
    
    
    
    
    
    
    (14,726
    )
    
    
    
    
    
    
    (25,038
    )Effect of exchange rate changes on cash
    
    
    
    
    
    
    
    
    
    
    (728
    )
    
    
    
    
    
    
    (728
    )Net increase (decrease) in cash and cash
equivalents
    
    
    12,217
    
    
    
    (816
    )
    
    
    (246
    )
    
    
    
    
    
    
    11,155Cash and cash equivalents, beginning of
period
    
    
    9,031
    
    
    
    1,984
    
    
    
    8,160
    
    
    
    
    
    
    
    19,175Cash and cash equivalents, end of period
    
    $
    21,248
    
    
    $
    1,168
    
    
    $
    7,914
    
    
    $
    
    
    
    $
    30,330
 15




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##### Table of Contents



16




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##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
 CRITICAL ACCOUNTING POLICIES
  
    
    Revenue Recognition
    
    Allowance for Doubtful Accounts
    
    Long-Lived Assets, Intangible Assets and Goodwill
    
    Acquisition Accounting
    
    Income Taxes
    
    Stock-based compensation
 Results of Operations for the Three Months and Nine Months Ended September 30, 2009 and
2008
  Three Months Ended
    
    
    
    
    
    
    Nine Months EndedSeptember 30,
    
    
    Percent
    
    
    September 30,
    
    
    Percent2009
    
    
    2008
    
    
    Change
    
    
    2009
    
    
    2008
    
    
    ChangeRevenues:Software licenses
    
    $
    5,829
    
    
    $
    5,669
    
    
    
    3
    %
    
    $
    15,632
    
    
    $
    18,353
    
    
    
    -15
    %Maintenance
    
    
    16,959
    
    
    
    16,348
    
    
    
    4
    %
    
    
    48,565
    
    
    
    48,986
    
    
    
    -1
    %Professional services
    
    
    4,283
    
    
    
    5,316
    
    
    
    -19
    %
    
    
    14,872
    
    
    
    18,695
    
    
    
    -20
    %Software-enabled services
    
    
    41,826
    
    
    
    43,668
    
    
    
    -4
    %
    
    
    120,801
    
    
    
    125,685
    
    
    
    -4
    %Total revenues
    
    $
    68,897
    
    
    $
    71,001
    
    
    
    -3
    %
    
    $
    199,870
    
    
    $
    211,719
    
    
    
    -6
    %
  Three Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2009
    
    2008
    
    2009
    
    2008Revenues:Software licenses
    
    
    8
    %
    
    
    8
    %
    
    
    8
    %
    
    
    9
    %Maintenance
    
    
    25
    %
    
    
    23
    %
    
    
    24
    %
    
    
    23
    %Professional services
    
    
    6
    %
    
    
    7
    %
    
    
    8
    %
    
    
    9
    %Software-enabled
services
    
    
    61
    %
    
    
    62
    %
    
    
    60
    %
    
    
    59
    %
 Revenues
  17




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##### Table of Contents



Software Licenses
 Maintenance
 Professional Services
 Software-Enabled Services
 18




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##### Table of Contents



Cost of Revenues
  Cost of Software Licenses
 Cost of Maintenance
 Cost of Professional Services
 Cost of Software-Enabled Services
 19




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##### Table of Contents



Operating Expenses
  Selling and Marketing
 Research and Development
 General and Administrative
 20




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##### Table of Contents



Interest Expense. 3 4
 Other Expense, Net
 Provision for Income Taxes
 Liquidity and Capital Resources
      Off-Balance Sheet Arrangements
  21




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##### Table of Contents



Senior Credit Facilities
    11 3/4% Senior Subordinated Notes due 2013
 3 4
   Covenant Compliance
   22




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##### Table of Contents




    
    Consolidated EBITDA does not reflect the provision of income tax expense in
our various jurisdictions;
    
    Consolidated EBITDA does not reflect the significant interest expense we
incur as a result of our debt leverage;
    
    Consolidated EBITDA does not reflect any attribution of costs to our
operations related to our investments and capital expenditures through
depreciation and amortization charges;
    
    Consolidated EBITDA does not reflect the cost of compensation we provide to
our employees in the form of stock option awards; and
    
    Consolidated EBITDA excludes expenses that we believe are unusual or
non-recurring, but which others may believe are normal expenses for the
operation of a business.
  23




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##### Table of Contents



Three Months Ended
    
    
    Nine Months Ended
    
    
    TwelveMonths EndedSeptember 30,
    
    
    September 30,
    
    
    September 30,(in thousands)
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008
    
    
    2009Net income
    
    $
    5,607
    
    
    $
    4,810
    
    
    $
    12,996
    
    
    $
    12,332
    
    
    $
    19,465Interest expense, net
    
    
    9,147
    
    
    
    10,295
    
    
    
    27,791
    
    
    
    31,132
    
    
    
    37,789Income taxes
    
    
    2,575
    
    
    
    1,531
    
    
    
    5,928
    
    
    
    5,491
    
    
    
    7,583Depreciation and amortization
    
    
    9,109
    
    
    
    8,568
    
    
    
    26,707
    
    
    
    26,292
    
    
    
    35,453EBITDA
    
    $
    26,438
    
    
    $
    25,204
    
    
    $
    73,422
    
    
    $
    75,247
    
    
    $
    100,290Purchase accounting adjustments (1)
    
    
    (58
    )
    
    
    (76
    )
    
    
    (163
    )
    
    
    (224
    )
    
    
    (228
    )Unusual or non-recurring charges (2)
    
    
    400
    
    
    
    1,134
    
    
    
    1,683
    
    
    
    2,502
    
    
    
    661Acquired EBITDA and cost savings (3)
    
    
    
    
    
    
    
    
    
    
    2,025
    
    
    
    
    
    
    
    3,455Stock-based compensation
    
    
    1,569
    
    
    
    2,097
    
    
    
    4,363
    
    
    
    5,405
    
    
    
    6,281Capital-based taxes
    
    
    (4
    )
    
    
    165
    
    
    
    672
    
    
    
    880
    
    
    
    1,004Other (4)
    
    
    337
    
    
    
    324
    
    
    
    977
    
    
    
    1,044
    
    
    
    1,279Consolidated EBITDA
    
    $
    28,682
    
    
    $
    28,848
    
    
    $
    82,979
    
    
    $
    84,854
    
    
    $
    112,742
 
 (1)
    
    Purchase accounting adjustments include an adjustment to increase rent expense
by the amount that would have been recognized if lease obligations were not adjusted
to fair value at the date of the Transaction.(2)
    
    Unusual or non-recurring charges include foreign currency gains and losses,
expenses related to the withdrawn public offering, severance expenses associated with
workforce reduction, equity earnings and losses on investments, proceeds from legal
and other settlements and other one-time expenses.(3)
    
    Acquired EBITDA and cost savings reflects the EBITDA impact of significant
businesses that were acquired during the period as if the acquisitions occurred at
the beginning of the period and cost savings to be realized from such acquisitions.(4)
    
    Other includes management fees and related expenses paid to Carlyle and the
non-cash portion of straight-line rent expense.  Covenant
    
    ActualRequirements
    
    RatiosMaximum consolidated total leverage to Consolidated EBITDA Ratio
    
    
    5.50x
    
    
    
    3.30xMinimum Consolidated EBITDA to consolidated net interest coverage ratio
    
    
    2.00x
    
    
    
    3.18x
 Recent Accounting Pronouncements
   24




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25




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Item 3. Quantitative and Qualitative Disclosures About Market Risk
      
 Item 4T. Controls and Procedures
   26




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PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings
   
 Item 1A. Risk Factors
  
 Item 6. Exhibits
  27




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##### Table of Contents



SIGNATURE
  SS&C TECHNOLOGIES, INC.Date: November 13, 2009
    By:
    /s/ Patrick J. PedontiPatrick J. PedontiSenior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer) 28




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##### Table of Contents



Exhibit Index
 ExhibitNumber
    
    Description10.1*
    
    Assumption Agreement, dated as of August 31, 2009, by SS&C
Technologies Connecticut, LLC in favor of JPMorgan Chase Bank
is incorporated herein by reference to Exhibit 10.1 to the
Registrants Current Report on Form 8-K, filed on September 4,
2009 (File No. 000-28430) (the Form 8-K)10.2*
    
    Acknowledgment and Confirmation Agreement, dated as of August
31, 2009, among SS&C Technologies Canada Corp., JPMorgan Chase
Bank, N.A. and JP Morgan Chase Bank, N.A., Toronto Branch is
incorporated herein by reference to Exhibit 10.2 to the Form
8-K10.3*
    
    Second Supplemental Indenture, dated as of September 1, 2009,
among the Registrant, SS&C Technologies Connecticut, LLC and
Wells Fargo Bank, National Association is incorporated herein
by reference to Exhibit 10.3 to the Form 8-K10.4*
    
    Note Guarantee by SS&C Technologies Connecticut, LLC is
incorporated herein by reference to Exhibit 10.4 to the Form
8-K10.5*
    
    Joinder Agreement, dated as of September 1, 2009, executed and
delivered by SS&C Technologies Connecticut, LLC is incorporated
herein by reference to Exhibit 10.5 to the Form 8-K31.1
    
    Certification of the Registrants Chief Executive Officer
pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2
    
    Certification of the Registrants Chief Financial Officer
pursuant to Section 302 of the Sarbanes-Oxley Act of 200232
    
    Certification of the Registrants Chief Executive Officer and
Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
 
 *
    
    Incorporated herein by reference. 29