##### Table of Contents









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 March 31, 2005                                               
|  
|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                                                           |  | 06-1169696                              
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification No.)

80 Lamberton Road


Windsor, CT 06095


(Address of
principal executive offices, including zip code)


(Registrants telephone number, including area code)


860-298-4500


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock, $.01 par value per share


þ o


þ o




|                                        |  |                             
|--------------------------------------- |  | ----------------------------
|Class                                   |  | Number of Shares Outstanding
|                                        |  |                             
|Common stock, par value $0.01 per share |  | 22,999,321                  









---



SS&C TECHNOLOGIES, INC.


INDEX







|                                             |  |                                                                                              |    |        |    | 
|-------------------------------------------- |  | -------------------------------------------------------------------------------------------- | -- | ------ | -- | 
|                                             |  |                                                                                              |    | Page   |   
|                                             |  |                                                                                              |    | Number |   
|                                             |  |                                                                                              |    |        |   
|PART I. FINANCIAL
    INFORMATION           
|Item 1.                                      |  | Financial Statements                                                                         |    |        | 2  | 
|                                             |  | Consolidated Balance Sheets at
    March 31, 2005 and December 31, 2004                      |    |        | 2  | 
|                                             |  | Consolidated Statements of Operations for
    the three months ended March 31, 2005 and 2004 |    |        | 3  | 
|                                             |  | Consolidated Statements of Cash Flows for
    the three months ended March 31, 2005 and 2004 |    |        | 4  | 
|                                             |  | Notes to Consolidated Financial
    Statements                                               |    |        | 5  | 
|Item 2.                                      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations    |    |        | 11 | 
|Item 3.                                      |  | Quantitative and Qualitative Disclosures
    About Market Risk                               |    |        | 23 | 
|Item 4.                                      |  | Controls and Procedures                                                                      |    |        | 24 | 
|PART II. OTHER
    INFORMATION              
|Item 2.                                      |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                              |    |        | 24 | 
|Item 6.                                      |  | Exhibits                                                                                     |    |        | 25 | 
|SIGNATURE                                    |  |                                                                                              | 26 |       
|EXHIBIT INDEX                                |  |                                                                                              | 27 |       
|EX-10.4 EMPLOYMENT CONTRACT KEVIN MILNE     
|EX-31.1 Section 302 CEO Certification       
|EX-31.2 Section 302 CFO Certification       
|EX-32 Section 906 CEO and CFO Certifications





1



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##### Table of Contents






Part I. FINANCIAL INFORMATION







|        |                     
|------- | --------------------
|Item 1. | Financial Statements




SS&C TECHNOLOGIES, INC.


AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS


|                                                                                                    |                                                                                                |                |         |         |              |   |         |         |  
|--------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------- | -------------- | ------- | ------- | ------------ | - | ------- | ------- | -
|                                                                                                    |                                                                                                | March 31,      |         |         | December 31, |  
|                                                                                                    |                                                                                                | 2005           |         |         | 2004         |  
|                                                                                                    |                                                                                                |                |         |         |              |  
|                                                                                                    |                                                                                                | (In thousands) |        
|                                                                                                    |                                                                                                | (Unaudited)    |        
|ASSETS                                                                                             
|Current assets                                                                                      |                                                                                                |                |         |         |              |   |         |        
|                                                                                                    | Cash and cash equivalents                                                                      |                | $       | 22,965  |              |   | $       | 28,913  |  
|                                                                                                    | Investments in marketable securities                                                           |                |         | 85,284  |              |   |         | 101,922 |  
|                                                                                                    | Accounts receivable, net of allowance for doubtful accounts of
    $869 and $766, respectively |                |         | 15,764  |              |   |         | 13,545  |  
|                                                                                                    | Prepaid expenses and other current assets                                                      |                |         | 1,966   |              |   |         | 1,607   |  
|                                                                                                    |                                                                                                |                |         |         |              |  
|Total current assets                                                                                |                                                                                                |                | 125,979 |         |              |   | 145,987 |        
|                                                                                                    |                                                                                                |                |         |         |              |  
|Property and equipment                                                                              |                                                                                                |                |         |         |              |   |         |        
|                                                                                                    | Leasehold improvements                                                                         |                |         | 4,113   |              |   |         | 4,100   |  
|                                                                                                    | Equipment, furniture, and fixtures                                                             |                |         | 18,369  |              |   |         | 18,016  |  
|                                                                                                    |                                                                                                |                |         |         |              |  
|                                                                                                    |                                                                                                |                | 22,482  |         |              |   | 22,116  |        
|                                                                                                    | Less accumulated depreciation                                                                  |                |         | (17,345 | )            |   |         | (16,763 | )
|                                                                                                    |                                                                                                |                |         |         |              |  
|                                                                                                    | Net property and equipment                                                                     |                |         | 5,137   |              |   |         | 5,353   |  
|                                                                                                    |                                                                                                |                |         |         |              |  
|Deferred income taxes                                                                               |                                                                                                |                | 5,866   |         |              |   | 5,894   |        
|Goodwill                                                                                            |                                                                                                |                | 33,671  |         |              |   | 16,227  |        
|Intangible and other assets, net of accumulated amortization of
    $6,325 and $5,570, respectively |                                                                                                |                | 22,197  |         |              |   | 12,202  |        
|                                                                                                    |                                                                                                |                |         |         |              |  
|Total assets                                                                                        |                                                                                                | $              | 192,850 |         |              | $ | 185,663 |        
|                                                                                                    |                                                                                                |                |         |         |              |  
|                                                                                                   
|LIABILITIES AND STOCKHOLDERS EQUITY                                                               
|                                                                                                   
|Current liabilities                                                                                 |                                                                                                |                |         |         |              |   |         |        
|                                                                                                    | Accounts payable                                                                               |                | $       | 1,411   |              |   | $       | 1,073   |  
|                                                                                                    | Income taxes payable                                                                           |                |         | 3,169   |              |   |         | 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                                                                           |                                                                                                |                | 35,817  |         |              |   | 29,569  |        
|                                                                                                    |                                                                                                |                |         |         |              |  
|Commitments and contingencies (Note 10)                                                             |                                                                                                |                |         |         |              |   |         |        
|Stockholders equity                                                                                |                                                                                                |                |         |         |              |   |         |        
|                                                                                                    | Common stock                                                                                   |                |         | 314     |              |   |         | 313     |  
|                                                                                                    | Additional paid-in capital                                                                     |                |         | 186,039 |              |   |         | 185,032 |  
|                                                                                                    | Accumulated other comprehensive income                                                         |                |         | 672     |              |   |         | 1,140   |  
|                                                                                                    | Retained earnings                                                                              |                |         | 29,012  |              |   |         | 23,029  |  
|                                                                                                    |                                                                                                |                |         |         |              |  
|                                                                                                    |                                                                                                |                | 216,037 |         |              |   | 209,514 |        
|                                                                                                    | Less: cost of common stock in treasury; 8,450 and
    8,191 shares                             |                |         | 59,004  |              |   |         | 53,420  |  
|                                                                                                    |                                                                                                |                |         |         |              |  
|Total stockholders equity                                                                          |                                                                                                |                | 157,033 |         |              |   | 156,094 |        
|                                                                                                    |                                                                                                |                |         |         |              |  
|Total liabilities and stockholders equity                                                          |                                                                                                | $              | 192,850 |         |              | $ | 185,663 |        
|                                                                                                    |                                                                                                |                |         |         |              |  



2



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##### Table of Contents






SS&C TECHNOLOGIES, INC.


AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                            |                            |                          |        |        |           |   |        |       |        | 
|--------------------------------------------------------------------------- | -------------------------- | ------------------------ | ------ | ------ | --------- | - | ------ | ----- | ------ | 
|                                                                            |                            | Three Months Ended       |       
|                                                                            |                            |                          |       
|                                                                            |                            | March 31,                |        |        | March 31, |  
|                                                                            |                            | 2005                     |        |        | 2004      |  
|                                                                            |                            |                          |        |        |           |  
|                                                                            |                            | (In thousands, except    |       
|                                                                            |                            | per share data)          |       
|                                                                            |                            | (Unaudited)              |       
|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   |      
|                                                                            |                            |                          |        |        |           |  
|Weighted average number of common shares outstanding                        |                            |                          | 23,018 |        |           |   | 18,687 |      
|                                                                            |                            |                          |        |        |           |  
|Diluted earnings per share                                                  |                            | $                        | 0.25   |        |           | $ | 0.19   |      
|                                                                            |                            |                          |        |        |           |  
|Weighted average number of common shares outstanding, assuming
    dilution |                            |                          | 24,169 |        |           |   | 20,201 |      
|                                                                            |                            |                          |        |        |           |  
|Dividends declared per common share                                         |                            | $                        |       |        |           | $ | 0.07   |      
|                                                                            |                            |                          |        |        |           |  



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SS&C TECHNOLOGIES, INC.


AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                      |                                                                                       |                                         |                   |         |           |       |        |         |        |       | 
|------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------- | --------------------------------------- | ----------------- | ------- | --------- | ----- | ------ | ------- | ------ | ----- | 
|                                                                                      |                                                                                       | Three Months Ended                      |                  
|                                                                                      |                                                                                       |                                         |                  
|                                                                                      |                                                                                       | March 31,                               |                   |         | March 31, |      
|                                                                                      |                                                                                       | 2005                                    |                   |         | 2004      |      
|                                                                                      |                                                                                       |                                         |                   |         |           |      
|                                                                                      |                                                                                       | (In thousands)                          |                  
|                                                                                      |                                                                                       | (Unaudited)                             |                  
|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 investments in marketable securities                           |                                         |                   |        |           |       |        | 26      |       
|                                                                                      | Deferred income taxes                                                                 |                                         |                   | 129     |           |       |        | 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                    |                   |         | 2,564     |       |        |         | 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                                                   |                                         |                   | (308    | )         |       |        | (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                                  |                                                                                       |                                         | (5,948            | )       |           |       | 15,713 |        
|Cash and cash equivalents, beginning of period                                        |                                                                                       |                                         | 28,913            |         |           |       | 15,261 |        
|                                                                                      |                                                                                       |                                         |                   |         |           |      
|Cash and cash equivalents, end of period                                              |                                                                                       | $                                       | 22,965            |         |           | $     | 30,974 |        
|                                                                                      |                                                                                       |                                         |                   |         |           |      



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SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES





Notes to Consolidated Financial Statements


(unaudited)




|   |                      
|-- | ---------------------
|1. | Basis of Presentation





|   |                      
|-- | ---------------------
|2. | Marketable Securities



|                                             |       |      |        |            |                |   |     |            |  |   |        |        | 
|-------------------------------------------- | ----- | ---- | ------ | ---------- | -------------- | - | --- | ---------- |  | - | ------ | ------ | 
|                                             |       |      |        | Gross      |                |   |    
|                                             |       |      |        | Unrealized |                |   |    
|                                             |       | Cost |        |            | Gains/(Losses) |   |     | Fair Value | 
|                                             |       |      |        |            |                |   |     |            | 
|State, municipal and county government bonds |       | $    | 70,863 |            |                | $ | (61 | )          |  | $ | 70,802 |       
|US Government securities                     |       |      | 6,569  |            |                |   | (68 | )          |  |   | 6,501  |       
|Corporate bonds                              |       |      | 3,030  |            |                |   | (3  | )          |  |   | 3,027  |       
|Equities                                     |       |      | 3,962  |            |                |   | 992 |            |  |   | 4,954  |       
|                                             |       |      |        |            |                |   |     |            | 
|                                             | Total |      | $      | 84,424     |                |   | $   | 860        |  |   | $      | 85,284 | 
|                                             |       |      |        |            |                |   |     |            | 



|   |                         
|-- | ------------------------
|3. | Stock-based Compensation



5



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




|                                                                                                                                            |         |           |       |      |           |   |       |      | 
|------------------------------------------------------------------------------------------------------------------------------------------- | ------- | --------- | ----- | ---- | --------- | - | ----- | ---- | 
|                                                                                                                                            |         | March 31, |       |      | March 31, |  
|                                                                                                                                            |         | 2005      |       |      | 2004      |  
|                                                                                                                                            |         |           |       |      |           |  
|Net income, as reported                                                                                                                     |         | $         | 5,969 |      |           | $ | 3,770 |     
|Deduct: total stock-based employee compensation determined under
    fair value based method for all awards, net of related tax
    effects |         |           | 269   |      |           |   | 211   |     
|                                                                                                                                            |         |           |       |      |           |  
|Net income, pro forma                                                                                                                       |         | $         | 5,700 |      |           | $ | 3,559 |     
|                                                                                                                                            |         |           |       |      |           |  
|Reported net income per share                                                                                                               |         |           |       |      |           |   |       |     
|                                                                                                                                            | Basic   |           | $     | 0.26 |           |   | $     | 0.20 | 
|                                                                                                                                            | Diluted |           |       | 0.25 |           |   |       | 0.19 | 
|Pro forma net income per share                                                                                                              |         |           |       |      |           |   |       |     
|                                                                                                                                            | Basic   |           | $     | 0.25 |           |   | $     | 0.19 | 
|                                                                                                                                            | Diluted |           |       | 0.24 |           |   |       | 0.18 | 









|   |                                     
|-- | ------------------------------------
|4. | Basic and Diluted Earnings Per Share



6



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SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




|                                                                                                   |  |           |        |  |           |  |        | 
|-------------------------------------------------------------------------------------------------- |  | --------- | ------ |  | --------- |  | ------ | 
|                                                                                                   |  | March 31, |        |  | March 31, | 
|                                                                                                   |  | 2005      |        |  | 2004      | 
|                                                                                                   |  |           |        |  |           | 
|Weighted average common shares outstanding  used in
    calculation of basic earnings per share   |  |           | 23,018 |  |           |  | 18,687 | 
|Dilutive effect of employee stock options                                                          |  |           | 1,151  |  |           |  | 1,514  | 
|                                                                                                   |  |           |        |  |           | 
|Weighted average common shares outstanding  used in
    calculation of diluted earnings per share |  |           | 24,169 |  |           |  | 20,201 | 
|                                                                                                   |  |           |        |  |           | 



|   |                     
|-- | --------------------
|5. | Comprehensive Income





|                                                   |  |                    |       |   |           |   |       |  
|-------------------------------------------------- |  | ------------------ | ----- | - | --------- | - | ----- | -
|                                                   |  | Three Months Ended |      
|                                                   |  |                    |      
|                                                   |  | March 31,          |       |   | March 31, |  
|                                                   |  | 2005               |       |   | 2004      |  
|                                                   |  |                    |       |   |           |  
|Net income                                         |  | $                  | 5,969 |   |           | $ | 3,770 |  
|Foreign currency translation (loss)                |  |                    | (227  | ) |           |   | (102  | )
|Unrealized gains (losses) on marketable securities |  |                    | (241  | ) |           |   | 77    |  
|                                                   |  |                    |       |   |           |  
|Total comprehensive income                         |  | $                  | 5,501 |   |           | $ | 3,745 |  
|                                                   |  |                    |       |   |           |  



|   |                         
|-- | ------------------------
|6. | Stock Repurchase Program





|   |              
|-- | -------------
|7. | Cash Dividend





|   |             
|-- | ------------
|8. | Acquisitions



7



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SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)












|                                      |  |            |        |   |             |   |     |  
|------------------------------------- |  | ---------- | ------ | - | ----------- | - | --- | -
|                                      |  | Eisnerfast |        |   | Achievement |  
|                                      |  |            |        |   |             |  
|Assets acquired, net of cash received |  | $          | 1,089  |   |             | $ | 3   |  
|Purchased technology                  |  |            |       |   |             |   | 210 |  
|Acquired client contracts             |  |            | 8,587  |   |             |   |    |  
|Goodwill                              |  |            | 17,094 |   |             |   | 350 |  
|Liabilities assumed                   |  |            | (1,449 | ) |             |   | (91 | )
|                                      |  |            |        |   |             |  
|Consideration paid                    |  | $          | 25,321 |   |             | $ | 472 |  
|                                      |  |            |        |   |             |  



|                           |  |      |        |  |      |   |        | 
|-------------------------- |  | ---- | ------ |  | ---- | - | ------ | 
|                           |  | 2005 |        |  | 2004 |  
|                           |  |      |        |  |      |  
|Revenues                   |  | $    | 29,152 |  |      | $ | 21,426 | 
|Net income                 |  |      | 6,376  |  |      |   | 4,101  | 
|Basic earnings per share   |  | $    | 0.28   |  |      | $ | 0.22   | 
|Diluted earnings per share |  | $    | 0.26   |  |      | $ | 0.20   | 

8



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SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)




|   |                          
|-- | -------------------------
|9. | Revolving Credit Facility





|    |                              
|--- | -----------------------------
|10. | Commitments and Contingencies





|    |                                              
|--- | ---------------------------------------------
|11. | International Sales and Geography Information





|                                 |  |                    |        |  |           |   |        | 
|-------------------------------- |  | ------------------ | ------ |  | --------- | - | ------ | 
|                                 |  | Three Months Ended |       
|                                 |  |                    |       
|                                 |  | March 31,          |        |  | March 31, |  
|                                 |  | 2005               |        |  | 2004      |  
|                                 |  |                    |        |  |           |  
|United States                    |  | $                  | 20,904 |  |           | $ | 16,306 | 
|Americas excluding United States |  |                    | 1,020  |  |           |   | 857    | 
|Europe                           |  |                    | 4,904  |  |           |   | 1,480  | 
|Asia Pacific and Japan           |  |                    | 588    |  |           |   | 546    | 
|                                 |  |                    |        |  |           |  
|                                 |  | $                  | 27,416 |  |           | $ | 19,189 | 
|                                 |  |                    |        |  |           |  



|    |                  
|--- | -----------------
|12. | Subsequent Events



9



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


Notes to Consolidated Financial
Statements  (Continued)








|    |                                
|--- | -------------------------------
|13. | Recent Accounting Pronouncement



10



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##### Table of Contents








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 2. | Managements 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                                     
|
| |  | Marketable Securities                            



| |                                                                             
| | ----------------------------------------------------------------------------
| | Results of Operations for the Three Months Ended
    March 31, 2005 and 2004



|          |                       |                    |   |        |            |  |   |        |        |  |  |     |    |  
|--------- | --------------------- | ------------------ | - | ------ | ---------- |  | - | ------ | ------ |  |  | --- | -- | -
|          |                       | Three Months Ended |   |        |           
|          |                       | March 31,          |   |        |           
|          |                       |                    |   |        | Percentage | 
|          |                       | 2005               |   |        | 2004       |  |   | Change |       
|          |                       |                    |   |        |            |  |   |        |       
|Revenues: |                       |                    |   |        |            |  |   |        |        |  |  |    
|          | Software licenses     |                    | $ | 4,495  |            |  | $ | 4,140  |        |  |  | 9   | % 
|          | Maintenance           |                    |   | 9,843  |            |  |   | 7,982  |        |  |  | 23  | % 
|          | Professional services |                    |   | 2,621  |            |  |   | 1,850  |        |  |  | 42  | % 
|          | Outsourcing           |                    |   | 10,457 |            |  |   | 5,217  |        |  |  | 100 | % 
|          |                       |                    |   |        |            |  |   |        |       
|          |                       | Total revenues     |   | $      | 27,416     |  |   | $      | 19,189 |  |  |     | 43 | %
|          |                       |                    |   |        |            |  |   |        |       



|          |                       |              |  |    |      |  |  |    |  
|--------- | --------------------- | ------------ |  | -- | ---- |  |  | -- | -
|          |                       | Three Months | 
|          |                       | Ended        | 
|          |                       | March 31,    | 
|          |                       |              | 
|          |                       | 2005         |  |    | 2004 | 
|          |                       |              |  |    |      | 
|Revenues: |                       |              |  |    |      |  |  |   
|          | Software licenses     |              |  | 16 | %    |  |  | 21 | %
|          | Maintenance           |              |  | 36 | %    |  |  | 42 | %
|          | Professional services |              |  | 10 | %    |  |  | 10 | %
|          | Outsourcing           |              |  | 38 | %    |  |  | 27 | %

11



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##### Table of Contents



Revenues




Software Licenses.


Maintenance.


Professional Services.


Outsourcing.


Cost of Revenues




12



---



##### Table of Contents





Cost of Software Licenses.


Cost of Maintenance.


Cost of Professional Services.


Cost of Outsourcing.


Operating Expenses




Selling and Marketing.


13



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##### Table of Contents





Research and Development.


General and Administrative.


Interest and Other Income, Net.


Provision for Income Taxes.


Liquidity and Capital
Resources






14



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##### Table of Contents





Cash Flow










Off-Balance Sheet
Arrangements




CERTAIN FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS


Risks Relating to Our
Business




| |                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------
| | Our revenues and operating results have fluctuated
    significantly, and may continue to fluctuate significantly, from
    quarter to quarter





| |   |                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the timing, size and nature of our individual license and
    service transactions,                                                                    
|
| |  | the timing of the introduction and the market acceptance of new
    products, product enhancements or services by us or our
    competitors,           
|
| |  | the relative proportions of revenues derived from license fees,
    maintenance, professional services and outsourcing,                                
|
| |  | the tendency of some of our clients to wait until the end of a
    fiscal quarter or our fiscal year in the hope of obtaining more
    favorable terms,

15



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##### Table of Contents





| |   |                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------
| |  | changes in client budgets and decision-making processes that
    could affect both the timing and the size of any transaction,
|
| |  | the amount and timing of operating costs and other expenses,                                                                  
|
| |  | cancellations of maintenance and/or outsourcing arrangements by
    our clients,                                              
|
| |  | changes in local, national and international regulatory
    requirements,                                                     
|
| |  | changes in our personnel, and                                                                                                 
|
| |  | fluctuations in economic and financial market conditions.                                                                     





| |                                                                                                                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may not achieve the anticipated benefits from our
    acquisitions and may face difficulties in integrating our
    acquisitions, which could adversely affect our revenues, subject
    us to unknown liabilities, increase costs and place a
    significant strain on our management







| |   |                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | combine operations, facilities and differing firm cultures,                                                                                                                          
|
| |  | retain the clients or employees of acquired entities,                                                                                                                                
|
| |  | generate market demand for new products and services,                                                                                                                                
|
| |  | coordinate geographically dispersed operations and successfully
    adapt to the complexities of international operations,                                                           
|
| |  | integrate the technical teams of these companies with our
    engineering organization,                                                                                              
|
| |  | incorporate acquired technologies and products into our current
    and future product lines, and                                                                                    
|
| |  | integrate the products and services of these companies with our
    business, where we do not have distribution, marketing or
    support experience for these products and services.



16



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##### Table of Contents







| |                                                                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | General economic and market conditions and a weakening of the
    financial services industry may cause clients and potential
    clients to reduce expenditures on our products and services,
    which would result in lost revenues and reduced income





| |                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------
| | If we are unable to retain and attract clients, our revenues
    and net income would remain stagnant or decline





| |   |                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------
| |  | the level of demand for our products and services,                                                          
|
| |  | the level of client spending for information technology,                                                    
|
| |  | the level of competition from internal client solutions and from
    other vendors,                         
|
| |  | the quality of our client service,                                                                          
|
| |  | our ability to update our products and services and develop new
    products and services needed by clients,
|
| |  | our ability to understand the organization and processes of our
    clients, and                            
|
| |  | our ability to integrate and manage acquired businesses.                                                    



| |                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to meet our debt obligations, we may be
    forced to reduce or delay capital expenditures, restructure or
    refinance indebtedness or seek additional debt or equity
    financings, any of which may materially and adversely affect our
    business



17



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##### Table of Contents









| |   |                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we will have cash interest expense and principal repayment
    obligations with respect to outstanding indebtedness,                                                                                                                  
|
| |  | our degree of leverage and debt service obligations could limit
    our ability to plan for, and make us more vulnerable than some
    of our competitors to the effects of, a downturn in business or
    other adverse developments,
|
| |  | we may need to dedicate cash flow from our operations to debt
    service payments, making these funds unavailable for other
    purposes,                                                                                            
|
| |  | our ability to obtain additional financing in the future for
    working capital, capital expenditures, debt service requirements
    or other purposes could be impaired, and                                                        
|
| |  | we may have a competitive disadvantage relative to the other
    companies in our industry with less debt.                                                                                                                            

Our indebtedness subjects us to financial and operating
restrictions that could hinder the operation of our business.






| |   |                                               
| | - | ----------------------------------------------
| |  | incur additional indebtedness,                
|
| |  | create liens on assets,                       
|
| |  | pay dividends inconsistent with past practice,
|
| |  | sell assets,                                  
|
| |  | enter into transactions with affiliates,      
|
| |  | enter into sale and leaseback transactions,   
|
| |  | engage in mergers or acquisitions, and        
|
| |  | make investments.                             





| |                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may be unable to identify suitable businesses to acquire,
    which would hinder our ability to grow our revenues and client
    base and adversely affect our business and financial results



18



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##### Table of Contents







| |   |                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we may not be able to find suitable businesses to acquire at
    affordable valuations or on other acceptable terms,                                                                   
|
| |  | we may face competition for acquisitions from other potential
    acquirers or from the possibility of the acquisition target
    pursuing an initial public offering of its stock, and
|
| |  | we may find it more difficult or costly to complete acquisitions
    due to changes in accounting, tax, securities or other
    regulations.                                           



| |                                                                                                                                                                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to protect our proprietary technology, our
    success and our ability to compete will be subject to various
    risks, such as third-party infringement claims, unauthorized use
    of our technology, disclosure of our proprietary information or
    inability to license technology from third parties









19



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##### Table of Contents





| |                                                                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We could become subject to litigation regarding intellectual
    property rights, which could seriously harm our business and
    require us to incur significant costs, which, in turn, could
    reduce or eliminate profits





| |                                                                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We expect our gross and operating margins may fluctuate over
    time, which could cause our financial results to differ from
    investor expectations or negatively affect our profitability





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our failure to continue to derive substantial revenues from
    the licensing of, or outsourcing solutions related to, our
    CAMRA, TradeThru, AdvisorWare, SKYLINE and LMS software, and the
    provision of maintenance and professional services in support of
    such licensed software, could adversely affect our ability to
    sustain or grow our revenues and harm our business, financial
    condition and results of operations





| |                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We face significant competition with respect to our products
    and services, which may result in price reductions, reduced
    gross margins or loss of market share



20



---



##### Table of Contents







| |                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------
| | Our inability to introduce new products and services could
    adversely affect our revenues and cause us to lose current or
    potential clients





| |   |                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we may find it difficult or costly to update our services and
    software and to develop new products and services quickly enough
    to meet our clients needs,                               
|
| |  | we may find it difficult or costly to make some features of our
    software work effectively and securely over the Internet,                                                                    
|
| |  | we may find it difficult or costly to update our software and
    services to keep pace with business, regulatory and other
    developments in the industries where our clients
    operate, and
|
| |  | we may be exposed to liability for security breaches that allow
    unauthorized persons to gain access to confidential information
    stored on our computers or transmitted over our network. 





| |                                                                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Undetected software design defects, errors or failures may
    result in loss of or delay in market acceptance of our products
    that could adversely affect our revenues, financial condition
    and results of operations





| |                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we cannot attract, train and retain qualified managerial,
    technical and sales personnel, we may not be able to provide
    adequate technical expertise and customer service to our clients
    or maintain focus on our business strategy





21



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##### Table of Contents







| |                                                                                                                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Challenges in maintaining and expanding our international
    operations can result in increased costs, delayed sales efforts
    and uncertainty with respect to our intellectual property rights
    and results of operations





| |   |                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------
| |  | difficulties in obtaining U.S. export licenses,                                                         
|
| |  | potentially longer payment cycles,                                                                      
|
| |  | increased costs associated with maintaining international
    marketing efforts,                        
|
| |  | foreign currency fluctuations,                                                                          
|
| |  | the introduction of non-tariff barriers and higher duty
    rates, and                                  
|
| |  | difficulties in enforcement of third-party contractual
    obligations and intellectual property rights.





| |                                                                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Catastrophic events may adversely affect our ability to
    provide, our clients ability to use, and the demand for,
    our products and services, which may disrupt our business and
    cause a decline in revenues





| |                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Recently enacted regulatory changes may cause us to incur
    increased costs and divert the attention of our management from
    the operation of our business, and failure or circumvention of
    our controls and procedures could delay our ability to identify
    error or fraud and cause loss of investor and client confidence
    and serious harm to our business, financial condition, results
    of operations and cash flows



22



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##### Table of Contents





Risks Relating to Our Common
Stock




| |                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------
| | Our stock price is volatile and may continue to be volatile
    in the future, which could result in substantial losses for our
    investors





| |   |                                                                             
| | - | ----------------------------------------------------------------------------
| |  | actual or anticipated fluctuations in our operating results,                
|
| |  | announcements of technological innovations,                                 
|
| |  | new products or new contracts by us or our competitors,                     
|
| |  | developments with respect to copyrights or propriety rights,                
|
| |  | conditions and trends in the financial services and software
    industries,
|
| |  | changes in financial estimates by securities analysts, and                  
|
| |  | general market conditions and other factors.                                



| |                                                                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | William C. Stone has the ability to exercise substantial
    influence over all matters requiring stockholder and board
    approval and could make decisions about our business that
    conflict with the interests of other stockholders





| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | Provisions of our charter and bylaws may delay or prevent
    transactions that are in your best interests








|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk



23



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##### Table of Contents







|                       |  |                   |       |   |      |   |        |  
|---------------------- |  | ----------------- | ----- | - | ---- | - | ------ | -
|                       |  | Fair Value of     |      
|                       |  | Investments as of |      
|                       |  | March 31, 2005    |      
|                       |  | Maturing in:      |      
|                       |  |                   |      
|Investments            |  | 2005              |       |   | 2006 |  
|                       |  |                   |       |   |      |  
|Fixed Rate Investments |  | $                 | 8,049 |   |      | $ | 12,901 |  
|Average Interest       |  |                   | 2.13  | % |      |   | 2.70   | %










|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures








PART II  OTHER INFORMATION







|        |                                                                
|------- | ---------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds



24



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##### Table of Contents





Issuer Purchases of Equity Securities


|                                   |  |                 |         |  |                    |                     |                  |                    |            |           |          |  |  |   |        | 
|---------------------------------- |  | --------------- | ------- |  | ------------------ | ------------------- | ---------------- | ------------------ | ---------- | --------- | -------- |  |  | - | ------ | 
|                                   |  |                 |         |  |                    |                     |                  | Approximate        |           
|                                   |  |                 |         |  |                    |                     |                  | Dollar Value of    |           
|                                   |  |                 |         |  |                    |                     |                  | Shares That        |           
|                                   |  |                 |         |  |                    | Total Number of     |                  |                    | May yet be |          
|                                   |  |                 |         |  |                    | Shares Purchased as |                  |                    | Purchased  |          
|                                   |  | Total Number of |         |  |                    |                     | Part of Publicly |                    |            | Under the |         
|                                   |  | Shares          |         |  | Average Price Paid |                     |                  | Announced Plans or |            |           | Plans or | 
|Period                             |  | Purchased       |         |  | per Share          |                     |                  | Programs           |            |           | Programs | 
|                                   |  |                 |         |  |                    |                     |                  |                    |            |           |          | 
|January 1, 2005-January 31, 2005   |  |                 |        |  |                    | $                   |                 |                    |            |           |         |  |  | $ | 50,000 | 
|February 1, 2005-February 28, 2005 |  |                 | 259,050 |  |                    |                     | 21.56            |                    |            |           | 259,050  |  |  |   | 44,416 | 
|March 1, 2005-March 31, 2005       |  |                 |        |  |                    |                     |                 |                    |            |           |         |  |  |   | 44,416 | 
|                                   |  |                 |         |  |                    |                     |                  |                    |            |           |          | 
|Total                              |  |                 | 259,050 |  |                    | $                   | 21.56            |                    |            |           | 259,050  |  |  | $ | 44,416 | 






|        |         
|------- | --------
|Item 6. | Exhibits



25



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##### Table of Contents






SIGNATURE






| |                        
| | -----------------------
| | SS&C TECHNOLOGIES, INC.



| |     |                       
| | --- | ----------------------
| | By: | /s/ Patrick J. Pedonti

| |                                                  
| | -------------------------------------------------
| |                                                  
| | Patrick J. Pedonti                               
| | Senior Vice President and Chief Financial Officer
| | (Principal Financial and Accounting Officer)     



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##### Table of Contents






Exhibit Index


|        |    |             |  |                                                                                                                                                                                                                                                                                         
|------- | -- | ----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|        | 2  | .1+         |  | Acquisition Agreement, dated February 25, 2005, between the
    Registrant and Financial Models Company Inc. is incorporated
    herein by reference to Exhibit 2.1 to the Registrants
    Current Report on Form 8-K, filed on March 2, 2005
    (File No. 000-28430)                 
|        | 2  | .2+         |  | Purchase Agreement, dated February 28, 2005, by and among
    the Registrant, EisnerFast LLC and EHS, LLC is incorporated
    herein by reference to Exhibit 2.1 to the Registrants
    Current Report on Form 8-K, filed on March 3, 2005
    (File No. 000-28430)                    
|        | 10 | .1          |  | Commitment Letter, dated as of March 4, 2005, between the
    Registrant and Fleet National Bank, a Bank of America Company,
    is incorporated herein by reference to Exhibit 10.1 to the
    Registrants Current Report on Form 8-K, filed on
    March 9, 2005 (File No. 000-28430)
|        | 10 | .2          |  | 1996 Director Stock Option Plan, as amended, including form of
    stock option agreement, is incorporated herein by reference to
    Exhibit 10.2 to the Registrants Annual Report on
    Form 10-K for the year ended December 31, 2004 ( File
    No. 000-28430) (the Form 10-K)  
|        | 10 | .3          |  | Description of Registrant Executive Officer and Compensation
    Arrangements is incorporated herein by reference to
    Exhibit 10.10 to the Form 10-K                                                                                                                                 
|        | 10 | .4          |  | Contract of Employment between Kevin Milne and the Registrant,
    effective as of June 9, 2004.                                                                                                                                                                                        
|        | 31 | .1          |  | Certification of the Registrants Chief Executive Officer
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                 
|        | 31 | .2          |  | Certification of the Registrants Chief Financial Officer
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                 
|        | 32 |             |  | 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                                                                              






|  |                                                                                                                                                                             
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|+ | The Registrant hereby agrees to furnish supplementally a copy of
    any omitted schedules to this agreement to the Securities and
    Exchange Commission upon its request.

27