##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO


SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934


|           |   |  |  |                                                                                             
|---------- | - |  |  | --------------------------------------------------------------------------------------------
|(Mark One) |   |  | 
|           | þ |  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|           |   |  |  | For the fiscal year ended December 31, 2004                                                 
|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)


860-298-4500


(Registrants Telephone Number, Including Area Code)


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


o


þ o






Documents Incorporated by Reference:












---










SS&C TECHNOLOGIES, INC.


YEAR 2004 FORM 10-K ANNUAL REPORT


TABLE OF CONTENTS


|                                                                            |  |                                                                                                                      |  |      |     | 
|--------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|                                                                            |  |                                                                                                                      |  | Page |    
|                                                                            |  |                                                                                                                      |  |      |    
|PART I                                                                     
|Item 1.                                                                     |  | Business                                                                                                             |  |      | 3   | 
|Item 2.                                                                     |  | Properties                                                                                                           |  |      | 17  | 
|Item 3.                                                                     |  | Legal Proceedings                                                                                                    |  |      | 17  | 
|Item 4.                                                                     |  | Submission of Matters to a Vote of Security
    Holders                                                              |  |      | 17  | 
|                                                                            |  | Executive Officers of the Registrant                                                                                 |  |      |     | 
|PART II                                                                    
|Item 5.                                                                     |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  |      | 19  | 
|Item 6.                                                                     |  | Selected Financial Data                                                                                              |  |      | 19  | 
|Item 7.                                                                     |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  |      | 20  | 
|Item 7A.                                                                    |  | Quantitative and Qualitative Disclosures
    about Market Risk                                                       |  |      | 38  | 
|Item 8.                                                                     |  | Financial Statements and Supplementary
    Data                                                                      |  |      | 39  | 
|Item 9.                                                                     |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |  |      | 39  | 
|Item 9A.                                                                    |  | Controls and Procedures                                                                                              |  |      | 39  | 
|Item 9B.                                                                    |  | Other Information                                                                                                    |  |      | 40  | 
|PART III                                                                   
|Item 10.                                                                    |  | Directors and Executive Officers of the
    Registrant                                                               |  |      | 41  | 
|Item 11.                                                                    |  | Executive Compensation                                                                                               |  |      | 41  | 
|Item 12.                                                                    |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |  |      | 41  | 
|Item 13.                                                                    |  | Certain Relationships and Related
    Transactions                                                                   |  |      | 41  | 
|Item 14.                                                                    |  | Principal Accountant Fees and Services                                                                               |  |      | 41  | 
|PART IV                                                                    
|Item 15.                                                                    |  | Exhibits and Financial Statement
    Schedules                                                                       |  |      | 42  | 
|                                                                            |  | Signatures Page                                                                                                      |  |      | 43  | 
|                                                                            |  | Consolidated Financial Statements                                                                                    |  |      | F-3 | 
|                                                                            |  | Exhibit Index                                                                                                        |  |      |     | 
|EX-10.2 DIRECTOR STOCK OPTION PLAN, AS AMENDED                             
|EX-10.10 DESCRIPTION OF REGISTRANT EX OFFICER & DIRECTOR COMP. ARRANGEMENTS
|EX-10.12 - 2nd AMENDMENT TO LEASE DATED 4/1999                             
|EX-10.13 - 3rd AMENDMENT TO LEASE DATED 7/1/1999                           
|EX-21 SUBSIDIARIES OF THE REGISTRANT                                       
|EX-23 CONSENT OF PRICEWATERHOUSECOOPERS LLP                                
|EX-31.1 SECTION 302 CEO CERTIFICATION                                      
|EX-31.2 SECTION 302 CFO CERTIFICATION                                      
|EX-32 SECTION 906 CERTIFICATION OF CEO & CFO                               



FORWARD-LOOKING INFORMATION




1



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2



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##### Table of Contents






PART I







|        |         
|------- | --------
|Item 1. | Business

Overview






| |   |                                      
| | - | -------------------------------------
| |  | insurance entities and pension funds,
|
| |  | institutional asset management,      
|
| |  | hedge funds and family offices,      
|
| |  | financial institutions,              
|
| |  | commercial lending,                  
|
| |  | real estate property management, and 
|
| |  | municipal finance.                   





Industry Background










| |   |                                                                                            
| | - | -------------------------------------------------------------------------------------------
| |  | rapidly changing market conditions,                                                        
|
| |  | increasing transaction volumes with shorter settlement cycles,                             
|
| |  | fierce global competition,                                                                 
|
| |  | constantly evolving regulatory requirements with increasing
    regulatory oversight, and  
|
| |  | an increasing number, and greater complexity, of asset classes
    and securities products.



3



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The SS&C Solution








| |   |                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Range of Solution Delivery Methods. Our solution
    delivery methods include licenses, BPO services, ASP solutions,
    or blended solutions that allow clients to take
    advantage of our technology in the manner best suited to their
    individual needs.                                                                                  
|
| |  | Rapidly Deployable and Cost-Effective Outsourcing
    Solutions. By offering outsourcing solutions that can be
    easily and rapidly deployed, we allow our clients to meet the
    challenges of a rapidly changing industry and regulatory
    environment in a cost-effective manner.                                                            
|
| |  | Deep Vertical Market Expertise. Our deep vertical
    market experience enables us to provide advanced quantitative
    analytical tools tailored to the requirements of particular
    industry segments or asset classes. We maintain and market these
    tools based on our robust technology and highly specialized
    knowledge and expertise.
|
| |  | Scalability and Flexibility. We provide highly
    scalable and flexible solutions addressing our clients
    requirements and priorities, regardless of client size,
    organizational structure and number of relevant portfolios,
    securities types, asset classes, accounting methods or
    regulatory regimes.                            
|
| |  | End-to-End Solutions. Our integrated end-to-end
    solutions enable straight-through processing, which provides
    integration of front-end trading and modeling 
    straight through to portfolio management, compliance and
    reporting  to back-office processing, clearing and
    accounting.                                            
|
| |  | Global Presence. We are strategically positioned
    in the global financial services marketplace, with a presence in
    North America, Europe and Asia Pacific, allowing us to better
    serve the needs of our international clients.                                                                                                            



Our Strategy




Maintain Our Commitment to the Highest Level of Client
Service.


4



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Leverage Our Existing Client Relationships.


Grow Our Outsourcing Business and Increase Our Recurring
Revenues.


Continue to Address the Specialized Needs of the Financial
Services Industry.


Capitalize on Acquisition Opportunities.


5



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##### Table of Contents





Our Acquisitions






| |   |                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | provide complementary products or services in the financial
    services industry,                                                                                                   
|
| |  | address a highly specialized problem or a market niche in the
    financial services industry,                                                                                       
|
| |  | expand our global reach into strategic geographic markets,                                                                                                                           
|
| |  | have solutions that lend themselves to being delivered as either
    a BPO service or an ASP solution,                                                                               
|
| |  | possess proven technology and an established client base that
    will provide a source of ongoing revenue and to whom we may be
    able to sell existing products and services, and
|
| |  | satisfy our financial metrics, including expected return on
    investment.                                                                                                          





|                |  |                             |  |                                                |             |                       |                            |                              
|--------------- |  | --------------------------- |  | ---------------------------------------------- | ----------- | --------------------- | -------------------------- | -----------------------------
|                |  |                             |  |                                                |             | Acquired Products and
|Date            |  | Acquired Business           |  | Contract Purchase Price                        |             |                       | Services Currently Offered
|                |  |                             |  |                                                |             |                       |                           
|March 1995      |  | Chalke                      |  |                                                | $10,000,000 |                       |                            | PTS                          
|November 1997   |  | Mabel Systems               |  | $850,000 and 109,224  shares of common stock   |             | Mabel                
|December 1997   |  | Shepro Braun Systems        |  | 1,500,000 shares of common stock               |             | Total Return, Antares
|March 1998      |  | Quantra                     |  | $2,269,800 and 819,028  shares of common stock |             | SKYLINE              
|April 1998      |  | The Savid Group             |  |                                                | $821,500    |                       |                            | Debt & Derivatives           
|March 1999      |  | HedgeWare                   |  | 1,028,524 shares of common stock               |             | AdvisorWare          
|March 1999      |  | Brookside                   |  | 41,400 shares of common stock                  |             | Consulting services  
|November 2001   |  | Digital Visions             |  |                                                | $1,350,000  |                       |                            | PortPro, The BANC Mall, PALMS
|January 2002    |  | Real-Time, USA              |  |                                                | $4,000,000  |                       |                            | Real-Time, Lightning         
|November 2002   |  | DBC                         |  |                                                | $4,500,000  |                       |                            | Municipal finance products   
|December 2003   |  | Amicorp Fund Services       |  |                                                | $1,800,000  |                       |                            | Fund services                
|January 2004    |  | Investment Advisory Network |  |                                                | $3,000,000  |                       |                            | Compass, Portfolio Manager   
|February 2004   |  | NeoVision Hypersystems      |  |                                                | $1,600,000  |                       |                            | Heatmaps                     
|April 2004      |  | OMR Systems                 |  |                                                | $19,671,000 |                       |                            | TradeThru, Xacct             
|February 2005   |  | Achievement Technologies    |  |                                                | $470,000    |                       |                            | SamTrak                      
|February 2005   |  | Eisnerfast LLC              |  |                                                | $25,300,000 |                       |                            | Fund services                
|* February 2005 |  | Financial Models Company    |  |                                                | *           |                       |                            | FMC suite of products        

6



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|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | On February 25, 2005, we entered into a definitive
    agreement to make an offer to acquire all of the outstanding
    common shares and Class C shares of Financial Models
    Company Inc. (FMC) of Mississauga, Ontario, Canada for
    C$17.70 in cash, or an aggregate amount of approximately
    US$160 million. The consummation of the transaction is
    subject to certain customary conditions, including the tender of
    a majority of the FMC shares. The transaction is expected to
    close during April 2005.





Products and Services




7



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|                                                                                                                                                          |  |                                                                                                                                                                                        |  |                                                                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                         
|PRODUCTS AND SERVICES                                                                                                                                     |  | TYPICAL USERS                                                                                                                                                                          |  | VERTICAL MARKETS SERVED                                                                                                                                      
|                                                                                                                                                         
|Portfolio                                                                                                                                                 |  |                                                                                                                                                                                        |  |                                                                                                                                                              
|Management/Accounting                                                                                                                                     |  |                                                                                                                                                                                        |  |                                                                                                                                                              
|AdvisorWare
    Altair
    CAMRA
    CAMRA D Class
    Debt & Derivatives
    Lightning
    PALMS
    PortPro
    SS&C Wealth Management
    Total Return |  | Portfolio Managers
    Asset Managers
    Fund Administrators
    Investment Advisors
    Accountants
    Auditors
    Alternative Investment Managers
    Brokers/Dealers             |  | Financial Institutions
    Hedge Funds and Family Offices
    Institutional Asset Management
    Insurance Companies and  Pension Funds
    Municipal Finance
|                                                                                                                                                         
|Outsourcing                                                                                                                                               |  |                                                                                                                                                                                        |  |                                                                                                                                                              
|SS&C Direct
    SS&C Fund Services                                                                                                                        |  | Portfolio Managers
    Asset Managers
    Fund Administrators
    Investment Advisors
    Alternative Investment Managers                                                              |  | Hedge Funds and Family Offices
    Institutional Asset Management
    Insurance Companies and  Pension Funds                                                 
|                                                                                                                                                         
|Trading/Treasury Operations                                                                                                                               |  |                                                                                                                                                                                        |  |                                                                                                                                                              
|Antares
    TradeDesk
    TradeThru                                                                                                                       |  | Securities Traders
    Financial Institutions                                                                                                                                          |  | Financial Institutions
    Hedge Funds and Family Offices
    Insurance Companies and  Pension Funds                                                         
|                                                                                                                                                         
|Financial Modeling                                                                                                                                        |  |                                                                                                                                                                                        |  |                                                                                                                                                              
|AnalyticsExpress
    Finesse HD
    PTS
    DBC (family of products)                                                                                      |  | CEO/CFOs
    Risk Managers
    Actuarial Professionals
    Bank Asset/Liability Managers
    Investment Bankers
    State/Local Treasury Staff
    Financial Advisors                  |  | Insurance Companies and  Pension Funds
    Municipal Finance                                                                                                 
|                                                                                                                                                         
|Lending/Leasing                                                                                                                                           |  |                                                                                                                                                                                        |  |                                                                                                                                                              
|LMS Loan Suite
    The BANC Mall                                                                                                                          |  | Mortgage Originators
    Commercial Lenders
    Mortgage Loan Servicers
    Mortgage Loan Portfolio   Managers
    Real Estate Investment Managers
    Bank/Credit Union Loan Officers |  | Commercial Lending
    Financial Institutions
    Institutional Asset Management
    Insurance Companies and Pension  Funds                                  
|                                                                                                                                                         
|Property Management                                                                                                                                       |  |                                                                                                                                                                                        |  |                                                                                                                                                              
|SKYLINE
    SamTrak                                                                                                                                       |  | Real Estate Investment Managers
    Real Estate Leasing Agents
    Real Estate Property Managers                                                                                       |  | Real Estate Leasing/Property  Management                                                                                                                     
|                                                                                                                                                         
|Technology                                                                                                                                                |  |                                                                                                                                                                                        |  |                                                                                                                                                              
|Heatmaps                                                                                                                                                  |  | Securities Traders
    Portfolio Managers
    Risk Managers
    Financial Advisors
    Hedge Fund Managers                                                                             |  | Institutional Asset Management                                                                                                                               
|                                                                                                                                                         

8



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| |                                 
| | --------------------------------
| | Portfolio Management/ Accounting



AdvisorWare.


Altair.


CAMRA.








Debt & Derivatives.




Lightning.




| |   |                            
| | - | ---------------------------
| |  | trading,                   
|
| |  | sales,                     
|
| |  | funding,                   
|
| |  | accounting,                
|
| |  | risk analysis,             
|
| |  | asset/liability management,

9



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| |   |                          
| | - | -------------------------
| |  | portfolio management, and
|
| |  | safekeeping.             



PALMS.


PortPro.




| |   |                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | PortPro Bond Accounting  Manages bond portfolios and
    provides accurate accounting and performance results.                                                                                  
|
| |  | PortPro Analytics  Provides performance and risk
    analysis of investment portfolios, including interest rate risk
    reporting, pre-purchase and swap analysis tools and stress
    testing.

SS&C Wealth Management.




| |   |                                                   
| | - | --------------------------------------------------
| |  | Separately managed accounts,                      
|
| |  | Mutual fund wrap programs, and                    
|
| |  | Rep as manager/fee in lieu of commission programs.

Total Return.




| |            
| | -----------
| | Outsourcing

SS&C Direct.




| |   |                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------
| |  | hosting of a companys application software,                                                                                               
|
| |  | automated workflow integration,                                                                                                            
|
| |  | automated quality control mechanisms, and                                                                                                  
|
| |  | extensive interface and connectivity services to custodian
    banks, data service providers, depositories and other external
    entities.



SS&C Fund Services.


10



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| |   |                                   
| | - | ----------------------------------
| |  | hedge fund managers,              
|
| |  | funds of funds managers,          
|
| |  | commodity trading advisors (CTAs),
|
| |  | family offices,                   
|
| |  | private wealth groups,            
|
| |  | investment managers,              
|
| |  | commodity pool operators (CPOs),  
|
| |  | proprietary traders,              
|
| |  | private equity groups, and        
|
| |  | separate managed accounts.        



| |                             
| | ----------------------------
| | Trading/ Treasury Operations



Antares.


TradeDesk.


TradeThru.




| |                   
| | ------------------
| | Financial Modeling



11



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AnalyticsExpress.




| |   |                                                                          
| | - | -------------------------------------------------------------------------
| |  | analyze and present output at varying levels of detail,                  
|
| |  | create high-level reports and charts, and                                
|
| |  | separate management information into a multitude of detailed
    reports.

Finesse HD.




| |   |                                                               
| | - | --------------------------------------------------------------
| |  | model operating results,                                      
|
| |  | gauge the effects of reinsurance,                             
|
| |  | validate pricing,                                             
|
| |  | value business transactions, such as mergers and acquisitions,
|
| |  | measure the impact of new products,                           
|
| |  | predict cash flows,                                           
|
| |  | analyze the impact of investment decisions, and               
|
| |  | improve the overall strategic planning process.               

PTS.


DBC Product Suite.




| |   |                                                                              
| | - | -----------------------------------------------------------------------------
| |  | general bond structures,                                                     
|
| |  | revenue bonds,                                                               
|
| |  | housing bonds,                                                               
|
| |  | student loans, and                                                           
|
| |  | Federal Housing Administration-insured revenue bonds and
    securitizations.





| |                    
| | -------------------
| | Lending and Leasing



LMS Loan Suite.


12



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The BANC Mall.




| |                                
| | -------------------------------
| | Real Estate Property Management

SKYLINE.




| |   |                
| | - | ---------------
| |  | residential,   
|
| |  | commercial,    
|
| |  | multifamily,   
|
| |  | industrial, and
|
| |  | retail.        



| |           
| | ----------
| | Technology

Heatmaps.


Product Delivery Options






Professional Services




13



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Product Support


software and services ebriefings,




Clients




Sales and Marketing








| |   |                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------
| |  | content-rich, periodic Software and Services eBRIEFINGstargeted at clients and prospects in each of our vertical
    and geographic markets,
|
| |  | seminars and webinars,                                                                                                                      
|
| |  | trade shows,                                                                                                                                
|
| |  | conferences, and                                                                                                                            
|
| |  | public relations efforts.                                                                                                                   



14



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Product Development and Engineering






Competition






| |   |                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Insurance Entities and Pension Funds: Princeton Financial
    Systems (subsidiary of State Street Bank), Bloomberg, Blackrock,
    Charles River, Classic Solutions/ Tillinghast, DFA Capital
    Management, Eagle Investment Systems, and SunGard.
|
| |  | Institutional Asset Management: Advent Software, Bloomberg,
    Charles River, Eagle Investment Systems, Macgregor and Thomson
    Financial.                                                                                                       
|
| |  | Hedge Funds and Family Offices: Advent Software, EZ Castle,
    Globe Ops, Citco, PFPC, BISYS Hedge Fund Services and IMS.                                                                                                                          
|
| |  | Financial Institutions: SunGard, Thomson Financial and TPG.                                                                                                                                                                                         
|
| |  | Commercial Lending: McCracken (subsidiary of GMAC), Midland Loan
    Services (subsidiary of PNC Financial Services), Princeton
    Financial Systems and Synergy Software.                                                                         
|
| |  | Real Estate Property Management: Intuit, Best Software and Yardi.                                                                                                                                                                                   
|
| |  | Municipal Finance: Ferrand Jordan and Prescient Software.                                                                                                                                                                                           





| |   |                                   
| | - | ----------------------------------
| |  | consistent product performance,   
|
| |  | broad, demonstrated functionality,
|
| |  | ease of use,                      
|
| |  | scalability,                      
|
| |  | integration capabilities,         

15



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| |   |                                
| | - | -------------------------------
| |  | product and company reputation,
|
| |  | client service and support, and
|
| |  | price.                         

Proprietary Rights






Employees






| |   |                                            
| | - | -------------------------------------------
| |  | 107 employees in research and development, 
|
| |  | 139 employees in consulting and services,  
|
| |  | 56 employees in sales and marketing,       
|
| |  | 68 employees in client support, and        
|
| |  | 52 employees in finance and administration.



Additional Information




www.ssctech.com. www.sec.gov.


16



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|        |           
|------- | ----------
|Item 2. | Properties








|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders






Executive Officers of the Registrant




|                      |  |     |    |  |          |                                                               
|--------------------- |  | --- | -- |  | -------- | --------------------------------------------------------------
|Name                  |  | Age |    |  | Position
|                      |  |     |    |  |         
|William C. Stone      |  |     | 49 |  |          | Chief Executive Officer and Chairman of the Board of Directors
|Normand A. Boulanger  |  |     | 43 |  |          | President and Chief Operating Officer                         
|Patrick J. Pedonti    |  |     | 53 |  |          | Senior Vice President and Chief Financial Officer             
|Stephen V. R. Whitman |  |     | 58 |  |          | Senior Vice President and General Counsel                     
|Kevin Milne           |  |     | 42 |  |          | Senior Vice President of International                        







17



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18



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PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities



|        |  |                |       |  |                |   |       |      |  |   |       |  |  |   |       | 
|------- |  | -------------- | ----- |  | -------------- | - | ----- | ---- |  | - | ----- |  |  | - | ----- | 
|        |  | Fiscal 2004    |       |  | Fiscal 2003    |  
|        |  | Price Range(1) |       |  | Price Range(1) |  
|        |  |                |       |  |                |  
|Quarter |  | High           |       |  | Low            |   |       | High |  |   | Low   | 
|        |  |                |       |  |                |   |       |      |  |   |       | 
|First   |  | $              | 34.23 |  |                | $ | 18.15 |      |  | $ | 8.37  |  |  | $ | 5.83  | 
|Second  |  |                | 30.88 |  |                |   | 17.26 |      |  |   | 11.39 |  |  |   | 7.74  | 
|Third   |  |                | 21.74 |  |                |   | 15.05 |      |  |   | 14.08 |  |  |   | 10.40 | 
|Fourth  |  |                | 24.53 |  |                |   | 17.80 |      |  |   | 21.95 |  |  |   | 12.40 | 






|    |                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Amounts have been restated to reflect our three-for-two common
    stock split in the form of a common stock dividend, effective on
    March 5, 2004.












|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data



|                                  |                                              |                         |        |        |         |   |        |         |  |   |         |        |  |      |        |        |  |   |        |        | 
|--------------------------------- | -------------------------------------------- | ----------------------- | ------ | ------ | ------- | - | ------ | ------- |  | - | ------- | ------ |  | ---- | ------ | ------ |  | - | ------ | ------ | 
|                                  |                                              | Year Ended December 31, |       
|                                  |                                              |                         |       
|                                  |                                              | 2004(5)                 |        |        | 2003(4) |   |        | 2002(3) |  |   | 2001(2) |        |  | 2000 |       
|                                  |                                              |                         |        |        |         |   |        |         |  |   |         |        |  |      |       
|                                  |                                              | (In thousands)          |       
|Statement of Operations Data:     |                                              |                         |        |        |         |   |        |         |  |   |         |        |  |      |        |        |  |   |        |       
|Revenues                          |                                              | $                       | 95,888 |        |         | $ | 65,531 |         |  | $ | 62,434  |        |  | $    | 56,369 |        |  | $ | 61,406 |       
|Income before income taxes        |                                              |                         | 31,040 |        |         |   | 19,337 |         |  |   | 12,300  |        |  |      | 6,487  |        |  |   | 3,333  |       
|Net income                        |                                              |                         | 19,010 |        |         |   | 11,796 |         |  |   | 7,305   |        |  |      | 4,022  |        |  |   | 2,172  |       
|Net income per share(1):          |                                              |                         |        |        |         |   |        |         |  |   |         |        |  |      |        |        |  |   |        |       
|                                  | Basic earnings per share                     |                         | $      | 0.90   |         |   | $      | 0.63    |  |   | $       | 0.38   |  |      | $      | 0.18   |  |   | $      | 0.09   | 
|                                  | Shares used in basic per share calculation   |                         |        | 21,185 |         |   |        | 18,617  |  |   |         | 19,473 |  |      |        | 22,506 |  |   |        | 23,877 | 
|                                  | Diluted earnings per share                   |                         | $      | 0.84   |         |   | $      | 0.59    |  |   | $       | 0.36   |  |      | $      | 0.18   |  |   | $      | 0.09   | 
|                                  | Shares used in diluted per share calculation |                         |        | 22,499 |         |   |        | 19,832  |  |   |         | 20,531 |  |      |        | 22,752 |  |   |        | 23,943 | 
|Cash dividends declared per share |                                              | $                       | 0.22   |        |         | $ | 0.067  |         |  | $ |        |        |  | $    |       |        |  | $ |       |       

19



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|                                     |  |                         |         |  |         |   |        |         |  |   |         |  |  |      |        |  |  |   |        | 
|------------------------------------ |  | ----------------------- | ------- |  | ------- | - | ------ | ------- |  | - | ------- |  |  | ---- | ------ |  |  | - | ------ | 
|                                     |  | Year Ended December 31, |        
|                                     |  |                         |        
|                                     |  | 2004(5)                 |         |  | 2003(4) |   |        | 2002(3) |  |   | 2001(2) |  |  | 2000 |       
|                                     |  |                         |         |  |         |   |        |         |  |   |         |  |  |      |       
|                                     |  | (In thousands)          |        
|Balance Sheet Data (at period end):  |  |                         |         |  |         |   |        |         |  |   |         |  |  |      |        |  |  |   |        | 
|Cash and cash equivalents            |  | $                       | 28,913  |  |         | $ | 15,261 |         |  | $ | 18,336  |  |  | $    | 28,425 |  |  | $ | 20,690 | 
|Investments in marketable securities |  |                         | 101,922 |  |         |   | 37,120 |         |  |   | 23,383  |  |  |      | 31,077 |  |  |   | 35,840 | 
|Working capital                      |  |                         | 116,418 |  |         |   | 42,009 |         |  |   | 36,699  |  |  |      | 56,284 |  |  |   | 54,330 | 
|Total assets                         |  |                         | 185,663 |  |         |   | 82,585 |         |  |   | 75,480  |  |  |      | 88,779 |  |  |   | 90,858 | 
|Long-term obligations                |  |                         |        |  |         |   |       |         |  |   |        |  |  |      |       |  |  |   | 5      | 
|Stockholders equity                 |  |                         | 156,094 |  |         |   | 61,588 |         |  |   | 57,270  |  |  |      | 72,948 |  |  |   | 72,654 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Earnings per share have been restated for all periods presented
    to reflect a three-for-two common stock split in the form of a
    common stock dividend effective on March 5, 2004.                                                                                                                                                                                                                         
|   
|(2) | On November 15, 2001, we acquired Digital Visions, a
    division of Netzee Inc.                                                                                                                                                                                                                                                                                                                                 
|   
|(3) | On January 15, 2002, we acquired the assets and business of
    Real-Time USA, Inc. On November 15, 2002, we acquired the
    assets and business of DBC, a business within the Thomson
    Corporation. See notes 2 and 11 of notes to our
    consolidated financial statements.                                                                                                                               
|   
|(4) | On December 12, 2003, we acquired the assets and business
    of Amicorp Groups fund services business. See notes 2
    and 11 of notes to our consolidated financial statements.                                                                                                                                                                                                                               
|   
|(5) | On January 16, 2004, we acquired the assets and business of
    Investment Advisory Network, LLC. On February 17, 2004 we
    acquired the assets and business of NeoVision Hypersystems, Inc.
    On April 12, 2004, we acquired all the outstanding shares
    of OMR Systems Corporation and OMR Systems International,
    Limited. See notes 2 and 11 of notes to our consolidated
    financial statements.






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Overview






| |   |                                                                                                 
| | - | ------------------------------------------------------------------------------------------------
| |  | increasing recurring revenues as a percentage of total revenues,                                
|
| |  | enhancing our profitability,                                                                    
|
| |  | entering new markets through acquisitions and expanding our
    presence in current markets, and
|
| |  | improving operating cash flow.                                                                  





20



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Critical Accounting Estimates and Assumptions






| |                    
| | -------------------
| | Revenue Recognition







21



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| |                                
| | -------------------------------
| | Allowance for Doubtful Accounts





| |                                                  
| | -------------------------------------------------
| | Long-lived Assets, Intangible Assets and Goodwill







| |   |                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------
| |  | significant underperformance relative to historical or projected
    future operating results,                       
|
| |  | significant changes in the manner of our use of the acquired
    assets or the strategy for our overall business, and
|
| |  | significant negative industry or economic trends.                                                                    





| |                       
| | ----------------------
| | Acquisition Accounting



22



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| |             
| | ------------
| | Income Taxes





| |                      
| | ---------------------
| | Marketable Securities



Results of Operations for the Years Ended December 31,
2004, 2003 and 2002




|          |                       |                         |   |            |           |  |   |        |        |  |      |        |        |      |  |       |      |  |  |      |     | 
|--------- | --------------------- | ----------------------- | - | ---------- | --------- |  | - | ------ | ------ |  | ---- | ------ | ------ | ---- |  | ----- | ---- |  |  | ---- | --- | 
|          |                       |                         |   | Percentage |          
|          |                       | Year Ended December 31, |   |            | Change in | 
|          |                       |                         |   |            |           | 
|          |                       | 2004                    |   |            | 2003      |  |   | 2002   |        |  | 2004 |        |        | 2003 | 
|          |                       |                         |   |            |           |  |   |        |        |  |      |        |        |      | 
|Revenues: |                       |                         |   |            |           |  |   |        |        |  |      |        |        |      |  |       |      |  |  |     
|          | Software licenses     |                         | $ | 17,250     |           |  | $ | 14,233 |        |  | $    | 15,631 |        |      |  | 21.2  | %    |  |  | (8.9 | )% 
|          | Maintenance           |                         |   | 36,433     |           |  |   | 31,318 |        |  |      | 27,850 |        |      |  | 16.3  |      |  |  | 12.5 |    
|          | Professional services |                         |   | 11,320     |           |  |   | 6,757  |        |  |      | 6,326  |        |      |  | 67.5  |      |  |  | 6.8  |    
|          | Outsourcing           |                         |   | 30,885     |           |  |   | 13,223 |        |  |      | 12,627 |        |      |  | 133.6 |      |  |  | 4.7  |    
|          |                       |                         |   |            |           |  |   |        |        |  |      |        |        |      | 
|          |                       | Total revenues          |   | $          | 95,888    |  |   | $      | 65,531 |  |      | $      | 62,434 |      |  |       | 46.3 |  |  |      | 5.0 | 
|          |                       |                         |   |            |           |  |   |        |        |  |      |        |        |      | 

23



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|          |                       |              |  |      |      |  |  |      |   |  |  |      |  
|--------- | --------------------- | ------------ |  | ---- | ---- |  |  | ---- | - |  |  | ---- | -
|          |                       | Year Ended   | 
|          |                       | December 31, | 
|          |                       |              | 
|          |                       | 2004         |  |      | 2003 |  |  | 2002 |  
|          |                       |              |  |      |      |  |  |      |  
|Revenues: |                       |              |  |      |      |  |  |      |   |  |  |     
|          | Software licenses     |              |  | 18.0 | %    |  |  | 21.7 | % |  |  | 25.0 | %
|          | Maintenance           |              |  | 38.0 |      |  |  | 47.8 |   |  |  | 44.6 |  
|          | Professional services |              |  | 11.8 |      |  |  | 10.3 |   |  |  | 10.1 |  
|          | Outsourcing           |              |  | 32.2 |      |  |  | 20.2 |   |  |  | 20.2 |  

Revenues








| |                  
| | -----------------
| | Software Licenses



24



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##### Table of Contents







| |            
| | -----------
| | Maintenance





| |                      
| | ---------------------
| | Professional Services





| |            
| | -----------
| | Outsourcing



Cost of Revenues




25



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| |                                  
| | ---------------------------------
| | Cost of Software License Revenues





| |                             
| | ----------------------------
| | Cost of Maintenance Revenues





| |                                       
| | --------------------------------------
| | Cost of Professional Services Revenues





| |                             
| | ----------------------------
| | Cost of Outsourcing Revenues



26



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Operating Expenses






| |                      
| | ---------------------
| | Selling and Marketing

Software and Services ebriefings




| |                         
| | ------------------------
| | Research and Development





| |                           
| | --------------------------
| | General and Administrative



27



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| |                                                               
| | --------------------------------------------------------------
| | Write-off of Purchased In-Process Research and
    Development





| |                               
| | ------------------------------
| | Interest and Other Income, Net





| |                           
| | --------------------------
| | Provision for Income Taxes



Liquidity and Capital Resources






28



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| |           
| | ----------
| | Cash Flows













29



---



##### Table of Contents





| |                        
| | -----------------------
| | Contractual Obligations



|                               |  |                        |       |           |        |   |       |           |           |   |           |  |  |         |       |  |  |   |       | 
|------------------------------ |  | ---------------------- | ----- | --------- | ------ | - | ----- | --------- | --------- | - | --------- |  |  | ------- | ----- |  |  | - | ----- | 
|                               |  | Payments Due by Period |      
|                               |  |                        |      
|                               |  |                        |       | Less than |        |   |       |           | More than |  
|Contractual Obligations        |  | Total                  |       |           | 1 Year |   |       | 1-3 Years |           |   | 3-5 Years |  |  | 5 Years |      
|                               |  |                        |       |           |        |   |       |           |           |   |           |  |  |         |      
|Operating lease obligations(1) |  | $                      | 8,829 |           |        | $ | 3,518 |           |           | $ | 4,346     |  |  | $       | 767   |  |  | $ | 198   | 
|Purchase obligations(2)        |  |                        | 6,002 |           |        |   | 1,817 |           |           |   | 1,526     |  |  |         | 1,107 |  |  |   | 1,552 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | We are obligated under noncancelable operating leases for office
    space and office equipment. The lease for the corporate facility
    in Windsor, Connecticut expires in 2008 and we have the right to
    extend the lease for an additional term of five years. We
    sublease office space under noncancelable leases. We received
    rental income under these leases of $456,000, $500,000 and
    $512,000 for the years ended December 31, 2004, 2003 and
    2002, respectively.
|   
|(2) | Purchase obligations include the minimum amounts committed under
    contracts for goods and services.                                                                                                                                                                                                                                                                                                                                                                                        







Off-Balance Sheet Arrangements




Recent Accounting Pronouncement






30



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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,
|
| |  | 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.                                                                                              



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




31



---



##### Table of Contents





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.                                                    

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                         

32



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| |   |                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.



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






| |   |                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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






33



---



##### 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




34



---



##### Table of Contents



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






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. 

35



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##### Table of Contents





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






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.



36



---



##### Table of Contents



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 and proposed 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






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,

37



---



##### Table of Contents





| |   |                                                           
| | - | ----------------------------------------------------------
| |  | 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 7A. | Quantitative and Qualitative Disclosures About Market
    Risk





|                       |  |                   |        |   |      |   |        |  
|---------------------- |  | ----------------- | ------ | - | ---- | - | ------ | -
|                       |  | Fair Value of     |       
|                       |  | Investments as of |       
|                       |  | December 31, 2004 |       
|                       |  | Maturing in:      |       
|                       |  |                   |       
|Investments            |  | 2005              |        |   | 2006 |  
|                       |  |                   |        |   |      |  
|Fixed Rate Investments |  | $                 | 11,933 |   |      | $ | 12,946 |  
|Average Interest       |  |                   | 2.09   | % |      |   | 2.70   | %





38



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##### Table of Contents








|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Disclosure Controls and Procedures




Changes in Internal Control




Managements Report on Internal Control over Financial
Reporting


Internal Control  Integrated Framework




39



---



##### Table of Contents






Item 9B.     Other
Information








| |                                     
| | ------------------------------------
| | 2005 Base Compensation (Annual Rate)

|                     |  |                                                   |  |   |         | 
|-------------------- |  | ------------------------------------------------- |  | - | ------- | 
|William C. Stone     |  | Chairman of the Board and Chief Executive Officer |  | $ | 500,000 | 
|Normand A. Boulanger |  | President and Chief Operating Officer             |  |   | 350,000 | 
|Patrick J. Pedonti   |  | Senior Vice President and Chief Financial Officer |  |   | 200,000 | 
|Stephen V.R. Whitman |  | Senior Vice President and General Counsel         |  |   | 190,000 | 
|Kevin Milne          |  | Senior Vice President  International             |  |   | 383,178 | 





| |                                                                      
| | ---------------------------------------------------------------------
| | Short-Term Incentive Compensation Awarded for Performance
    in 2004

|                     |  |                                                   |  |                    |          | 
|-------------------- |  | ------------------------------------------------- |  | ------------------ | -------- | 
|William C. Stone     |  | Chairman of the Board and Chief Executive Officer |  |                    | $700,000 | 
|Normand A. Boulanger |  | President and Chief Operating Officer             |  |                    | 250,000  | 
|Patrick J. Pedonti   |  | Senior Vice President and Chief Financial Officer |  |                    | 100,000  | 
|Stephen V.R. Whitman |  | Senior Vice President and General Counsel         |  |                    | 75,000   | 
|Kevin Milne          |  | Senior Vice President  International             |  | 15% of base salary



| |                              
| | -----------------------------
| | Director Compensation Program





40



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##### Table of Contents






PART III









|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant



www.ssctech.com.







|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters








|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services



41



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##### Table of Contents






PART IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules

(a)


1.     Financial Statements




|                                                            |                                                                                                            |      |     |     | 
|----------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | ---- | --- | --- | 
|Document                                                    |                                                                                                            | Page |    
|                                                            |                                                                                                            |      |    
|Report of Independent Registered Public
    Accounting Firm |                                                                                                            |      | F-1 |    
|Consolidated Financial Statements:                          |                                                                                                            |      |     |    
|                                                            | Balance Sheets as of December 31, 2004
    and 2003                                                        |      |     | F-3 | 
|                                                            | Statements of Operations for the years
    ended December 31, 2004, 2003 and 2002                          |      |     | F-4 | 
|                                                            | Statements of Cash Flows for the years
    ended December 31, 2004, 2003 and 2002                          |      |     | F-5 | 
|                                                            | Statements of Changes in Stockholders
    Equity for the years ended December 31, 2002, 2003 and
    2004 |      |     | F-6 | 
|                                                            | Notes to Consolidated Financial
    Statements                                                             |      |     | F-7 | 

2.     Financial Statement
Schedules




3.     Exhibits




42



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##### Table of Contents






SIGNATURES






| |                        
| | -----------------------
| | SS&C Technologies, Inc.



| |     |                     
| | --- | --------------------
| | By: | /s/ William C. Stone

| |                                       
| | --------------------------------------
| |                                       
| | William C. Stone                      
| | Chief Executive Officer               
| | and Chairman of the Board of Directors



|                                                       |  |                                                                                                    |  |                |  | 
|------------------------------------------------------ |  | -------------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                                              |  | Title                                                                                              |  | Date          
|                                                       |  |                                                                                                    |  |               
|                                                      
|/s/ William C. StoneWilliam
    C. Stone               |  | Chief Executive Officer and Chairman of the Board of Directors
    (Principal Executive Officer)   |  | March 14, 2005
|                                                      
|/s/ Patrick J. PedontiPatrick
    J. Pedonti           |  | Senior Vice President and Chief Financial Officer (Principal
    Financial and Accounting Officer) |  | March 14, 2005
|                                                      
|/s/ David W. Clark Jr.David
    W. Clark, Jr.          |  | Director                                                                                           |  | March 14, 2005
|                                                      
|/s/ Joseph H. FisherJoseph
    H. Fisher               |  | Director                                                                                           |  | March 14, 2005
|                                                      
|/s/ Jonathan M.
    SchofieldJonathan
    M. Schofield |  | Director                                                                                           |  | March 14, 2005
|                                                      
|/s/ Patrick J.
    McDonnellPatrick
    J. McDonnell   |  | Director                                                                                           |  | March 14, 2005
|                                                      
|/s/ Albert L. LordAlbert
    L. Lord                   |  | Director                                                                                           |  | March 14, 2005
|                                                      
|/s/ James L. SullivanJames
    L. Sullivan             |  | Director                                                                                           |  | March 14, 2005

43



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##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








Consolidated financial statements




Internal control over financial reporting


Internal Control  Integrated Framework Internal Control 
Integrated Framework




F-1



---



##### Table of Contents









| |                                   
| | ----------------------------------
| | /s/ PricewaterhouseCoopers
    LLP





F-2



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |   |         |         |  
|--------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- | ------- | ------- | ---- | - | ------- | ------- | -
|                                                                                                    |                                                                                                                                                                                                                                                                | December 31,          |        
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |        
|                                                                                                    |                                                                                                                                                                                                                                                                | 2004                  |         |         | 2003 |  
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|                                                                                                    |                                                                                                                                                                                                                                                                | (In thousands, except |        
|                                                                                                    |                                                                                                                                                                                                                                                                | per share data)       |        
|ASSETS                                                                                             
|Current assets:                                                                                     |                                                                                                                                                                                                                                                                |                       |         |         |      |   |         |        
|                                                                                                    | Cash and cash equivalents                                                                                                                                                                                                                                      |                       | $       | 28,913  |      |   | $       | 15,261  |  
|                                                                                                    | Investments in marketable securities (Note 3)                                                                                                                                                                                                                  |                       |         | 101,922 |      |   |         | 37,120  |  
|                                                                                                    | Accounts receivable, net of allowance for doubtful accounts of
    $766 and $1,449, respectively (Note 4)                                                                                                                                                      |                       |         | 13,545  |      |   |         | 8,571   |  
|                                                                                                    | Prepaid expenses and other current assets                                                                                                                                                                                                                      |                       |         | 1,607   |      |   |         | 1,434   |  
|                                                                                                    | Deferred income taxes (Note 6)                                                                                                                                                                                                                                 |                       |         |        |      |   |         | 620     |  
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|Total current assets                                                                                |                                                                                                                                                                                                                                                                |                       | 145,987 |         |      |   | 63,006  |        
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|                                                                                                   
|Property and equipment:                                                                             |                                                                                                                                                                                                                                                                |                       |         |         |      |   |         |        
|                                                                                                    | Leasehold improvements                                                                                                                                                                                                                                         |                       |         | 4,100   |      |   |         | 3,593   |  
|                                                                                                    | Equipment, furniture, and fixtures                                                                                                                                                                                                                             |                       |         | 18,016  |      |   |         | 15,805  |  
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|                                                                                                    |                                                                                                                                                                                                                                                                |                       | 22,116  |         |      |   | 19,398  |        
|                                                                                                    | Less accumulated depreciation                                                                                                                                                                                                                                  |                       |         | (16,763 | )    |   |         | (14,634 | )
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|                                                                                                    | Net property and equipment                                                                                                                                                                                                                                     |                       |         | 5,353   |      |   |         | 4,764   |  
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|Deferred income taxes (Note 6)                                                                      |                                                                                                                                                                                                                                                                |                       | 5,894   |         |      |   | 6,417   |        
|Goodwill                                                                                            |                                                                                                                                                                                                                                                                |                       | 16,227  |         |      |   | 3,841   |        
|Intangible and other assets, net of accumulated amortization of
    $5,570 and $3,168, respectively |                                                                                                                                                                                                                                                                |                       | 12,202  |         |      |   | 4,557   |        
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|Total assets                                                                                        |                                                                                                                                                                                                                                                                | $                     | 185,663 |         |      | $ | 82,585  |        
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|                                                                                                   
|LIABILITIES AND STOCKHOLDERS EQUITY                                                               
|                                                                                                   
|Current liabilities:                                                                                |                                                                                                                                                                                                                                                                |                       |         |         |      |   |         |        
|                                                                                                    | Accounts payable                                                                                                                                                                                                                                               |                       | $       | 1,073   |      |   | $       | 916     |  
|                                                                                                    | Income taxes payable                                                                                                                                                                                                                                           |                       |         | 609     |      |   |         | 91      |  
|                                                                                                    | Accrued employee compensation and benefits                                                                                                                                                                                                                     |                       |         | 6,248   |      |   |         | 3,484   |  
|                                                                                                    | Other accrued expenses                                                                                                                                                                                                                                         |                       |         | 3,549   |      |   |         | 2,039   |  
|                                                                                                    | Deferred income taxes                                                                                                                                                                                                                                          |                       |         | 188     |      |   |         |        |  
|                                                                                                    | Dividend payable                                                                                                                                                                                                                                               |                       |         | 1,850   |      |   |         |        |  
|                                                                                                    | Deferred maintenance and other revenue                                                                                                                                                                                                                         |                       |         | 16,052  |      |   |         | 14,467  |  
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|Total current liabilities                                                                           |                                                                                                                                                                                                                                                                |                       | 29,569  |         |      |   | 20,997  |        
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|Commitments and contingencies (Notes 7, 8, 9 and 12)                                                |                                                                                                                                                                                                                                                                |                       |         |         |      |   |         |        
|Stockholders equity (Notes 5 and 10):                                                              |                                                                                                                                                                                                                                                                |                       |         |         |      |   |         |        
|                                                                                                    | Common stock, $0.01 par value, 50,000 shares
    authorized; 31,276 and 26,806 shares issued and 23,085 and
    18,615 shares outstanding, respectively (including
    6,205 shares issued on March 5, 2004 as a stock
    dividend to effect the stock split) |                       |         | 313     |      |   |         | 268     |  
|                                                                                                    | Additional paid-in capital                                                                                                                                                                                                                                     |                       |         | 185,032 |      |   |         | 105,359 |  
|                                                                                                    | Accumulated other comprehensive income                                                                                                                                                                                                                         |                       |         | 1,140   |      |   |         | 588     |  
|                                                                                                    | Retained earnings                                                                                                                                                                                                                                              |                       |         | 23,029  |      |   |         | 8,793   |  
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|                                                                                                    |                                                                                                                                                                                                                                                                |                       | 209,514 |         |      |   | 115,008 |        
|                                                                                                    | Less: cost of common stock in treasury; 8,191 shares
    (Note 5)                                                                                                                                                                                              |                       |         | 53,420  |      |   |         | 53,420  |  
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|Total stockholders equity                                                                          |                                                                                                                                                                                                                                                                |                       | 156,094 |         |      |   | 61,588  |        
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  
|Total liabilities and stockholders equity                                                          |                                                                                                                                                                                                                                                                | $                     | 185,663 |         |      | $ | 82,585  |        
|                                                                                                    |                                                                                                                                                                                                                                                                |                       |         |         |      |  



F-3



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                       |                                                                          |                          |        |        |        |   |        |        |        |   |        |        |        | 
|-------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------ | ------ | ------ | ------ | - | ------ | ------ | ------ | - | ------ | ------ | ------ | 
|                                                                                       |                                                                          | Year Ended December 31,  |       
|                                                                                       |                                                                          |                          |       
|                                                                                       |                                                                          | 2004                     |        |        | 2003   |   |        | 2002   |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|                                                                                       |                                                                          | (In thousands, except    |       
|                                                                                       |                                                                          | per share data)          |       
|Revenues:                                                                              |                                                                          |                          |        |        |        |   |        |        |        |   |        |       
|                                                                                       | Software licenses                                                        |                          | $      | 17,250 |        |   | $      | 14,233 |        |   | $      | 15,631 |       
|                                                                                       | Maintenance                                                              |                          |        | 36,433 |        |   |        | 31,318 |        |   |        | 27,850 |       
|                                                                                       | Professional services                                                    |                          |        | 11,320 |        |   |        | 6,757  |        |   |        | 6,326  |       
|                                                                                       | Outsourcing                                                              |                          |        | 30,885 |        |   |        | 13,223 |        |   |        | 12,627 |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|                                                                                       |                                                                          | Total revenues           |        |        | 95,888 |   |        |        | 65,531 |   |        |        | 62,434 | 
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|Cost of revenues:                                                                      |                                                                          |                          |        |        |        |   |        |        |        |   |        |       
|                                                                                       | Software licenses                                                        |                          |        | 2,258  |        |   |        | 1,788  |        |   |        | 1,316  |       
|                                                                                       | Maintenance                                                              |                          |        | 8,462  |        |   |        | 6,248  |        |   |        | 5,640  |       
|                                                                                       | Professional services                                                    |                          |        | 6,606  |        |   |        | 4,387  |        |   |        | 5,412  |       
|                                                                                       | Outsourcing                                                              |                          |        | 16,444 |        |   |        | 8,003  |        |   |        | 8,621  |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|                                                                                       |                                                                          | Total cost of revenues   |        |        | 33,770 |   |        |        | 20,426 |   |        |        | 20,989 | 
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|Gross profit                                                                           |                                                                          |                          | 62,118 |        |        |   | 45,105 |        |        |   | 41,445 |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|Operating expenses:                                                                    |                                                                          |                          |        |        |        |   |        |        |        |   |        |       
|                                                                                       | Selling and marketing                                                    |                          |        | 10,734 |        |   |        | 8,393  |        |   |        | 9,078  |       
|                                                                                       | Research and development                                                 |                          |        | 13,957 |        |   |        | 11,180 |        |   |        | 11,760 |       
|                                                                                       | General and administrative                                               |                          |        | 8,014  |        |   |        | 7,154  |        |   |        | 7,721  |       
|                                                                                       | Write-off of purchased in-process research and development
    (Note 11) |                          |        |       |        |   |        |       |        |   |        | 1,744  |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|                                                                                       |                                                                          | Total operating expenses |        |        | 32,705 |   |        |        | 26,727 |   |        |        | 30,303 | 
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|Operating income                                                                       |                                                                          |                          | 29,413 |        |        |   | 18,378 |        |        |   | 11,142 |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|Interest income                                                                        |                                                                          |                          | 1,528  |        |        |   | 912    |        |        |   | 1,431  |       
|Other income (expense), net                                                            |                                                                          |                          | 99     |        |        |   | 47     |        |        |   | (273   | )     
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|Income before income taxes                                                             |                                                                          |                          | 31,040 |        |        |   | 19,337 |        |        |   | 12,300 |       
|Provision for income taxes (Note 6)                                                    |                                                                          |                          | 12,030 |        |        |   | 7,541  |        |        |   | 4,995  |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|Net income                                                                             |                                                                          | $                        | 19,010 |        |        | $ | 11,796 |        |        | $ | 7,305  |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|                                                                                      
|Basic earnings per share                                                               |                                                                          | $                        | 0.90   |        |        | $ | 0.63   |        |        | $ | 0.38   |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|Basic weighted average number of common shares outstanding                             |                                                                          |                          | 21,185 |        |        |   | 18,617 |        |        |   | 19,473 |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|Diluted earnings per share                                                             |                                                                          | $                        | 0.84   |        |        | $ | 0.59   |        |        | $ | 0.36   |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       
|Diluted weighted average number of common and common equivalent
    shares outstanding |                                                                          |                          | 22,499 |        |        |   | 19,832 |        |        |   | 20,531 |       
|                                                                                       |                                                                          |                          |        |        |        |   |        |        |       



F-4



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |       |        |         |         |        |       | 
|------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------- | --------------------------------------- | ----------------- | -------- | ------ | ----- | ------ | ------- | ----- | ------ | ------- | ------- | ------ | ----- | 
|                                                                                      |                                                                                       | Year Ended December 31,                 |                  
|                                                                                      |                                                                                       |                                         |                  
|                                                                                      |                                                                                       | 2004                                    |                   |          | 2003   |       |        | 2002    |      
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|                                                                                      |                                                                                       | (In thousands)                          |                  
|Cash flow from operating activities:                                                  |                                                                                       |                                         |                   |          |        |       |        |         |       |        |         |        
|                                                                                      | Net income                                                                            |                                         | $                 | 19,010   |        |       | $      | 11,796  |       |        | $       | 7,305   |       
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                                       |                                         |                   |          |        |       |        |         |       |        |         |        
|                                                                                      | Depreciation and amortization                                                         |                                         |                   | 4,593    |        |       |        | 3,563   |       |        |         | 3,939   |       
|                                                                                      | Net realized losses (gains) on equity investments                                     |                                         |                   | 26       |        |       |        | (259    | )     |        |         | 208     |       
|                                                                                      | Loss (gain) on sale or disposition of property and equipment                          |                                         |                   | (7       | )      |       |        | 25      |       |        |         | 2       |       
|                                                                                      | Deferred income taxes                                                                 |                                         |                   | 1,134    |        |       |        | 620     |       |        |         | 1,222   |       
|                                                                                      | Income tax benefit related to exercise of stock options                               |                                         |                   | 2,720    |        |       |        | 3,280   |       |        |         | 1,073   |       
|                                                                                      | Purchased in-process research and development                                         |                                         |                   |         |        |       |        |        |       |        |         | 1,744   |       
|                                                                                      | Provision for doubtful accounts                                                       |                                         |                   | (378     | )      |       |        | 689     |       |        |         | 452     |       
|                                                                                      | Changes in operating assets and liabilities, excluding effects
    from acquisitions: |                                         |                   |          |        |       |        |         |       |        |         |         |       
|                                                                                      |                                                                                       | Accounts receivable                     |                   |          | 1,664  |       |        |         | 1,784 |        |         |         | (1,238 | )    
|                                                                                      |                                                                                       | Prepaid expenses and other assets       |                   |          | 271    |       |        |         | (346  | )      |         |         | 286    |      
|                                                                                      |                                                                                       | Accounts payable                        |                   |          | (340   | )     |        |         | 65    |        |         |         | (202   | )    
|                                                                                      |                                                                                       | Accrued expenses                        |                   |          | 2,596  |       |        |         | (13   | )      |         |         | 488    |      
|                                                                                      |                                                                                       | Income taxes payable                    |                   |          | 521    |       |        |         | (581  | )      |         |         | (52    | )    
|                                                                                      |                                                                                       | Deferred maintenance and other revenues |                   |          | (3,286 | )     |        |         | 3,088 |        |         |         | 268    |      
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|                                                                                      |                                                                                       |                                         | Total adjustments |          |        | 9,514 |        |         |       | 11,915 |         |         |        | 8,190 | 
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|                                                                                      | Net cash provided by operating activities                                             |                                         |                   | 28,524   |        |       |        | 23,711  |       |        |         | 15,495  |       
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|Cash flow from investing activities:                                                  |                                                                                       |                                         |                   |          |        |       |        |         |       |        |         |        
|                                                                                      | Additions to property and equipment                                                   |                                         |                   | (1,345   | )      |       |        | (1,100  | )     |        |         | (554    | )     
|                                                                                      | Proceeds from sale of property and equipment                                          |                                         |                   | 7        |        |       |        |        |       |        |         | 7       |       
|                                                                                      | Cash paid for business acquisitions, net of cash acquired
    (Note 11)               |                                         |                   | (23,541  | )      |       |        | (1,817  | )     |        |         | (8,332  | )     
|                                                                                      | Purchases of marketable securities                                                    |                                         |                   | (165,556 | )      |       |        | (28,579 | )     |        |         | (17,965 | )     
|                                                                                      | Sales of marketable securities                                                        |                                         |                   | 101,215  |        |       |        | 16,175  |       |        |         | 24,106  |       
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|                                                                                      | Net cash used in investing activities                                                 |                                         |                   | (89,220  | )      |       |        | (15,321 | )     |        |         | (2,738  | )     
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|Cash flow from financing activities:                                                  |                                                                                       |                                         |                   |          |        |       |        |         |       |        |         |        
|                                                                                      | Repayment of debt and acquired debt                                                   |                                         |                   |         |        |       |        |        |       |        |         | (146    | )     
|                                                                                      | Issuance of common stock                                                              |                                         |                   | 74,795   |        |       |        | 290     |       |        |         | 252     |       
|                                                                                      | Exercise of options                                                                   |                                         |                   | 2,203    |        |       |        | 6,563   |       |        |         | 4,323   |       
|                                                                                      | Purchase of common stock for treasury                                                 |                                         |                   |         |        |       |        | (17,698 | )     |        |         | (27,719 | )     
|                                                                                      | Common stock dividends                                                                |                                         |                   | (2,924   | )      |       |        | (1,236  | )     |        |         |        |       
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|                                                                                      | Net cash provided by (used in) financing activities                                   |                                         |                   | 74,074   |        |       |        | (12,081 | )     |        |         | (23,290 | )     
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|Effect of exchange rate changes on cash                                               |                                                                                       |                                         | 274               |          |        |       | 616    |         |       |        | 444     |        
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|Net increase (decrease) in cash and cash equivalents                                  |                                                                                       |                                         | 13,652            |          |        |       | (3,075 | )       |       |        | (10,089 | )      
|Cash and cash equivalents, beginning of year                                          |                                                                                       |                                         | 15,261            |          |        |       | 18,336 |         |       |        | 28,425  |        
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|Cash and cash equivalents, end of year                                                |                                                                                       | $                                       | 28,913            |          |        | $     | 15,261 |         |       | $      | 18,336  |        
|                                                                                      |                                                                                       |                                         |                   |          |        |       |        |         |      
|Supplemental disclosure of cash flow information                                      |                                                                                       |                                         |                   |          |        |       |        |         |       |        |         |        
|                                                                                      | Cash paid for                                                                         |                                         |                   |          |        |       |        |         |       |        |         |         |       
|                                                                                      |                                                                                       | Interest expense                        |                   | $        | 9      |       |        | $       | 1     |        |         | $       | 2      |      
|                                                                                      |                                                                                       | Income taxes                            |                   | $        | 7,713  |       |        | $       | 4,245 |        |         | $       | 2,560  |      
|Supplemental disclosure of non-cash investing activities                              |                                                                                       |                                         |                   |          |        |       |        |         |       |        |         |        
|                                                                                      | See Note 11 for a discussion of acquisitions.                                         |                                         |                   |          |        |       |        |         |       |        |         |         |       
|Supplemental disclosure of non-cash financing activities                              |                                                                                       |                                         |                   |          |        |       |        |         |       |        |         |        
|                                                                                      | Dividends declared but not paid                                                       |                                         | $                 | 1,850    |        |       |        |        |       |        |         |        |       



F-5



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS
EQUITY


For the Years Ended December 31, 2002, 2003 and 2004


|                              |                                                             |                |        |       |        |   |            |         |             |             |           |        |               |        |        |          |       |       |               |        |   |   |         |         |   |   |         |         |  
|----------------------------- | ----------------------------------------------------------- | -------------- | ------ | ----- | ------ | - | ---------- | ------- | ----------- | ----------- | --------- | ------ | ------------- | ------ | ------ | -------- | ----- | ----- | ------------- | ------ | - | - | ------- | ------- | - | - | ------- | ------- | -
|                              |                                                             | Common Stock   |        |       |        |   |            |         | Accumulated |             |           |        |               |       
|                              |                                                             |                |        |       |        |   |            |         | Other       |             |           |        |               |       
|                              |                                                             | Number         |        |       |        |   | Additional |         |             | Accumulated |           |        | Comprehensive |        |        |          |       | Total |              
|                              |                                                             | of Issued      |        |       |        |   | Paid-in    |         |             | Earnings    |           |        | Income        |        |        | Treasury |       |       | Stockholders |       
|                              |                                                             | Shares         |        |       | Amount |   |            | Capital |             |             | (Deficit) |        |               | (Loss) |        |          | Stock |       |               | Equity |  
|                              |                                                             |                |        |       |        |   |            |         |             |             |           |        |               |        |        |          |       |       |               |        |  
|                              |                                                             | (In thousands) |       
|Balance, at December 31, 2001 |                                                             |                | 24,534 |       |        | $ | 245        |         |             | $           | 89,592    |        |               | $      | (9,072 | )        |       | $     | 186           |        |   | $ | (8,003  | )       |   | $ | 72,948  |        
|                              | Exercise of options                                         |                |        | 890   |        |   |            | 9       |             |             |           | 4,314  |               |        |        |         |       |       |               |       |   |   |         |        |   |   |         | 4,323   |  
|                              | Issuance of common stock                                    |                |        | 67    |        |   |            | 1       |             |             |           | 251    |               |        |        |         |       |       |               |       |   |   |         |        |   |   |         | 252     |  
|                              | Issuance of warrants                                        |                |        |      |        |   |            |        |             |             |           | 9      |               |        |        |         |       |       |               |       |   |   |         |        |   |   |         | 9       |  
|                              | Purchase of common stock                                    |                |        |      |        |   |            |        |             |             |           |       |               |        |        |         |       |       |               |       |   |   |         | (27,719 | ) |   |         | (27,719 | )
|                              | Income tax benefit related to exercise of stock options     |                |        |      |        |   |            |        |             |             |           | 1,073  |               |        |        |         |       |       |               |       |   |   |         |        |   |   |         | 1,073   |  
|                              | Net income                                                  |                |        |      |        |   |            |        |             |             |           |       |               |        |        | 7,305    |       |       |               |       |   |   |         |        |   |   |         | 7,305   |  
|                              | Foreign exchange translation adjustment                     |                |        |      |        |   |            |        |             |             |           |       |               |        |        |         |       |       |               | 424    |   |   |         |        |   |   |         | 424     |  
|                              | Change in unrealized loss on investments                    |                |        |      |        |   |            |        |             |             |           |       |               |        |        |         |       |       |               | (1,345 | ) |   |         |        |   |   |         | (1,345  | )
|                              |                                                             |                |        |       |        |   |            |         |             |             |           |        |               |        |        |          |       |       |               |        |  
|Balance, at December 31, 2002 |                                                             |                | 25,491 |       |        |   | 255        |         |             |             | 95,239    |        |               |        | (1,767 | )        |       |       | (735          | )      |   |   | (35,722 | )       |   |   | 57,270  |        
|                              | Exercise of options                                         |                |        | 1,262 |        |   |            | 13      |             |             |           | 6,550  |               |        |        |         |       |       |               |       |   |   |         |        |   |   |         | 6,563   |  
|                              | Issuance of common stock                                    |                |        | 53    |        |   |            |        |             |             |           | 290    |               |        |        |         |       |       |               |       |   |   |         |        |   |   |         | 290     |  
|                              | Purchase of common stock                                    |                |        |      |        |   |            |        |             |             |           |       |               |        |        |         |       |       |               |       |   |   |         | (17,698 | ) |   |         | (17,698 | )
|                              | Cash dividends declared  $0.067 per share
    (see Note 5) |                |        |      |        |   |            |        |             |             |           |       |               |        |        | (1,236   | )     |       |               |       |   |   |         |        |   |   |         | (1,236  | )
|                              | Income tax benefit related to exercise of stock options     |                |        |      |        |   |            |        |             |             |           | 3,280  |               |        |        |         |       |       |               |       |   |   |         |        |   |   |         | 3,280   |  
|                              | Net income                                                  |                |        |      |        |   |            |        |             |             |           |       |               |        |        | 11,796   |       |       |               |       |   |   |         |        |   |   |         | 11,796  |  
|                              | Foreign exchange translation adjustment                     |                |        |      |        |   |            |        |             |             |           |       |               |        |        |         |       |       |               | 496    |   |   |         |        |   |   |         | 496     |  
|                              | Change in unrealized gain on investments, net of tax        |                |        |      |        |   |            |        |             |             |           |       |               |        |        |         |       |       |               | 827    |   |   |         |        |   |   |         | 827     |  
|                              |                                                             |                |        |       |        |   |            |         |             |             |           |        |               |        |        |          |       |       |               |        |  
|Balance, at December 31, 2003 |                                                             |                | 26,806 |       |        |   | 268        |         |             | $           | 105,359   |        |               | $      | 8,793  |          |       | $     | 588           |        |   | $ | (53,420 | )       |   | $ | 61,588  |        
|                              | Exercise of options                                         |                |        | 391   |        |   |            | 4       |             |             |           | 2,199  |               |        |        |         |       |       |               |       |   |   |         |        |   |   |         | 2,203   |  
|                              | Issuance of common stock                                    |                |        | 4,079 |        |   |            | 41      |             |             |           | 74,754 |               |        |        |         |       |       |               |       |   |   |         |        |   |   |         | 74,795  |  
|                              | Cash dividends declared  $0.22 per share
    (see Note 5)  |                |        |      |        |   |            |        |             |             |           |       |               |        |        | (4,774   | )     |       |               |       |   |   |         |        |   |   |         | (4,774  | )
|                              | Income tax benefit related to exercise of stock options     |                |        |      |        |   |            |        |             |             |           | 2,720  |               |        |        |         |       |       |               |       |   |   |         |        |   |   |         | 2,720   |  
|                              | Net income                                                  |                |        |      |        |   |            |        |             |             |           |       |               |        |        | 19,010   |       |       |               |       |   |   |         |        |   |   |         | 19,010  |  
|                              | Foreign exchange translation adjustment                     |                |        |      |        |   |            |        |             |             |           |       |               |        |        |         |       |       |               | 263    |   |   |         |        |   |   |         | 263     |  
|                              | Change in unrealized gain on investments, net of tax        |                |        |      |        |   |            |        |             |             |           |       |               |        |        |         |       |       |               | 289    |   |   |         |        |   |   |         | 289     |  
|                              |                                                             |                |        |       |        |   |            |         |             |             |           |        |               |        |        |          |       |       |               |        |  
|Balance, at December 31, 2004 |                                                             |                | 31,276 |       |        | $ | 313        |         |             | $           | 185,032   |        |               | $      | 23,029 |          |       | $     | 1,140         |        |   | $ | (53,420 | )       |   | $ | 156,094 |        
|                              |                                                             |                |        |       |        |   |            |         |             |             |           |        |               |        |        |          |       |       |               |        |  



F-6



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|   |             
|-- | ------------
|1. | Organization



















|   |                                           
|-- | ------------------------------------------
|2. | Summary of Significant Accounting Policies



| |                 
| | ----------------
| | Use of Estimates





| |                            
| | ---------------------------
| | Principles of Consolidation





| |                    
| | -------------------
| | Revenue Recognition



F-7



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












| |                
| | ---------------
| | License Revenue







| |                       
| | ----------------------
| | Maintenance Agreements



F-8



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                      
| | ---------------------
| | Professional Services





| |                     
| | --------------------
| | Outsourcing Services







| |                         
| | ------------------------
| | Research and Development







| |                   
| | ------------------
| | Stock Compensation



F-9



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                                                                                                                            |  |      |        |   |      |   |        |      |  |   |        |  
|------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                                                                                                                            |  | 2004 |        |   | 2003 |   |        | 2002 | 
|                                                                                                                                            |  |      |        |   |      |   |        |      | 
|Net income, as reported                                                                                                                     |  | $    | 19,010 |   |      | $ | 11,796 |      |  | $ | 7,305  |  
|Deduct: total stock-based employee compensation determined under
    fair value based method for all awards, net of related tax
    effects |  |      | (1,293 | ) |      |   | (1,229 | )    |  |   | (2,490 | )
|                                                                                                                                            |  |      |        |   |      |   |        |      | 
|Net income, pro forma                                                                                                                       |  | $    | 17,717 |   |      | $ | 10,567 |      |  | $ | 4,815  |  
|                                                                                                                                            |  |      |        |   |      |   |        |      | 
|Basic earnings per share, as reported                                                                                                       |  | $    | 0.90   |   |      | $ | 0.63   |      |  | $ | 0.38   |  
|Basic earnings per share, pro forma                                                                                                         |  |      | 0.84   |   |      |   | 0.57   |      |  |   | 0.25   |  
|Diluted earnings per share, as reported                                                                                                     |  |      | 0.84   |   |      |   | 0.59   |      |  |   | 0.36   |  
|Diluted earnings per share, pro forma                                                                                                       |  |      | 0.79   |   |      |   | 0.53   |      |  |   | 0.24   |  







| |             
| | ------------
| | Income Taxes



F-10



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                    
| | ---------------------------------------------------
| | Cash and Cash Equivalents and Marketable Securities







| |                       
| | ----------------------
| | Property and Equipment



|                       |  |                                               
|---------------------- |  | ----------------------------------------------
|Description            |  | Useful Life                                   
|                       |  |                                               
|Equipment              |  | 3-5 years                                     
|Furniture and fixtures |  | 7-10 years                                    
|Leasehold improvements |  | Shorter of lease term or estimated useful life







| |                               
| | ------------------------------
| | Goodwill and Intangible Assets





F-11



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SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|     |  |   |       | 
|---- |  | - | ----- | 
|2005 |  | $ | 2,661 | 
|2006 |  |   | 2,205 | 
|2007 |  |   | 1,962 | 
|2008 |  |   | 1,473 | 
|2009 |  |   | 1,108 | 
|     |  |   |      
|     |  | $ | 9,409 | 



| |                                
| | -------------------------------
| | Impairment of Long-Lived Assets





| |                             
| | ----------------------------
| | Concentration of Credit Risk





| |                                              
| | ---------------------------------------------
| | International Operations and Foreign Currency





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



F-12



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                 |  |      |        |  |      |  |        |      |  |  |        | 
|---------------------------------------------------------------- |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                                                                 |  | 2004 |        |  | 2003 |  |        | 2002 | 
|                                                                 |  |      |        |  |      |  |        |      | 
|Weighted average common shares outstanding                       |  |      | 21,185 |  |      |  | 18,617 |      |  |  | 19,473 | 
|Weighted average common stock equivalents  options              |  |      | 1,314  |  |      |  | 1,215  |      |  |  | 1,058  | 
|                                                                 |  |      |        |  |      |  |        |      | 
|Weighted average common and common equivalent shares outstanding |  |      | 22,499 |  |      |  | 19,832 |      |  |  | 20,531 | 
|                                                                 |  |      |        |  |      |  |        |      | 





| |                     
| | --------------------
| | Comprehensive Income





|                                                   |  |      |        |  |      |   |        |      |  |   |        |  
|-------------------------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | -
|                                                   |  | 2004 |        |  | 2003 |   |        | 2002 | 
|                                                   |  |      |        |  |      |   |        |      | 
|Net income                                         |  | $    | 19,010 |  |      | $ | 11,796 |      |  | $ | 7,305  |  
|Foreign currency translation gains                 |  |      | 263    |  |      |   | 496    |      |  |   | 424    |  
|Unrealized gains (losses) on marketable securities |  |      | 289    |  |      |   | 827    |      |  |   | (1,345 | )
|                                                   |  |      |        |  |      |   |        |      | 
|Total comprehensive income                         |  | $    | 19,562 |  |      | $ | 13,119 |      |  | $ | 6,384  |  
|                                                   |  |      |        |  |      |   |        |      | 





| |                 
| | ----------------
| | Reclassification





| |                                
| | -------------------------------
| | Recent Accounting Pronouncement



F-13



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|   |                      
|-- | ---------------------
|3. | Marketable Securities



|                                             |       |      |        |            |                |   |       |            |  |   |        |         | 
|-------------------------------------------- | ----- | ---- | ------ | ---------- | -------------- | - | ----- | ---------- |  | - | ------ | ------- | 
|                                             |       |      |        | Gross      |                |   |      
|                                             |       |      |        | Unrealized |                |   |      
|December 31, 2004:                           |       | Cost |        |            | Gains/(Losses) |   |       | Fair Value | 
|                                             |       |      |        |            |                |   |       |            | 
|State, municipal and county government bonds |       | $    | 73,327 |            |                | $ | (22   | )          |  | $ | 73,305 |        
|US government securities                     |       |      | 6,517  |            |                |   | (8    | )          |  |   | 6,509  |        
|Corporate bonds                              |       |      | 17,015 |            |                |   | (2    | )          |  |   | 17,013 |        
|Equities                                     |       |      | 3,965  |            |                |   | 1,130 |            |  |   | 5,095  |        
|                                             |       |      |        |            |                |   |       |            | 
|                                             | Total |      | $      | 100,824    |                |   | $     | 1,098      |  |   | $      | 101,922 | 
|                                             |       |      |        |            |                |   |       |            | 

|                                             |       |      |        |            |       |   |      |       |  |   |        |        | 
|-------------------------------------------- | ----- | ---- | ------ | ---------- | ----- | - | ---- | ----- |  | - | ------ | ------ | 
|                                             |       |      |        | Gross      |       |   |     
|                                             |       |      |        | Unrealized |       |   | Fair |      
|December 31, 2003:                           |       | Cost |        |            | Gains |   |      | Value | 
|                                             |       |      |        |            |       |   |      |       | 
|State, municipal and county government bonds |       | $    | 8,777  |            |       | $ | 2    |       |  | $ | 8,779  |       
|US government securities                     |       |      | 3,531  |            |       |   | 6    |       |  |   | 3,537  |       
|Corporate bonds                              |       |      | 17,722 |            |       |   | 42   |       |  |   | 17,764 |       
|Equities                                     |       |      | 6,479  |            |       |   | 561  |       |  |   | 7,040  |       
|                                             |       |      |        |            |       |   |      |       | 
|                                             | Total |      | $      | 36,509     |       |   | $    | 611   |  |   | $      | 37,120 | 
|                                             |       |      |        |            |       |   |      |       | 



|                   |       |      |        |         |      |   |        |        | 
|------------------ | ----- | ---- | ------ | ------- | ---- | - | ------ | ------ | 
|                   |       | 2004 |        |         | 2003 |  
|                   |       |      |        |         |      |  
|Less than one year |       | $    | 86,824 |         |      | $ | 25,506 |       
|Due in 1-2 years   |       |      | 15,098 |         |      |   | 11,104 |       
|Due in 3-5 years   |       |      |       |         |      |   | 510    |       
|                   |       |      |        |         |      |  
|                   | Total |      | $      | 101,922 |      |   | $      | 37,120 | 
|                   |       |      |        |         |      |  



|   |                    
|-- | -------------------
|4. | Accounts Receivable



|                                                                                                       |  |              |        |  |      |   |       | 
|------------------------------------------------------------------------------------------------------ |  | ------------ | ------ |  | ---- | - | ----- | 
|                                                                                                       |  | December 31, |       
|                                                                                                       |  |              |       
|                                                                                                       |  | 2004         |        |  | 2003 |  
|                                                                                                       |  |              |        |  |      |  
|Accounts receivable, net of allowance for doubtful accounts of
    $631 and $1,404, respectively       |  | $            | 9,715  |  |      | $ | 6,426 | 
|Unbilled accounts receivable, net of allowance for doubtful
    accounts of $135 and $45, respectively |  |              | 3,830  |  |      |   | 2,145 | 
|                                                                                                       |  |              |        |  |      |  
|Total accounts receivable                                                                              |  | $            | 13,545 |  |      | $ | 8,571 | 
|                                                                                                       |  |              |        |  |      |  

F-14



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                 |      |              |   |           |                  |  |   |           |   |             |   |            |        |  |   |     |  |  |   |       | 
|-------------------------------- | ---- | ------------ | - | --------- | ---------------- |  | - | --------- | - | ----------- | - | ---------- | ------ |  | - | --- |  |  | - | ----- | 
|                                 |      |              |   | Additions |                  |  |   |          
|                                 |      |              |   |           |                  |  |   |          
|                                 |      | Balance at   |   |           | Charge (Benefit) |  |   | Charge to |   |             |   | Balance at |       
|                                 |      | Beginning of |   |           | to Costs and     |  |   | Other     |   | Deductions, |   |            | End of | 
|Description                      |      | Period       |   |           | Expenses         |  |   | Accounts  |   | Net         |   |            | Period | 
|                                 |      |              |   |           |                  |  |   |           |   |             |   |            |        | 
|Allowance for Doubtful Accounts: |      |              |   |           |                  |  |   |           |   |             |   |            |        |  |   |     |  |  |   |      
|Years Ended December 31          |      |              |   |           |                  |  |   |           |   |             |   |            |        |  |   |     |  |  |   |      
|                                 | 2004 |              | $ | 1,449     |                  |  | $ | (378      | ) |             | $ |           |        |  | $ | 305 |  |  | $ | 766   | 
|                                 | 2003 |              |   | 1,353     |                  |  |   | 689       |   |             |   |           |        |  |   | 593 |  |  |   | 1,449 | 
|                                 | 2002 |              |   | 1,000     |                  |  |   | 452       |   |             |   |           |        |  |   | 99  |  |  |   | 1,353 | 





|   |                     
|-- | --------------------
|5. | Stockholders Equity







|        |       |        |   |             |      |  |   |     |             |  |        |   |  |      |     |       |     |   |       |       |  |   |       |      | 
|------- | ----- | ------ | - | ----------- | ---- |  | - | --- | ----------- |  | ------ | - |  | ---- | --- | ----- | --- | - | ----- | ----- |  | - | ----- | ---- | 
|        |       |        |   | Fiscal 2004 |      |  |   |     | Fiscal 2003 | 
|        |       |        |   | Price Range |      |  |   |     | Price Range | 
|        |       |        |   |             |      |  |   |     |             | 
|Quarter |       | Shares |   |             | High |  |   | Low |             |  | Shares |   |  | High |     |       | Low |  
|        |       |        |   |             |      |  |   |     |             |  |        |   |  |      |     |       |     |  
|First   |       |        |  |             |      |  |  |     |             |  |       |   |  |      | 259 |       |     | $ | 8.03  |       |  | $ | 6.63  |     
|Second  |       |        |  |             |      |  |  |     |             |  |       |   |  |      | 854 |       |     |   | 10.03 |       |  |   | 7.16  |     
|Third   |       |        |  |             |      |  |  |     |             |  |       |   |  |      | 384 |       |     |   | 13.73 |       |  |   | 10.95 |     
|Fourth  |       |        |  |             |      |  |  |     |             |  |       |   |  |      | 199 |       |     |   | 19.39 |       |  |   | 14.89 |     
|        |       |        |   |             |      |  |   |     |             |  |        |   |  |      |     |       |     |  
|        | Total |        |   |            |      |  |   |    |             |  |        |  |  |      |     | 1,696 |     |   |       | 19.39 |  |   |       | 6.63 | 
|        |       |        |   |             |      |  |   |     |             |  |        |   |  |      |     |       |     |  



F-15



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|   |             
|-- | ------------
|6. | Income Taxes



|                    |  |                         |        |  |      |   |        |      |  |   |        | 
|------------------- |  | ----------------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                    |  | Year Ended December 31, |       
|                    |  |                         |       
|                    |  | 2004                    |        |  | 2003 |   |        | 2002 | 
|                    |  |                         |        |  |      |   |        |      | 
|U.S.                |  | $                       | 30,634 |  |      | $ | 18,547 |      |  | $ | 11,455 | 
|Foreign             |  |                         | 406    |  |      |   | 790    |      |  |   | 845    | 
|                    |  |                         |        |  |      |   |        |      | 
|Income before taxes |  | $                       | 31,040 |  |      | $ | 19,337 |      |  | $ | 12,300 | 
|                    |  |                         |        |  |      |   |        |      | 



|          |         |                         |        |       |      |   |       |       |  |   |       |       | 
|--------- | ------- | ----------------------- | ------ | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|          |         | Year Ended December 31, |       
|          |         |                         |       
|          |         | 2004                    |        |       | 2003 |   |       | 2002  | 
|          |         |                         |        |       |      |   |       |       | 
|Current:  |         |                         |        |       |      |   |       |       |  |   |       |      
|          | Federal |                         | $      | 8,802 |      |   | $     | 5,524 |  |   | $     | 2,748 | 
|          | Foreign |                         |        | 227   |      |   |       | 182   |  |   |       | 375   | 
|          | State   |                         |        | 2,020 |      |   |       | 1,110 |  |   |       | 493   | 
|Deferred: |         |                         |        |       |      |   |       |       |  |   |       |      
|          | Federal |                         |        | 497   |      |   |       | 442   |  |   |       | 1,025 | 
|          | State   |                         |        | 484   |      |   |       | 283   |  |   |       | 354   | 
|          |         |                         |        |       |      |   |       |       | 
|Total     |         | $                       | 12,030 |       |      | $ | 7,541 |       |  | $ | 4,995 |      
|          |         |                         |        |       |      |   |       |       | 



F-16



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                    |                                                        |                         |        |       |      |   |       |      |   |   |       |      |  
|--------------------------------------------------- | ------------------------------------------------------ | ----------------------- | ------ | ----- | ---- | - | ----- | ---- | - | - | ----- | ---- | -
|                                                    |                                                        | Year Ended December 31, |       
|                                                    |                                                        |                         |       
|                                                    |                                                        | 2004                    |        |       | 2003 |   |       | 2002 |  
|                                                    |                                                        |                         |        |       |      |   |       |      |  
|Computed expected tax expense                     |                                                        | $                       | 10,864 |       |      | $ | 6,575 |      |   | $ | 4,182 |     
|Increase (decrease) in income taxes resulting from: |                                                        |                         |        |       |      |   |       |      |   |   |       |     
|                                                    | State income taxes (net of federal income tax benefit) |                         |        | 1,627 |      |   |       | 920  |   |   |       | 558  |  
|                                                    | Tax-exempt interest income                             |                         |        | (267  | )    |   |       | (34  | ) |   |       |     |  
|                                                    | Foreign operations                                     |                         |        | 61    |      |   |       | (94  | ) |   |       | (145 | )
|                                                    | Rate change impact on deferred tax assets              |                         |        | (126  | )    |   |       |     |   |   |       |     |  
|                                                    | Litigation settlement                                  |                         |        |      |      |   |       |     |   |   |       | 515  |  
|                                                    | Other                                                  |                         |        | (129  | )    |   |       | 174  |   |   |       | (115 | )
|                                                    |                                                        |                         |        |       |      |   |       |      |  
|Provision for income taxes                          |                                                        | $                       | 12,030 |       |      | $ | 7,541 |      |   | $ | 4,995 |     
|                                                    |                                                        |                         |        |       |      |   |       |      |  





|                                              |       |              |        |       |             |   |     |          |  |   |             |       |  |   |     |     | 
|--------------------------------------------- | ----- | ------------ | ------ | ----- | ----------- | - | --- | -------- |  | - | ----------- | ----- |  | - | --- | --- | 
|                                              |       | December 31, |       
|                                              |       |              |       
|                                              |       | 2004         |        |       | 2003        |  
|                                              |       |              |        |       |             |  
|                                              |       | Deferred     |        |       | Deferred    |   |     | Deferred |  |   | Deferred    |      
|                                              |       | Tax          |        |       | Tax         |   |     | Tax      |  |   | Tax         |      
|                                              |       | Assets       |        |       | Liabilities |   |     | Assets   |  |   | Liabilities |      
|                                              |       |              |        |       |             |   |     |          |  |   |             |      
|Purchased in-process research and development |       | $            | 2,891  |       |             | $ |    |          |  | $ | 3,304       |       |  | $ |    |    
|Net operating loss carryforwards              |       |              | 239    |       |             |   |    |          |  |   | 273         |       |  |   |    |    
|Acquired technology                           |       |              | 2,914  |       |             |   |    |          |  |   | 2,745       |       |  |   |    |    
|Accounts receivable                           |       |              | 299    |       |             |   |    |          |  |   | 562         |       |  |   |    |    
|Tax credit carryforwards                      |       |              | 1,890  |       |             |   |    |          |  |   | 502         |       |  |   |    |    
|Accrued expenses                              |       |              |       |       |             |   | 26  |          |  |   | 202         |       |  |   |    |    
|Unrealized gain on marketable securities      |       |              |       |       |             |   | 447 |          |  |   |            |       |  |   | 246 |    
|Fixed assets                                  |       |              |       |       |             |   | 82  |          |  |   |            |       |  |   | 103 |    
|Prepaid expenses                              |       |              |       |       |             |   | 161 |          |  |   |            |       |  |   |    |    
|Capitalized software                          |       |              |       |       |             |   | 36  |          |  |   |            |       |  |   | 57  |    
|Other                                         |       |              | 184    |       |             |   |    |          |  |   | 128         |       |  |   |    |    
|                                              |       |              |        |       |             |   |     |          |  |   |             |      
|                                              | Total |              |        | 8,417 |             |   |     | 752      |  |   |             | 7,716 |  |   |     | 406 | 
|Valuation allowance                           |       |              | (1,959 | )     |             |   |    |          |  |   | (273        | )     |  |   |    |    
|                                              |       |              |        |       |             |   |     |          |  |   |             |      
|                                              | Total |              | $      | 6,458 |             |   | $   | 752      |  |   | $           | 7,443 |  |   | $   | 406 | 
|                                              |       |              |        |       |             |   |     |          |  |   |             |      



F-17



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|   |       
|-- | ------
|7. | Leases



|                         |  |   |       | 
|------------------------ |  | - | ----- | 
|Year Ending December 31, |  |   |       | 
|2005                     |  | $ | 3,518 | 
|2006                     |  |   | 2,572 | 
|2007                     |  |   | 1,774 | 
|2008                     |  |   | 500   | 
|2009 and thereafter      |  |   | 465   | 
|                         |  |   |      
|                         |  | $ | 8,829 | 
|                         |  |   |      



|                         |  |   |     | 
|------------------------ |  | - | --- | 
|Year Ending December 31, |  |   |     | 
|2005                     |  | $ | 328 | 
|2006                     |  |   | 115 | 
|                         |  |   |    
|                         |  | $ | 443 | 
|                         |  |   |    

8.     License and Royalty
Agreements




F-18



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|   |                           
|-- | --------------------------
|9. | Defined Contribution Plans







|    |                                
|--- | -------------------------------
|10. | Stock Option and Purchase Plans





F-19



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                 |           |        |           |                  |                |   |      |       | 
|-------------------------------- | --------- | ------ | --------- | ---------------- | -------------- | - | ---- | ----- | 
|                                 |           |        |           | Weighted Average |               
|                                 |           | Shares |           |                  | Exercise Price |  
|                                 |           |        |           |                  |                |  
|Outstanding at December 31, 2001 |           |        | 4,973,482 |                  |                | $ | 5.93 |      
|                                 | Granted   |        |           | 651,000          |                |   |      | 6.43  | 
|                                 | Cancelled |        |           | (340,441         | )              |   |      | 6.23  | 
|                                 | Exercised |        |           | (889,443         | )              |   |      | 4.87  | 
|                                 |           |        |           |                  |                |  
|Outstanding at December 31, 2002 |           |        | 4,394,598 |                  |                |   | 6.19 |      
|                                 | Granted   |        |           | 637,500          |                |   |      | 8.04  | 
|                                 | Cancelled |        |           | (1,199,298       | )              |   |      | 8.78  | 
|                                 | Exercised |        |           | (1,261,834       | )              |   |      | 5.20  | 
|                                 |           |        |           |                  |                |  
|Outstanding at December 31, 2003 |           |        | 2,570,966 |                  |                |   | 5.92 |      
|                                 | Granted   |        |           | 284,798          |                |   |      | 22.81 | 
|                                 | Cancelled |        |           | (85,291          | )              |   |      | 17.68 | 
|                                 | Exercised |        |           | (391,011         | )              |   |      | 5.64  | 
|                                 |           |        |           |                  |                |  
|Outstanding at December 31, 2004 |           |        | 2,379,462 |                  |                | $ | 7.56 |      
|                                 |           |        |           |                  |                |  

F-20



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                |  |                |           |                     |                       |  |                     |                  |  |        |                |  |  |                  |           |  |  |   |       | 
|--------------- |  | -------------- | --------- | ------------------- | --------------------- |  | ------------------- | ---------------- |  | ------ | -------------- |  |  | ---------------- | --------- |  |  | - | ----- | 
|                |  |                |           | Options Outstanding |                       |  | Options Exercisable |                 
|                |  |                |           |                     |                       |  |                     |                 
|                |  | Number         |           |                     | Weighted Average      |  |                     |                  |  | Number |                |  | 
|Range of        |  | Outstanding at |           |                     | Remaining Contractual |  |                     | Weighted Average |  |        | Exercisable at |  |  | Weighted Average |          
|Exercise Price  |  | 12/31/04       |           |                     | Life (years)          |  |                     | Exercise Price   |  |        | 12/31/04       |  |  | Exercise Price   |          
|                |  |                |           |                     |                       |  |                     |                  |  |        |                |  |  |                  |          
|$ 2.63  $ 3.83 |  |                | 1,012,121 |                     |                       |  | 5.4                 |                  |  | $      | 3.44           |  |  |                  | 953,337   |  |  | $ | 3.44  | 
|4.00    6.00   |  |                | 169,795   |                     |                       |  | 6.3                 |                  |  |        | 5.18           |  |  |                  | 95,599    |  |  |   | 4.98  | 
|6.52    8.64   |  |                | 764,202   |                     |                       |  | 7.9                 |                  |  |        | 7.74           |  |  |                  | 380,226   |  |  |   | 7.82  | 
|10.00   11.08  |  |                | 121,500   |                     |                       |  | 5.7                 |                  |  |        | 10.34          |  |  |                  | 121,500   |  |  |   | 10.34 | 
|15.17   21.69  |  |                | 239,700   |                     |                       |  | 7.6                 |                  |  |        | 18.47          |  |  |                  | 118,200   |  |  |   | 17.89 | 
|23.09   31.85  |  |                | 72,144    |                     |                       |  | 9.1                 |                  |  |        | 28.20          |  |  |                  |          |  |  |   |      | 
|                |  |                |           |                     |                       |  |                     |                  |  |        |                |  |  |                  |          
|                |  |                | 2,379,462 |                     |                       |  | 6.6                 |                  |  |        | 7.56           |  |  |                  | 1,668,862 |  |  |   | 6.05  | 
|                |  |                |           |                     |                       |  |                     |                  |  |        |                |  |  |                  |          









|    |             
|--- | ------------
|11. | Acquisitions







F-21



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


















F-22



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|                                                                 |  |        |        |   |           |   |       |        |  |   |          |   |  |           |       |  |        |   |       |   |  |   |        |  
|---------------------------------------------------------------- |  | ------ | ------ | - | --------- | - | ----- | ------ |  | - | -------- | - |  | --------- | ----- |  | ------ | - | ----- | - |  | - | ------ | -
|                                                                 |  |        |        |   |           |   |       | Fund   |  |   |          |   | 
|                                                                 |  | OMR    |        |   | NeoVision |   |       | IAN    |  |   | Services |   |  | Real-Time |       |  | DBC    |  
|                                                                 |  | (2004) |        |   | (2004)    |   |       | (2004) |  |   | (2003)   |   |  | (2002)    |       |  | (2002) |  
|                                                                 |  |        |        |   |           |   |       |        |  |   |          |   |  |           |       |  |        |  
|Assets acquired, net of cash received                            |  | $      | 8,134  |   |           | $ | 9     |        |  | $ | 232      |   |  | $         | 41    |  |        | $ | 664   |   |  | $ | 819    |  
|Acquired client contracts, customer relationships and tradenames |  |        | 3,800  |   |           |   |      |        |  |   |         |   |  |           | 366   |  |        |   |      |   |  |   |       |  
|Completed technology                                             |  |        | 4,400  |   |           |   | 430   |        |  |   | 1,100    |   |  |           |      |  |        |   | 1,743 |   |  |   | 2,912  |  
|In-process research & development                                |  |        |       |   |           |   |      |        |  |   |         |   |  |           |      |  |        |   | 1,744 |   |  |   |       |  
|Goodwill                                                         |  |        | 9,249  |   |           |   | 1,259 |        |  |   | 1,892    |   |  |           | 1,410 |  |        |   |      |   |  |   | 2,368  |  
|Liabilities assumed                                              |  |        | (6,618 | ) |           |   | (91   | )      |  |   | (255     | ) |  |           |      |  |        |   | (221  | ) |  |   | (1,534 | )
|                                                                 |  |        |        |   |           |   |       |        |  |   |          |   |  |           |       |  |        |  
|Consideration paid                                               |  | $      | 18,965 |   |           | $ | 1,607 |        |  | $ | 2,969    |   |  | $         | 1,817 |  |        | $ | 3,930 |   |  | $ | 4,565  |  
|                                                                 |  |        |        |   |           |   |       |        |  |   |          |   |  |           |       |  |        |  



F-23



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                           |  |      |         |  |      |   |        |      |  |   |         | 
|-------------------------- |  | ---- | ------- |  | ---- | - | ------ | ---- |  | - | ------- | 
|                           |  | 2004 |         |  | 2003 |   |        | 2002 | 
|                           |  |      |         |  |      |   |        |      | 
|Revenues                   |  | $    | 101,755 |  |      | $ | 92,415 |      |  | $ | 101,139 | 
|Net income                 |  |      | 18,839  |  |      |   | 10,022 |      |  |   | 11,324  | 
|Basic earnings per share   |  |      | 0.89    |  |      |   | 0.54   |      |  |   | 0.58    | 
|Diluted earnings per share |  |      | 0.84    |  |      |   | 0.51   |      |  |   | 0.55    | 





|    |                              
|--- | -----------------------------
|12. | Commitments and Contingencies





|    |                  
|--- | -----------------
|13. | Subsequent Events











F-24



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##### Table of Contents



SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                               
|--- | ----------------------------------------------
|14. | International Sales and Geographic Information









|                                 |  |      |        |  |      |   |        |      |  |   |        | 
|-------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                 |  | 2004 |        |  | 2003 |   |        | 2002 | 
|                                 |  |      |        |  |      |   |        |      | 
|United States                    |  | $    | 74,724 |  |      | $ | 54,379 |      |  | $ | 52,436 | 
|Americas excluding United States |  |      | 3,688  |  |      |   | 4,050  |      |  |   | 3,165  | 
|Europe                           |  |      | 14,965 |  |      |   | 4,796  |      |  |   | 4,546  | 
|Asia Pacific and Japan           |  |      | 2,511  |  |      |   | 2,306  |      |  |   | 2,287  | 
|                                 |  |      |        |  |      |   |        |      | 
|                                 |  | $    | 95,888 |  |      | $ | 65,531 |      |  | $ | 62,434 | 
|                                 |  |      |        |  |      |   |        |      | 



|                                 |  |      |        |  |      |   |        |      |  |   |        | 
|-------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                 |  | 2004 |        |  | 2003 |   |        | 2002 | 
|                                 |  |      |        |  |      |   |        |      | 
|United States                    |  | $    | 31,588 |  |      | $ | 10,869 |      |  | $ | 13,221 | 
|Americas excluding United States |  |      | 1,757  |  |      |   | 1,813  |      |  |   |       | 
|Europe                           |  |      | 323    |  |      |   | 352    |      |  |   | 440    | 
|Asia Pacific and Japan           |  |      | 114    |  |      |   | 128    |      |  |   | 148    | 
|                                 |  |      |        |  |      |   |        |      | 
|                                 |  | $    | 33,782 |  |      | $ | 13,162 |      |  | $ | 13,809 | 
|                                 |  |      |        |  |      |   |        |      | 



|    |                                              
|--- | ---------------------------------------------
|15. | Selected Quarterly Financial Data (Unaudited)

|                           |  |                                       |        |  |         |   |        |         |  |   |         |  |  |   |        | 
|-------------------------- |  | ------------------------------------- | ------ |  | ------- | - | ------ | ------- |  | - | ------- |  |  | - | ------ | 
|                           |  | First                                 |        |  | Second  |   |        | Third   |  |   | Fourth  | 
|                           |  | Quarter                               |        |  | Quarter |   |        | Quarter |  |   | Quarter | 
|                           |  |                                       |        |  |         |   |        |         |  |   |         | 
|                           |  | (In thousands, except per share data) |       
|2004                       |  |                                       |        |  |         |   |        |         |  |   |         |  |  |   |        | 
|Revenue                    |  | $                                     | 19,189 |  |         | $ | 24,484 |         |  | $ | 25,163  |  |  | $ | 27,052 | 
|Gross profit               |  |                                       | 13,075 |  |         |   | 15,418 |         |  |   | 16,008  |  |  |   | 17,617 | 
|Operating income           |  |                                       | 6,030  |  |         |   | 7,170  |         |  |   | 7,514   |  |  |   | 8,699  | 
|Net income                 |  |                                       | 3,770  |  |         |   | 4,413  |         |  |   | 4,843   |  |  |   | 5,984  | 
|Basic earnings per share   |  | $                                     | 0.20   |  |         | $ | 0.22   |         |  | $ | 0.21    |  |  | $ | 0.26   | 
|Diluted earnings per share |  |                                       | 0.19   |  |         |   | 0.21   |         |  |   | 0.20    |  |  |   | 0.25   | 
|2003 Revenue               |  | $                                     | 15,738 |  |         | $ | 15,906 |         |  | $ | 16,008  |  |  | $ | 17,879 | 
|Gross profit               |  |                                       | 10,595 |  |         |   | 10,816 |         |  |   | 11,094  |  |  |   | 12,600 | 
|Operating income           |  |                                       | 3,565  |  |         |   | 4,173  |         |  |   | 4,609   |  |  |   | 6,031  | 
|Net income                 |  |                                       | 2,329  |  |         |   | 2,734  |         |  |   | 3,041   |  |  |   | 3,692  | 
|Basic earnings per share   |  | $                                     | 0.12   |  |         | $ | 0.15   |         |  | $ | 0.16    |  |  | $ | 0.20   | 
|Diluted earnings per share |  |                                       | 0.12   |  |         |   | 0.14   |         |  |   | 0.15    |  |  |   | 0.19   | 

F-25



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##### Table of Contents






Exhibit Index


|        |    |      |             |                                                                                                                                                                                                                                                                                                                                                                     
|------- | -- | ---- | ----------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |      |            
|No.     |    |      | Description
|        |    |      |            
|        | 2  | .1  |             | Asset Purchase Agreement, dated November 15, 2001, by and
    between the Registrant and Netzee, Inc. is incorporated herein
    by reference to Exhibit 2.1 to the Registrants
    Current Report on Form 8-K, dated November 15, 2001 (File
    No. 000-28430)                                                                                                   
|       
|        | 2  | .2  |             | Stock Purchase Agreement, dated as of March 15, 2004, by
    and between the Registrant and ADP Financial Information
    Services, Inc. is incorporated herein by reference to
    Exhibit 2.2 to the Registrants Registration Statement
    on Form S-3, as amended (File No. 333-113178)                                                                        
|       
|        | 2  | .3  |             | Acquisition Agreement, dated February 25, 2005, by and
    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  | .4  |             | 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)                                                                                                
|       
|        | 3  | .1   |             | Amended and Restated Certificate of Incorporation of the
    Registrant, as amended is, incorporated herein by reference to
    Exhibit 3.1 to the Registrants Quarterly Report on
    Form 10-Q for the quarterly period ended June 30, 1999
    (File No. 000-28430)                                                                                             
|       
|        | 3  | .2   |             | Second Amended and Restated By-Laws of the Registrant is
    incorporated herein by reference to Exhibit 3 to the
    Registrants Quarterly Report on Form 10-Q for the
    quarterly period ended September 30, 2000 (File No.
    000-28430)                                                                                                                     
|       
|        | 4  | .1   |             | Specimen Certificate for shares of Common Stock, $.01 par
    value per share, of the Registrant is incorporated herein by
    reference to Exhibit 4 to the Registrants
    Registration Statement on Form S-1, as amended (File
    No. 333-3094) (the Form S-1)                                                                                               
|       
|        | 4  | .2   |             | Warrant, dated March 29, 2002, made by the registrant in
    favor of Conseco, Inc. is incorporated herein by reference to
    Exhibit 4.1 to Registrants Annual Report on Form 10-K
    for the year ended December 31, 2002 (File No. 000-28430)                                                                                                                 
|       
|        | 10 | .1*  |             | 1994 Stock Option Plan, as amended, 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, 1996
    (File No. 000-28430)                                                                                                                                                        
|       
|        | 10 | .2*  |             | 1996 Director Stock Option Plan, as amended, including form
    of stock option agreement                                                                                                                                                                                                                                                                           
|       
|        | 10 | .3*  |             | 1998 Stock Incentive Plan, as amended, including form of stock
    option agreement, is incorporated herein by reference to
    Exhibit 10.2 to the Registrants Quarterly Report on
    Form 10-Q for the quarterly period ended June 30, 2004
    (File No. 000-28430)(the Q2 2004 10-Q)                                                                        
|       
|        | 10 | .4*  |             | 1999 Non-Officer Employee Stock Incentive Plan, including form
    of stock option agreement, is incorporated herein by reference
    to Exhibit 10.3 to the Q2 2004 10-Q                                                                                                                                                                                           
|       
|        | 10 | .5*  |             | Employment Agreement, dated March 28, 1996, between the
    Registrant and William C. Stone is incorporated herein by
    reference to Exhibit 10.5 to the Form S-1                                                                                                                                                                                                 
|       
|        | 10 | .6   |             | Lease Agreement, dated September 23, 1997, by and between
    the Registrant and Monarch Life Insurance Company, as amended by
    First Amendment to Lease dated as of November 18, 1997, is
    incorporated herein by reference to Exhibit 10.15 to the
    Registrants Annual Report on Form 10-K for the year ended
    December 31, 1997 (File No. 000-28430)
|       
|        | 10 | .7   |             | Stock and Note Purchase Agreement, dated September 25,
    1990, as amended on September 20, 1994, among the
    Registrant and certain stockholders of the Registrant is
    incorporated herein by reference to Exhibit 10.10 to the
    Form S-1                                                                                                                 
|       
|        | 10 | .8   |             | Series B Preferred Stock Purchase Agreement, dated
    September 20, 1994, among the Registrant and certain
    stockholders of the Registrant is incorporated herein by
    reference to Exhibit 10.11 to the Form S-1                                                                                                                                             
|       
|        | 10 | .9   |             | Series C Preferred Stock Purchase Agreement, dated
    March 31, 1995, among the Registrant and certain
    stockholders of the Registrant is incorporated herein by
    reference to Exhibit 10.12 to the Form S-1                                                                                                                                                 
|       
|        | 10 | .10* |             | Description of Registrant Executive Officer and Director
    Compensation Arrangements                                                                                                                                                                                                                                                                              



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##### Table of Contents



|        |    |     |             |                                                                                                                                                                                                                                                                                         
|------- | -- | --- | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |     |            
|No.     |    |     | Description
|        |    |     |            
|        | 10 | .11 |             | 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 | .12 |             | Second Amendment to Lease, dated as of April 1999, between the
    Registrant and New Boston Lamberton Limited Partnership                                                                                                                                                              
|       
|        | 10 | .13 |             | Third Amendment to Lease, effective as of July 1, 1999,
    between the Registrant and New Boston Lamberton Limited
    Partnership                                                                                                                                                     
|       
|        | 21 |     |             | Subsidiaries of the Registrant                                                                                                                                                                                                                                                          
|       
|        | 23 |     |             | Consent of PricewaterhouseCoopers LLP                                                                                                                                                                                                                                                   
|       
|        | 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                                                                              






|  |                                                                                                                                                                   
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Management contract or compensatory plan or arrangement filed
    herewith in response to Item 15(a)(3) of the Instructions
    to the Annual Report on Form 10-K.



|  |                                                                                                                                                                             
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.