Advent Software Says New Bank Rules Driving European Expansion
Advent Software Inc. (ADVS) said new banking regulations in Europe will help the U.S. software developer increase the region’s share of its sales to 30 percent in three to five years.
Advent, based in San Francisco, is planning to expand in Europe, which accounted for about 17 percent of its revenue last year, by targeting clients in countries such as the U.K., Sweden, Norway, Denmark, Finland, Luxembourg and Switzerland, Hakan Valberg, head of Advent’s European, Middle East and Asia operations, said in an interview in Stockholm. The U.S. accounted for the remaining 83 percent of sales.
European regulators are introducing stricter capital rules for banks and forcing lenders to improve transparency. Advent counts banks such as HSBC Holdings Plc (HSBA), JPMorgan Chase & Co. and UBS AG as clients, as well as hedge-funds asset managers, central banks and wealth funds.
“The opportunity for us is big and is becoming bigger because of the regulators and as the market needs to become more strict on compliance,” Valberg said. “We look at the need for automation and cost savings, the regulation, the need for wealth management -- all of these are fantastic growth drivers.”
Advent’s fourth-quarter net income rose 23 percent to $8 million on sales of $92 million, the company said on Feb. 4. It expects revenue this quarter of between $91 million to $93 million. Advent’s shares, which slipped 12 percent in 2012, have climbed 25 percent this year.
To contact the editor responsible for this story: Kim McLaughlin at firstname.lastname@example.org