SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2015 Earnings Conference Call - Final Transcript

Feb 16, 2016 • 05:00 pm ET


SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2015 Earnings Conference Call - Final Transcript


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Q & A

Thank you. [Operator Instructions] And our first question comes from Chris Donat of Sandler O'Neill. Your line is now open. Please go ahead.

Christopher Donat

Hi. Good afternoon. Thanks for taking my questions. Bill, I wanted to ask something you've talked about on prior earnings calls and investor presentations. But with the -- you know with the direction the market has taken in the first month-and-a-half of 2016, I know you talked about your exposure on the hedge fund side, long only and long-short funds. But I wonder if you can walk us back through time what you thought during the financial crisis when you made some pretty decisive moves to reduce your head count by 9%? I'm just wondering as we think about the volatility here and what's going on in the market, what sort of trigger points you have for your decision making as far as what the market would have to do to cause you to make some decisions about expenses?

William Stone

Yeah. Well, Chris, we ended the year at about 39.9% operating margins and 42% EBITDA margins. So one of the things we have is a lot of flexibility. And we really have a great workforce. Right now we have no intention of reducing our workforce. We are happy with what we have. We see just tremendous opportunity. You know it's a funny world out there but we have a great client. There was a PORTIA client and they had been looking at systems for a long time, and they chose a whole collection of systems from us, primarily the APX system from Advent and some ancillary systems around that. And our revenue goes down $250,000 on PORTIA and it goes up $1.250 million or so on the Advent books. So our organic books goes down $250,000 and acquisition revenue goes up $1.250 million and I get told we ought to work on that organic growth.

So we do these acquisitions in order to please our customers, and we have all these opportunities around the world. And so we're going to go after them, and go after them hard. There's an awful lot of money managers in the world that are trying to control their costs. And as they try to control their costs they are going to want to do more outsourcing, and they are going to want to have a company like SS&C show up with expertise. Right? So we are a long way away from anything that would make us feel like we had to go into a cost cutting mode. Right now, we are trying to take advantage of all of the opportunities that are there. The CEO of Varden is in London talking to clients. I was just in our Boston office and talking with those people and they can't imagine all the incoming they have.

Norm talked about Advent OnDemand and it's growing faster. We are setting up an operation in India right now so that we can hire people. Nandini Sankar, in Mumbai,