SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

Commission File Number 000-28430

SS&C TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

80 Lamberton Road

Windsor, CT 06095

(Address of principal executive offices, including zip code)

(Registrant’s telephone number, including area code)

860-298-4500

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

None

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

Common Stock, $.01 par value per share

      Indicate by check mark whether the registrant:(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes þ          No o

      Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).     Yes þ          No o

      Number of shares outstanding of the issuer’s classes of common stock as of May 4, 2005

SS&C TECHNOLOGIES, INC.

INDEX

      This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects”, “should”, and similar expressions are intended to identify forward-looking statements. The important factors discussed below under the caption “Certain Factors That May Affect Future Operating Results,” among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time. The Company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.

Part I. FINANCIAL INFORMATION

SS&C TECHNOLOGIES, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

See accompanying notes to Consolidated Financial Statements.

SS&C TECHNOLOGIES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

See accompanying notes to Consolidated Financial Statements.

SS&C TECHNOLOGIES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

See accompanying notes to Consolidated Financial Statements.

SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(unaudited)

      In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, except as noted elsewhere in the notes to the consolidated financial statements) necessary to present fairly its financial position as of March 31, 2005 and the results of its operations for the three months ended March 31, 2005 and 2004. These statements do not include all of the information and footnotes required by generally accepted accounting principles for annual financial statements. The financial statements contained herein should be read in conjunction with the consolidated financial statements and footnotes as of and for the year ended December 31, 2004 which were included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission. The December 31, 2004 consolidated balance sheet data were derived from audited financial statements, but do not include all disclosures required by generally accepted accounting principles for annual financial statements. The results of operations for the three months ended March 31, 2005 are not necessarily indicative of the expected results for the full year.

      At March 31, 2005, the cost basis, fair market value, and unrealized gains and losses by major security type, were as follows (in thousands):

      The Company has elected to follow Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”), and related interpretations in accounting for its employee stock options. Under APB 25, because the exercise price of employee stock options equals the market price of the underlying stock on the date of grant and the grants are for a fixed number of shares, no compensation expense is recorded. The Company follows the disclosure-only provisions of Statement of Financial Accounting Standards (“SFAS”) No. 123, “Accounting for Stock-Based Compensation”, amended by SFAS No. 148. Had compensation cost for the Company’s stock option plans and employee stock purchase plan been determined consistent with SFAS No. 123, the Company’s net income and earnings

SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

per share would have been adjusted to the pro forma amounts indicated in the table below for the periods ending (in thousands except per share amounts):

      The effects of applying SFAS No. 123 in this pro forma disclosure are not indicative of future amounts.

      In December 2004, the Financial Accounting Standards Board, or FASB, issued SFAS No. 123 (revised 2004), “Share-Based Payment”. SFAS No. 123(R) requires that the compensation cost relating to equity awards be recognized in financial statements based on the fair value of the instruments issued. As amended by the SEC on April 14, 2005, this standard is effective for annual periods beginning after June 15, 2005 and includes two transition methods. The Company will be required to apply SFAS No. 123(R) as of January 1, 2006.

      The Company is currently evaluating the two methods of adoption allowed by SFAS 123R: the modified-prospective transition method and the modified-retrospective transition method. Adoption of SFAS 123R will materially increase stock compensation expense and decrease net income. In addition, SFAS 123R requires that the excess tax benefits related to stock compensation be reported as a cash inflow from financing activities rather than as a reduction of taxes paid in cash from operations.

      Earnings per share is calculated in accordance with SFAS No. 128, “Earnings Per Share”. Basic earnings per share includes no dilution and is computed by dividing income available to the Company’s common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common and common equivalent shares outstanding during the period. Common equivalent shares consist of stock options using the treasury stock method. Common equivalent shares are excluded from the computation of diluted earnings per share if the effect of including such common equivalent shares is antidilutive because their exercise prices exceed the average fair value of common stock during the period. Options to purchase 66,170 and 55,500 shares were outstanding at March 31, 2005 and 2004, respectively, but were excluded from the computation of diluted earnings per share because the effect of

SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

including the options would be antidilutive. Income available to stockholders is the same for basic and diluted earnings per share. A reconciliation of the shares outstanding is as follows (in thousands):

      SFAS No. 130, “Reporting Comprehensive Income”, requires that items defined as comprehensive income, such as foreign currency translation adjustments and unrealized gains (losses) on marketable securities, be separately classified in the financial statements and that the accumulated balance of other comprehensive income be reported separately from retained earnings and additional paid-in capital in the equity section of the balance sheet. Total comprehensive income consists of net income and other accumulated comprehensive income disclosed in the equity section of the balance sheet.

      The following table sets forth the components of comprehensive income (in thousands):

      On October 18, 2004, the Company’s Board of Directors authorized the continued repurchase of shares of the Company’s common stock up to an additional expenditure of $50 million through October 17, 2005. During the three months ended March 31, 2005, the Company repurchased 259,050 shares for approximately $5.6 million. As of March 31, 2005, the Company had repurchased a total of 8.5 million shares of common stock for approximately $59.0 million. The Company uses the cost method to account for treasury stock purchases. Under the cost method, the price paid for the stock is charged to the treasury stock account.

      As part of its semi-annual cash dividend program, the Company paid a dividend of $0.08 per share on March 3, 2005 to stockholders of record as of February 10, 2005.

      On February 28, 2005, the Company purchased all of the membership interests in EisnerFast LLC (“EisnerFast”), for $25.3 million in cash. Eisnerfast provides fund accounting and administration services to on-and off-shore hedge and private equity funds, funds of funds, and investment advisors.

SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

      The net assets and results of operations of Eisnerfast have been included in the Company’s consolidated financial statements from March 1, 2005. The purchase price was allocated to tangible and intangible assets based on their fair value at the date of acquisition. The fair value of the intangible assets, comprised of client contracts and client relationships, was determined using the future cash flows method. The intangible assets are amortized each year based on the ratio that current cash flows for the intangible asset bear to the total of current and expected future cash flows for the intangible asset. The intangible assets are amortized over nine years, the estimated life of the assets. The remainder of the purchase price was allocated to goodwill.

      On February 25, 2005, the Company 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 per share in cash, or an aggregate amount of approximately US$159 million. The transaction was completed in April 2005.

      On February 11, 2005, the Company acquired substantially all the assets of Achievement Technologies, Inc. (“Achievement”) for $470,000, plus the costs of effecting the acquisition, and the assumption of certain liabilities. Achievement provides a software solution for facilities maintenance and management to real estate property managers.

      The net assets and results of operations of Achievement have been included in the Company’s consolidated financial statements from February 1, 2005. The purchase price was allocated to tangible and intangible assets based on their fair value at the date of acquisition. The fair value of the completed technology was determined using the future cash flows method. The acquired technology is amortized on a straight-line basis over five years, the estimated life of the product. The remainder of the purchase price was allocated to goodwill.

      The following summarizes the allocation of the purchase price for the acquisitions of Eisnerfast and Achievement (in thousands):

      The following unaudited pro forma condensed consolidated results of operations is provided for illustrative purposes only and assumes that the acquisitions of Eisnerfast and Achievement occurred on January 1, 2004. This unaudited pro forma information (in thousands, except per share data) should not be relied upon as being indicative of the historical results that would have been obtained if these acquisitions had actually occurred on that date, nor of the results that may be obtained in the future.

SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

      On March 4, 2005, the Company entered into a firm commitment letter with Fleet National Bank, a Bank of America Company, regarding a two-year, $75 million senior revolving credit facility intended (1) to finance a portion of the Company’s proposed acquisition of FMC; (2) to pay fees and expenses incurred in connection with the FMC acquisition; and (3) to provide ongoing working capital and cash for other general corporate purposes of the Company. The Company entered into the credit facility and closed the acquisition of FMC in April 2005.

      From time to time, the Company is subject to legal proceedings and claims that arise in the normal course of its business. In the opinion of management, the Company is not a party to any litigation that it believes could have a material effect on the Company or its business.

      The Company manages its business primarily on a geographic basis. The Company attributes net sales to an individual country based upon location of the customer. The Company’s reportable regions consist of the United States, Americas, excluding the United States, Europe and Asia Pacific and Japan. The European region includes European countries as well as the Middle East and Africa.

      Revenues by geography were (in thousands):

      On April 13, 2005, the Company entered into a credit agreement with Fleet National Bank regarding a two-year, $75,000,000 senior revolving credit facility intended to finance a portion of the Company’s acquisition of Financial Models Company Inc. (FMC) and related fees and expenses and to provide ongoing working capital and cash for other general corporate purposes. Pursuant to the terms of the credit agreement, the Company is permitted to borrow funds from Fleet, initially in the principal amount of $75,000,000 and including a $5,000,000 sublimit for the issuance of standby and commercial letters of credit. By June 3, 2005, the maximum amount of borrowings under the Credit Agreement will be reduced to $50,000,000 and all amounts outstanding in excess of $50,000,000 must be repaid. Loans outstanding under the credit agreement may be prepaid at any time in whole or in part without premium or penalty, with limited exceptions. In addition, there are customary negative covenants, including financial covenants and covenants relating to liens, investments, indebtedness, fundamental changes, dispositions, and dividends and distributions. Upon execution of the Credit Agreement on April 13, 2005, the Company drew down the full amount of the Loan, which consisted of (1) $65,000,000 as a Eurodollar Rate Loan with an interest period of thirty days at a rate per annum equal to the British Bankers Association LIBOR Rate plus 100 basis points, and (2) $10,000,000 as a Base Rate Loan bearing interest at a fluctuating rate per annum equal to the higher of the Federal Funds Rate plus 0.5% or the “prime rate” as publicly announced

SS&C TECHNOLOGIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

by Bank of America, N.A. The obligations of the Company under the credit agreement are guaranteed by OMR Systems Corporation, a wholly-owned subsidiary of the Company.

      On April 19, 2005, the Company completed its previously announced acquisition of FMC, purchasing substantially all the outstanding stock of the FMC for approximately $159.0 million in cash, plus the costs of effecting the acquisition. The Company financed the FMC acquisition with $75 million of borrowings under the credit facility and approximately $84 million from cash on hand. FMC provides comprehensive investment management systems and services to the international investment management industry. The net assets and results of operations of FMC will be included in the Company’s consolidated financial statements from April 19, 2005.

      In March 2005, the SEC issued Staff Accounting Bulletin (“SAB”) No. 107, which expresses the views of the SEC regarding the interaction between SFAS No. 123R and certain SEC rules and regulations, and also provides the SEC’s view regarding the valuation of share-based payment arrangements for public companies. As the Company continues to review the requirements of SFAS 123R, the views of the SEC as stated within SAB No. 107 will also be considered, as appropriate.

CRITICAL ACCOUNTING POLICIES

      Certain of our accounting policies require the application of significant judgment by our management, and such judgments are reflected in the amounts reported in our consolidated financial statements. In applying these policies, our management uses its judgment to determine the appropriate assumptions to be used in the determination of estimates. Those estimates are based on our historical experience, terms of existing contracts, management’s observation of trends in the industry, information provided by our clients and information available from other outside sources, as appropriate. Actual results may differ significantly from the estimates contained in our consolidated financial statements. There have been no material changes to our critical accounting estimates and assumptions or the judgments affecting the application of those estimates and assumptions since the filing of our Annual Report on Form 10-K for the year ended December 31, 2004. Our critical accounting policies are described in our annual filing on Form 10-K and include:

      The following table sets forth revenues (in thousands) and changes in revenues for the periods indicated:

      The following table sets forth the percentage of our revenues represented by each of the following sources of revenues for the periods indicated:

     Revenues

      We derive our revenues from software licenses, related maintenance and professional services and outsourcing services. Revenues were $27.4 million and $19.2 million for the three months ended March 31, 2005 and 2004, respectively. The $8.2 million, or 43%, revenue increase came from both organic growth and acquisitions. Organic growth accounted for $1.1 million of the increase and came from increased demand of $1.1 million for SS&C Direct outsourcing services, $0.4 million for SKYLINE products and services and $0.2 million for Antares products and services, offset by reduced sales of $0.3 million for wealth management services, $0.2 million for CAMRA products and services and $0.1 million for PortPro services. The remaining $7.1 million increase was due to sales of products and services that we acquired in our acquisitions of OMR, Achievement Technologies and Eisnerfast.

      Software Licenses. Software license revenues were $4.5 million and $4.1 million for the three months ended March 31, 2005 and 2004, respectively. The increase of $0.4 million, or 9%, was mainly due to an increase of $0.4 million in sales of our SKYLINE product and a $0.2 million increase in our Antares product, offset by decreases in sales of our Total Return and CAMRA products of $0.1 million each. The increased SKYLINE license revenues were mainly due to the release of SKYLINE 2005 during the fourth quarter of 2004. Software license revenues will vary depending on the timing, size and nature of our license transactions. For example, the average size of our software license transactions and the number of large transactions may fluctuate on a period-to-period basis. Additionally, software license revenues will vary among the various products that we offer, due to differences such as the timing of new releases and variances in economic conditions affecting opportunities in the vertical markets served by such products.

      Maintenance. Maintenance revenues were $9.8 million and $8.0 million for the three months ended March 31, 2005 and 2004, respectively. The increase of $1.8 million, or 23%, was due to our acquisition of OMR, which added $1.5 million, and organic revenue growth of $0.3 million. Organic maintenance revenue growth was across all product lines, with CAMRA maintenance accounting for 54% of the increase. The increase was mainly due to favorable client maintenance renewals and annual maintenance fee increases. We typically provide maintenance services under one-year renewable contracts that provide for an annual increase in fees, generally tied to the percentage change in the consumer price index. Future maintenance revenue growth is dependent on our ability to retain existing clients, add new license clients, and increase average maintenance fees.

      Professional Services. Professional services revenues were $2.6 million and $1.9 million for the three months ended March 31, 2005 and 2004, respectively. The increase in professional services revenues was primarily due to our acquisition of OMR, which added $1.0 million, offset by reductions of $0.2 million for CAMRA product services and $0.1 million for Real-Time product services. The decrease in CAMRA services was primarily the result of a large CAMRA project that was completed in the first quarter of 2004, for which there was no comparable project in 2005. Our overall software license revenue levels and market demand for professional services will continue to have an effect on our professional services revenues.

      Outsourcing. Outsourcing revenues were $10.5 million and $5.2 million for the three months ended March 31, 2005 and 2004, respectively. The increase in outsourcing revenues of $5.2 million, or 100%, was attributable to both organic growth and acquisitions. Our acquisitions of OMR and Eisnerfast added $4.5 million in the aggregate. Organic revenue growth came from increased demand and the addition of new clients for our SS&C Direct outsourcing services, which contributed $1.1 million of the increase, offset by a decrease of $0.3 million, as a result of a lost client, in SS&C Wealth Management services and $0.1 million in PortPro services. Future outsourcing revenue growth is dependent on our ability to retain existing clients, add new clients and increase average outsourcing fees.

     Cost of Revenues

      The total cost of revenues was $9.8 million and $6.1 million for the three months ended March 31, 2005 and 2004, respectively. The gross margin decreased to 64% for the three months ended March 31, 2005 from 68% for the comparable period in 2004. The decrease in gross margin is attributable to our

acquisition of OMR, which had been operating at overall gross margins lower than our historical gross margins. The total cost of revenues increase was mainly due to $3.6 million in costs associated with the acquisitions of OMR and Eisnerfast and increased personnel and other expenses of $0.3 million, primarily to support the increase in outsourcing revenues, offset by a decrease in employee bonus expense of $0.2 million. The decrease in employee bonus plan expense was primarily due to a favorable adjustment to our accruals as a result of lower-than-expected payments in 2005 for the 2004 employee bonus plan.

      Cost of Software Licenses. Cost of software license revenues consists primarily of amortization expense of completed technology, royalties, third-party software, and the costs of product media, packaging and documentation. The cost of software licenses was $0.6 million and $0.4 million for the three months ended March 31, 2005 and March 31, 2004, respectively. Cost of software license revenues as a percentage of such revenues increased to 13% for the three months ended March 31, 2005 from 11% for the three months ended March 31, 2004. The increase in cost of software license revenues was primarily due to the amortization of completed technology associated with our acquisition of OMR, which added $0.2 million in costs.

      Cost of Maintenance. Cost of maintenance revenues consists primarily of technical client support and costs associated with the distribution of products and regulatory updates. The cost of maintenance revenues was $2.1 million and $1.6 million for the three months ended March 31, 2005 and March 31, 2004, respectively. The cost of maintenance revenues as a percentage of these revenues was 22% and 21% for the three months ended March 31, 2005 and March 31, 2004, respectively. The increase in costs of $0.5 million was due to our acquisition of OMR, which added $0.7 million in costs, offset by a decrease in personnel-related expenses, including bonus, of $0.2 million.

      Cost of Professional Services. Cost of professional services revenues consists primarily of the cost related to personnel utilized to provide implementation, conversion and training services to our software licensees, as well as system integration, custom programming and actuarial consulting services. The cost of professional services revenues was $1.7 million and $1.3 million for the three months ended March 31, 2005 and 2004, respectively. The increase was mainly due to our acquisition of OMR, which added $0.5 million in costs, offset by a decrease in bonus expense of $0.1 million. The cost of professional services revenues as a percentage of such revenues decreased to 63% for the three months ended March 31, 2005 from 69% for the three months ended March 31, 2004.

      Cost of Outsourcing. Cost of outsourcing revenues consists primarily of the cost related to personnel utilized in servicing our outsourcing clients. The cost of outsourcing revenues was $5.4 million and $2.7 million for the three months ended March 31, 2005 and 2004, respectively. The increase in cost of outsourcing revenues of $2.7 million, or 97%, was mainly due to the acquisitions of OMR and Eisnerfast, which contributed $2.3 million in additional costs, and increased personnel related costs of $0.4 million to support the growth in organic revenue. The cost of outsourcing revenues as a percentage of such revenues decreased to 52% for the three months ended March 31, 2005 from 53% for the three months ended March 31, 2004.

     Operating Expenses

      Total operating expenses were $8.4 million and $7.0 million for the three months ended March 31, 2005 and March 31, 2004, respectively, representing 31% and 37% of total revenues in those periods, respectively. Included in 2005 are additional operating costs of $1.1 million associated with our acquisitions of OMR and Eisnerfast, additional professional services fees of $0.2 million related to compliance with the Sarbanes-Oxley Act and increased other expenses of $0.1 million related to administrative expenses. We continued to contain expenses through 2004 and into 2005 and, although we expect an increase in our operating expenses due to increased sales of our products and services, we expect to continue to manage spending levels throughout 2005.

      Selling and Marketing. Selling and marketing expenses consist primarily of the personnel costs associated with the selling and marketing of our products, including salaries, commissions and travel and entertainment. Such expenses also include the cost of branch sales offices, trade shows and marketing and

promotional materials. Selling and marketing expenses were $2.4 million and $2.2 million for the three months ended March 31, 2005 and 2004, respectively, representing 9% and 12%, respectively, of total revenues in those years. The increase in selling and marketing expenses of $0.2 million, or 10%, was due to the acquisition of OMR, which added $0.2 million in costs.

      Research and Development. Research and development expenses consist primarily of personnel costs attributable to the development of new software products and the enhancement of existing products. Research and development expenses were $3.5 million and $3.0 million for the three months ended March 31, 2005 and 2004, respectively, representing 13% and 15% of total revenues in those periods, respectively. Additional costs of $0.7 million which were added due to the acquisition of OMR were offset by reductions in personnel-related expenses, including bonus, of $0.2 million.

      General and Administrative. General and administrative expenses consist primarily of personnel costs related to management, accounting and finance, information management, human resources and administration and associated overhead costs, as well as fees for professional services. General and administrative expenses were $2.5 million and $1.9 million for the three months ended March 31, 2005 and 2004, respectively, representing 9% and 10% of total revenues in those periods, respectively. Our acquisition of OMR added costs of $0.2 million, accounting fees increased $0.2 million related to compliance with the Sarbanes-Oxley Act, and personnel-related expenses and other expenses each increased $0.1 million. The increase in personnel was to support the increase in revenues and overall growth of the organization.

      Interest and Other Income, Net. Interest and other income, net consists primarily of interest income and other non-operational income and expenses. Interest income, net was $572,000 and $183,000 for the three months ended March 31, 2005 and 2004, respectively. The increase in interest income was primarily the result of higher average cash and marketable securities balances due to proceeds from our public offering in June 2004.

      Provision for Income Taxes. We had an effective tax rate of 39% for each of the three months ended March 31, 2005 and 2004. In future years, we expect to have sufficient levels of profitability to realize the deferred tax assets at March 31, 2005.

     Liquidity and Capital Resources

      Our liquidity needs have historically been to finance the costs of operations pending the billing and collection of client receivables, to acquire complementary businesses or assets, to invest in research and development and to repurchase shares of our common stock. Through March 31, 2005, we had historically relied on cash flow from operations for liquidity. In April 2005, we entered into a two-year $75 million credit agreement with Fleet National Bank, the proceeds of which were used to finance a portion of the $159 million purchase price for the outstanding shares of FMC. Upon execution of the agreement, we drew down the full amount of the loan, which consisted of (1) $65 million as a Eurodollar Rate Loan with an interest period of thirty days at a rate per annum equal to the British Bankers Association LIBOR Rate plus 100 basis points, and (2) $10 million as a Base Rate Loan bearing interest at a fluctuating rate per annum equal to the higher of the Federal Funds Rate plus 0.5% or the “prime rate” as publicly announced by Bank of America. By June 3, 2005, the maximum amount of borrowings under the agreement will be reduced to $50 million and all amounts outstanding in excess of $50 million must be repaid.

      At March 31, 2005, we had $23.0 million of cash and cash equivalents and $85.3 million in marketable securities. In April 2005, we used approximately $84 million of cash on hand to finance a portion of our acquisition of FMC. We expect that our future liquidity needs will consist of financing the costs of operations pending the billing and collection of client receivables, strategic acquisitions that allow us to expand our product offerings and client base, investments in research and development, repayment of debt and payment of dividends, if any, to our stockholders. Our operating cash flow is primarily affected by the overall profitability of the sales of our products and services, our ability to invoice and collect from clients in a timely manner, our ability to efficiently implement our acquisition strategy and our ability to manage costs. We believe that our current cash, cash equivalents and marketable securities balances and

anticipated cash flow from operations will be sufficient to meet our working capital, capital expenditure and debt servicing requirements for at least the next 12 months.

     Cash Flow

      Our cash, cash equivalents and marketable securities at March 31, 2005 were $108.2 million, which is a decrease of $22.6 million from $130.8 million at December 31, 2004. The decrease was primarily due to cash paid for acquisitions, purchase of common stock for treasury and payment of dividends, offset by net income and the collection of maintenance fees. A larger amount of annual maintenance fees are typically collected during the first quarter compared to other quarters during the year.

      Net cash provided by operating activities was $12.8 million for the three months ended March 31, 2005. Cash provided by operating activities was primarily due to earnings of $6.0 million adjusted for non-cash items of $6.8 million, including a $0.5 million tax benefit related to stock option exercises, an increase of $2.7 million in income taxes payable and an increase of $7.8 million in deferred maintenance and other revenues. These items were partially offset by a decrease of $4.2 million in accrued expenses and an increase of $1.2 million in accounts receivable. Our accounts receivable days sales outstanding at March 31, 2005 was 52 days, compared to 45 days as of December 31, 2004.

      Investing activities used net cash of $11.7 million for the three months ended March 31, 2005. Cash used by investing activities was primarily due to the $25.8 million paid in cash for the acquisitions of Achievement Technologies and Eisnerfast and the $2.0 million strategic investment in CBA Mezzanine Capital Holdings, LLC (“MezzCap”), offset by $16.4 million net sales of marketable securities. We believe our investment in MezzCap, a privately owned commercial real estate finance company, offers potential synergies with LMS, our loan management product.

      Financing activities used net cash of $6.9 million for the three months ended March 31, 2005. Cash used in financing activities was primarily due to $5.6 million used to repurchase common stock for treasury and the payment of our semi-annual cash dividend of $1.8 million. This use of cash was partially offset by the proceeds from the exercise of stock options, which provided cash of $0.5 million.

     Off-Balance Sheet Arrangements

      We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

CERTAIN FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS

     Risks Relating to Our Business

      Historically, our revenues and operating results have fluctuated significantly from quarter to quarter. Our quarterly operating results may continue to fluctuate due to a number of factors, including:

      The timing, size and nature of individual license and outsourcing transactions are important factors in our quarterly operating results. Many of the products we provide through licensing transactions are relatively complex, and licensing transactions involve a significant commitment of capital, with attendant delays frequently associated with large capital expenditures and implementation procedures within an organization. Moreover, licensing arrangements may require coordination within an organization’s various divisions and operations. For these and other reasons, the sales cycles for these transactions are often lengthy and unpredictable. Our inability to close license transactions on a timely basis or at all could adversely affect our quarterly revenues and operating results.

      We have made and may in the future make acquisitions of companies, products or technologies that we believe could complement or expand our business, augment our market coverage, enhance our technical capabilities or otherwise offer growth opportunities, including our acquisition of FMC. Failure to achieve the anticipated benefits of an acquisition could harm our business, results of operations and cash flows. Acquisitions could subject us to contingent or unknown liabilities, and we may have to incur debt or severance liabilities, write-off investments, infrastructure costs, impaired goodwill or other assets, or issue equity securities to pay for any future acquisitions. The issuance of equity securities could dilute our existing stockholders’ ownership.

      Our success is also dependent on our ability to complete the integration of the operations of acquired businesses in an efficient and effective manner. Successful integration in the rapidly changing financial services industry may be more difficult to accomplish than in other industries. We may not realize the benefits we anticipate from these acquisitions, such as lower costs or increased revenues. We may also realize such benefits more slowly than anticipated, due to our inability to:

      Integration may not be smooth or successful. The inability of management to successfully integrate the operations of acquired companies could have a material adverse effect on our business, financial condition and results of operations. The acquisitions may also place a significant strain on our management, administrative, operational and other resources. To manage growth effectively, we must

continue to improve our management and operational controls, enhance our reporting systems and procedures, integrate new personnel and manage expanded operations. If we are unable to manage our growth and the related expansion in our operations from recent and future acquisitions, our business may be harmed through a decreased ability to monitor and control effectively our operations, and a decrease in the quality of work and innovation of our employees.

      Our clients include a range of organizations in the financial services industry. The success of these clients is intrinsically linked to the health of the financial markets. In addition, we believe that fluctuations, disruptions, instability or downturns in the financial markets, which may cause clients and potential clients to exit the industry or delay, cancel or reduce any planned expenditures for investment management systems and software products, could disproportionately affect demand for our products and services. In addition, if financial services firms continue to consolidate, as they have over the past decade, there could be a material adverse effect on our business and financial results. For example, if a client merges with a firm using its own solution or another vendor’s solution, it could decide to consolidate its processing on a non-SS&C system, which could have an adverse effect on our financial results. Any resulting decline in demand for our products and services could have a material adverse effect on our business, financial condition and results of operations.

      If we are unable to keep existing clients satisfied, sell additional products and services to existing clients or attract new clients, then our revenues and net income would remain stagnant or decline. A variety of factors could affect our ability to successfully retain and attract clients, including:

      In April 2005, we entered into a $75 million senior revolving credit facility with Fleet National Bank, a Bank of America company, and borrowed the entire amount available under the facility to finance part of the $159 million purchase price for the outstanding shares of FMC. On June 3, 2005, the Fleet facility automatically reduces to a $50 million facility, and we must repay $25 million of the outstanding indebtedness. The maturity date for the remaining indebtedness under the facility is April 12, 2007. Our ability to repay our indebtedness will depend on our future operating performance, which will be affected by prevailing economic conditions and financial, business and other factors. Some of these factors are beyond our control.

      If we are unable to service our indebtedness or other obligations, we will be forced to examine alternative strategies. These strategies may include reducing or delaying capital expenditures, restructuring or refinancing indebtedness or seeking additional debt or equity financings. Any of these strategies may materially and adversely affect our business.

      Our level or indebtedness could have important consequences to our stockholders, including the following:

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

      Our senior revolving credit facility with Fleet National Bank imposes operating and financial restrictions on us. These restrictions may limit our ability to:

      Failure to comply with any of these restrictions could limit the availability of borrowings or result in a default under our facility. We can give no assurance that we will be able to obtain a waiver or amendment for any future noncompliance with our facility. The terms of any debt or equity financings undertaken by us to meet future cash requirements could further restrict our operational flexibility and adversely affect our financial condition.

      We may not identify suitable businesses to acquire or negotiate acceptable terms for acquisitions. Historically, a significant portion of our growth has occurred as a result of our ability to acquire similar or complementary businesses on favorable terms. We have relied heavily on acquisitions for adding new products, increasing revenues and adding to our client base, and we expect to continue to do so in the

future. This growth strategy is subject to a number of risks that could adversely affect our business and financial results, including:

      Our success and ability to compete depends in part upon our ability to protect our proprietary technology. We rely on a combination of trade secret, patent, copyright and trademark law, nondisclosure agreements and technical measures to protect our proprietary technology. We have registered trademarks for many of our products and will continue to evaluate the registration of additional trademarks as appropriate. We generally enter into confidentiality agreements with our employees and clients. We seek to protect our software, documentation and other written materials under trade secret and copyright laws, which afford only limited protection. These efforts may be insufficient to prevent third parties from asserting intellectual property rights in our technology. Furthermore, it may be possible for unauthorized third parties to copy portions of our products or to reverse engineer or otherwise obtain and use our proprietary information, and third parties may assert ownership rights in our proprietary technology.

      Existing patent and copyright laws afford only limited protection. Others may develop substantially equivalent or superseding proprietary technology, or competitors may offer equivalent products in competition with our products, thereby substantially reducing the value of our proprietary rights. We cannot be sure that our proprietary technology does not include open-source software, free-ware, share-ware or other publicly available technology. There are many patents in the investment management field. As a result, we are subject to the risk that others will claim that the important technology we have developed, acquired or incorporated into our products will infringe the rights, including the patent rights, such persons may hold. Third parties also could claim that our software incorporates publicly available software and that, as a result, we must publicly disclose our source code. Because we rely on confidentiality for protection, such an event could result in a material loss of intellectual property rights. We cannot be sure that we will develop proprietary products or technologies that are patentable, that any patent, if issued, would provide us with any competitive advantages or would not be challenged by third parties, or that the patents of others will not adversely affect our ability to do business. Expensive and time-consuming litigation may be necessary to protect our proprietary rights.

      We have acquired and may acquire important technology rights through our acquisitions and have often incorporated and may incorporate features of this technology across many products and services. As a result, we are subject to the above risks and the additional risk that the seller of the technology rights may not have appropriately protected the intellectual property rights we acquired. Indemnification and other rights under applicable acquisition documents are limited in term and scope and therefore provide us with only limited protection.

      In addition, we currently rely on third-party licenses in providing our products and services. If we lost such licenses or such licenses were found to infringe upon the rights of others, we would need to seek alternative means of obtaining the licensed technology to continue to provide our products or services. Our inability to replace such technology, or to replace such technology in a timely manner, could have a negative impact on our operations and financial results.

      In recent years, there has been significant litigation in the United States involving patents and other intellectual property rights. While we are not currently a party to any litigation asserting that we have violated third-party intellectual property rights, we may be a party to litigation in the future to enforce our intellectual property rights or as a result of an allegation that we infringe others’ intellectual property, including patents, trademarks and copyrights. Any parties asserting that our products or services infringe upon their proprietary rights would force us to defend ourselves and possibly our clients against the alleged infringement. Third parties could claim that our software incorporates publicly available software and that, as a result, we must publicly disclose our source code. These claims and any resulting lawsuit, if successful, could subject us to significant liability for damages and invalidation of our proprietary rights. These lawsuits, regardless of their success, could be time-consuming and expensive to resolve, adversely affect our sales, profitability and prospects and divert management time and attention away from our operations. We may be required to re-engineer our products or services or obtain a license of third-party technologies on unfavorable terms.

      We expect that our gross and operating margins may fluctuate from period to period as we continue to introduce new products, experience fluctuations in the relative proportions of revenues derived from our products and services, continue to hire and acquire additional personnel and increase other expenses to support our business. Historically, we derived our revenues principally from the licensing of our products. However, we are increasingly deriving our revenues from outsourcing and related services, which have lower profit margins. For the years ended December 31, 2004, 2003 and 2002, our outsourcing revenues represented 32%, 20% and 20%, respectively, of our total revenues. The gross margins for outsourcing services were 47%, 39% and 32% in 2004, 2003 and 2002, respectively. We expect that the portion of our revenues derived from outsourcing and related services will continue to increase, which, because of the lower margins associated with such revenues, could adversely affect our profitability.

      To date, substantially all of our revenues have been attributable to 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. We expect that the revenues from these software products and services will continue to account for a significant portion of our total revenues for the foreseeable future. As a result, factors adversely affecting the pricing of or demand for such products and services, such as competition or technological change, could have a material adverse effect on our ability to sustain or grow our revenues and harm our business, financial condition and results of operations.

      The market for financial services software and services is competitive, rapidly evolving and highly sensitive to new product and service introductions and marketing efforts by industry participants. The market is also highly fragmented and served by numerous firms that target only local markets or specific client types. We also face competition from information systems developed and serviced internally by the IT departments of financial services firms.

      Some of our current and potential competitors have significantly greater financial, technical and marketing resources, generate higher revenues and have greater name recognition. Our current or potential competitors may develop products comparable or superior to those developed by us, or adapt more quickly than us to new technologies, evolving industry trends or changing client or regulatory requirements. It is also possible that alliances among competitors may emerge and rapidly acquire significant market share. Increased competition may result in price reductions, reduced gross margins and loss of market share, any of which could materially adversely affect our business, financial condition and results of operations.

      Rapidly changing technology, evolving industry standards and new product and service introductions characterize the market for our products and services. Our future success will depend in part upon our ability to enhance our existing products and services and to develop and introduce new products and services to meet changing client needs and evolving regulatory requirements. The process of developing software products such as those offered by us is extremely complex and is expected to become increasingly complex and expensive in the future due to the introduction of new platforms and technologies. Our ability to keep up with technology and business changes is subject to a number of risks, including:

      Our failure to develop new products and services in a timely fashion or to address promptly the needs of the financial markets could adversely affect our business, financial condition and results of operations.

      Our software products are highly complex and sophisticated and could contain design defects or software errors that are difficult to detect and correct. Errors or bugs may result in loss of or delay in market acceptance of our software products or loss of client data or require design modifications. We cannot assure you that, despite testing by us and our clients, errors will not be found in new products, which errors could result in a delay in or an inability to achieve market acceptance and thus could have a material adverse effect upon our revenues, financial condition and results of operations.

      We believe that our success is due in part to our experienced management team. We depend in large part upon the continued contribution of our senior management and, in particular, William C. Stone, our chief executive officer and chairman of the board. Losing the services of one or more members of our senior management could adversely affect our business and results of operations. Mr. Stone has been instrumental in developing our business strategy and forging our business relationships since he founded the company in 1986. We maintain no key man life insurance policies for Mr. Stone or any other senior officers or managers.

      Our success is also dependent upon our ability to attract, train and retain highly skilled technical and sales personnel. Competition for the hiring of such personnel in the software industry can be intense.

Locating candidates with the appropriate qualifications, particularly in the desired geographic location and with the necessary subject matter expertise, is difficult. Our failure to attract and retain a sufficient number of highly skilled employees could adversely affect our business, financial condition and results of operations.

      For the years ended December 31, 2004, 2003 and 2002, international revenues accounted for 22%, 17% and 16%, respectively, of our total revenues. We sell certain of our products, such as Altair and Mabel, primarily overseas. Our international business may be subject to a variety of risks, including:

      Such factors could have a material adverse effect on our business, financial condition or results of operations.

      A war, terrorist attack, natural disaster or other catastrophe may adversely affect our business. A catastrophic event could have a direct negative impact on us or an indirect impact on us by, for example, affecting our clients, the financial markets or the overall economy and reducing our ability to provide, our clients’ ability to use, and the demand for, our products and services. The potential for a direct impact is due primarily to our significant investment in infrastructure. Although we maintain redundant facilities and have contingency plans in place to protect against both man-made and natural threats, it is impossible to fully anticipate and protect against all potential catastrophes. A computer virus, security breach, criminal act, military action, power or communication failure, flood, severe storm or the like could lead to service interruptions and data losses for clients, disruptions to our operations, or damage to important facilities. In addition, such an event may cause clients to cancel their agreements with us for our products or services. Any of these could have a material adverse effect on our business, revenues and financial condition.

      Recently enacted changes in the laws and regulations affecting public companies, including the provisions of the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange Commission and NASDAQ, could cause us to incur increased costs as we evaluate the implications of new rules and respond to new requirements. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control for financial reporting. As a result, management’s attention may be diverted from other business concerns, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, we may need to hire additional accounting and financial staff with appropriate public company experience and technical accounting knowledge, and we cannot assure you that we will be able to do so in a timely fashion.

      Our internal controls and procedures may not be able to prevent other than inconsequential error or fraud in the future. Any system of controls, however well designed and operated, is based in part on certain assumptions and can provide only reasonable, and not absolute, assurances that the objectives of the system are met. Faulty judgments, simple errors or mistakes, or the failure of our personnel to adhere to established controls and procedures may make it impossible for us to ensure that the objectives of the control system are met. A failure of our controls and procedures to detect other than inconsequential error or fraud could seriously harm our business, results of operations and financial condition.

     Risks Relating to Our Common Stock

      The trading price of our common stock has been, and is expected to continue to be, highly volatile. The following factors may significantly and adversely affect the trading price of our common stock:

      William C. Stone, our chief executive officer and chairman of the board of directors, owns approximately 27% of our outstanding common stock. Mr. Stone has the ability to exert significant influence over our affairs, including the election of directors and decisions related to our strategic and operating activities. This concentration of ownership and board representation may have the effect of delaying or preventing a change in control that other stockholders may find favorable.

      Our charter and bylaws contain provisions, including a staggered board of directors, that may make it more difficult for a third party to acquire us, or may discourage bids to do so. These provisions could limit the price that investors might be willing to pay for shares of our common stock and could make it more difficult for a third party to acquire, or could discourage a third party from acquiring, a majority of our outstanding common stock. Our board of directors also has the authority to issue up to 1,000,000 shares of preferred stock and to determine the price, rights, preferences, privileges and restrictions, including voting rights, of those shares without any further vote or action by the stockholders. The rights of the holders of common stock will be subject to, and may be adversely affected by, the rights of the holders of any preferred stock that may be issued in the future. The issuance of preferred stock could make it more difficult for a third party to acquire, or may discourage a third party from acquiring, a majority of our outstanding common stock.

      We have no derivative financial instruments. We generally place our marketable security investments in high credit quality instruments, primarily U.S. Government and Federal Agency obligations, tax-exempt

municipal obligations and corporate obligations. We do not expect any material loss from our marketable security investments and therefore believe that our potential interest rate exposure is not material.

      The following table provides information about our financial instruments that are sensitive to changes in interest rates (dollars in thousands):

      We invoice clients primarily in U.S. dollars and in local currency in those countries in which we have branch and subsidiary operations. We are exposed to foreign exchange rate fluctuations from the time clients are invoiced in local currency until collection occurs. Through March 31, 2005, foreign currency fluctuations have not had a material effect on our financial position or results of operations, and therefore we believe that our potential foreign currency exchange rate exposure is not material.

      The foregoing risk management discussion and the effect thereof are forward-looking statements. Actual results in the future may differ materially from these projected results due to actual developments in global financial markets. The analytical methods used by us to assess and minimize risk discussed above should not be considered projections of future events or losses.

      Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2005. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of March 31, 2005, our chief executive officer and chief financial officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

      There have not been any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2005, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

      On October 18, 2004, we announced a stock repurchase program providing for expenditures of up to $50 million over the period extending from October 18, 2004 through October 17, 2005.

      The following table summarizes repurchases of our common stock in the quarter ended March 31, 2005 (in thousands, except share and per share data):

Issuer Purchases of Equity Securities

      a. The exhibits listed in the Exhibit Index immediately preceding such exhibits are filed as part of this Report.

SIGNATURE

      Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: May 10, 2005

Exhibit Index