Be Cautious with Advent Software (NASDAQ:ADVS) Says Needham

With capital expenditures rising over “Advent OnDemand,” Needham & Company says they remain cautious with Advent Software (NASDAQ:ADVS) heading into 2011.

Needham said, "We remain cautious on Advent Software in the near-term given the pending international investment in “Advent OnDemand.” Our outlook as it applies to industry demand trends is unchanged as are our estimates...Our 2011 free cash flow estimate is $72.2 million or $2.57 per share as compared to $78.3 million for the consensus estimate. Our 2011 Non-GAAP EPS estimate is $1.53 as compared to the consensus estimate of $1.66."

Needham & Company maintains a "Hold" on Advent Software, which closed Friday at $52.96, down $0.77, or 1.43 percent.