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Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

July 20, 2005

Date of report (Date of earliest event reported)

SEI Investments Company

(Exact name of registrant as specified in its charter)

Pennsylvania

0-10200

23-1707341

(State or other jurisdiction

of incorporation)

(Commission File No.)

(I.R.S. Employer

Identification No.)

1 Freedom Valley Drive

Oaks, Pennsylvania 19456

(Address of principal executive offices) (Zip Code)

(610) 676-1000

(Registrants’ telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On Wednesday, July 20, 2005, SEI Investments Company issued a press release announcing its financial and operating results for the second quarter ended June 30, 2005. A copy of the press release is furnished as Exhibit 99.1 and incorporated in this Item 2.02 by reference.

Item 9.01. Financial Statements and Exhibits.

(c)

Exhibits.

99.1

Press Release dated July 20, 2005 of SEI Investments Company relating to financial and operating results for the second quarter ended June 30, 2005.

SIGNATURES

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


	SEI Investments Company

Date: July 20, 2005	By:	/s/ Dennis J. McGonigle
		Dennis J. McGonigle
		Chief Financial Officer

EXHIBIT INDEX

Exhibit

Number

Description

99.1

Press Release dated July 20, 2005 of SEI Investments Company relating to financial and operating results for the second quarter ended June 30, 2005.

Press Release

Exhibit 99.1

LOGO

For Immediate Release


Contact:	Mark Samuels, SVP	Murray Louis, VP	Larry Wexler, Corp. PR
Voice:	610.676.2024	610.676.1932	610.676.1440
E-mail	msamuels@seic.com	mlouis@seic.com	lwexler@seic.com
Pages:	Eight

SEI Investments Reports Second-Quarter 2005 Results

Net Income Up 7%, Revenues Increase 12%

OAKS, Pa., July 20, 2005 — SEI Investments Company (NASDAQ:SEIC) today announced financial results for second-quarter 2005, reporting increases in revenues, net income and earnings per share, compared to the corresponding period for the prior year.

Consolidated Overview


(In thousands, except earnings per share)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(In thousands, except earnings per share)	2005		2004		%		2005		2004		%
Revenues	$	190,080	$	169,162	12	%	$	375,761	$	336,323	12	%
Net Income Before Taxes		69,364		64,633	7	%		138,197		126,451	9	%
Net Income		44,184		41,204	7	%		87,893		80,613	9	%
Diluted Earnings Per Share	$	.43	$	.39	10	%	$	.84	$	.76	11	%

“We continue to be satisfied with our quarterly results, especially since we are in the heart of the investment and build phase of our new strategies”, said Alfred P. West, Jr., SEI Chairman and CEO.

“The investments we are making will transform our company, giving us even larger markets to grow within while providing our clients with increased opportunities for success. In the long run, we are firm in our belief that we are on the right path to more rapidly grow revenues and profits.”

Summary of Second-Quarter and Year-to-Date Results by Business Segment


(In thousands)	For the Three Month Period Ended June 30,								For the Six Month Period Ended June 30,
(In thousands)	2005			2004			%		2005			2004			%
Private Banking and Trust:
Revenues	$	71,547		$	74,184		(4	)%	$	143,928		$	148,777		(3	)%
Operating Profit	$	25,874		$	29,628		(13	)%	$	52,591		$	57,131		(8	)%
Operating Margin		36	%		40	%				37	%		38	%

Investment Advisors:
Revenues		49,340			43,048		15	%		98,063			86,231		14	%
Operating Profit		25,940			23,489		10	%		51,842			47,310		10	%
Operating Margin		53	%		55	%				53	%		55	%

Enterprises:
Revenues		20,700			16,035		29	%		40,935			32,270		27	%
Operating Profit		9,339			7,212		29	%		18,726			15,056		24	%
Operating Margin		45	%		45	%				46	%		47	%

Money Managers:
Revenues		21,230			19,044		11	%		41,374			35,948		15	%
Operating Profit		3,373			3,968		(15	)%		6,861			6,884		—
Operating Margin		16	%		21	%				17	%		19	%

Investments in New Businesses:
Revenues		27,263			16,851		62	%		51,461			33,097		55	%
Operating Loss		(4,737	)		(4,288	)	(10	)%		(10,873	)		(9,013	)	(21	)%
Operating Margin		(17	)%		(25	)%				(21	)%		(27	)%

Consolidated Segment Totals:
Revenues	$	190,080		$	169,162		12	%	$	375,761		$	336,323		12	%
Operating Profit	$	59,789		$	60,009		—		$	119,147		$	117,368		2	%
Operating Margin		31	%		35	%				32	%		35	%

Second-Quarter Business Commentary:

•

Private Banking & Trust lagged year ago levels on revenues and profits. This is primarily due to previously reported losses in the mutual fund services business during the second half of 2004 and increased investment and operational spending during 2005.

•

The Investment Advisors, Enterprises, Money Managers and Investments in New Businesses segments reported revenue gains vs. year ago levels. The Investment Advisors and Enterprises segment results for 2005 include an offsetting revenue and expense reclass of approximately $2.8 million and $1.1 million respectively, that was not reflected for the same period in 2004. This had no impact on operating profit.

•

Consolidated operating margins lagged year ago levels, due primarily to the previously announced increased rate of investment spending necessary to deliver new company strategies and solutions. This was reflected in most of the segment operating margins vs. year ago levels.

•

Assets under management grew by $6.8 billion during the second quarter to $130.7 billion.

•

In the second quarter, SEI purchased 1,132,000 shares of its common stock for $40.3 million.

Earnings Conference Call

A conference call to review earnings is scheduled for 2:00 PM EST on July 20, 2005. Investors may listen to the call at www.seic.com, or listen at www.earnings.com, a service of CCBN. The call may also be accessed at numerous financial services web sites including AOL, Motley Fool and Yahoo. Investors may also listen to replays at these web sites, or by telephone at (USA) 1-800-475-6701; (International) 320-365-3844, access code 788945.

About SEI

SEI Investments (NASDAQ:SEIC) is a leading global provider of asset management and investment technology solutions. The company’s innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of the period ending June 30, 2005, through our subsidiaries and partnerships in which we have a significant interest, SEI administers $312.0 billion in mutual fund and pooled assets, manages $130.7 billion in assets, and operates 22 offices in 12 countries. For more information, visit www.seic.com.

Many of our responses may be considered “forward looking statements” and include discussions about future operations, strategies and financial results. Forward-looking statements are based upon estimates and assumptions that involve risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe our assumptions are reasonable, they could be inaccurate. Our actual future revenues and income could differ materially from our expected results. We have no obligation to publicly update or revise any forward-looking statements.

SEI INVESTMENTS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)


	Three Months Ended June 30,
	2005			2004
Revenues	$	190,080		$	169,162

Operating and development expenses		97,080			74,596
Sales and marketing expenses		33,211			34,557
General and administrative expenses		9,390			7,811

Income before interest and taxes		50,399			52,198

Equity in earnings of unconsolidated affiliate		17,636			10,680
Net gain on investments		(78	)		1,356
Interest income		1,784			904
Interest expense		(377	)		(505	)

Income before taxes		69,364			64,633

Income taxes		25,180			23,429

Net income	$	44,184		$	41,204

Diluted earnings per common share	$	.43		$	.39

Shares used to calculate diluted earnings per common share		103,391			105,705

Basic earnings per common share	$	.44		$	.40

Shares used to calculate basic earnings per common share		100,786			103,425

SEI INVESTMENTS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)


	Six Months Ended June 30,
	2005			2004
Revenues	$	375,761		$	336,323

Operating and development expenses		191,507			153,328
Sales and marketing expenses		65,107			65,627
General and administrative expenses		17,119			15,597

Income before interest and taxes		102,028			101,771

Equity in earnings of unconsolidated affiliate		32,862			19,683
Net gain on investments		349			4,291
Interest income		3,760			1,837
Interest expense		(802	)		(1,131	)

Income before taxes		138,197			126,451

Income taxes		50,304			45,838

Net income	$	87,893		$	80,613

Diluted earnings per common share	$	.84		$	.76

Shares used to calculate diluted earnings per common share		104,043			106,577

Basic earnings per common share	$	.87		$	.77

Shares used to calculate basic earnings per common share		101,281			104,151

SEI INVESTMENTS COMPANY

CONDENSED BALANCE SHEETS

(In thousands)


	June 30, 2005		December 31, 2004
Assets
Cash and short-term investments	$	116,544	$	216,966
Restricted Cash		10,047		14,386
Receivables		121,347		108,795
Other current assets		14,624		15,532

Total current assets		262,562		355,679
Property and Equipment, net		115,199		113,640
Investments available for sale		55,152		39,817
Capitalized Software, net		83,949		55,830
Other assets		57,874		50,509

Total assets	$	574,736	$	615,475

Liabilities
Current liabilities	$	122,640	$	163,569
Long-term debt		9,000		14,389
Long-term deferred gain		—		1,472
Deferred income taxes		43,137		32,103
Shareholders’ Equity		399,959		403,942

Total liabilities and shareholders’ equity	$	574,736	$	615,475

SEI Investments Business Segments

(In thousands)


	Three Months ended June 30,						Six Months ended June 30,
	2005			2004			2005			2004
Private Banking and Trust:
Revenues
Investment processing fees		58,510			56,368			117,716			112,221
Fund processing fees		4,493			9,340			9,084			19,041
Investment management fees		8,544			8,476			17,128			17,515

Total Revenues		71,547			74,184			143,928			148,777

Operating and development expenses		36,375			33,273			72,824			71,083
Sales and marketing expenses		9,298			11,283			18,513			20,563

Operating Profit		25,874			29,628			52,591			57,131
Operating Margin		36	%		40	%		37	%		38	%

Investment Advisors:
Revenues		49,340			43,048			98,063			86,231

Operating and development expenses		17,001			11,843			33,535			24,339
Sales and marketing expenses		6,399			7,716			12,686			14,582

Operating Profit		25,940			23,489			51,842			47,310
Operating Margin		53	%		55	%		53	%		55	%

Enterprises:
Revenues		20,700			16,035			40,935			32,270

Operating and development expenses		6,293			4,179			12,214			8,249
Sales and marketing expenses		5,068			4,644			9,995			8,965

Operating Profit		9,339			7,212			18,726			15,056
Operating Margin		45	%		45	%		46	%		47	%

Money Managers:
Revenues		21,230			19,044			41,374			35,948

Operating and development expenses		14,392			11,500			27,717			21,974
Sales and marketing expenses		3,465			3,576			6,796			7,090

Operating Profit		3,373			3,968			6,861			6,884
Operating Margin		16	%		21	%		17	%		19	%

Investments in New Businesses:
Revenues		27,263			16,851			51,461			33,097

Operating and development expenses		23,019			13,801			45,217			27,683
Sales and marketing expenses		8,981			7,338			17,117			14,427

Operating Loss		(4,737	)		(4,288	)		(10,873	)		(9,013	)
Operating Margin		(17	)%		(25	)%		(21	)%		(27	)%

Consolidated Segment Totals:
Revenues	$	190,080		$	169,162		$	375,761		$	336,323

Operating and development expenses		97,080			74,596			191,507			153,328
Sales and marketing expenses		33,211			34,557			65,107			65,627

Operating Profit	$	59,789		$	60,009		$	119,147		$	117,368
Operating Margin		31	%		35	%		32	%		35	%

General and Administrative expenses		9,390			7,811			17,119			15,597
Income from Operations	$	50,399		$	52,198		$	102,028		$	101,771
Operating Margin		27	%		31	%		27	%		30	%

SEI INVESTMENTS COMPANY

ASSET BALANCES

(In millions)


	Jun. 30, 2004		Sep. 30, 2004		Dec. 31, 2004		Mar. 31, 2005		Jun. 30, 2005
Private Banking and Trust:
Equity/Fixed Income prgms.	$	2,900	$	2,662	$	2,780	$	2,427	$	2,495
Collective Trust Fund prgm.		1,403		1,455		1,518		1,574		1,700
Liquidity funds		7,986		7,723		7,503		7,406		7,442

Total assets under mgmt.	$	12,289	$	11,840	$	11,801	$	11,407	$	11,637

Client assets under admin.		61,944		35,881		35,986		33,703		34,208

Total assets under admin.	$	74,233	$	47,721	$	47,787	$	45,110	$	45,845

Investment Advisors:
Equity/Fixed Income prgms.	$	25,021	$	25,559	$	27,706	$	27,371	$	27,883
Collective Trust Fund prgm.		2,592		2,592		2,521		2,513		2,610
Liquidity funds		1,103		1,081		1,026		1,113		1,018

Total assets under mgmt.	$	28,716	$	29,232	$	31,253	$	30,997	$	31,511

Enterprises:
Equity/Fixed Income prgms.	$	13,616	$	15,871	$	17,283	$	17,926	$	18,273
Collective Trust Fund prgm.		924		1,031		1,023		994		1,001
Liquidity funds		3,482		3,869		3,406		2,976		2,836

Total assets under mgmt.	$	18,022	$	20,771	$	21,712	$	21,896	$	22,110

Money Managers:
Equity/Fixed Income prgms.	$	31	$	25	$	18	$	12	$	12
Collective Trust Fund prgm.		7,066		7,226		7,097		7,634		8,108
Liquidity funds		202		226		208		182		167

Total assets under mgmt.	$	7,299	$	7,477	$	7,323	$	7,828	$	8,287

Client assets under admin.		113,644		123,651		124,648		127,247		139,822

Total assets under admin.	$	120,943	$	131,128	$	131,971	$	135,075	$	148,109

Investments in New Businesses:
Equity/Fixed Income prgms.	$	12,030	$	13,507	$	15,566	$	17,778	$	19,137
Liquidity funds		239		169		179		225		255

Total assets under mgmt.	$	12,269	$	13,676	$	15,745	$	18,003	$	19,392

Client assets under admin.		7,028		6,096		7,003		6,253		7,296

Total assets under admin.	$	19,297	$	19,772	$	22,748	$	24,256	$	26,688

Unconsolidated Affiliate:
Equity/Fixed Income prgms.	$	21,462	$	26,835	$	32,556	$	33,781	$	37,740

Consolidated:
Equity/Fixed Income prgms (A,B)	$	75,060	$	84,459	$	95,909	$	99,295	$	105,540
Collective Trust Fund prgm.		11,985		12,304		12,159		12,715		13,419
Liquidity funds (B)		13,012		13,068		12,322		11,902		11,718

Total assets under mgmt.	$	100,057	$	109,831	$	120,390	$	123,912	$	130,677

Client assets under admin.		182,616		165,628		167,637		167,203		181,326

Total assets under admin.	$	282,673	$	275,459	$	288,027	$	291,115	$	312,003

(A)	Equity/Fixed Income programs include $2,117 of assets invested in SEI’s Asset Allocation Funds at 6/30/05

(B)	In addition to the numbers presented, SEI also administers an additional $5,068 in Funds of Funds assets (as of June 30, 2005) on which SEI does not earn an administration fee.