Ansoft Corporation Third Quarter Earnings Increase 115%.PITTSBURGH Pittsburgh (pĭts`bərg), city (1990 pop. 369,879), seat of Allegheny co., SW Pa., at the confluence of the Allegheny and the Monongahela rivers, which there form the Ohio River; inc. 1816. -- Ansoft Ansoft Corporation (Nasdaq: ANST) is an Electronic Design Automation (EDA) vendor. The company was founded in 1984 and is headquartered in Pittsburgh, Pennsylvania, United States. Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ANST ANST Association of Neuropsychology Students in Training ANST After Negative Skin Test ) today announced financial results for its third quarter of fiscal 2005 ended January January: see month. 31, 2005. Net income for the third quarter was $3.0 million, or $0.23 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, representing a 115% increase when compared to net income of $1.4 million, or $0.11 per diluted share in the previous fiscal year's third quarter. On a generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) basis, net income for the third quarter was $2.8 million, or $0.21 per diluted share, compared to GAAP net income of $941,000, or $0.07 per diluted share in the previous fiscal year's third quarter. Revenue for the third quarter totaled $17.4 million, an increase of 24% compared to $14 million reported in the previous fiscal year's third quarter. "We are pleased to report that our earnings for the third quarter have more than doubled on continued revenue growth in our domestic and international markets," said Nicholas Nicholas, Russian grand duke Nicholas (Nikolai Nikolayevich) (nyĭkəlī` nyĭkəlī`əvĭch), 1856–1929, Russian grand duke and army officer; first cousin of Czar Alexander III and grandson of Czar Csendes, Ansoft's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "For the fourth quarter, we anticipate record revenue and earnings." Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results represent non-GAAP financial measures and exclude the impact of amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . A reconciliation of these amounts to the appropriate GAAP amounts, for the three and nine months ended January 31 is included with this press release. Ansoft is a leading developer of high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" electronic design automation (EDA (1) (Electronic Design Automation) Using the computer to design, lay out, verify and simulate the performance of electronic circuits on a chip or printed circuit board. ) software. Engineers use Ansoft software to design state-of-the-art electronic products, such as cellular phones, Internet-access devices, broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). networking components and systems, integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. (ICs), printed circuit boards (PCBs), automotive electronic systems and power electronics. Ansoft markets its products worldwide through its own direct sales force and has comprehensive customer-support and training offices throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Asia and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .
This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially, including, but not necessarily limited to, management's ability to forecast revenues and control expenses and the size, timing and structure of significant licenses. For further information regarding risks and uncertainties associated with Ansoft's business, please refer to the "Management's Discussion and analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" section of Ansoft's SEC filings, including, but not limited to, its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and quarterly reports on Form 10-Q Form 10-Q See 10-Q. , copies of which may be obtained at Ansoft's website at www.ansoft.com/about/investor/index.cfm. All information in this release is as of February February: see month. 16, 2005. Ansoft undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
ANSOFT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
January 31, January 31,
2005 2004 2005 2004
--------- -------- -------- --------
Revenue
License $10,182 $8,024 $25,012 $20,258
Service and other 7,198 5,958 20,992 16,633
--------- -------- -------- --------
Total revenue 17,380 13,982 46,004 36,891
Costs of revenue
License 141 171 363 477
Service and other 355 285 1,015 805
--------- -------- -------- --------
Total cost of revenue 496 456 1,378 1,282
--------- -------- -------- --------
Gross profit 16,884 13,526 44,626 35,609
--------- -------- -------- --------
Operating Expenses
Sales and marketing 7,424 6,803 22,522 19,462
Research and development 4,204 3,806 12,230 11,402
General and administrative 1,199 1,148 3,592 3,445
Amortization 415 761 1,208 2,379
--------- -------- -------- --------
Total operating expenses 13,242 12,518 39,552 36,688
--------- -------- -------- --------
Income (loss) from operations 3,642 1,008 5,074 (1,079)
Net realized gain on sale of
securities - - 732 -
Other income, net 374 247 975 715
--------- -------- -------- --------
Income (loss) before income taxes 4,016 1,255 6,781 (364)
Income tax expense (benefit) 1,232 314 2,076 (90)
--------- -------- -------- --------
Net income (loss) $2,784 $941 $4,705 $(274)
========= ======== ======== ========
Net income (loss) per share
Basic $0.24 $0.08 $0.41 $(0.02)
========= ======== ======== ========
Diluted $0.21 $0.07 $0.35 $(0.02)
========= ======== ======== ========
Weighted average shares used in
calculation
Basic 11,490 11,640 11,574 11,650
========= ======== ======== ========
Diluted 13,390 13,306 13,342 11,650
========= ======== ======== ========
ANSOFT CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
January 31, April 30,
2005 2004
------------ ----------
Assets
Current assets
Cash and cash equivalents $7,357 $15,218
Accounts receivable, net 12,087 10,179
Deferred income taxes 657 343
Prepaid expenses and other assets 1,115 675
------------ ----------
Total current assets 21,216 26,415
Equipment and furniture 3,186 3,598
Marketable securities 25,888 25,502
Other assets 151 383
Deferred income taxes 5,085 5,158
Goodwill 1,239 1,239
Intangible assets 4,211 5,341
------------ ----------
Total assets $60,976 $67,636
============ ==========
Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses $3,298 $4,015
Short term line of credit 2,000 -
Deferred revenue 15,410 11,935
------------ ----------
Total current liabilities 20,708 15,950
Long term line of credit - 10,000
------------ ----------
Total liabilities 20,708 25,950
Stockholders' equity
Preferred stock - -
Common stock 135 129
Additional paid-in capital 64,223 58,562
Treasury stock (20,533) (9,090)
Accumulated other comprehensive income 344 691
Accumulated deficit (3,901) (8,606)
------------ ----------
Total stockholders' equity 40,268 41,686
------------ ----------
Total liabilities and stockholders' equity $60,976 $67,636
============ ==========
ANSOFT CORPORATION
RECONCILIATION OF GAAP NET INCOME (LOSS) TO PRO FORMA NET INCOME
(In thousands, except per share amounts)
(unaudited)
Pursuant to the requirement of Regulation G, the Company has provided
a reconciliation of the non-GAAP financial measure to the most
directly comparable GAAP financial measure. These measures differ from
GAAP in that they exclude the amortization of intangible assets. The
Company has provided these measurements in addition to GAAP financial
results because it believes they provide a consistent basis for
comparison between periods that is not influenced by certain non-cash
expenses and therefore are helpful to understanding the Company's
underlying operational results. These same measures are used by
management when evaluating the continuing operating results of the
Company.
Three months ended Nine months ended
January 31, January 31,
2005 2004 2005 2004
--------- -------- -------- --------
GAAP net income (loss) $2,784 $941 $4,705 $(274)
Amortization of intangibles 257 472 749 1,475
--------- -------- -------- --------
Pro forma net income $3,041 $1,413 $5,454 $1,210
========= ======== ======== ========
Pro forma net income per diluted
common share $0.23 $0.11 $0.41 $0.10
========= ======== ======== ========
Weighted average diluted shares
used in calculation 13,390 13,306 13,342 11,650
========= ======== ======== ========
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