ANSYS Reports Q4 2006 Operating Results

Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:

      GAAP REPORTING MEASURE        NON-GAAP REPORTING MEASURE

      Revenue                       Non-GAAP Revenue
      Operating Profit              Non-GAAP Operating Profit
      Operating Profit Margin       Non-GAAP Operating Profit Margin
      Net Income                    Non-GAAP Net Income
      Diluted Earnings Per Share    Non-GAAP Diluted Earnings Per Share

    About ANSYS, Inc.

ANSYS, Inc., founded in 1970, develops and globally markets engineering simulation software and technologies widely used by engineers and designers across a broad spectrum of industries. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for fast, efficient and cost- conscious product development, from design concept to final-stage testing and validation. The Company and its global network of channel partners provide sales, support and training for customers. Headquartered in Canonsburg, Pennsylvania U.S.A. with more than 40 strategic sales locations throughout the world, ANSYS, Inc. and its subsidiaries employ approximately 1,400 people and distribute ANSYS products through a network of channel partners in over 40 countries. Visit http://www.ansys.com for more information.

Certain statements contained in the press release regarding matters that are not historical facts, including, but not limited to, statements regarding our projections for revenue and earnings per share for the first quarter and fiscal year 2007 (both GAAP and non-GAAP to exclude purchase accounting for deferred revenue, acquisition-related amortization, stock-based compensation expense and acquired in-process research and development), statements about management's views concerning the Company's prospects in the remainder of 2007 and subsequent years and the effect of the Fluent integration on these prospects, statements and projections relating to the impact of stock-based compensation, statements regarding management's use of non-GAAP financial measures, statements regarding the growth of our core business and impact of the integration of the Fluent operations, statements regarding our long-term vision and strategy, statements regarding our business model and its impact on our future success and growth, statements regarding our business and customer momentum, and statements regarding the focus of our energy and resources are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements in this press release are subject to risks and uncertainties, including, but not limited to, the risk of a general economic downturn in one or more of ANSYS' primary geographic regions, the risk that the assumptions underlying ANSYS' anticipated revenues and expenditures will change or prove inaccurate, the risk that ANSYS has overestimated its ability to maintain growth and profitability and control costs, uncertainties regarding the demand for ANSYS' products and services in future periods, the risk that ANSYS has overestimated the strength of the demand among its customers for its products, risks of problems arising from customer contract cancellations, uncertainties regarding customer acceptance of new products, the risk that ANSYS' operating results will be adversely affected by possible delays in developing, completing, or shipping new or enhanced products, risks that enhancements to the Company's products may not produce anticipated sales, uncertainties regarding fluctuations in quarterly results, including uncertainties regarding the timing of orders from significant customers, and other factors that are detailed from time to time in reports filed by ANSYS, Inc. with the Securities and Exchange Commission, including ANSYS, Inc.'s 2006 Annual Report and Form 10-K, as amended. We undertake no obligation to publicly update or revise any forward-looking statements, whether changes occur as a result of new information or future events, after the date they were made.

ANSYS, ANSYS Workbench, AUTODYN, CFX, FLUENT and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.



                         ANSYS, INC. AND SUBSIDIARIES
                      Consolidated Statements of Income
                    (in thousands, except per share data)
                                 (Unaudited)

                            Three Months Ended      Twelve Months Ended
                         December 31, December 31, December 31, December 31,
                             2006         2005         2006         2005
    Revenue:
      Software licenses     $53,232     $24,433     $156,960      $85,680
      Maintenance and
       service               32,016      19,288      106,680       72,356

         Total revenue       85,248      43,721      263,640      158,036

    Cost of sales:
      Software licenses       2,368       1,545        7,306        5,292
      Amortization of
       software and
       acquired technology    5,124         911       14,909        3,576
      Maintenance and
       service               11,594       3,695       34,512       15,171
        Total cost of sales  19,086       6,151       56,727       24,039

    Gross profit             66,162      37,570      206,913      133,997

    Operating expenses:
      Selling, general
       and administrative    28,709      11,431       86,901       43,285
         Research  and
              development                      15,132              8,202              49,406              30,688
            Amortization                        2,332                  175                6,350                1,184
            In-process  research
              and  development                        -                      -              28,100                        -
                  Total  operating
                    expenses                      46,173            19,808            170,757              75,157

        Operating  income                  19,989            17,762              36,156              58,840

        Interest  (expense)
          income                                    (1,551)            1,450              (3,013)              4,294
        Other  (expense)  income          (417)                  21                    (82)                  (23)

        Income  before  income
          tax  provision                      18,021            19,233              33,061              63,111

        Income  tax  provision            5,757              5,962              18,905              19,208

        Net  income                            $12,264          $13,271            $14,156            $43,903

        Earnings  per  share  -  basic:
            Basic  earnings
              per  share                            $0.32            $  0.41                $0.39                $1.38

            Weighted  average
              shares  -  basic                38,543            31,985              36,343              31,749


        Earnings  per  share  -  diluted:
            Diluted  earnings
              per  share                            $0.30              $0.39                $0.37                $1.30

            Weighted  average
              shares  -  diluted            40,387            34,054              38,199              33,692



                                                  ANSYS,  INC.  AND  SUBSIDIARIES
                                          Reconciliation  of  Non-GAAP  Measures
                                  For  the  three  months  ended  December  31,  2006
                        (in  thousands,  except  percentages  and  per  share  data)
                                                                  (Unaudited)

                                                                    As  Reported      Adjustments      Non-GAAP  Results

        Total  revenue:                                    $85,248            $5,184  (1)              $90,432

        Operating  income                                  19,989            14,504  (2)                34,493

        Operating  profit  margin                        23.4%                                                  38.1%

        Net  income                                            $12,264            $9,221  (3)              $21,485

        Earnings  per  share  -  diluted:
            Diluted  earnings  per  share            $0.30                                                  $0.53
            Weighted  average  shares
              -  diluted                                          40,387                                                40,387

        (1)  Amount  represents  the  revenue  not  reported  during  the  period  as  a
                result  of  the  purchase  accounting  adjustment  associated  with  EITF  01-
                3,  "Accounting  in  a  Business  Combination  for  Deferred  Revenue  of  an
                Acquiree."
        (2)  Amount  represents  $7.4  million  of  amortization  expense  associated  with
                intangible  assets  acquired  in  business  acquisitions,  including  amounts
                primarily  related  to  acquired  software,  customer  list  and  non-compete
                agreements,  a  $1.9  million  charge  for  stock-based  compensation  in
                accordance  with  the  Company's  adoption  of  SFAS  No.  123R,  "Share-Based
                Payment,"  as  well  as  the  $5.2  million  adjustment  to  revenue  as
                reflected  in  (1)  above.
        (3)  Amount  represents  the  impact  of  the  adjustments  to  operating  income
                referred  to  in  (2)  above,  adjusted  for  the  related  income  tax  impact
                of  $5.3  million.



                                                  ANSYS,  INC.  AND  SUBSIDIARIES
                                          Reconciliation  of  Non-GAAP  Measures
                                  For  the  three  months  ended  December  31,  2005
                        (in  thousands,  except  percentages  and  per  share  data)
                                                                  (Unaudited)

                                                                    As  Reported        Adjustments    Non-GAAP  Results

        Total  revenue:                                    $43,721                      -                      $43,721

        Operating  income                                  17,762                $963  (1)                18,725

        Operating  profit  margin                        40.6%                                                  42.8%

        Net  income                                            $13,271                $625  (2)              $13,896

        Earnings  per  share  -  diluted:
            Diluted  earnings  per  share            $0.39                                                  $0.41
            Weighted  average  shares
              -  diluted                                          34,054                                                34,054

        (1)  Amount  represents  amortization  expense  associated  with  intangible
                assets  acquired  in  business  acquisitions,  including  amounts  primarily
                related  to  acquired  software,  customer  list  and  non-compete
                agreements.
        (2)  Amount  represents  the  impact  of  the  adjustments  to  operating  income
                referred  to  in  (1)  above,  adjusted  for  the  related  income  tax  impact
                of  $338,000.



                                                  ANSYS,  INC.  AND  SUBSIDIARIES
                                          Reconciliation  of  Non-GAAP  Measures
                                For  the  twelve  months  ended  December  31,  2006
                        (in  thousands,  except  percentages  and  per  share  data)
                                                                  (Unaudited)

                                                                    As  Reported      Adjustments    Non-GAAP  Results

        Total  revenue:                                  $263,640          $18,387  (1)            $282,027

        Operating  income                                  36,156            73,001  (2)              109,157

        Operating  profit  margin                        13.7%                                                  38.7%

        Net  income                                            $14,156          $56,509  (3)              $70,665

        Earnings  per  share  -  diluted
            Diluted  earnings  per  share            $0.37                                                  $1.85

            Weighted  average  shares
              -  diluted                                          38,199                                                38,199

        (1)  Amount  represents  the  revenue  not  reported  during  the  period  as  a
                result  of  the  purchase  accounting  adjustment  associated  with  EITF  01-
                3,  "Accounting  in  a  Business  Combination  for  Deferred  Revenue  of  an
                Acquiree."
        (2)  Amount  represents  $20.9  million  of  amortization  expense  associated
                with  intangible  assets  acquired  in  business  acquisitions,  including
                amounts  primarily  related  to  acquired  software,  customer  list  and  non-
                compete  agreements,  a    $5.6  million  charge  for  stock-based
                compensation  in  accordance  with  the  Company's  adoption  of  SFAS  No.
                123R,  "Share-Based  Payment,"  $28.1  million  of  acquired  in-process
                research  and  development  expense  that  was  purchased  in  the  Fluent
                acquisition  and  immediately  expensed,  as  well  as  the  $18.4  million
                adjustment  to  revenue  as  reflected  in  (1)  above.
        (3)  Amount  represents  the  impact  of  the  adjustments  to  operating  income
                referred  to  in  (2)  above,  adjusted  for  the  related  income  tax  impact
                of  $16.5  million.



                                                  ANSYS,  INC.  AND  SUBSIDIARIES
                                          Reconciliation  of  Non-GAAP  Measures
                                For  the  twelve  months  ended  December  31,  2005
                        (in  thousands,  except  percentages  and  per  share  data)
                                                                  (Unaudited)

                                                                    As  Reported      Adjustments      Non-GAAP  Results

        Total  revenue:                                  $158,036                      -                  $  158,036

        Operating  income                                  58,840            $4,230  (1)                63,070

        Operating  profit  margin                        37.2%                                                  39.9%

        Net  income                                            $43,903            $2,749  (2)              $46,652

        Earnings  per  share  -  diluted:
            Diluted  earnings  per  share            $1.30                                                  $1.38

            Weighted  average  shares
              -  diluted                                          33,692                                                33,692

        (1)  Amount  represents  amortization  expense  associated  with  intangible
                assets  acquired  in  business  acquisitions,  including  amounts  primarily
                related  to  acquired  software,  customer  list  and  non-compete
                agreements.
        (2)  Amount  represents  the  impact  of  the  adjustments  to  operating  income
                referred  to  in  (1)  above,  adjusted  for  the  related  income  tax  impact
                of  $1.5  million.



                                                  ANSYS,  INC.  AND  SUBSIDIARIES
                                        Condensed  Consolidated  Balance  Sheets
                                                                (in  thousands)
                                                                  (Unaudited)

                                                                                                    December  31,        December  31,
                                                                                                            2006                        2005
        ASSETS:

        Cash  &  short-term  investments                                    $  104,486            $  194,232
        Accounts  receivable,  net                                                    37,341                  19,134
        Goodwill                                                                                  428,959                  43,277
        Other  intangibles,  net                                                      204,115                  10,122
        Other  assets                                                                          103,142                  38,744

                Total  assets                                                                $878,043            $  305,509

        LIABILITIES  &  STOCKHOLDERS'  EQUITY:

        Deferred  revenue                                                                $101,226                $48,234

        Long-term  debt  (including  current  portion)              123,320                            -

        Other  liabilities                                                                118,704                  32,298
        Stockholders'  equity                                                          534,793                224,977

                Total  liabilities  &  stockholders'  equity        $878,043              $305,509



                                                  ANSYS,  INC.  AND  SUBSIDIARIES
                                    Reconciliation  of  Forward-Looking  Guidance
                                                Quarter  Ending  March  31.  2007

                                                                                                      Earnings  Per  Share  Range
                                                                                                                    -  Diluted

        U.S.  GAAP  expectation                                                              $0.28  -  $0.34
        Adjustment  to  exclude  purchase  accounting
          adjustments  to  deferred  revenue                                        $0.02  -  $0.03
        Adjustment  to  exclude  acquisition-related
          amortization                                                                              $0.10  -  $0.12
        Adjustment  to  exclude  stock-based  compensation            $0.04  -  $0.05

        Non-GAAP  expectation                                                                $0.48  -  $0.50



                                                  ANSYS,  INC.  AND  SUBSIDIARIES
                                    Reconciliation  of  Forward-Looking  Guidance
                                                Year  Ending  December  31,  2007

                                                                                                    Earnings  Per  Share  Range
                                                                                                                  -  Diluted

        U.S.  GAAP  expectation                                                              $1.37  -  $1.46
        Adjustment  to  exclude  purchase  accounting
          adjustments  to  deferred  revenue                                        $0.02  -  $0.03
        Adjustment  to  exclude  acquisition-related
          amortization                                                                              $0.42  -  $0.45
        Adjustment  to  exclude  stock-based  compensation            $0.18  -  $0.20

        Non-GAAP  expectation                                                                $2.05  -  $2.08
 


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