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 second quarter and fiscal year 2007 (both GAAP and non-GAAP to exclude purchase accounting for deferred revenue, acquisition-related amortization and stock-based compensation expense), 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 impact of the integration of the Fluent operations, statements regarding our long-term vision, statements regarding our commitment to providing world-class solutions and the significance of the release of ANSYS 11.0, statements regarding our momentum in 2007, and statements regarding our ability to invest and capitalize on market opportunities, including through leveraging our customer base, strategic vision, technology leadership, and business model, to drive technological and operational excellence, 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 2007 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 March 31, 2007 March 31, 2006 Revenue: Software licenses $57,212 $26,752 Maintenance and service 30,647 19,259 Total revenue 87,859 46,011 Cost of sales: Software licenses 2,212 1,490 Amortization of software and acquired technology 5,342 908 Maintenance and service 11,326 4,470 Total cost of sales 18,880 6,868 Gross profit 68,979 39,143 Operating expenses: Selling, general and administrative 26,891 11,839 Research and development 13,072 9,357 Amortization 2,195 128 Total operating expenses 42,158 21,324 Operating income 26,821 17,819 Interest (expense) income (1,121) 1,516 Other income 84 182 Income before income tax provision 25,784 19,517 Income tax provision 9,633 6,604 Net income $16,151 $12,913 Earnings per share - basic: Basic earnings per share $0.42 $0.40 Weighted average shares - basic 38,683 32,122 Earnings per share - diluted: Diluted earnings per share $0.40 $0.38 Weighted average shares - diluted 40,367 34,165 ANSYS, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures For the three months ended March 31, 2007 (in thousands, except percentages and per share data) (Unaudited) Non-GAAP As Reported Adjustments Results Total revenue: $87,859 $ 1,760(1) $89,619 Operating income 26,821 11,342(2) 38,163 Operating profit margin 30.5% 42.6% Net income $16,151 $ 7,302(3) $23,453 Earnings per share - diluted: Diluted earnings per share $0.40 $0.58 Weighted average shares - diluted 40,367 40,367 (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 $2.2 million charge for stock-based compensation in accordance with SFAS No. 123R, "Share-Based Payment," as well as the $1.8 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 $4.0 million. ANSYS, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures For the three months ended March 31, 2006 (in thousands, except percentages and per share data) (Unaudited) Non-GAAP As Reported Adjustments Results Total revenue: $46,011 - $46,011 Operating income 17,819 $ 2,145(1) 19,964 Operating profit margin 38.7% 43.4% Net income $12,913 $ 1,581(2) $14,494 Earnings per share - diluted: Diluted earnings per share $0.38 $0.42 Weighted average shares - diluted 34,165 34,165 (1) Amount represents $922,000 of amortization expense associated with intangible assets acquired in business acquisitions, including amounts primarily related to acquired software, customer list and non-compete agreements, as well as $1.2 million charge for stock-based compensation in accordance with SFAS No. 123R, "Share-Based Payment." (2) Amount represents the impact of the adjustments to operating income referred to in (1) above, adjusted for the related income tax impact of $564,000. ANSYS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands) (Unaudited) March 31, December 31, 2007 2006 ASSETS: Cash & short-term investments $117,543 $104,486 Accounts receivable, net 43,550 37,341 Goodwill 430,509 428,959 Other intangibles, net 197,051 204,115 Other assets 116,603 103,142 Total assets $905,256 $878,043 LIABILITIES & STOCKHOLDERS' EQUITY: Deferred revenue $120,506 $101,226 Long-term debt (including current portion) 114,802 123,320 Other liabilities 115,932 118,704 Stockholders' equity 554,016 534,793 Total liabilities & stockholders' equity $905,256 $878,043 ANSYS, INC. AND SUBSIDIARIES Reconciliation of Forward-Looking Guidance Quarter Ending June 30, 2007 Earnings Per Share Range - Diluted U.S. GAAP expectation $0.35 - $0.38 Adjustment to exclude purchase accounting adjustments to deferred revenue - Adjustment to exclude acquisition-related amortization $0.11 - $0.12 Adjustment to exclude stock-based compensation $0.04 - $0.05 Non-GAAP expectation $0.52 - $0.53 ANSYS, INC. AND SUBSIDIARIES Reconciliation of Forward-Looking Guidance Year Ending December 31, 2007 Earnings Per Share Range - Diluted U.S. GAAP expectation $1.46 - $1.53 Adjustment to exclude purchase accounting adjustments to deferred revenue $0.03 Adjustment to exclude acquisition-related amortization $0.43 - $0.45 Adjustment to exclude stock-based compensation $0.18 - $0.20 Non-GAAP expectation $2.14 - $2.17
Web site: http://www.ansys.com//