ANSYS Reports Record Quarter and Raises 2007 Outlook

Second Quarter Results Set Path for a Year of Record Results

SOUTHPOINTE, Pa., Aug. 2 /PRNewswire-FirstCall/ -- ANSYS, Inc. (NASDAQ: ANSS), a global innovator of simulation software and technologies designed to optimize product development processes, today announced a new Company record for second quarter non-GAAP operating results.

Commenting on the second quarter performance, Jim Cashman, ANSYS President and CEO stated, "This quarter's results continue the momentum that we have seen building over the past several quarters and reflect the strength of our diversified global business. We have made encouraging progress during the recent quarter and first half of 2007 to capture the strength of combining the ANSYS and Fluent businesses into a broad portfolio of unprecedented engineering simulation solutions. Compared to a year ago, this quarter's non- GAAP revenues increased over 35% while non-GAAP diluted earnings per share increased 43%. We have also continued to focus on strengthening our margins and balance sheet. These efforts produced record cash flows from operations of $37 million for the second quarter and $59 million for the first six months of 2007. Based on our first half performance, we are increasing our 2007 full year guidance and believe we are poised to drive 2007 to be the most successful year in the Company's 37 year history."

ANSYS' second quarter and year-to-date 2007 financial results are presented below. The non-GAAP results exclude the income statement effects of stock-based compensation, purchase accounting for deferred revenue and acquisition-related amortization of intangible assets. The 2006 non-GAAP results also exclude a one-time charge related to in-process research and development associated with the acquisition of Fluent. Non-GAAP and GAAP results reflect:

    -- Total non-GAAP revenue of $92.3 million in the second quarter of 2007
       as compared to $68.2 million in the second quarter of 2006; total non-
       GAAP revenue of $181.9 million in the first six months of 2007 as
       compared to $114.2 million in the first six months of 2006; total GAAP
       revenue of $92.2 million in the second quarter of 2007 as compared to
       $62.3 million in the second quarter of 2006; total GAAP revenue of
       $180.1 million in the first six months of 2007 as compared to $108.3
       million in the first six months of 2006;

    -- A non-GAAP operating profit margin of 43.4% in the second quarter of
       2007 as compared to 38.1% in the second quarter of 2006; a non-GAAP
       operating profit margin of 43.0% in the first six months of 2007 as
       compared to 40.2% in the first six months of 2006; a GAAP operating
       profit margin of 33.0% in the second quarter of 2007 as compared to
       (23.3%) in the second quarter of 2006; a GAAP operating profit margin
       of 31.8% in the first six months of 2007 as compared to 3.1% in the
       first six months of 2006;

    -- Non-GAAP net income of $24.6 million in the second quarter of 2007 as
       compared to $16.5 million in the second quarter of 2006; non-GAAP net
       income of $48.1 million in the first six months of 2007 as compared to
       $31.0 million in the first six months of 2006; GAAP net income of $18.3
       million in the second quarter of 2007 as compared to GAAP net loss of
       $19.4 million in the second quarter of 2006; GAAP net income of $34.4
       million in the first six months of 2007 as compared to GAAP net loss of
       $6.5 million in the first six months of 2006; and

    -- Non-GAAP diluted earnings per share of $0.30 in the second quarter of
       2007 as compared to $0.21 in the second quarter of 2006; non-GAAP
       diluted earnings per share of $0.59 in the first six months of 2007 as
       compared to $0.43 in the first six months of 2006; GAAP diluted
       earnings per share of $0.23 in the second quarter of 2007 as compared
       to GAAP diluted loss per share of ($0.27) in the second quarter of
       2006; GAAP diluted earnings per share of $0.43 in the first six months
       of 2007 as compared to GAAP diluted loss per share of ($0.09) in the
       first six months of 2006.

The Company's GAAP results reflect stock-based compensation charges of approximately $2.1 million ($1.8 million after tax) or $0.02 diluted earnings per share for the second quarter of 2007 and approximately $4.3 million ($3.6 million after tax) or $0.04 diluted earnings per share for the first six months of 2007.

The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2007 discussed below, represent non-GAAP financial measures. A reconciliation of these measures to the appropriate GAAP measures, for the three months and six months ended June 30, 2007 and 2006, and for the 2007 financial outlook, is included in the condensed financial information included in this release.

On May 14, 2007, the Company announced that its Board of Directors approved a 2-for-1 stock split of the Company's common shares. The stock split was payable in the form of a stock dividend and entitled each stockholder of record at the close of business on May 25, 2007 to receive one share of common stock for every outstanding share of common stock held on that date. The stock dividend was distributed on June 4, 2007. The share data and earnings per share data in this press release give effect to the stock split, applied retroactively, to all periods presented.

Management's Remaining 2007 Financial Outlook

The Company has provided its 2007 revenue and earnings per share guidance below. The revenue and earnings per share guidance is provided on both a GAAP basis and a non-GAAP basis. Non-GAAP revenue and non-GAAP diluted earnings per share exclude charges for stock-based compensation, as well as the income statement effects of purchase accounting for deferred revenue and acquisition- related amortization of intangible assets.

As required by SFAS No. 123R and guidance issued by the Securities and Exchange Commission, the Company records expenses and tax benefits related to stock-based compensation. As a result, the GAAP estimates for earnings per share provided below reflect the anticipated impact of stock-based compensation. The Company issues both nonqualified and incentive stock options; however, incentive stock options comprise a significant portion of outstanding stock options. The tax benefits associated with incentive stock options are unpredictable, as they are predicated upon an award recipient triggering an event that disqualifies the award and which then results in a tax deduction to the Company. GAAP requires that these tax benefits be recorded at the time of the triggering event. The triggering events for each option holder are not easily projected. In order to estimate the tax benefit related to incentive stock options, the Company makes many assumptions and estimates, including the number of incentive stock options that will be exercised during the period by U.S. employees, the number of incentive stock options that will be disqualified during the period and the fair market value of the Company's stock price on the exercise dates. Each of these items is subject to significant uncertainty. Additionally, a significant portion of the tax benefits related to disqualified incentive stock options is accounted for as an increase to equity (additional paid-in capital) rather than as a reduction in income tax expense, especially in the periods most closely following the adoption date of SFAS No. 123R. Although all such benefits continue to be realized through the Company's tax filings, this accounting treatment has the effect of increasing tax expense and reducing net income. For example, the Company realized a tax benefit of approximately $2.0 million during the first six months of 2007 related to disqualified incentive stock options; however, only $137,000 of such amount was recorded as a reduction in income tax expense. Because there are significant limitations in estimating the impact of SFAS No. 123R, including those discussed above, the actual impact of stock-based compensation on GAAP earnings per share may differ materially from the estimated amounts included in the guidance below.

1 | 2 | 3  Next Page »



Review Article Be the first to review this article
SolidCAM: Program your CNCs directly inside your existing CAD system.


Featured Video
Editorial
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
Siemens Goes ECAD With Mentor Graphics Acquisition
Jobs
Mechanical Engineer for IDEX Corporation at West Jordan,, UT
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
Senior Structural Engineer for Design Everest at San Francisco, CA
GIS Analyst II for Air Worldwide at Boston, MA
Upcoming Events
Design & Manufacturing, Feb 7 - 9, 2017 Anaheim Convention Center, Anaheim, CA at Anaheim Convention Center Anaheim CA - Feb 7 - 9, 2017
Innorobo 2017 at Docks de Paris Paris France - May 16 - 18, 2017
Display Week 2017 at Los Angeles Convention Center 1201 S Figueroa St Los Angeles CA - May 21 - 26, 2017



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy Advertise