ANSYS Delivers Solid Results for Second Quarter 2003

ANSYS Inc. is committed to providing the most open and flexible analysis solutions to meet customer requirements for engineering software in today's competitive marketplace. ANSYS Inc. partners with leading design software suppliers to develop state-of-the-art CAD-integrated products. ANSYS and its global network of ANSYS Support Distributors provide sales, support and training for customers. Information about ANSYS Inc. and its products can be found on the Worldwide Web at http://www.ansys.com/ .

Note to editors: ANSYS, ANSYS*EMAX, ANSYS*Environment, CADOE and DesignSpace are Trademarks or registered Trademarks of subsidiaries of ANSYS Inc. located in the United States or other countries. All other trademarks and registered trademarks are the property of their respective owners.

Reconciliation of Non-GAAP Measures:

This earnings release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of the adjusted (non- GAAP) financial measures to the most directly comparable GAAP financial measures.

Adjusted software license revenue, adjusted operating profit margin, adjusted net income and adjusted diluted earnings per share are presented in this earnings release because management uses this information in evaluating the results of the continuing operations of business and believes that this information provides the users of the financial statements a valuable insight into the operating results. Additionally, management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results.

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

                            Three months ended          Six months ended
                          June 30,      June 30,      June 30,     June 30,
                           2003           2002          2003         2002
  Revenue:
     Software licenses   $13,962       $11,778      $26,404       $23,108
     Maintenance and
      service             13,681        10,956       25,839        20,891
        Total revenue     27,643        22,734       52,243        43,999

  Cost of sales:
     Software licenses     1,468           915        2,647         1,952
     Maintenance and
      service              3,689         1,894        6,583         3,708
        Total cost of
         sales             5,157         2,809        9,230         5,660

  Gross profit            22,486        19,925       43,013        38,339

  Operating expenses:
     Selling and
      marketing            6,096         5,241       11,608        10,402
     Research and
      development          6,074         4,938       11,730         9,757
     Amortization          1,181           568        1,929         1,167
     General and
      administrative       3,132         2,710        5,776         5,040
        Total operating
         expenses         16,483        13,457       31,043        26,366

  Operating income         6,003         6,468       11,970        11,973

  Other income               772           323        1,306           494

  Income before income
   tax provision           6,775         6,791       13,276        12,467

  Income tax provision     2,303         2,071        4,525         3,859

  Net income              $4,472        $4,720       $8,751        $8,608

  Earnings per share -
   basic:
      Basic earnings per
       share               $0.30         $0.32        $0.59         $0.59
      Weighted average
       shares - basic     14,859        14,670       14,743        14,629

  Earnings per share -
   diluted:
      Diluted earnings
       per  share                      $0.29                  $0.30                $0.56                  $0.55
            Weighted  average
              shares  -  diluted      15,904                15,829              15,679                15,776


                                              ANSYS  INC.  AND  SUBSIDIARIES
                                      Reconciliation  of  Non-GAAP  Measures
                                  For  the  three  months  ended  June  30,  2003
                                    (in  thousands,  except  per  share  data)
                                                              (Unaudited)

                                                                As  Reported            Adjustments      Adjusted
                                                                                                                                Results
    Revenue:
          Software  licenses                        $13,962                    $1,116(a)        $15,078
          Maintenance  and  service              13,681                              -                13,681

                Total  revenue                            27,643                      1,116                28,759

    Cost  of  sales:
          Software  licenses                            1,468                              -                  1,468
          Maintenance  and  service                3,689                              -                  3,689
                Total  cost  of  sales                  5,157                              -                  5,157

    Gross  profit                                          22,486                      1,116                23,602

    Operating  expenses:
          Selling  and  marketing                    6,096                              -                  6,096
          Research  and  development              6,074                              -                  6,074
          Amortization                                      1,181                        (955)(b)              226
          General  and  administrative          3,132                              -                  3,132
                Total  operating  expenses      16,483                        (955)              15,528

    Operating  income                                    6,003                      2,071                  8,074

    Other  income                                                772                              -                      772

    Income  before  income  tax
      provision                                                6,775                      2,071                  8,846

    Income  tax  provision                            2,303                          724(c)            3,027

    Net  income                                              $4,472                    $1,347                $5,819

    Earnings  per  share  -  basic:
          Basic  earnings  per  share              $0.30                                                $  0.39
          Weighted  average  shares  -
            basic                                                14,859                                                14,859

    Earnings  per  share  -  diluted:
          Diluted  earnings  per  share          $0.29                                                $  0.37
          Weighted  average  shares  -
            diluted                                            15,904                                                15,904

        (a)  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."
      (b)  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.
      (c)  Amount  represents  the  income  tax  impact  of  the  revenue  and
              amortization  expense  adjustments  referred  to  in  (a)  and  (b)  above.


                                              ANSYS  INC.  AND  SUBSIDIARIES
                                      Reconciliation  of  Non-GAAP  Measures
                                  For  the  three  months  ended  June  30,  2002
                                    (in  thousands,  except  per  share  data)
                                                              (Unaudited)

                                                                As  Reported            Adjustments      Adjusted
                                                                                                                                Results
    Revenue:
          Software  licenses                        $11,778                          $-                $11,778
          Maintenance  and  service              10,956                            -                  10,956

                Total  revenue                            22,734                            -                  22,734

    Cost  of  sales:
          Software  licenses                                915                            -                        915
          Maintenance  and  service                1,894                            -                    1,894
                Total  cost  of  sales                  2,809                            -                    2,809

    Gross  profit                                          19,925                            -                  19,925

    Operating  expenses:
          Selling  and  marketing                    5,241                            -                    5,241
          Research  and  development              4,938                            -                    4,938
          Amortization                                          568                      (435)(a)                133
          General  and  administrative          2,710                            -                    2,710
                Total  operating  expenses      13,457                      (435)                13,022

    Operating  income                                    6,468                        435                    6,903

    Other  income                                                323                            -                        323

    Income  before  income  tax
      provision                                                6,791                        435                    7,226

    Income  tax  provision                            2,071                        152(b)              2,223

    Net  income                                              $4,720                      $283                  $5,003

    Earnings  per  share  -  basic:
          Basic  earnings  per  share              $0.32                                                  $0.34
          Weighted  average  shares  -
            basic                                                14,670                                                14,670


    Earnings  per  share  -  diluted:
          Diluted  earnings  per  share          $0.30                                                  $0.32
          Weighted  average  shares  -
            diluted                                            15,829                                                15,829

      (a)  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.
      (b)  Amount  represents  the  income  tax  impact  of  the  amortization  expense
              adjustment  referred  to  in  (a)  above.


                                              ANSYS  INC.  AND  SUBSIDIARIES
                                      Reconciliation  of  Non-GAAP  Measures
                                    For  the  six  months  ended  June  30,  2003
                                    (in  thousands,  except  per  share  data)
                                                              (Unaudited)

                                                                As  Reported          Adjustments        Adjusted
                                                                                                                                Results
    Revenue:
          Software  licenses                        $26,404                    $1,570(a)        $27,974
          Maintenance  and  service              25,839                              -                25,839

                Total  revenue                            52,243                      1,570                53,813

    Cost  of  sales:
          Software  licenses                            2,647                              -                  2,647
          Maintenance  and  service                6,583                              -                  6,583
          Total  cost  of  sales                        9,230                              -                  9,230

    Gross  profit                                          43,013                      1,570                44,583

    Operating  expenses:
          Selling  and  marketing                  11,608                              -                11,608
          Research  and  development            11,730                              -                11,730
          Amortization                                      1,929                    (1,576)(b)              353
          General  and  administrative          5,776                              -                  5,776
                Total  operating  expenses      31,043                    (1,576)              29,467

    Operating  income                                  11,970                      3,146                15,116

    Other  income                                            1,306                              -                  1,306

    Income  before  income  tax
      provision                                              13,276                      3,146                16,422

    Income  tax  provision                            4,525                      1,100(c)            5,625

    Net  income                                              $8,751                    $2,046              $10,797

    Earnings  per  share  -  basic:
          Basic  earnings  per  share              $0.59                                                  $0.73
          Weighted  average  shares  -
            basic                                                14,743                                                14,743


    Earnings  per  share  -  diluted:
          Diluted  earnings  per  share          $0.56                                                  $0.69
          Weighted  average  shares  -
            diluted                                            15,679                                                15,679

      (a)  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."
      (b)  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.
      (c)  Amount  represents  the  income  tax  impact  of  the  revenue  and
              amortization  expense  adjustments  referred  to  in  (a)  and  (b)  above.


                                              ANSYS  INC.  AND  SUBSIDIARIES
                                      Reconciliation  of  Non-GAAP  Measures
                                    For  the  six  months  ended  June  30,  2002
                                    (in  thousands,  except  per  share  data)
                                                              (Unaudited)

                                                                As  Reported        Adjustments          Adjusted
                                                                                                                              Results
    Revenue:
          Software  licenses                        $23,108                          $-                $23,108
          Maintenance  and  service              20,891                            -                  20,891

                Total  revenue                            43,999                            -                  43,999

    Cost  of  sales:
          Software  licenses                            1,952                            -                    1,952
          Maintenance  and  service                3,708                            -                    3,708
                Total  cost  of  sales                  5,660                            -                    5,660

    Gross  profit                                          38,339                            -                  38,339

    Operating  expenses:
          Selling  and  marketing                  10,402                            -                  10,402
          Research  and  development              9,757                            -                    9,757
          Amortization                                      1,167                      (871)(a)                296
          General  and  administrative          5,040                            -                    5,040
                Total  operating  expenses      26,366                      (871)                25,495

    Operating  income                                  11,973                        871                  12,844

    Other  income                                                494                            -                        494

    Income  before  income  tax
      provision                                              12,467                        871                  13,338

    Income  tax  provision                            3,859                        305(b)              4,164

    Net  income                                              $8,608                      $566                  $9,174

    Earnings  per  share  -  basic:
          Basic  earnings  per  share              $0.59                                                  $0.63
          Weighted  average  shares  -
            basic                                                14,629                                                14,629

    Earnings  per  share  -  diluted:
          Diluted  earnings  per  share          $0.55                                                  $0.58
          Weighted  average  shares  -
            diluted                                            15,776                                                15,776

      (a)  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.
      (b)  Amount  represents  the  income  tax  impact  of  the  amortization  expense
              adjustment  referred  to  in  (a)  above.


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

                                                                                                    June  30,            December  31,
                                                                                                        2003                      2002
    ASSETS:

    Cash  &  short-term  investments                                        $62,832                $61,132
    Accounts  receivable,  net                                                    16,035                  15,875
    Other  assets                                                                            76,815                  49,994

          Total  assets                                                                  $155,682              $127,001

    LIABILITIES  &  STOCKHOLDERS'  EQUITY:

    Current  liabilities                                                            $47,177                $35,608
    Stockholders'  equity                                                          108,505                  91,393

          Total  liabilities  &  stockholders'  equity          $155,682              $127,001
 





Review Article Be the first to review this article

Featured Video
Editorial
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
Re-Use Your CAD: The ModelCHECK Handbook
Jobs
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
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