Exhibit 99.1
ANSYS ANNOUNCES FIRST QUARTER 2005 RESULTS
Reports Revenue Growth of 20%, GAAP EPS Growth of 32% and
Adjusted EPS Growth of 35%
SOUTHPOINTE, Pa., May 3 /PRNewswire-FirstCall/ -- ANSYS, Inc.
(Nasdaq: ANSS), a global innovator of simulation software and technologies
designed to optimize product development processes, today announced first
quarter 2005 results. ANSYS' first quarter GAAP results include:
- Total revenue of $37.6 million, as compared to $31.3 million in the
first quarter of 2004;
- Net income of $9.7 million, as compared to $7.1 million in the first
quarter of 2004;
- An operating profit margin of 36% as compared to 32% for the first
quarter of 2004;
- Diluted earnings per share of $0.29, as compared to $0.22 for the first
quarter of 2004;
- Cash flows from operations of $15.3 million, as compared to $13.2
million in the first quarter of 2004; and
- Cash and short-term investment balances totaling $149.7 million, and no
debt, as of March 31, 2005.
Excluding acquisition-related amortization (see detail below), ANSYS'
first quarter adjusted (non-GAAP) results include:
- An adjusted operating profit margin of 39% as compared to 35% for the
first quarter of 2004; and
- Adjusted diluted earnings per share of $0.31, as compared to $0.23 for
the first quarter of 2004.
"ANSYS' first quarter results represent an excellent start to the new year
as we maintained our positive momentum from 2004," commented ANSYS President
and CEO, Jim Cashman. "During the 2005 first quarter, we achieved new first
quarter highs in both revenue and earnings, and we're excited about the
opportunities that lie ahead as ANSYS celebrates its 35th anniversary this
year. We continue to make significant progress against our strategic plan and
remain committed to enhancing stockholder value and advancing our position as
a sustained technology leader."
Cashman added, "We further broadened our technology platform during the
quarter with the acquisition of Century Dynamics, Inc. Looking ahead, we are
committed to investing in and expanding the breadth and depth of our
integrated engineering simulation suite. We are also committed to working
with our broad base of global customers and partners to enable our customers
to transform their product design processes to drive innovation and to realize
measurable business benefits, efficiencies and productivity gains in an
increasingly competitive global environment."
In closing, Cashman commented, "While customers continue to voice concerns
about economic pressures, we look forward to continuing to deliver on our
track record of earnings and growth in the annual results for 2005. In fact,
we are slightly increasing our outlook for the year."
The adjusted results highlighted above, and the adjusted estimates for
2005 discussed below, represent non-GAAP (Generally Accepted Accounting
Principles) financial measures. A reconciliation of these measures to the
appropriate GAAP measures, for the three months ended March 31, is included in
the condensed financial information included in this release.
Adjustments to Reported GAAP Financial Results
- Acquisition-Related Amortization:
As previously announced, the Company completed its acquisition of Century
Dynamics, Inc. in January 2005. In previous years, the Company also acquired
CFX, CADOE S.A. and ICEM CFD Engineering. These acquisitions have all been
accounted for as purchases, resulting in the recording of a significant amount
of identifiable intangible assets.
ANSYS is providing, and has historically provided, its current quarter
GAAP results as well as financial results that have been adjusted for the
impact of acquisition-related amortization. The Company believes that these
non-GAAP measures supplement its consolidated GAAP financial statements as
they provide a consistent basis for comparison between quarters that are not
influenced by certain non-cash items and are therefore useful to investors in
helping them to better understand the Company's operating results. In certain
instances, such as when intangibles are acquired through business acquisitions
or become fully amortized, amortization expense associated with acquired
intangibles also makes period-to-period comparisons difficult because
amortization expense may appear in one period but not in the comparable
period. Management uses these non-GAAP financial measures internally to
evaluate the Company's business performance; however, these measures are not
intended to supersede or replace the GAAP results.
Management's 2005 Outlook
Based on our current visibility into revenues and expenditures for 2005,
the Company currently projects that full year revenue will grow in the 12-14%
range and that 2005 diluted earnings per share, adjusted to exclude
acquisition-related amortization, will be in the range of $1.18 to $1.21. The
Company's current outlook relative to a GAAP diluted earnings per share
estimate will be in the range of $1.10 to $1.13. The preceding estimates do
not reflect expenses associated with employee stock options. The Company
expects to begin recording stock option expense effective January 1, 2006 in
accordance with recent guidance issued by the Securities and Exchange
Commission.
ANSYS will hold a conference call at 10:30 Eastern Time on May 3, 2005 to
discuss first quarter results as well as to provide guidance regarding
business prospects. The dial in number is 888-552-9191 and the passcode is
"ANSYS". A replay will be available until May 10, by dialing 800-348-3538.
The conference call will be webcast live as well as archived and can be
accessed, along with other financial information, on ANSYS' website, located
at www.ansys.com/corporate/investors.asp .
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. Headquartered in Canonsburg, Pennsylvania U.S.A. with more than 25
strategic sales locations throughout the world, ANSYS, Inc. employs
approximately 600 people and distributes its products through a network of
channel partners in over 40 countries. Visit www.ansys.com for more
information.
Certain statements contained in the press release regarding matters that
are not historical facts, including statements regarding our current estimates
for full year revenue growth and earnings per share 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. These include the risk of a general
economic downturn in one or more of ANSYS' primary geographic markets, 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 2004 Annual Report and Form 10-K. 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, 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 channel partners provide sales, support and training for
customers. Information about ANSYS, Inc. and its products can be found on the
Worldwide Web at www.ansys.com .
ANSYS, ANSYS Workbench, CFX, AUTODYN, and any and all ANSYS, Inc. product
and service names are registered trademarks or trademarks of ANSYS, Inc. or
its subsidiaries located in the United States or other countries. ICEM CFD is
a trademark licensed by ANSYS, Inc. All other trademarks or 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 operating profit margin and adjusted diluted earnings per share
are discussed in this earnings release because management uses this
information in evaluating the results of the continuing operations of the
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 and allows greater transparency to
supplemental information used by management in its financial and operational
decision making. Management encourages investors to review the
reconciliations of the non-GAAP financial measures to the most directly
comparable GAAP measures that are provided within the financial information
attached to this news release.
ANSYS, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
Three months ended
---------------------------
March 31, March 31,
2005 2004
------------ ------------
Revenue:
Software licenses $ 20,475 $ 16,324
Maintenance and service 17,149 15,008
Total revenue 37,624 31,332
Cost of sales:
Software licenses 1,253 1,337
Amortization of software and
acquired technology 907 755
Maintenance and service 3,858 3,083
Total cost of sales 6,018 5,175
Gross profit 31,606 26,157
Operating expenses:
Selling and marketing 6,428 6,054
Research and development 7,313 6,347
Amortization 326 287
General and administrative 4,118 3,499
Total operating expenses 18,185 16,187
Operating income 13,421 9,970
Other income 613 230
Income before income tax provision 14,034 10,200
Income tax provision 4,351 3,060
Net income $ 9,683 $ 7,140
Earnings per share - basic:
Basic earnings per share $ 0.31 $ 0.23
Weighted average shares - basic 31,492 30,630
Earnings per share - diluted:
Diluted earnings per share $ 0.29 $ 0.22
Weighted average shares - diluted 33,766 32,922
ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
For the three months ended March 31, 2005
(in thousands, except per share data)
(Unaudited)
Adjusted
As Reported Adjustments Results
------------ ------------ ------------
Revenue:
Software licenses $ 20,475 - $ 20,475
Maintenance and service 17,149 - 17,149
Total revenue 37,624 - 37,624
Cost of sales:
Software licenses 1,253 - 1,253
Amortization of software and
acquired technology 907 (762)(a) 145
Maintenance and service 3,858 - 3,858
Total cost of sales 6,018 762 5,256
Gross profit 31,606 762 32,368
Operating expenses:
Selling and marketing 6,428 - 6,428
Research and development 7,313 - 7,313
Amortization 326 (326)(a) -
General and administrative 4,118 - 4,118
Total operating expenses 18,185 (326) 17,859
Operating income 13,421 1,088 14,509
Other income 613 - 613
Income before income tax
provision 14,034 1,088 15,122
Income tax provision 4,351 381(b) 4,732
Net income $ 9,683 $ 707 $ 10,390
Earnings per share - basic:
Basic earnings per share $ 0.31 $ 0.33
Weighted average shares
- basic 31,492 31,492
Earnings per share - diluted:
Diluted earnings per share $ 0.29 $ 0.31
Weighted average shares
- diluted 33,766 33,766
(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
adjustments referred to in (a) above.
ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
For the three months ended March 31, 2004
(in thousands, except per share data)
(Unaudited)
Adjusted
As Reported Adjustments Results
------------ ------------ ------------
Revenue:
Software licenses $ 16,324 - $ 16,324
Maintenance and service 15,008 - 15,008
Total revenue 31,332 - 31,332
Cost of sales:
Software licenses 1,337 - 1,337
Amortization of software and
acquired technology 755 (617)(a) 138
Maintenance and service 3,083 - 3,083
Total cost of sales 5,175 (617) 4,558
Gross profit 26,157 617 26,774
Operating expenses:
Selling and marketing 6,054 - 6,054
Research and development 6,347 - 6,347
Amortization 287 (287)(a) -
General and administrative 3,499 - 3,499
Total operating expenses 16,187 (287) 15,900
Operating income 9,970 904 10,874
Other income 230 - 230
Income before income tax
provision 10,200 904 11,104
Income tax provision 3,060 316(b) 3,376
Net income $ 7,140 $ 588 $ 7,728
Earnings per share - basic:
Basic earnings per share $ 0.23 $ 0.25
Weighted average shares
- basic 30,630 30,630
Earnings per share - diluted:
Diluted earnings per share $ 0.22 $ 0.23
Weighted average shares
- diluted 32,922 32,922
(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
adjustments referred to in (a) above.
ANSYS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
March 31, December 31,
2005 2004
------------ ------------
ASSETS:
Cash & short-term investments $ 149,744 $ 138,446
Accounts receivable, net 17,592 18,792
Other assets 87,643 82,408
Total assets $ 254,979 $ 239,646
LIABILITIES & STOCKHOLDERS' EQUITY:
Deferred revenue $ 51,340 $ 43,906
Other liabilities 15,664 20,271
Stockholders' equity 187,975 175,469
Total liabilities & stockholders' equity $ 254,979 $ 239,646
SOURCE ANSYS, Inc.
-0- 05/03/2005
/CONTACT: Lisa O'Connor, Treasurer of ANSYS, Inc., +1-724-514-1782, or
lisa.oconnor@ansys.com /
/Web site: http://www.ansys.com
http://www.ansys.com/corporate/investors.asp /