CIMdata PLM Industry Summary Online Archive
3 May 2005
Financial News
ANSYS Announces First Quarter 2005 Results
ANSYS, Inc. 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 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 http://www.ansys.com/corporate/investors.asp .
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