CIMdata PLM Industry Summary Online Archive
7 August 2008
Financial News
ANSYS, Inc. Reports Second Quarter 2008 Financial Results
• Announces Results for Another Very Strong Quarter
• Closes Ansoft Acquisition and Provides Consolidated Guidance for 2008
ANSYS, Inc. announced solid second quarter non-GAAP operating results. Additionally, on July 31, 2008, ANSYS successfully completed its acquisition of Ansoft Corporation.
Commenting on the second quarter performance, Jim Cashman, ANSYS President and CEO stated, "This quarter's results accentuate the momentum of recent quarters and the ANSYS multi-year trajectory. Even amid various geographic economic concerns, our diversified global reach, our resilient business model and our technical innovations continue to drive customer demand. With global competition, the growing need for energy efficiencies, and stricter environmental and regulatory mandates, customers are increasingly using simulation to realize their goals for innovative product development and value creation. These factors, coupled with the dedication and focus of the ANSYS team, continue to enable us to deliver on our commitments."
ANSYS' second quarter and year-to-date 2008 financial results are available here. The non-GAAP results exclude the income statement effects of stock-based compensation and acquisition-related amortization of intangible assets. The 2007 non-GAAP results also exclude the effects of purchase accounting adjustments to deferred revenue. Non-GAAP and GAAP results reflect:
Total non-GAAP revenue of $111.2 million in the second quarter of 2008 as compared to $92.3 million in the second quarter of 2007; total non-GAAP revenue of $220.8 million in the first six months of 2008 as compared to $181.9 million in the first six months of 2007; total GAAP revenue of $111.2 million in the second quarter of 2008 as compared to $92.2 million in the second quarter of 2007; total GAAP revenue of $220.8 million in the first six months of 2008 as compared to $180.1 million in the first six months of 2007;
A non-GAAP operating profit margin of 48.4% in the second quarter of 2008 as compared to 43.4% in the second quarter of 2007; a non-GAAP operating profit margin of 47.9% in the first six months of 2008 as compared to 43.0% in the first six months of 2007; a GAAP operating profit margin of 39.4% in the second quarter of 2008 as compared to 33.0% in the second quarter of 2007; a GAAP operating profit margin of 38.8% in the first six months of 2008 as compared to 31.8% in the first six months of 2007;
Non-GAAP net income of $34.7 million in the second quarter of 2008 as compared to $24.6 million in the second quarter of 2007; non-GAAP net income of $67.2 million in the first six months of 2008 as compared to $48.1 million in the first six months of 2007; GAAP net income of $28.1 million in the second quarter of 2008 as compared to GAAP net income of $18.3 million in the second quarter of 2007; GAAP net income of $54.0 million in the first six months of 2008 as compared to GAAP net income of $34.4 million in the first six months of 2007; and
Non-GAAP diluted earnings per share of $0.42 in the second quarter of 2008 as compared to $0.30 in the second quarter of 2007; non-GAAP diluted earnings per share of $0.82 in the first six months of 2008 as compared to $0.59 in the first six months of 2007; GAAP diluted earnings per share of $0.34 in the second quarter of 2008 as compared to GAAP diluted earnings per share of $0.23 in the second quarter of 2007; GAAP diluted earnings per share of $0.66 in the first six months of 2008 as compared to GAAP diluted earnings per share of $0.43 in the first six months of 2007.
The Company's GAAP results reflect stock-based compensation charges of approximately $3.2 million ($2.5 million after tax) or $0.03 diluted earnings per share for the second quarter of 2008 and approximately $5.9 million ($4.7 million after tax) or $0.06 diluted earnings per share for the first six months of 2008.
The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2008 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, 2008 and 2007, and for the 2008 financial outlook, is included in the condensed financial information included in this release.
"Compared to a year ago, this quarter's revenues increased over 20% while non-GAAP diluted earnings per share increased 40%. Our continuing focus on our customers and our technology has produced record cash flows from operations of $55.1 million for the second quarter and $92.3 million for the first six months of 2008, which has allowed us to pay off the balance of the Fluent debt on June 30, 2008, well ahead of the 2011 contractual payment date. Based on our first half performance, as well as the closing of the Ansoft acquisition on July 31, 2008, we are updating our third quarter and 2008 full year guidance to include the impact of the combined operations beginning August 1, 2008," said Cashman.
Management's Remaining 2008 Financial Outlook
The Company has provided its 2008 revenue and earnings per share guidance below. The earnings per share guidance is provided on both a GAAP basis and a non-GAAP basis. Non-GAAP diluted earnings per share excludes charges for stock-based compensation, purchase accounting adjustments to deferred revenue and acquisition-related amortization of intangible assets.
Third Quarter 2008 Guidance
The Company currently expects the following for the quarter ending September 30, 2008:
GAAP revenue in the range of $115 - $121 million
Non-GAAP revenue in the range of $123 - $127 million
GAAP diluted earnings per share of $0.19 - $0.24
Non-GAAP diluted earnings per share of $0.36 - $0.37
Fiscal Year 2008 Guidance
The Company currently expects the following for the fiscal year ending December 31, 2008:
GAAP revenue in the range of $476 - $486 million
Non-GAAP revenue in the range of $493 - $499 million
GAAP diluted earnings per share of $1.09 - $1.19
Non-GAAP diluted earnings per share of $1.61 - $1.64
Non-GAAP revenue and diluted earnings per share are supplemental financial measures and should not be considered as a substitute for, or superior to, revenue and diluted earnings per share determined in accordance with GAAP.
Conference Call Information
ANSYS will hold a conference call at 10:30 a.m. Eastern Time on August 7, 2008 to discuss second quarter results and the Ansoft closing. The call will be recorded and a replay will be available approximately two hours after the call ends. The replay will be available for one week by dialing 888-203-1112or 719-457-0820 and entering the passcode 5701438. The archived webcast can be accessed, along with other financial information, on ANSYS' website at http://www.ansys.com/corporate/investors.asp
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