CIMdata PLM Industry Summary Online Archive
25 February 2010
Financial News
ANSYS Reports Revenue and Earnings Growth for Fourth Quarter and Fiscal Year 2009, Updates Outlook
Highlights
•Fourth quarter and fiscal year 2009 non-GAAP revenue of $150.6 million and $524.9 million, respectively.
•Fourth quarter and fiscal year 2009 non-GAAP diluted EPS of $0.53 and $1.78, respectively, or $0.56 and $1.81, respectively, excluding certain items.
•Fourth quarter and fiscal year 2009 operating cash flow of $44.9 million and $173.7 million, respectively.
ANSYS, Inc. reported its fiscal fourth quarter and full year 2009 results.
"In addition to the financial results, there were three encouraging aspects to a very chaotic 2009. Foremost, the core thesis of ANSYS was validated and amplified as simulation not only provided transformational advantage to our customers in difficult times, but also aided in the survival of companies during increasingly competitive times. Secondly, the business model that supports this mission continued to prove high resiliency over a wide range of economic environments over the past decade. And lastly, ANSYS demonstrated agility with its nimble response to the tumult in the market. The fourth quarter presented us with a combination of both challenges and opportunities. ANSYS' ability to deliver solid financial results was driven by our tight alignment with our customers' research and product development priorities, our broad portfolio of product solutions, and solid execution by our global workforce and channel partners," commented ANSYS President & CEO Jim Cashman.
ANSYS' fourth quarter and full year 2009 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. Non-GAAP and GAAP results reflect:
•Total non-GAAP revenue of $150.6 million in the fourth quarter of 2009 as compared to $143.3 million in the fourth quarter of 2008; total non-GAAP revenue of $524.9 million in 2009 as compared to $493.0 million in 2008; total GAAP revenue of $150.4 million in the fourth quarter of 2009 as compared to $135.3 million in the fourth quarter of 2008; total GAAP revenue of $516.9 million in 2009 as compared to $478.3 million in 2008;
•A non-GAAP operating profit margin of 51.5% in the fourth quarter of 2009 as compared to 48.8% in the fourth quarter of 2008; a non-GAAP operating profit margin of 48.9% in 2009 as compared to 47.5% in 2008; a GAAP operating profit margin of 40.1% in the fourth quarter of 2009 as compared to 33.8% in the fourth quarter of 2008; a GAAP operating profit margin of 35.5% in 2009 as compared to 35.5% in 2008;
•Non-GAAP net income (see below) of $48.9 million in the fourth quarter of 2009 as compared to $46.6 million in the fourth quarter of 2008; non-GAAP net income of $163.7 million in 2009 as compared to $152.4 million in 2008; GAAP net income of $37.6 million in the fourth quarter of 2009 as compared to GAAP net income of $31.9 million in the fourth quarter of 2008; GAAP net income of $116.4 million in 2009 as compared to GAAP net income of $111.7 million in 2008; and
•Non-GAAP diluted earnings per share (see below) of $0.53 in the fourth quarter of 2009 as compared to $0.50 in the fourth quarter of 2008; non-GAAP diluted earnings per share of $1.78 in 2009 as compared to $1.76 in 2008; GAAP diluted earnings per share of $0.41 in the fourth quarter of 2009 as compared to GAAP diluted earnings per share of $0.34 in the fourth quarter of 2008; GAAP diluted earnings per share of $1.27 in 2009 as compared to GAAP diluted earnings per share of $1.29 in 2008.
•Operating cash flows of $44.9 million in the fourth quarter of 2009 as compared to $61.7 million in the fourth quarter of 2008; operating cash flows of $173.7 million for fiscal year 2009 as compared to $196.7 million for fiscal year 2008.
The GAAP and non-GAAP results discussed above include the following:
•Restructuring charges of $870,000 ($560,000 after tax) and $3.7 million ($2.4 million after tax) during the fourth quarter and fiscal year 2009, respectively;
•Tax charges of $2.0 million during the fourth quarter of 2009 related to the repatriation of cash from the Company's international subsidiaries;
•Tax benefits of $2.0 million during the second quarter of 2009 related to the settlement of tax years previously under audit; and
•Tax benefits of $2.0 million during the fourth quarter of 2008 related to U.S. research and development activities that occurred during the first nine months of 2008. These amounts were recorded in the fourth quarter of 2008 when the U.S. government approved the related tax credits retroactive to January 1, 2008.
If these items were excluded from the non-GAAP results, the Company's fourth quarter and fiscal year 2009 non-GAAP diluted earnings per share would have been $0.56 and $1.81, respectively, and the Company's fourth quarter and fiscal year 2008 non-GAAP diluted earnings per share would have been $0.48 and $1.76, respectively.
The Company's GAAP results reflect stock-based compensation charges of approximately $3.9 million ($3.1 million after tax) or $0.03 diluted earnings per share for the fourth quarter of 2009 and approximately $13.2 million ($10.5 million after tax) or $0.11 diluted earnings per share for 2009.
The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2010 discussed below, represent non-GAAP financial measures. A reconciliation of these measures to the appropriate GAAP measures, for the three months and twelve months ended December 31, 2009 and 2008, and for the 2010 financial outlook, is included in the condensed financial information included in this release.
"During 2009 we further strengthened our infrastructure, our organization and our technology offerings, while still being able to deliver profitable growth. Looking ahead, all of the factors driving simulation remain in full force as companies strive to compete with next generation products, and with smarter products that are increasingly energy efficient and productive. While we anticipate ongoing pressure on customer capital spending and some prolonged sales cycles, our long-term enthusiasm for the future remains. With the prospects of global recovery that should strengthen with time, we continue to focus on our vision while operating a business that has demonstrated a fair amount of resiliency to economic uncertainty," stated Mr. Cashman.
Management's 2010 Financial Outlook
The Company has updated its 2010 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 and acquisition-related amortization of intangible assets.
First Quarter 2010 Guidance
The Company currently expects the following for the quarter ending March 31, 2010:
Revenue in the range of $125.0 - $131.0 million
GAAP diluted earnings per share of $0.28 - $0.32
Non-GAAP diluted earnings per share of $0.40 - $0.43
Fiscal Year 2010 Outlook
The Company currently expects the following for the fiscal year ending December 31, 2010:
Revenue in the range of $550.0 - $575.0 million
GAAP diluted earnings per share of $1.34 - $1.47
Non-GAAP diluted earnings per share of $1.84 - $1.93
These statements are forward-looking and actual results may differ materially. ANSYS is unable to predict the likely duration and severity of the current disruption in the domestic and global economies. Should these economic conditions continue to deteriorate further, it could result in ANSYS not meeting the guidance provided above and ANSYS' operating results and financial performance could be adversely affected. Non-GAAP diluted earnings per share is a supplemental financial measure and should not be considered as a substitute for, or superior to, 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 February 25, 2010 to discuss fourth quarter and YTD 2009 results. The call will be recorded and a replay will be available approximately one hour after the call ends. The replay will be available for ten days by dialing 877-344-7529 (US), or 412-317-0088 (Canada and Int'l) and entering the passcode 437272. The archived webcast can be accessed, along with other financial information, on ANSYS' website at http://investors.ansys.com.
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