CIMdata PLM Industry Summary Online Archive
24 February 2011
Financial News
ANSYS Reports Record Revenue and Earnings for Fourth Quarter and Fiscal Year 2010
Highlights
•Fourth quarter and fiscal year 2010 revenue of $166.6 million and $580.2 million, respectively
•Fourth quarter and fiscal year 2010 non-GAAP diluted EPS of $0.65 and $2.13, respectively, and GAAP diluted EPS of $0.52 and $1.64, respectively
•Fourth quarter and fiscal year 2010 non-GAAP operating profit margin of 49.7% and 49.5%, respectively, and GAAP operating profit margin of 39.3% and 37.8%, respectively
•Fourth quarter and fiscal year 2010 operating cash flow of $40.9 million and $222.0 million, respectively, excluding net cash outflows associated with the Japan restructuring announced in the third quarter
ANSYS, Inc. reported fourth quarter and fiscal year 2010 results. Total non-GAAP revenue in 2010 increased 11% over 2009 for both the fourth quarter and the fiscal year. Non-GAAP net income for the 2010 fourth quarter and fiscal year increased 23.9% and 21.0%, respectively, as compared to the 2009 fourth quarter and fiscal year. Non-GAAP diluted earnings per share increased 22.6% and 19.7% in the fourth quarter and fiscal year of 2010, respectively, as compared to the comparable 2009 periods.
"We are pleased to close out 2010 with strong quarterly and annual performance that exceeded our initial commitments of a year ago. All aspects and regions of the business made solid contributions. Throughout the year, we heightened investment in our organization, our technology offerings and our infrastructure, while delivering profitable growth. We released ANSYS® 13.0 during the fourth quarter, which positioned us even better to drive top-line growth and extend our customer relationships through the broadest, deepest and most integrated product offerings in our 40 year history. Into 2011, 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 more energy efficient, productive and sustainable. Our long-term enthusiasm for the future remains intact," commented ANSYS president & CEO Jim Cashman.
ANSYS' fourth quarter and full year 2010 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 $166.6 million in the fourth quarter of 2010 as compared to $150.6 million in the fourth quarter of 2009; total non-GAAP revenue of $580.2 million in 2010 as compared to $524.9 million in 2009; total GAAP revenue of $166.6 million in the fourth quarter of 2010 as compared to $150.4 million in the fourth quarter of 2009; total GAAP revenue of $580.2 million in 2010 as compared to $516.9 million in 2009;
•A non-GAAP operating profit margin of 49.7% in the fourth quarter of 2010 as compared to 51.5% in the fourth quarter of 2009; a non-GAAP operating profit margin of 49.5% in 2010 as compared to 48.9% in 2009; a GAAP operating profit margin of 39.3% in the fourth quarter of 2010 as compared to 40.1% in the fourth quarter of 2009; a GAAP operating profit margin of 37.8% in 2010 as compared to 35.5% in 2009;
•Non-GAAP net income (see below) of $60.6 million in the fourth quarter of 2010 as compared to $48.9 million in the fourth quarter of 2009; non-GAAP net income of $198.1 million in 2010 as compared to $163.7 million in 2009; GAAP net income of $49.1 million in the fourth quarter of 2010 as compared to GAAP net income of $37.6 million in the fourth quarter of 2009; GAAP net income of $153.1 million in 2010 as compared to GAAP net income of $116.4 million in 2009; and
•Non-GAAP diluted earnings per share (see below) of $0.65 in the fourth quarter of 2010 as compared to $0.53 in the fourth quarter of 2009; non-GAAP diluted earnings per share of $2.13 in 2010 as compared to $1.78 in 2009; GAAP diluted earnings per share of $0.52 in the fourth quarter of 2010 as compared to GAAP diluted earnings per share of $0.41 in the fourth quarter of 2009; GAAP diluted earnings per share of $1.64 in 2010 as compared to GAAP diluted earnings per share of $1.27 in 2009.
•Operating cash flows of -$25.3 million (cash outflows) in the fourth quarter of 2010 as compared to $44.9 million (cash inflows) in the fourth quarter of 2009; operating cash flows of $166.9 million for fiscal year 2010 as compared to $173.7 million for fiscal year 2009. Operating cash flows included net incremental tax payments of $66.1 million and $55.1 million in the fourth quarter and fiscal year 2010, respectively, related to the restructuring of the Company's Japan subsidiaries that was disclosed with the Company's third quarter earnings announcement and Form 10-Q. Excluding these amounts, operating cash flows were $40.9 million for the fourth quarter of 2010 and $222.0 million for fiscal year 2010.
The GAAP and non-GAAP results discussed above include the following:
•Tax benefits of approximately $2.1 million during the fourth quarter of 2010 related to the previously-announced restructuring of the Company's Japan subsidiaries;
•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; and
•Tax benefits of $2.0 million during the second quarter of 2009 related to the settlement of tax years previously under audit; and
If these items were excluded from the non-GAAP results, the Company's fourth quarter and fiscal year 2010 non-GAAP diluted earnings per share would have been $0.62 and $2.10, respectively, and the Company's fourth quarter and fiscal year 2009 non-GAAP diluted earnings per share would have been $0.56 and $1.81, respectively.
The Company's GAAP results reflect stock-based compensation charges of approximately $5.1 million ($3.8 million after tax) or $0.04 diluted earnings per share for the fourth quarter of 2010 and approximately $19.0 million ($14.8 million after tax) or $0.16 diluted earnings per share for fiscal year 2010.
The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2011 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, 2010 and 2009, and for the 2011 financial outlook, is included in the condensed financial information included in this release.
Management's 2011 Financial Outlook
The Company's 2011 revenue and earnings per share guidance is provided 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 2011 Guidance
The Company currently expects the following for the quarter ending March 31, 2011:
Revenue in the range of $151.0 - $157.0 million
GAAP diluted earnings per share of $0.41 - $0.44
Non-GAAP diluted earnings per share of $0.53 - $0.56
Fiscal Year 2011 Outlook
The Company currently expects the following for the fiscal year ending December 31, 2011:
Revenue in the range of $640.0 - $660.0 million
GAAP diluted earnings per share of $1.77 - $1.89
Non-GAAP diluted earnings per share of $2.27 - $2.35
The first quarter and fiscal year 2011 guidance reflected above includes the following estimated income tax benefits related to the previously announced restructuring of the Company's Japan subsidiaries:
First quarter 2011 estimated tax benefits: $2.0 million - $2.1 million
Fiscal year 2011 estimated tax benefits: $8.0 million - $8.4 million
Additionally, the Company expects that the restructuring of the Japan subsidiaries will positively impact 2011 cash flow operations by approximately $45.0 - $50.0 million by reducing required income tax payments.
These statements are forward-looking and actual results may differ materially. 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 24, 2011 to discuss fourth quarter and fiscal year 2010 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 447809. The archived webcast can be accessed, along with other financial information, on ANSYS' website at http://investors.ansys.com.
For unabridged press release with financial tables, please click HERE.
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