Ansoft Corporation Second Quarter Results - 14% Sequential Increase in Revenue
PITTSBURGH--Nov. 20, 2002--Ansoft Corporation today announced financial results for its second fiscal quarter ended October 31, 2002.Revenue for the second quarter of fiscal 2003 totaled $10.6 million, an increase of 14% as compared sequentially to $9.3 million reported in the previous quarter and a decrease of 16% as compared to $12.5 million reported in the previous fiscal year's second quarter. Net loss for the second quarter of fiscal 2003 was $2.2 million, or $0.19 per diluted share, compared to a net loss of $65,000, or $0.01 per diluted share, reported for the same quarter in the prior fiscal year.
"Although business conditions continue to be tough, we saw momentum building throughout the quarter and expect sales to continue to improve back to record levels by our fourth quarter," said Nick Csendes, President and CEO of Ansoft. "We also made some critical decisions to refocus our core software business which should bring us back to profitability in Q3."
Ansoft is a leading developer of high-performance electronic design automation (EDA) software. Engineers use Ansoft software to design state-of-the-art electronic products, such as cellular phones, Internet-access devices, broadband networking components and systems, integrated circuits (ICs), printed circuit boards (PCBs), automotive electronic systems, power electronics, and fuel-cell technology. Ansoft markets its products worldwide through its own direct sales force and has comprehensive customer-support and training offices throughout North America, Asia, and Europe.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve risks and uncertainties about the Company's business that are detailed from time to time in the Company's SEC reports, including the reports on Form 10-K for the year ended April 30, 2002.
ANSOFT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three months Six months
ended Oct. 31, ended Oct. 31,
2002 2001 2002 2001
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Revenue
License $5,845 $8,368 $10,890 $15,927
Service and other 4,712 4,172 8,955 7,834
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Total revenue 10,557 12,540 19,845 23,761
Costs and expenses
Sales and marketing 6,370 6,455 12,894 12,636
Research and development 4,005 3,105 8,046 6,107
Research and development
- Altra Broadband 1,358 1,090 2,461 2,028
General and administrative 975 1,186 2,007 2,217
Amortization 917 1,175 1,926 2,358
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Total costs and expenses 13,625 13,011 27,334 25,346
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Loss from operations (3,068) (471) (7,489) (1,585)
Other income, net 320 378 562 780
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Loss before income taxes (2,748) (93) (6,927) (805)
Income tax benefit 550 28 1,386 242
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Net loss $(2,198) $(65) $(5,541) $(563)
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Net loss per share
Basic $(0.19) $(0.01) $(0.47) $(0.05)
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Diluted $(0.19) $(0.01) $(0.47) $(0.05)
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Weighted average shares
used in calculation
Basic 11,817 11,836 11,878 11,796
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Diluted 11,817 11,836 11,878 11,796
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ANSOFT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 31, April 30,
2002 2002
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Assets
Current assets
Cash and cash equivalents $3,807 $5,269
Accounts receivable 9,884 15,044
Deferred income taxes 236 236
Prepaid expenses and other assets 850 1,005
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Total current assets 14,777 21,554
Equipment and furniture 4,760 5,714
Marketable securities 21,295 22,479
Other assets 374 367
Deferred taxes - non current 5,870 4,484
Intangible assets, net 11,699 13,626
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Total assets $58,775 $68,224
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Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses $2,532 $3,292
Note payable 1,850
Deferred revenue 8,576 8,915
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Total current liabilities 11,108 14,057
Line of credit 11,500 10,000
Other liabilities 295 520
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Total liabilities 22,903 24,577
Stockholders' equity
Preferred stock
Common stock 122 122
Additional paid-in capital 55,074 54,939
Treasury stock (2,647) (1,671)
Other accumulated comprehensive loss (3,097) (1,704)
Accumulated deficit (13,580) (8,039)
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Total stockholders' equity 35,872 43,647
Total liabilities and stockholders' equity $58,775 $68,224
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