ANSYS Announces $25.3 Million in Revenue and $0.43 Adjusted Earnings Per Share for the Fourth Quarter 2002
SOUTHPOINTE, Pa., Feb. 4 -- ANSYS, Inc. , a global innovator of simulation software and
technologies aimed at optimizing customers' product development processes,
today announced fourth quarter 2002 results. ANSYS's fourth quarter results
reflect:
-- Total reported revenue increased 1% to $25.3 million from $25.1
million in the fourth quarter of 2001;
-- An overall gross profit margin of 88% and an operating margin,
excluding total amortization, of 39%;
-- Fourth quarter adjusted earnings per share, excluding the impact of
acquisition-related amortization, of $0.43 compared to $0.38 in the
fourth quarter of 2001; and reported GAAP earnings per share of $0.41
compared to $0.33 in the fourth quarter of 2001; and
-- Cash flows from operations of $6.1 million in the fourth quarter of
2002.
For the year ended December 31, 2002, ANSYS's financial results reflect:
-- Total reported revenue increased 7% to $91.0 million from $84.8
million in 2001;
-- An overall gross profit margin of 87% and an operating margin,
excluding total amortization, of 32%;
-- Adjusted earnings per share, excluding the impact of acquisition-
related amortization, for the full year of 2002 of $1.29 compared
with $1.11 in 2001; and reported GAAP earnings per share of $1.22 for
the full year of 2002 compared with $0.89 for 2001; and
-- Cash flows from operations of $22.1 million in 2002.
As previously mentioned, ANSYS reported revenue for the three- and twelve-
month periods ended December 31, 2002 of $25.3 million and $91.0 million,
respectively. In 2001, the Company modified its revenue recognition policy
for annual software lease licenses to comply with Technical Practice Aid
5100.53 "Fair Value of PCS in a Short-Term Time-Based License and Software
Revenue Recognition," issued by the American Institute of Certified Public
Accountants. Had this revenue recognition policy modification been initially
made in January 2002, revenue for the three- and twelve-month periods ended
December 31, 2002 would have been approximately $25.0 million and
$87.2 million, respectively. Beginning in 2003, this modification will no
longer impact the comparability of the Company's reported revenue.
In 2002, the Company repurchased 504,900 shares of its common stock; 1.1
million shares remain authorized under ANSYS's buyback program.
Fourth Quarter 2002 and Year Ended December 31, 2002 Reported GAAP
Results:
ANSYS reported net income for the quarter ended December 31, 2002 of
$6.3 million, or $0.41 diluted earnings per share, based on 15.4 million
weighted average common shares outstanding. For the quarter ended
December 31, 2001, ANSYS reported net income of $5.1 million, or $0.33 diluted
earnings per share, based on 15.7 million weighted average common shares
outstanding. For the year ended December 31, 2002, ANSYS reported net income
of $19.0 million, or $1.22 diluted earnings per share, based on 15.6 million
weighted average common shares outstanding. For the year ended December 31,
2001, ANSYS reported net income of $13.7 million, or $0.89 diluted earnings
per share, based on 15.4 million weighted average common shares outstanding.
Jim Cashman, ANSYS President and CEO, stated, "We believe that our solid
fourth quarter and fiscal year 2002 results continue to reflect ANSYS's
strength in the marketplace, despite the challenges of difficult economic
conditions affecting the software industry. Although these economic elements
are beyond our control, ANSYS continues to focus on long-term growth combined
with disciplined expense control to maintain earnings during times of
increased unpredictability in our customers' buying patterns."
Cashman further commented, "Looking into 2003, we see continued
opportunity to increase shareholder value through our adherence to our
strategic plan. This plan includes investing our resources to extend our core
product and service offerings, strengthening and expanding our distribution
channels and completing strategic acquisitions when opportunities arise. Our
balance sheet strengthened in 2002 to end the year with $61.1 million in cash
and short-term investments and no debt. ANSYS remains committed to delivering
superior value to our customers which, in turn, we believe will increase
shareholder value over the long run."
Recent Highlights
Consistent with the strategic plan, this morning the Company announced it
has entered into a definitive agreement to acquire the outstanding common
shares of the CFX Business (CFX) from AEA Technology plc (London: AAT) for
approximately $21 million in cash. CFX is a leading provider of fluid
mechanics simulation software that develops, markets and supports
computational fluid dynamics software products and services for customers to
measure and regulate the flow of fluids during industrial processes. With
over 4,000 active users, CFX has sales, support and consulting offices around
the world. When completed, the combination of CFX's technology with ANSYS's
existing strength in solid mechanics will allow ANSYS to simulate more of its
customers' products and the environments surrounding them. Please refer to
the ANSYS press release "ANSYS to Acquire CFX, A Leading Provider of
Computational Fluid Dynamics Simulation Software and Services."
Additionally, during the fourth quarter ANSYS unveiled FEMXplorer, its
first product featuring the implementation of CADOE variational technology
acquired in late 2001. Another new product announced in the fourth quarter
was AI*NASTRAN, an alternative NASTRAN product developed through a strategic
OEM partnership with Schaeffer Automated Simulation.
As previously announced, ANSYS will hold a conference call at 10:30 A.M.
Eastern Time on February 4, 2003 to discuss fourth quarter results and the
proposed CFX acquisition, as well as to provide guidance regarding 2003
business prospects. The dial in number is 800-857-7001 and the passcode is
"ANSYS". A replay will be available until February 6, 2003 by dialing
800-756-9736. The conference call will be webcast live and can be accessed,
along with other financial information, on ANSYS' website, located at
http://www.ansys.com.
Some matters discussed in this news release constitute forward-looking
statements under the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 that involve risks and uncertainties. These
forward-looking statements include statements with respect to our future
growth prospects, technology innovation and development of key strategic
partnerships, our strength in the marketplace despite difficult economic
conditions, our ability to maintain earnings through expense control despite
increased unpredictability in our customer's buying patterns, our ability to
increase shareholder value through by focusing on extending our core product
and service offerings, strengthening and expanding our distribution channels
and completing strategic acquisitions.
All forward-looking statements in this press release are subject to risks
and uncertainties, such as the risk of a general economic downturn in one or
more of ANSYS' primary geographic markets, the risk that ANSYS has
overestimated its ability to maintain growth and profitability and control
costs in the current economic environment, the risk that ANSYS' sales will be
adversely impacted at a later stage in the current economic downturn,
uncertainties regarding the demand for ANSYS' products and services in future
periods, the risk that ANSYS has overestimated the strength of the demand
among its customers for its products in an unstable economy, risks of problems
arising from customer contract cancellations, uncertainties regarding customer
acceptance of new products, the risk that ongoing pressure on customer
spending will not allow investment in sales, technology innovation and
development of key strategic partnerships, the risk that the Company will not
be able to steer through subdued business conditions caused by persistent
global economic sluggishness, the risk that ANSYS' strategic plan will not
increase shareholder value over the long run, the risk that ANSYS' operating
results will be adversely affected by possible delays in developing,
completing, or shipping new or enhanced products, the risk that changes in the
price of our common stock or the existence of competing uses for available
cash will affect our willingness to continue the stock repurchase program,
uncertainties regarding fluctuations in quarterly results, including
uncertainties regarding the timing of orders from significant customers and
regional economies, and other factors that are detailed from time to time in
reports filed by ANSYS, Inc. with the Securities and Exchange Commission,
including ANSYS, Inc.'s 2001 Annual Report and Form 10-K and the most recent
quarterly report on Form 10-Q.
ANSYS, Inc. is committed to providing the most open and flexible analysis
solutions to meet customer requirements for engineering software in today's
competitive marketplace. ANSYS, Inc. partners with leading design software
suppliers to develop state-of-the-art CAD-integrated products. ANSYS and its
global network of ANSYS Support Distributors provide sales, support and
training for customers. Information about ANSYS, Inc. and its products can be
found on the Worldwide Web at http://www.ansys.com.
Note to editors: ANSYS, ANSYS*EMAX, AI*NASTRAN, ANSYS*Environment, CADOE
and DesignSpace are Trademarks or registered Trademarks of subsidiaries of
ANSYS, Inc. located in the United States or other countries. All other
trademarks and registered trademarks are the property of their respective
owners.
ANSYS, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31, December 31, December 31,
2002 2001 2002 2001
Revenue:
Software licenses $14,052 $14,381 $48,177 $45,318
Maintenance and
service 11,215 10,692 42,834 39,518
Total revenue 25,267 25,073 91,011 84,836
Cost of sales:
Software licenses 1,041 1,241 3,897 4,726
Maintenance and
service 2,038 1,792 7,863 6,627
Total cost
of sales 3,079 3,033 11,760 11,353
Gross profit 22,188 22,040 79,251 73,483
Operating expenses:
Selling and
marketing 4,997 5,310 20,089 19,726
Research and
development 4,693 4,322 19,605 16,893
Amortization 565 1,347 2,289 5,271
General and
administrative 2,632 3,399 10,194 13,045
Total operating
expenses 12,887 14,378 52,177 54,935
Operating income 9,301 7,662 27,074 18,548
Other income (expense) (215) (160) 311 1,434
Income before income
tax provision 9,086 7,502 27,385 19,982
Income tax provision 2,817 2,404 8,426 6,290
Net income $6,269 $5,098 $18,959 $ 13,692
Net income per basic
common share:
Basic earnings
per share $0.43 $0.35 $1.30 $0.94
Weighted average
shares - basic 14,557 14,427 14,598 14,554
Net income per
diluted common share:
Diluted earnings per
share $0.41 $0.33 $1.22 $0.89
Weighted average
shares - diluted 15,374 15,693 15,594 15,438
Net income before acquisition-
related amortization: $6,552 $5,972 $20,091 $17,144
Adjusted diluted
earnings per share $0.43 $0.38 $1.29 $1.11
ANSYS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2002 2001
(Unaudited) (Unaudited)
ASSETS:
Cash & short-term investments $61,132 $53,448
Accounts receivable, net 15,875 15,352
Other assets 49,424 48,962
Total assets $126,431 $117,762
LIABILITIES & STOCKHOLDERS' EQUITY:
Current liabilities $35,238 $43,369
Stockholders' equity 91,193 74,393
Total liabilities &
stockholders' equity $126,431 $117,762