Ansoft Corporation Third Quarter Results: 17% Sequential Increase In Revenue
PITTSBURGH--Feb. 19, 2003--Ansoft Corporation today announced financial results for its third fiscal quarter ended January 31, 2003.Revenue for the third quarter of fiscal 2003 totaled $12.4 million, an increase of 17% as compared sequentially to $10.6 million reported in the previous quarter and a decrease of 12% as compared to $14.1 million reported in the previous fiscal year's third quarter. Net loss for the third quarter of fiscal 2003 was $58,000, essentially break even per diluted share, compared to a net income of $591,000, or $0.04 per diluted share, reported for the same quarter in the prior fiscal year.
"We had another quarter of strong sequential sales improvement," said Nick Csendes, Ansoft's President and CEO. "Despite the challenging environment, we are confident that the strategic decisions and technological advancements we have made this year will return Ansoft to growth and profitability in the coming year and beyond."
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 ended Nine months ended
January 31, January 31,
2003 2002 2003 2002
--------- -------- --------- ---------
Revenue
License $7,003 $9,722 $17,893 $25,649
Service and other 5,359 4,343 14,314 12,177
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Total revenue 12,362 14,065 32,207 37,826
Costs and expenses
Sales and marketing 6,442 6,509 19,336 19,145
Research and development 4,272 4,578 14,779 12,806
General and administrative 1,110 1,255 3,117 3,379
Amortization 905 1,175 2,831 3,533
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Total costs and expenses 12,729 13,517 40,063 38,863
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Income (loss) from operations (367) 548 (7,856) (1,037)
Other income, net 294 361 856 1,141
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Income (loss) before
income taxes (73) 909 (7,000) 104
Income tax expense (benefit) (15) 318 (1,401) 77
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Net income (loss) $(58) $591 $(5,599) $27
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Net income (loss) per share
Basic $(0.00) $0.05 $(0.47) $0.00
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Diluted $(0.00) $0.04 $(0.47) $0.00
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Weighted average shares used in
calculation
Basic 11,764 11,864 11,840 11,823
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Diluted 11,764 13,592 11,840 13,517
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ANSOFT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
January 31, April 30,
2003 2002
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Assets
Current assets
Cash and cash equivalents $5,148 $5,269
Accounts receivable 10,308 15,044
Deferred income taxes 236 236
Prepaid expenses and other assets 509 1,005
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Total current assets 16,201 21,554
Equipment and furniture 4,042 5,714
Marketable securities 22,139 22,479
Other assets 374 367
Deferred taxes - non current 5,930 4,484
Intangible assets, net 10,794 13,626
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Total assets $59,480 $68,224
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Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses $1,972 $3,292
Note payable - 1,850
Deferred revenue 8,786 8,915
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Total current liabilities 10,758 14,057
Line of credit 11,500 10,000
Other liabilities - 520
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Total liabilities 22,258 24,577
Stockholders' equity
Preferred stock - -
Common stock 122 122
Additional paid-in capital 55,127 54,939
Treasury stock (2,821) (1,671)
Other accumulated comprehensive loss (1,568) (1,704)
Accumulated deficit (13,638) (8,039)
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Total stockholders' equity 37,222 43,647
Total liabilities and stockholders' equity $59,480 $68,224
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