Ansoft Corporation Fourth Quarter Results -- 109% Increase in Net Income
PITTSBURGH--May 28, 2003--Ansoft Corporation today announced financial results for its fourth quarter and fiscal year ended April 30, 2003.Revenue for the fourth quarter of fiscal 2003 totaled $15.1 million, an increase of 22% as compared sequentially to $12.4 million reported in the previous quarter and a decrease of 3% as compared to $15.6 million reported in the previous fiscal year's fourth quarter. Net income for the fourth quarter of fiscal 2003 increased 109% to $2.5 million, or $0.20 per diluted share, compared to net income of $1.2 million, or $0.09 per diluted share, reported for the same quarter in the prior fiscal year.
"We had a strong finish to a tough year," said Nick Csendes, President and CEO of Ansoft. "Even in this challenging environment, the positive momentum we see gives us confidence that we will grow between 10%-15% in the coming year and increase profitability."
Revenue for the 2003 fiscal year totaled $47.3 million, a decrease of 11% as compared to $53.4 million reported in the previous fiscal year. Net loss for the 2003 fiscal was $3.1 million, or ($0.26) per diluted share, compared to net income of $1.2 million, or $0.09 per diluted share, reported in the prior fiscal year.
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 Fiscal year
ended April 30, ended April 30,
2003 2002 2003 2002
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Revenue
License $ 9,647 $11,034 $27,540 $36,683
Service and other 5,465 4,575 19,779 16,752
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Total revenue 15,112 15,609 47,319 53,435
Costs and expenses
Sales and marketing 6,632 7,050 25,968 26,195
Research and development 3,809 4,900 18,588 17,705
General and administrative 1,168 1,176 4,285 4,555
Amortization 892 1,175 3,723 4,709
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Total costs and expenses 12,501 14,301 52,564 53,164
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Income (loss) from operations 2,611 1,308 (5,245) 271
Other income, net 296 206 1,152 1,347
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Income (loss) before income taxes 2,907 1,514 (4,093) 1,618
Income tax expense (benefit) 431 328 (970) 404
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Net income (loss) $ 2,476 $ 1,186 $(3,123) $ 1,214
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Net income (loss) per share
Basic $ 0.21 $ 0.10 $ (0.26) $ 0.10
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Diluted $ 0.20 $ 0.09 $ (0.26) $ 0.09
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Weighted average shares used
in calculation
Basic 11,715 11,907 11,809 11,844
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Diluted 12,488 13,844 11,809 13,649
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ANSOFT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, April 30,
2003 2002
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Assets
Current assets
Cash and cash equivalents $ 7,173 $ 5,269
Accounts receivable 13,968 15,044
Deferred income taxes 274 236
Prepaid expenses and other assets 842 1,005
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Total current assets 22,257 21,554
Equipment and furniture 3,829 5,714
Marketable securities 21,785 22,479
Other assets 436 367
Deferred taxes - non current 4,945 4,484
Intangible assets, net 9,902 13,626
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Total assets $ 63,154 $68,224
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Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses $ 2,449 $ 3,292
Note payable - 1,850
Deferred revenue 10,879 8,915
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Total current liabilities 13,328 14,057
Line of credit 10,000 10,000
Other liabilities - 520
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Total liabilities 23,328 24,577
Stockholders' equity
Preferred stock - -
Common stock 123 122
Additional paid-in capital 55,522 54,939
Treasury stock (3,954) (1,671)
Other accumulated comprehensive loss (703) (1,704)
Accumulated deficit (11,162) (8,039)
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Total stockholders' equity 39,826 43,647
Total liabilities and stockholders' equity $ 63,154 $68,224
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