Ansoft Corporation Second Quarter Results - 16% Increase in Revenue
PITTSBURGH--Nov. 1, 20039, 2003--Ansoft Corporation today announced financial results for its second quarter of fiscal 2004 ended October 31, 2003.Revenue for the second quarter totaled $12.3 million, an increase of 16% compared to $10.6 million reported in the previous fiscal year's second quarter. Net loss for the second quarter was $22,000, essentially break even per diluted share, as compared to a net loss of $2.2 million, or $0.19 per diluted share in the previous fiscal year's second quarter.
"We are pleased with our continued growth this quarter," said Nicholas Csendes, Ansoft's President and CEO. "For the full fiscal year, our guidance remains intact with growth of between 10% and 15% and increasing profitability."
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, 2003. ANSOFT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (unaudited)
Three months ended Six months ended
October 31, October 31,
2003 2002 2003 2002
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Revenue
License $ 6,893 $ 5,845 $12,234 $10,890
Service and other 5,365 4,712 10,675 8,955
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Total revenue 12,258 10,557 22,909 19,845
Costs of revenue
License 164 157 306 382
Service and other 272 232 520 454
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Total cost of revenue 436 389 826 836
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Gross profit 11,822 10,168 22,083 19,009
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Operating Expenses
Sales and marketing 6,339 6,042 12,659 12,272
Research and development 3,773 5,363 7,596 10,507
General and administrative 1,186 975 2,297 2,007
Amortization 761 856 1,618 1,712
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Total operating expenses 12,059 13,236 24,170 26,498
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Income (loss) from operations (237) (3,068) (2,087) (7,489)
Other income, net 207 320 468 562
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Income (loss) before income
taxes (30) (2,748) (1,619) (6,927)
Income tax expense (benefit) (8) (550) (405) (1,386)
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Net income (loss) $ (22) $(2,198) $(1,214) $(5,541)
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Net income (loss) per share
Basic $ (0.00) $ (0.19) $ (0.10) $ (0.47)
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Diluted $ (0.00) $ (0.19) $ (0.10) $ (0.47)
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Weighted average shares used in
calculation
Basic 11,637 11,817 11,655 11,878
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Diluted 11,637 11,817 11,655 11,878
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ANSOFT CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands)
October 31, April 30,
2003 2003
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Assets (unaudited)
Current assets
Cash and cash equivalents $ 6,886 $ 7,173
Accounts receivable 9,668 13,968
Deferred income taxes 274 310
Prepaid expenses and other assets 946 842
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Total current assets 17,774 22,293
Equipment and furniture 3,723 3,829
Marketable securities 24,395 21,785
Other assets 415 436
Deferred taxes - non current 5,380 4,909
Goodwill 1,239 1,239
Intangible assets 6,974 8,663
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Total assets $ 59,900 $ 63,154
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Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses $ 1,817 $ 2,449
Deferred revenue 9,902 10,879
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Total current liabilities 11,719 13,328
Line of credit 10,000 10,000
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Total liabilities 21,719 23,328
Stockholders' equity
Preferred stock - -
Common stock 124 123
Additional paid-in capital 56,178 55,522
Treasury stock (5,656) (3,954)
Other accumulated comprehensive income
(loss) (89) (703)
Accumulated deficit (12,376) (11,162)
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Total stockholders' equity 38,181 39,826
Total liabilities and stockholders' equity $ 59,900 $ 63,154
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