Ansoft Corporation First Quarter Results - 19% Increase in Revenue
PITTSBURGH--Aug. 1, 20048, 2004--Ansoft Corporation today announced financial results for its first quarter of fiscal 2005 ended July 31, 2004.Revenue for the first quarter totaled $12.7 million, an increase of 19% compared to $10.7 million reported in the previous fiscal year's first quarter. Net income for the first quarter was $30,000, or $0.00 per diluted share, as compared to a net loss of $1.2 million, or ($0.10) per diluted share in the previous fiscal year's first quarter.
"Ansoft had a very successful first quarter," said Nicholas Csendes, Ansoft's President and Chief Executive Officer. "With the continued high level of activity we are experiencing worldwide, we expect to see good revenue growth and profitability for the balance of the 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 and power electronics. 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, 2004.
ANSOFT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three months
ended July 31,
2004 2003
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Revenues
License $6,169 $5,341
Service and other 6,509 5,310
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Total revenue 12,678 10,651
Cost of revenue
License 97 142
Service and other 304 248
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Total cost of revenue 401 390
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Gross profit 12,277 10,261
Costs and expenses
Sales and marketing 7,497 6,320
Research and development 3,978 3,823
General and administrative 1,064 1,111
Amortization 409 857
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Total costs and expenses 12,948 12,111
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Loss from operations (671) (1,850)
Net realized gain on sale of securities 759 -0-
Other income (expense), net (48) 261
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Income (loss) before income taxes 40 (1,589)
Income tax expense (benefit) 10 (397)
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Net income (loss) $30 $(1,192)
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Basic net income (loss) per share $0.00 $(0.10)
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Diluted net income (loss) per share $0.00 $(0.10)
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Weighted average shares used in calculation
Basic 11,664 11,672
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Diluted 13,314 11,672
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ANSOFT CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31, April 30,
2004 2004
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Assets
Current assets
Cash and cash equivalents $7,248 $15,218
Accounts receivable 6,417 10,179
Deferred income taxes 360 343
Prepaid expenses and other assets 1,668 675
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Total current assets 15,693 26,415
Equipment and furniture 3,426 3,598
Marketable securities 22,764 25,502
Other assets 381 383
Deferred taxes - non current 5,141 5,158
Goodwill 1,239 1,239
Intangible assets 4,932 5,341
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Total assets $53,576 $67,636
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Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses $1,995 $4,015
Deferred revenue 13,017 11,935
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Total current liabilities 15,012 15,950
Line of credit -0- 10,000
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Total liabilities 15,012 25,950
Stockholders' equity
Preferred stock - -
Common stock 130 129
Additional paid-in capital 59,080 58,562
Treasury stock (11,765) (9,090)
Other accumulated comprehensive income (loss) (306) 691
Accumulated deficit (8,575) (8,606)
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Total stockholders' equity 38,564 41,686
Total liabilities and stockholders' equity $53,576 $67,636
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