Ansoft Corporation Second Quarter Results - 30% Increase in Revenue
PITTSBURGH--Nov. 1, 20048, 2004--Ansoft Corporation today announced financial results for its second quarter of fiscal 2005 ended October 31, 2004.Revenue for the second quarter totaled $15.9 million, an increase of 30% compared to $12.3 million reported in the previous fiscal year's second quarter. Net income for the second quarter was $1.9 million or $0.14 per diluted share, as compared to a net loss of $(22,000), or $0.00 per diluted share in the previous fiscal year's second quarter.
"We are pleased with the continued revenue growth in both product lines and in our domestic and international markets this quarter," said Nicholas Csendes, Ansoft's President and CEO. "For the fiscal year, we anticipate revenue growth to exceed 20% with 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 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.
ANSOFT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
October 31, October 31,
2004 2003 2004 2003
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Revenue
License $8,661 $6,893 $14,830 $12,234
Service and other 7,285 5,365 13,794 10,675
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Total revenue 15,946 12,258 28,624 22,909
Costs of revenue
License 125 164 222 306
Service and other 356 272 660 520
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Total cost of revenue 481 436 882 826
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Gross profit 15,465 11,822 27,742 22,083
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Operating Expenses
Sales and marketing 7,601 6,339 15,098 12,659
Research and development 4,048 3,773 8,026 7,596
General and administrative 1,329 1,186 2,393 2,297
Amortization 384 761 793 1,618
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Total operating expenses 13,362 12,059 26,310 24,170
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Income (loss) from operations 2,103 (237) 1,432 (2,087)
Net realized gain (loss) on sale of
securities (27) -- 732 --
Other income, net 647 207 601 468
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Income (loss) before income taxes 2,723 (30) 2,765 (1,619)
Income tax expense (benefit) 834 (8) 844 (405)
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Net income (loss) $1,889 $(22) $1,921 $(1,214)
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Net income (loss) per share
Basic $0.16 $(0.00) $0.17 $(0.10)
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Diluted $0.14 $(0.00) $0.14 $(0.10)
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Weighted average shares
used in calculation
Basic 11,567 11,637 11,616 11,655
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Diluted 13,238 11,637 13,275 11,655
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ANSOFT CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
October 31, April 30,
2004 2004
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(unaudited)
Assets
Current assets
Cash and cash equivalents $8,947 $15,218
Accounts receivable, net 8,602 10,179
Deferred income taxes 576 343
Prepaid expenses and other assets 1,452 675
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Total current assets 19,577 26,415
Equipment and furniture 3,402 3,598
Marketable securities 24,871 25,502
Other assets 381 383
Deferred income taxes 4,973 5,158
Goodwill 1,239 1,239
Intangible assets 4,548 5,341
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Total assets $58,991 $67,636
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Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses $3,818 $4,015
Deferred revenue 12,802 11,935
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Total current liabilities 16,620 15,950
Line of credit 5,000 10,000
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Total liabilities 21,620 25,950
Stockholders' equity
Preferred stock - -
Common stock 131 129
Additional paid-in capital 60,462 58,562
Treasury stock (16,856) (9,090)
Accumulated other comprehensive income 319 691
Accumulated deficit (6,685) (8,606)
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Total stockholders' equity 37,371 41,686
Total liabilities and stockholders' equity $58,991 $67,636
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