Ansoft Corporation Pre-Tax Income Increases 30%
PITTSBURGH--Ansoft Corporation today announced financial results for its second quarter of fiscal 2007 ended October 31, 2006. All references to share and per share information, except shares authorized, included in this press release have been adjusted to reflect the two-for-one stock split effected in the form of a stock dividend that was declared on March 7, 2006 and distributed on May 9, 2006.
Revenue for the second quarter totaled $20.5 million, an increase of 14% compared to $18 million reported in the previous fiscal year's second quarter.
On a generally accepted accounting principles (GAAP) basis, net income for the second quarter was $3.7 million, or $0.14 per diluted share compared to GAAP net income of $4.1 million, or $0.16 per diluted share in the previous fiscal year's second quarter. Net income for the prior fiscal year’s second quarter included a tax benefit of $1.0 million, or $0.04 per diluted share for a federal tax credit and refund related to foreign taxes previously paid.
GAAP net income for the second quarter includes employee stock-based compensation expense of $0.6 million, or $0.02 per diluted share. The previous fiscal year’s second quarter net income did not include employee stock-based compensation expense.
Additionally, GAAP net income for the second quarter includes acquisition related amortization of $0.3 million, or $0.01 per diluted share. This compares to acquisition related amortization of $0.4 million, or $0.01 per diluted share in the previous fiscal year’s second quarter.
“We are pleased to report strong revenue and pre-tax earnings growth for the second quarter,” said Nicholas Csendes, Ansoft’s President and CEO. “For the balance of the fiscal year, we expect continued revenue growth of around 10-15%.”
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 including those related to revenue and earnings growth for the current fiscal year that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially, including, but not necessarily limited to, management’s ability to forecast revenues and control expenses and the amount, timing and structure of software licenses.
For further information regarding risks and uncertainties associated with Ansoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of Ansoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained at Ansoft’s website at www.ansoft.com/about/investor/index.cfm.
All information in this release is as of November 14, 2006. Ansoft undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
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ANSOFT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (unaudited) |
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| 2006 | 2005 | 2006 | 2005 | |||||||
| Revenue | ||||||||||
| License | $ 10,938 | $ 9,123 | $ 19,123 | $ 15,943 | ||||||
| Service and other | 9,568 | 8,905 | 18,706 | 16,875 | ||||||
| Total revenue | 20,506 | 18,028 | 37,829 | 32,818 | ||||||
| Costs of revenue | ||||||||||
| License | 141 | 134 | 261 | 233 | ||||||
| Service and other | 360 | 322 | 693 | 651 | ||||||
| Total cost of revenue | 501 | 456 | 954 | 884 | ||||||
| Gross profit | 20,005 | 17,572 | 36,875 | 31,934 | ||||||
| Operating Expenses | ||||||||||
| Sales and marketing | 8,138 | 7,321 | 15,616 | 14,464 | ||||||
| Research and development | 4,730 | 4,129 | 9,556 | 8,189 | ||||||
| General and administrative | 1,240 | 1,187 | 2,624 | 2,570 | ||||||
| Amortization | 346 | 369 | 692 | 738 | ||||||
| Total operating expenses | 14,454 | 13,006 | 28,488 | 25,961 | ||||||
| Income from operations | 5,551 | 4,566 | 8,387 | 5,973 | ||||||
| Net realized loss on sale of securities |
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| Other income, net | 577 | 140 | 1,392 | 480 | ||||||
| Income before income taxes | 6,128 | 4,706 | 9,779 | 6,451 | ||||||
| Income tax expense | 2,418 | 611 | 3,780 | 1,187 | ||||||
| Net income | $ 3,710 | $ 4,095 | $ 5,999 | $ 5,264 | ||||||
| Net income per share | ||||||||||
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Basic |
$ 0.16 | $ 0.17 | $ 0.25 | $ 0.22 | |||||
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Diluted |
$ 0.14 | $ 0.16 | $ 0.23 | $ 0.20 | |||||
| Weighted average shares used in calculation | ||||||||||
| Basic | 23,609 | 23,588 | 23,609 | 23,710 | ||||||
| Diluted | 26,151 | 25,784 | 26,165 | 25,890 | ||||||
All share and per share information has been adjusted to reflect the two-for-one stock split effected in the form of 100% stock dividend that was declared on March 7, 2006 and distributed on May 9, 2006.
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ANSOFT CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (unaudited) |
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| October 31, | April 30, | |||
| 2006 | 2006 | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $ 19,862 | $ 16,456 | ||
| Accounts receivable, net of allowance for doubtful Accounts of $770 and $545, respectively | ||||
| 12,226 | 20,264 | |||
| Deferred income taxes | 164 | 164 | ||
| Prepaid expenses and other assets | 2,381 | 1,938 | ||
| Total current assets | 34,633 | 38,822 | ||
| Equipment and furniture, net of accumulated depreciation of $6,745 and $6,249, respectively | ||||
| 2,424 | 2,599 | |||
| Marketable securities | 38,903 | 33,621 | ||
| Other assets | 154 | 131 | ||
| Deferred income taxes | 6,436 | 6,226 | ||
| Goodwill | 1,239 | 1,239 | ||
| Other intangible assets, net | 1,750 | 2,442 | ||
| Total assets | $ 85,539 | $ 85,080 | ||
| Liabilities and stockholders' equity | ||||
| Current liabilities | ||||
| Accounts payable | $ 228 | $ 274 | ||
| Accrued payroll | 1,210 | 3,027 | ||
| Accrued income taxes | 2,912 | 928 | ||
| Other accrued expenses | 3,350 | 3,609 | ||
| Current portion of deferred revenue | 17,967 | 19,893 | ||
| Total current liabilities | 25,667 | 27,731 | ||
| Long-term portion of deferred revenue | 1,006 | 1,088 | ||
| Total liabilities | 26,673 | 28,819 | ||
| Stockholders' equity | ||||
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Preferred stock, par value $0.01 per share; 1,000 shares authorized, no shares outstanding |
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Common stock, par value $0.01 per share; 50,000 shares authorized; issued 28,792 and 28,576 shares, respectively and outstanding 23,654 and 23,764, respectively |
288 |
286 |
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| Additional paid-in capital | 79,808 | 76,795 | ||
| Treasury stock, 5,138 and 4,812 shares, respectively | (44,650) | (37,913) | ||
| Accumulated other comprehensive loss, net | (1,211) | (1,539) | ||
| Retained earnings | 24,631 | 18,632 | ||
| Total stockholders' equity | 58,866 | 56,261 | ||
| Total liabilities and stockholders' equity | $ 85,539 | $ 85,080 | ||
All share, except shares authorized, information has been adjusted to reflect the two-for-one stock split effected in the form of 100% stock dividend that was declared on March 7, 2006 and distributed on May 9, 2006.