PLEASE NOTE: In light of the press release issued on March 31, 2008, announcing the signing of a definitive agreement relating to the acquisition of Ansoft Corporation by ANSYS Inc., there will be no conference call to discuss the results of the fourth fiscal quarter of 2008.
Results for the Fourth Quarter and Fiscal Year 2008
Revenue for the fourth quarter totaled $33.9 million, an increase of 19%, compared to $28.6 million reported in the previous fiscal year's fourth quarter.
On a non-GAAP basis, net income for the fourth quarter was $10.7 million, or $0.43 per diluted share, compared to net income of $8.7 million, or $0.33 per diluted share in the previous fiscal year’s fourth quarter, representing a 30% increase in diluted earnings per share. Non-GAAP net income excludes merger-related expenses, net of taxes, stock-based compensation, net of taxes, and amortization of intangibles from acquisitions, net of taxes. See “Discussion of Non-GAAP Financial Measures” below for further information.
On a GAAP basis, net income for the fourth quarter was $8.5 million, or $0.34 per diluted share, compared to GAAP net income of $7.9 million, or $0.30 per diluted share in the previous fiscal year's fourth quarter. Current quarter results include $1.7 million, or $0.07 per diluted share in merger-related expenses.
“We experienced revenue growth in both domestic and international markets and in both product lines,” said Nicholas Csendes, Ansoft’s president and CEO. “We are pleased to have had such a strong finish to our fiscal year with nearly 20% growth in revenue during the fourth quarter.”
Csendes noted, “On March 31, 2008, we announced that Ansoft and ANSYS had signed a definitive agreement for ANSYS to acquire Ansoft. We believe there are strong synergies between the two companies and are very excited about the combination. In light of the proposed transaction, we will not be providing guidance for future periods.”
Revenue for the fiscal year totaled $103.4 million, an increase of 16% compared to $89.1 million reported in the previous fiscal year.
On a non-GAAP basis, net income for the fiscal year was $27.6 million, or $1.09 per diluted share, compared to net income of $23.1 million, or $0.88 per diluted share in the previous fiscal year, representing a 24% increase in diluted earnings per share. Results for the previous fiscal year include a tax benefit of $0.9 million, or $0.03 per diluted share, for the U.S. Research and Development Tax Credit enacted retroactive by Congress in December 2006 that relates to credits earned in fiscal year 2006.
On a GAAP basis, net income for the fiscal year was $24.1 million, or $0.95 per diluted share, compared to GAAP net income of $20.2 million, or $0.77 per diluted share in the previous fiscal year. Current year results include $1.7 million, or $0.07 per diluted share in merger-related expenses. Results for the previous fiscal year include a tax benefit of $0.9 million, or $0.03 per diluted share for the U.S. Research and Development Tax Credit enacted retroactive by Congress in December 2006 that relates to credits earned in fiscal year 2006.
Discussion of Non-GAAP Financial Measures
We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business and in making operating decisions. We consider the use of the non-GAAP measures to be helpful in assessing the performance of the continuing operations of our business. By continuing operations, we mean the ongoing revenue and expenses of the business excluding certain items that render comparisons with prior periods or analysis of ongoing operating trends more difficult, such as expenses not directly related to the actual cash costs of development, sale, delivery or support of our products and services.
Consistent with this approach, we believe that providing the non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view our financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance but, more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance.
While management uses these non-GAAP financial measures as a tool to
enhance their understanding of certain aspects of our financial
performance, management does not consider these measures to be a
substitute for, or superior to, the information provided by GAAP
financial measures. Further, investors are cautioned that there are
material limitations associated with the use of non-GAAP financial
measures as an analytical tool. In particular, some of the adjustments
to our GAAP financial measures reflect the inclusion or exclusion of
items that are recurring and will be reflected in our financial results
for the foreseeable future.