Revenue for the first quarter totaled $17.3 million, an increase of 17% compared to $14.8 million reported in the previous fiscal year's first quarter.
On a generally accepted accounting principles (GAAP) basis, net income for the first quarter was $2.3 million, or $0.09 per diluted share, representing a 96% increase when compared to GAAP net income of $1.2 million, or $0.05 per diluted share in the previous fiscal year's first quarter.
GAAP net income for first quarter includes employee stock-based compensation expense of $0.6 million, or $0.02 per diluted share due to the adoption of Statement of Financial Accounting Standards 123(R) (SFAS 123(R)). The previous fiscal year's first quarter net income did not include employee stock-based compensation expense related to SFAS 123(R).
Additionally, GAAP net income for the first 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 first quarter.
"We are pleased to report strong revenue and earnings growth for the first quarter," said Nicholas Csendes, Ansoft's President and CEO. "For the next fiscal quarter, we anticipate 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 August 24, 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.
ANSOFT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three months ended July 31,
2006 2005
------------- -------------
Revenue
License $8,185 $6,820
Service and other 9,138 7,970
------------- -------------
Total revenue 17,323 14,790
Costs of revenue
License 120 99
Service and other 333 329
------------- -------------
Total cost of revenue 453 428
Gross profit 16,870 14,362
Operating Expenses
Sales and marketing 7,478 7,143
Research and development 4,826 4,060
General and administrative 1,384 1,383
Amortization 346 369
------------- -------------
Total operating expenses 14,034 12,955
------------- -------------
Income from operations 2,836 1,407
Net realized loss on sale of securities - (2)
Other income, net 815 340
------------- -------------
Income before income taxes 3,651 1,745
Income tax expense 1,362 576
------------- -------------
Net income $2,289 $1,169
============= =============
Net income per share
Basic $0.10 $0.05
============= =============
Diluted $0.09 $0.05
============= =============
Weighted average shares used in calculation
Basic 23,609 23,834
============= =============
Diluted 26,174 25,954
============= =============
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.
ANSOFT CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(unaudited)
July 31, April 30,
2006 2006
---------- ----------
Assets
Current assets
Cash and cash equivalents $16,703 $16,456
Accounts receivable, net of allowance for
doubtful accounts of $640 and $545, respectively 11,890 20,264
Deferred income taxes 164 164
Prepaid expenses and other assets 2,653 1,938
---------- ----------
Total current assets 31,410 38,822
Equipment and furniture, net of accumulated
depreciation of $6,530 and $6,249, respectively 2,532 2,599
Marketable securities 36,298 33,621
Other assets 140 131
Deferred income taxes 6,344 6,226
Goodwill 1,239 1,239
Other intangible assets, net 2,096 2,442
---------- ----------
Total assets $80,059 $85,080
========== ==========
Liabilities and stockholders' equity
Current liabilities
Accounts payable $189 $274
Accrued payroll 1,176 3,027
Accrued income taxes 1,526 928
Other accrued expenses 2,890 3,609
Current portion of deferred revenue 19,204 19,893
---------- ----------
Total current liabilities 24,985 27,731
Long-term portion of deferred revenue 940 1,088
---------- ----------
Total liabilities 25,925 28,819
Stockholders' equity
Preferred stock, par value $0.01 per share; 1,000
shares authorized, no shares outstanding - -
Common stock, par value $0.01 per share; 50,000
shares authorized; issued 28,672 and 28,576
shares, respectively and outstanding 23,573 and
23,764, respectively 287 286
Additional paid-in capital 77,926 76,795
Treasury stock, 5,099 and 4,812 shares,
respectively (43,650) (37,913)
Accumulated other comprehensive loss, net (1,350) (1,539)
Retained earnings 20,921 18,632
---------- ----------
Total stockholders' equity 54,134 56,261
---------- ----------
Total liabilities and stockholders' equity $80,059 $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.
Contact:
Ansoft Corporation Mark Ravenstahl, 412-261-3200 Fax: 412-471-9427 Email: Email Contact