ANSYS, a global innovator of simulation software and technologies designed to optimize product development processes, today announced a new Company record for fourth quarter and year-end operating results. ANSYS' fourth quarter and 2005 fiscal year GAAP results include: - Total revenue of $43.7 million, as compared to $38.9 million in the fourth quarter of 2004; total revenue of $158.0 million in 2005 as compared to $134.5 million in 2004; - Net income of $13.3 million, as compared to $12.3 million in the fourth quarter of 2004; net income of $43.9 million in 2005 as compared to $34.6 million in 2004; - An operating profit margin of 40.6% as compared to 38.2% for the fourth quarter of 2004; an operating profit margin of 37.2% in 2005 as compared to 34.2% in 2004; - Diluted earnings per share of $0.39, as compared to $0.36 for the fourth quarter of 2004; diluted earnings per share of $1.30 in 2005 as compared to $1.05 in 2004; - Cash flows from operations of $20.7 million for the fourth quarter of 2005 and $67.8 million in 2005; and - Cash and short-term investment balances totaling $194.2 million as of December 31, 2005. INBOX Compose Folders Options Search Help Logout Open Folder INBOX A1 reply is needed A1 soon A1 to publish Advertisers to call back BizTools Editorial MISC old emails Readers sent-mail sent-mail-apr-2004 sent-mail-aug-2004 sent-mail-aug-2005 sent-mail-dec-2005 sent-mail-feb-2005 sent-mail-jul-2005 sent-mail-mar-2005 sent-mail-may-2004 sent-mail-nov-2004 sent-mail-nov-2005 sent-mail-oct-2004 sent-mail-oct-2005 sent-mail-sep-2004 Supercomputing Online trash Tylers INBOX: ANSYS Completes Fourth Quarter and Full Year 2005 With Record Revenue and Earnings (3 of 606) Move | Copy This message to A1 reply is needed A1 soon A1 to publish Advertisers to call back BizTools Editorial MISC old emails Readers sent-mail sent-mail-apr-2004 sent-mail-aug-2004 sent-mail-aug-2005 sent-mail-dec-2005 sent-mail-feb-2005 sent-mail-jul-2005 sent-mail-mar-2005 sent-mail-may-2004 sent-mail-nov-2004 sent-mail-nov-2005 sent-mail-oct-2004 sent-mail-oct-2005 sent-mail-sep-2004 Supercomputing Online trash Tylers Delete | Reply | Reply to All | Forward | Redirect | Blacklist | Message Source | Save as | Print Back to INBOX Date: Thu, 16 Feb 2006 11:04:29 +0000 (GMT+00:00) From: PR Newswire for Journalists To: chris@supercomputingonline.com Subject: ANSYS Completes Fourth Quarter and Full Year 2005 With Record Revenue and Earnings ANSYS Completes Fourth Quarter and Full Year 2005 With Record Revenue and Earnings SOUTHPOINTE, Pa., Feb. 16 /PRNewswire-FirstCall/ -- ANSYS, Inc. (NASDAQ:ANSS), a global innovator of simulation software and technologies designed to optimize product development processes, today announced a new Company record for fourth quarter and year-end operating results. In a separate release, ANSYS announced that is has signed a definitive agreement to acquire Fluent, Inc. ANSYS' fourth quarter and 2005 fiscal year GAAP results include: - Total revenue of $43.7 million, as compared to $38.9 million in the fourth quarter of 2004; total revenue of $158.0 million in 2005 as compared to $134.5 million in 2004; - Net income of $13.3 million, as compared to $12.3 million in the fourth quarter of 2004; net income of $43.9 million in 2005 as compared to $34.6 million in 2004; - An operating profit margin of 40.6% as compared to 38.2% for the fourth quarter of 2004; an operating profit margin of 37.2% in 2005 as compared to 34.2% in 2004; - Diluted earnings per share of $0.39, as compared to $0.36 for the fourth quarter of 2004; diluted earnings per share of $1.30 in 2005 as compared to $1.05 in 2004; - Cash flows from operations of $20.7 million for the fourth quarter of 2005 and $67.8 million in 2005; and - Cash and short-term investment balances totaling $194.2 million as of December 31, 2005. Excluding acquisition-related amortization, ANSYS' fourth quarter and 2005 adjusted (non-GAAP) results include: - An adjusted operating profit margin of 42.8% as compared to 40.6% for the fourth quarter of 2004; an adjusted operating profit margin of 39.9% in 2005 as compared to 36.9% in 2004; and - Adjusted diluted earnings per share of $0.41 as compared to $0.35 for the fourth quarter of 2004 (excluding the one-time tax benefit); and adjusted diluted earnings per share of $1.38 in 2005 as compared to $1.09 in 2004(excluding the one-time tax benefit). "Our focus and execution in the fourth quarter capped off a milestone year for ANSYS," commented ANSYS President and CEO, Jim Cashman. "This past year was a period of significant growth for ANSYS in terms of continued advancement and expansion of technologies, as well as very solid financial performance. We completed fiscal 2005 with record results and continued strong momentum as ANSYS' value proposition gained further acceptance with our diverse, global customer base. The Company's overall performance in 2005 provides further validation that our business is operationally sound, financially strong and strategically on track." Cashman further commented, "We have grown our business substantially over the past few years and plan to continue to invest in the future of the Company. Over the course of 2006, we will strive to strengthen our leadership presence in the engineering simulation arena by providing our customers with the world's most advanced simulation capabilities. I firmly believe that our proposed acquisition of Fluent, a global provider of CAE simulation software, which we announced this morning, is a further demonstration of our commitment to being the leader in driving innovative engineering simulation solutions. This acquisition marks another important milestone in our long-term strategy." In closing, Cashman added, "We are very excited about our future prospects and look forward to the many challenges ahead at ANSYS. We remain committed to maintain our usual diligence and focus on our singular long-term vision of providing increasingly powerful simulation technology and making it more accessible to a broader range of users. We believe our unique balance of technology leadership, global and diversified presence, solid business model and commitment to our vision positions us as a company for continued growth." Adjustments to Reported GAAP Financial Results - Acquisition-Related Amortization: As previously disclosed, the Company completed its acquisitions of Century Dynamics, Inc. and the assets of Harvard Thermal, Inc. in 2005. In previous years, the Company also acquired other businesses. These acquisitions have all been accounted for as purchases, resulting in the recording of a significant amount of identifiable intangible assets. ANSYS is providing, and has historically provided, its current quarter GAAP results as well as financial results that have been adjusted for the impact of acquisition-related amortization. The Company believes that these non-GAAP measures supplement its consolidated GAAP financial statements as they provide a consistent basis for comparison between reporting periods that are not influenced by certain non-cash items and are, therefore, useful to investors in helping them to better understand the Company's operating results. In certain instances, such as when intangibles are acquired through business acquisitions or become fully amortized, amortization expense associated with acquired intangibles also makes period-to-period comparisons difficult because amortization expense may appear in one period but not in the comparable period. Management uses these non-GAAP financial measures internally to evaluate the Company's business performance; however, these measures are not intended to supersede or replace the GAAP results. Business Highlights - Advances in Global Innovative Engineering Simulation Strategy - February 2006 - Announced a definitive agreement to acquire Fluent, Inc., a global provider of computer-aided engineering simulation software, in a stock and cash transaction valued at approximately $565 million based on the $44.11 pr share closing price of ANSYS common stock on February 15, 2006. Under the terms of the agreement, ANSYS will issue six million shares of its common stock and pay approximately $300 million of net cash to acquire Fluent, subject to certain adjustments at closing. After closing, ANSYS expects the planned acquisition to be immediately accretive to earnings, excluding acquisition-related costs, amortization of intangibles, the impact of deferred revenue purchase accounting treatment and expensing of stock options. The Company will use a combination of existing cash and proceeds from approximately $200 million of committed bank financing to fund the transaction. - October 2005 - Acquired substantially all of the assets of Harvard Thermal, Inc., a leader in thermal analysis software tools. The acquisition expands the Company's product offerings and allows it to deliver a more complete and comprehensive solution to its customers. Management's Financial Outlook The Company has provided its 2006 revenue and earnings per share guidance below. The earnings per share guidance is provided on both a GAAP basis and an adjusted basis. Adjusted earnings per share excludes acquisition-related amortization and the effects of stock-based compensation. First Quarter 2006 Guidance The Company currently expects the following for the quarter ending March 31, 2006: - Revenue of approximately $41 - $42 million - GAAP earnings per share of $0.33 - $0.36 - Adjusted (non-GAAP) earnings per share of $0.35 - $0.36 Fiscal Year 2006 Guidance The Company currently expects the following for the fiscal year ending December 31, 2006: - Revenue in the range of $178 - $180 million - GAAP earnings per share of $1.38 - $1.53 - Adjusted (non-GAAP) earnings per share of $1.51 - $1.53 The above guidance excludes the impact of the acquisition of Fluent, Inc. announced earlier today. The Company intends to provide updated financial guidance after the closing of the transaction. ANSYS, INC. AND SUBSIDIARIES Consolidated Statements of Income (in thousands, except per share data) (Unaudited) Three months ended Twelve months ended December 31, December 31, December 31, December 31, 2005 2004 2005 2004 Revenue: Software licenses $ 24,433 $ 22,064 $ 85,680 $71,326 Maintenance and service 19,288 16,823 72,356 63,213 Total revenue 43,721 38,887 158,036 134,539 Cost of sales: Software licenses 1,545 1,162 5,292 4,840 Amortization of software and acquired technology 911 763 3,576 3,030 Maintenance and service 3,695 3,788 15,171 13,437 Total cost of sales 6,151 5,713 24,039 21,307 Gross profit 37,570 33,174 133,997 113,232 Operating expenses: Selling and marketing 6,952 7,141 25,955 24,984 Research and development 8,202 6,840 30,688 26,281 Amortization 175 292 1,184 1,149 General and administrative 4,479 4,032 17,330 14,840 Total operating expenses 19,808 18,305 75,157 67,254 Operating income 17,762 14,869 58,840 45,978 Other income 1,471 1,132 4,271 1,923 Income before income tax provision 19,233 16,001 63,111 47,901 Income tax provision 5,962 3,750 19,208 13,334 Net income $13,271 $12,251 $ 43,903 $34,567 Earnings per share - basic: Basic earnings per share $0.41 $0.39 $1.38 $1.12 Weighted average shares - basic 31,985 31,315 31,749 30,955 Earnings per share - diluted: Diluted earnings per share $0.39 $0.36 $1.30 $1.05 Weighted average shares - diluted 34,054 33,587 33,692 32,978 ANSYS, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures For the three months ended December 31, 2005 (in thousands, except per share data) (Unaudited) As Reported Adjustments Adjusted Results Revenue: Software licenses $24,433 - $24,433 Maintenance and service 19,288 - 19,288 Total revenue 43,721 - 43,721 Cost of sales: Software licenses 1,545 - 1,545 Amortization of software and acquired technology 911 (788)(a) 123 Maintenance and service 3,695 - 3,695 Total cost of sales 6,151 (788) 5,363 Gross profit 37,570 788 38,358 Operating expenses: Selling and marketing 6,952 - 6,952 Research and development 8,202 - 8,202 Amortization 175 (175)(a) - General and administrative 4,479 - 4,479 Total operating expenses 19,808 (175) 19,633 Operating income 17,762 963 18,725 Other income 1,471 - 1,471 Income before income tax provision 19,233 963 20,196 Income tax provision 5,962 338(b) 6,300 Net income $13,271 $625 $13,896 Earnings per share - basic: Basic earnings per share $0.41 $0.43 Weighted average shares - basic 31,985 31,985 Earnings per share - diluted: Diluted earnings per share $0.39 $0.41 Weighted average shares - diluted 34,054 34,054 (a) Amount represents amortization expense associated with intangible assets acquired in business acquisitions, including amounts primarily related to acquired software, customer list and non-compete agreements. (b) Amount represents the income tax impact of the amortization expense adjustments referred to in (a) above. ANSYS, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures For the three months ended December 31, 2004 (in thousands, except per share data) (Unaudited) As Reported Adjustments Adjusted Results Revenue: Software licenses $22,064 - $22,064 Maintenance and service 16,823 - 16,823 Total revenue 38,887 - 38,887 Cost of sales: Software licenses 1,162 - 1,162 Amortization of software and acquired technology 763 (635)(a) 128 Maintenance and service 3,788 - 3,788 Total cost of sales 5,713 (635) 5,078 Gross profit 33,174 635 33,809 Operating expenses: Selling and marketing 7,141 - 7,141 Research and development 6,840 - 6,840 Amortization 292 (292)(a) - General and administrative 4,032 - 4,032 Total operating expenses 18,305 (292) 18,013 Operating income 14,869 927 15,796 Other income 1,132 - 1,132 Income before income tax provision 16,001 927 16,928 Income tax provision 3,750 1,375(b) 5,125 Net income $12,251 $(448) $11,803 Earnings per share - basic: Basic earnings per share $0.39 $0.38 Weighted average shares - basic 31,315 31,315 Earnings per share - diluted: Diluted earnings per share $0.36 $0.35 Weighted average shares - diluted 33,587 33,587 (a) Amount represents amortization expense associated with intangible assets acquired in business acquisitions, including amounts primarily related to acquired software, customer list and non-compete agreements. (b) Amount represents the income tax impact of the amortization expense adjustments referred to in (a) above, as well as the exclusion of a one-time tax benefit ($1,050) related to the resolution of outstanding governmental income tax audits. ANSYS, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures For the twelve months ended December 31, 2005 (in thousands, except per share data) (Unaudited) As Reported Adjustments Adjusted Results Revenue: Software licenses $85,680 - $85,680 Maintenance and service 72,356 - 72,356 Total revenue 158,036 - 158,036 Cost of sales: Software licenses 5,292 - 5,292 Amortization of software and acquired technology 3,576 (3,046)(a) 530 Maintenance and service 15,171 - 15,171 Total cost of sales 24,039 (3,046) 20,993 Gross profit 133,997 3,046 137,043 Operating expenses: Selling and marketing 25,955 - 25,955 Research and development 30,688 - 30,688 Amortization 1,184 (1,184)(a) - General and administrative 17,330 - 17,330 Total operating expenses 75,157 (1,184) 73,973 Operating income 58,840 4,230 63,070 Other income 4,271 - 4,271 Income before income tax provision 63,111 4,230 67,341 Income tax provision 19,208 1,481(b) 20,689 Net income $43,903 $2,749 $46,652 Earnings per share - basic: Basic earnings per share $1.38 $1.47 Weighted average shares - basic 31,749 31,749 Earnings per share - diluted: Diluted earnings per share $1.30 $1.38 Weighted average shares - diluted 33,692 33,692 (a) Amount represents amortization expense associated with intangible assets acquired in business acquisitions, including amounts primarily related to acquired software, customer list and non-compete agreements. (b) Amount represents the income tax impact of the amortization expense adjustments referred to in (a) above. ANSYS, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures For the twelve months ended December 31, 2004 (in thousands, except per share data) (Unaudited) As Reported Adjustments Adjusted Results Revenue: Software licenses $71,326 - $71,326 Maintenance and service 63,213 - 63,213 Total revenue 134,539 - 134,539 Cost of sales: Software licenses 4,840 - 4,840 Amortization of software and acquired technology 3,030 (2,464)(a) 566 Maintenance and service 13,437 - 13,437 Total cost of sales 21,307 (2,464) 18,843 Gross profit 113,232 2,464 115,696 Operating expenses: Selling and marketing 24,984 - 24,984 Research and development 26,281 - 26,281 Amortization 1,149 (1,149)(a) - General and administrative 14,840 - 14,840 Total operating expenses 67,254 (1,149) 66,105 Operating income 45,978 3,613 49,591 Other income 1,923 - 1,923 Income before income tax provision 47,901 3,613 51,514 Income tax provision 13,334 2,315(b) 15,649 Net income $34,567 $1,298 $35,865 Earnings per share - basic: Basic earnings per share $ 1.12 $1.16 Weighted average shares - basic 30,955 30,955 Earnings per share - diluted: Diluted earnings per share $ 1.05 $1.09 Weighted average shares - diluted 32,978 32,978 (a) Amount represents amortization expense associated with intangible assets acquired in business acquisitions, including amounts primarily related to acquired software, customer list and non-compete agreements. (b) Amount represents the income tax impact of the amortization expense adjustments referred to in (a) above, as well as the exclusion of a one-time tax benefit ($1,050) related to the resolution of outstanding governmental income tax audits. ANSYS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands) (Unaudited) December 31, December 31, 2005 2004 ASSETS: Cash & short-term investments $194,232 $138,446 Accounts receivable, net 19,134 18,792 Other assets 92,143 82,408 Total assets $305,509 $239,646 LIABILITIES & STOCKHOLDERS' EQUITY: Deferred revenue $49,894 $43,906 Other liabilities 30,638 20,271 Stockholders' equity 224,977 175,469 Total liabilities & stockholders' equity $305,509 $239,646 ANSYS, INC. AND SUBSIDIARIES Reconciliation of Forward-Looking Guidance Quarter Ending March 31, 2006 Earnings Per Share Range - Diluted U.S. GAAP expectation $0.33 - $0.36 Adjustment to exclude acquisition-related amortization $0.01 - $0.02 Adjustment to exclude stock-based compensation $0.01 - ($0.02) Adjusted expectation $0.35 - $0.36 ANSYS, INC. AND SUBSIDIARIES Reconciliation of Forward-Looking Guidance Year Ending December 31, 2006 Earnings Per Share Range - Diluted U.S. GAAP expectation $1.38 - $1.53 Adjustment to exclude acquisition-related amortization $0.07 - $0.08 Adjustment to exclude stock-based compensation $0.06 - ($0.08) Adjusted expectation $1.51 - $1.53