ECONOMICS

ANSYS, Inc., a global innovator of simulation software and technologies designed to optimize product development processes, today announced third quarter 2003 results. ANSYS' third quarter and year-to-date GAAP results include: - Total revenue of $28.0 million, as compared to $21.7 million in the third quarter of 2002; total revenue of $80.3 million in the first nine months of 2003 as compared to $65.7 million for the nine months ended September 30, 2002; - Diluted earnings per share of $0.33 as compared to $0.26 for the third quarter of 2002; diluted earnings per share of $0.89 through September 30, 2003 as compared to $0.81 for the first nine months of 2002; and - Cash flows from operations of $7.1 million in the third quarter of 2003 and $28.7 million in the first nine months of 2003. Excluding the adverse impact on reported software license revenue of purchase accounting adjustments related to the Company's February 2003 acquisition of CFX and acquisition-related amortization (see discussion below), ANSYS' third quarter and year-to-date adjusted (non-GAAP) results include: - Total adjusted revenue of $28.9 million, as compared to $21.7 million in the third quarter of 2002; total adjusted revenue of $82.7 million in the first nine months of 2003 as compared to $65.7 million for the nine months ended September 30, 2002; - An overall adjusted operating profit margin, excluding total amortization, of 34% as compared to 29% for the third quarter of 2002; and an overall adjusted operating profit margin, excluding total amortization, of 31% as compared to 30% for the first nine months of 2002; and - Adjusted diluted earnings per share of $0.41 as compared to $0.28 for the third quarter of 2002; adjusted diluted earnings per share of $1.10 compared to $0.86 for the nine month period ended September 30, 2002. ANSYS President and CEO, Jim Cashman, commenting on the current quarter's solid business performance, said, "The third quarter was a very positive quarter for us on a number of important initiatives. We continued to make tremendous strides in integrating our recently acquired CFX product line, which contributed to our ability to post record third quarter revenue and earnings results. Additionally, we made important progress in advancing our leadership in technology, which we believe has been a key driver to both the continued penetration into our extensive installed base, as well as our ability to expand into new markets." Cashman added, "While we continue to focus on improving our sales productivity and execution in certain geographic regions, we believe that our financial results, coupled with our technology and market leadership, provide us with a strong platform from which we can continue to grow our business."