ANSYS Announces Solid Second Quarter Results

$22.7 Million in Revenue and Adjusted Earnings Per Share of $0.32

SOUTHPOINTE, Pa. -  July 23, 2002 -  /PRNewswire-FirstCall/ -- ANSYS, Inc. (NASDAQ:ANSS), a global innovator of simulation software and technologies aimed at optimizing customers' product development processes, today announced second quarter 2002 results. ANSYS's second quarter results, excluding the impact of acquisition-related amortization, reflect:

• Total reported revenue of $22.7 million from $20.9 million in the second quarter of 2001; a 9% increase;
• An overall gross profit margin of 88% and an operating margin, excluding total amortization, of 31%;
• Second quarter adjusted earnings per share of $0.32 compared to $0.29 in the second quarter of 2001; reported earnings per share of $0.30 compared to $0.24 in the second quarter of 2001;
• Cash flows from operations of $6.8 million in the second quarter of 2002. 

For the six months ended June 30, 2002, ANSYS' financial results, excluding the impact of acquisition-related amortization, reflect:

• Total reported revenue of $44.0 million from $39.2 million in the first six months of 2001; a 12% increase;
• An overall gross profit margin of 87% and an operating margin, excluding total amortization, of 30%;
• Adjusted earnings per share for the first six months of 2002 of $0.58 compared with $0.50 for the first six months of 2001; reported earnings per share of $0.55 for the first six months of 2002 compared with $0.39 for the first six months of 2001;
• Cash flows from operations of $9.7 million in the first six months of 2002. 

As previously mentioned, ANSYS reported revenue for the three- and six- month periods ended June 30, 2002 of $22.7 million and $44.0 million, respectively. In 2001, the Company modified its revenue recognition policy for annual software lease licenses to comply with Technical Practice Aid 5100. 53 "Fair Value of PCS in a Short-Term Time-Based License and Software Revenue Recognition," issued by the American Institute of Certified Public Accountants. Had this revenue recognition policy modification been initially made in January 2002, revenue for the three- and six-month periods ended June 30, 2002 would have been approximately $21.6 million and $41.2 million, respectively.

Second Quarter 2002 and Six Months Ended June 30, 2002 Reported Results:

ANSYS reported net income for the quarter ended June 30, 2002 of $4.7 million, or $0.30 diluted earnings per share, based on 15.8 million weighted average common shares outstanding. For the quarter ended June 30, 2001, ANSYS reported net income of $3.6 million, or $0.24 diluted earnings per share, based on 15.2 million weighted average common shares outstanding. For the six months ended June 30, 2002, ANSYS reported net income of $8.6 million, or $0.55 diluted earnings per share, based on 15.8 million weighted average common shares outstanding. For the six months ended June 30, 2001, ANSYS reported net income of $5.9 million, or $0.39 diluted earnings per share, based on 15.3 million weighted average common shares outstanding.

Jim Cashman, ANSYS President and CEO, stated, "We are proud of our solid financial performance and continued market growth in the second quarter, as evidenced by our increase in both revenue and earnings. Despite uncertainties and confidence issues that are predominant in today's global economic environment, we continue to forge ahead and deliver results in line with the guidance and the overall strategy that we have communicated.

While we have focused on cost control and discretionary spending discipline in this near- term environment, we also continue to be encouraged about our future growth prospects. Recently, we held the ANSYS 2002 International Users Conference and received an enthusiastic response to not only our new product launches, but also to our long-term vision and product strategy from both our customers and our partners. These innovative solutions, along with other new initiatives, continue to position ANSYS as a preeminent global innovator of simulation software."

Cashman further commented, "Demonstrating our confidence in ANSYS's future and our commitment to long-term shareholder value, we maintain an active, open market repurchase program. During the second quarter of 2002, we repurchased 275,000 shares at a total cost of $6.8 million. In the first half of 2002, we repurchased a total of 418,700 shares at a total cost of $10.2 million. ANSYS's consistent positive financial performance has generated a strong cash position and has allowed us to end the quarter with approximately $50.6 million in cash and short-term investments, and no debt. Our priority for the use of this cash continues to be the growth of our Company through investment in research and development, as well as through focused acquisitions. However, particularly in the current volatile equity market, we continue to believe that our stock repurchase program represents an additional attractive use of the Company's assets."

ANSYS will hold a conference call at 10:30 A.M. Eastern Time on July 23, 2002 to discuss second quarter results and ANSYS' future business prospects. The dial in number is 800-857-7001 and the passcode is "ANSYS".

A replay will be available until July 25 by dialing 888-568-0156. The conference call will be webcast live and can be accessed, along with other financial information, on ANSYS' website, located at http://www.ansys.com/.

Some matters discussed in this news release constitute forward-looking statements under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These forward looking statements include statements with respect to our future growth prospects, positive responses from customers and partners to our new product launches, long-term vision and product strategy, our position as a preeminent global innovator of simulation software and our willingness to continue the stock repurchase program.

All forward looking statements in this press release are subject to risks and uncertainties, such as the risk of a general economic downturn in one or more of ANSYS' primary geographic markets, the risk that ANSYS has underestimated the severity of the current economic downturns in its markets, the risk that ANSYS' sales will be adversely impacted at a later stage in the current global economic downturn, uncertainties regarding the demand for ANSYS' products and services in future periods, the risk that ANSYS has overestimated the strength of the demand among its customers for its products in an unstable economy, risks of problems arising from customer contract cancellations, uncertainties regarding customer acceptance of new products, the risk of acceptance of our long-term vision and product strategy from both customers and partners, the risk that

ANSYS' competitors will introduce superior products and undermine ANSYS' position as a preeminent global innovator of simulation software, the risk that new investments in ANSYS solutions from a broad range of customers will not yield significant additional revenue, the risk that recent releases of our new and enhanced software products will result in ANSYS' prediction of future operating results inaccurate, the risk that ANSYS' operating results will be adversely affected by possible delays in developing, completing, or shipping new or enhanced products, the risk that changes in the price of our common stock or the existence of competing uses for available cash will affect our willingness to continue the stock repurchase program, uncertainties regarding fluctuations in quarterly results, including uncertainties regarding the timing of orders from significant customers and regional economies, and other factors that are detailed from time to time in reports filed by ANSYS, Inc. with the Securities and Exchange Commission, including ANSYS, Inc.'s 2001 Annual Report and Form 10-K and the most recent quarterly report on Form 10-Q.

ANSYS, Inc. is committed to providing the most open and flexible analysis solutions to meet customer requirements for engineering software in today's competitive marketplace. ANSYS, Inc. partners with leading design software suppliers to develop state-of-the-art CAD-integrated products. ANSYS and its global network of ANSYS Support Distributors provide sales, support and training for customers. 

http://www.ansys.com/ 

 

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