Jim Cashman, president and CEO, commented on the Company’s third quarter 2008 performance stating, “This quarter was another important milestone in the ANSYS journey as we completed the strategic acquisition of Ansoft. We remain optimistic that today’s quarterly report, which includes two months of operations as a combined company, is only the beginning as we continue to focus and execute on our integration plan and long-term strategy for the Company. Despite uncertainties and confidence issues that are predominant in today’s global economy, we continue to forge ahead and deliver business results in-line with our commitments and our proven strategy. We have a strong balance sheet, strong cash flows, solid fundamentals and a disciplined team that will help to steer us through the current business climate. We also believe that we have a resilient business model that can continue to drive profitable growth while we deliver on the ANSYS mission to lead innovation in engineering simulation. Our solid operating performance in the third quarter is a testimony to our belief that engineering simulation solutions remain a high priority for our expanding customer base even in a challenging economic environment. The business pressures on our customers to deliver innovative, high-quality products to the markets, with fewer resources, have never been greater.”
ANSYS’ third quarter and year-to-date 2008 financial results are presented below. The non-GAAP results exclude the income statement effects of stock-based compensation, purchase accounting for deferred revenue and acquisition-related amortization of intangible assets. Non-GAAP and GAAP results reflect:
- Total non-GAAP revenue of $128.8 million in the third quarter of 2008 as compared to $94.0 million in the third quarter of 2007; total non-GAAP revenue of $349.6 million in the first nine months of 2008 as compared to $275.9 million in the first nine months of 2007; total GAAP revenue of $122.2 million in the third quarter of 2008 as compared to $94.0 million in the third quarter of 2007; total GAAP revenue of $343.0 million in the first nine months of 2008 as compared to $274.1 million in the first nine months of 2007;
- A non-GAAP operating profit margin of 45.6% in the third quarter of 2008 as compared to 43.8% in the third quarter of 2007; a non-GAAP operating profit margin of 47.0% in the first nine months of 2008 as compared to 43.3% in the first nine months of 2007; a GAAP operating profit margin of 31.3% in the third quarter of 2008 as compared to 33.6% in the third quarter of 2007; a GAAP operating profit margin of 36.1% in the first nine months of 2008 as compared to 32.4% in the first nine months of 2007;
- Non-GAAP net income of $38.7 million in the third quarter of 2008 as compared to $25.0 million in the third quarter of 2007; non-GAAP net income of $105.8 million in the first nine months of 2008 as compared to $73.0 million in the first nine months of 2007; GAAP net income of $25.8 million in the third quarter of 2008 as compared to GAAP net income of $18.7 million in the third quarter of 2007; GAAP net income of $79.8 million in the first nine months of 2008 as compared to GAAP net income of $53.1 million in the first nine months of 2007; and
- Non-GAAP diluted earnings per share of $0.43 in the third quarter of 2008 as compared to $0.31 in the third quarter of 2007; non-GAAP diluted earnings per share of $1.25 in the first nine months of 2008 as compared to $0.90 in the first nine months of 2007; GAAP diluted earnings per share of $0.29 in the third quarter of 2008 as compared to GAAP diluted earnings per share of $0.23 in the third quarter of 2007; GAAP diluted earnings per share of $0.94 in the first nine months of 2008 as compared to GAAP diluted earnings per share of $0.66 in the first nine months of 2007.
- Operating cash flows of $42.7 million in the third quarter of 2008 as compared to $26.3 million in the third quarter of 2007; operating cash flows of $135.0 million in the first nine months of 2008 as compared to operating cash flows of $85.5 million in the first nine months of 2007.
The Company’s GAAP results reflect stock-based
compensation charges of approximately $2.8 million ($2.3 million after
tax), or $0.03 diluted earnings per share, for the third quarter of 2008
and approximately $8.7 million ($7.0 million after tax), or $0.08
diluted earnings per share, for the first nine months of 2008.
