“By staying true to our strategic vision, we validated that the fundamentals of the ANSYS business remain strong, even in the midst of the macro challenges. Our customers’ ability to innovate is essential to their future success, which in turn furthers the success of ANSYS. As a result, we continue to have a strong financial model that can drive profitable operations while ANSYS delivers on its promise to provide best in class engineering simulation,” commented ANSYS President & CEO Jim Cashman. “The fourth quarter presented us with a combination of both challenges and opportunities. ANSYS’ ability to deliver solid financial results was driven by our tight alignment with our customer’s research and product development priorities, our broad portfolio of product solutions, and solid execution by our global workforce and channel partners. While we continue to face the realities of ongoing pressure on customer capital spending and prolonged sales cycles, we are also cognizant of the need to focus on and invest in our top priorities – sales, technology innovation and the integration of Ansoft. During this past quarter, we made progress on a number of important fronts that we believe continue to position ANSYS for future long-term growth as we address the expanding needs of our diverse customer base.”
ANSYS' fourth quarter and full year 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 $143.3 million in the fourth quarter of 2008 as compared to $111.2 million in the fourth quarter of 2007; total non-GAAP revenue of $493.0 million in 2008 as compared to $387.2 million in 2007; total GAAP revenue of $135.3 million in the fourth quarter of 2008 as compared to $111.2 million in the fourth quarter of 2007; total GAAP revenue of $478.3 million in 2008 as compared to $385.3 million in 2007;
- A non-GAAP operating profit margin of 48.8% in the fourth quarter of 2008 as compared to 43.2% in the fourth quarter of 2007; a non-GAAP operating profit margin of 47.5% in 2008 as compared to 43.3% in 2007; a GAAP operating profit margin of 33.8% in the fourth quarter of 2008 as compared to 34.1% in the fourth quarter of 2007; a GAAP operating profit margin of 35.5% in 2008 as compared to 32.9% in 2007;
- Non-GAAP net income (see *Note below) of $46.6 million in the fourth quarter of 2008 as compared to $36.0 million in the fourth quarter of 2007; non-GAAP net income of $152.4 million in 2008 as compared to $109.0 million in 2007; GAAP net income of $31.9 million in the fourth quarter of 2008 as compared to GAAP net income of $29.3 million in the fourth quarter of 2007; GAAP net income of $111.7 million in 2008 as compared to GAAP net income of $82.4 million in 2007; and
- Non-GAAP diluted earnings per share (see *Note below) of $0.50 in the fourth quarter of 2008 as compared to $0.44 in the fourth quarter of 2007; non-GAAP diluted earnings per share of $1.76 in 2008 as compared to $1.34 in 2007; GAAP diluted earnings per share of $0.34 in the fourth quarter of 2008 as compared to GAAP diluted earnings per share of $0.36 in the fourth quarter of 2007; GAAP diluted earnings per share of $1.29 in 2008 as compared to GAAP diluted earnings per share of $1.02 in 2007.
* Note: The GAAP and non-GAAP net income and earnings per share data reflected above include approximately $2.0 million, or $0.02 per share, in tax benefits during the fourth quarter of 2008 related to U.S. research and development activities that occurred during the first nine months of 2008. These amounts were recorded in the fourth quarter when the U.S. government approved the related tax credits retroactive to January 1, 2008. The GAAP and non-GAAP net income and earnings per share data for 2007 include approximately $3 million, or $0.04 per share, in tax benefits during the fourth quarter of 2007, primarily related to (1) reductions in the Company’s accrual related to uncertain tax positions associated with the filing of voluntary disclosure agreements in various state taxing jurisdictions, (2) reductions in the Company’s U.S. net deferred tax liabilities associated with the merger of two U.S. legal entities, (3) a favorable adjustment to the Company’s previous estimate for taxes owed in a foreign jurisdiction as a result of the completion of the related tax filing and (4) reductions in certain deferred tax liabilities in foreign jurisdictions related to prospective income tax rate changes adopted by the foreign jurisdiction.
The Company's GAAP results reflect stock-based compensation charges of
approximately $3.1 million ($2.0 million after tax) or $0.02 diluted
earnings per share for the fourth quarter of 2008 and approximately
$11.8 million ($8.9 million after tax) or $0.10 diluted earnings per
share for 2008.
