Commenting on the second quarter performance, Jim Cashman, ANSYS President and CEO stated, “This quarter's results accentuate the momentum of recent quarters and the ANSYS multi-year trajectory. Even amid various geographic economic concerns, our diversified global reach, our resilient business model and our technical innovations continue to drive customer demand. With global competition, the growing need for energy efficiencies, and stricter environmental and regulatory mandates, customers are increasingly using simulation to realize their goals for innovative product development and value creation. These factors, coupled with the dedication and focus of the ANSYS team, continue to enable us to deliver on our commitments.”
ANSYS’ second quarter and year-to-date 2008 financial results are presented below. The non-GAAP results exclude the income statement effects of stock-based compensation and acquisition-related amortization of intangible assets. The 2007 non-GAAP results also exclude the effects of purchase accounting adjustments to deferred revenue. Non-GAAP and GAAP results reflect:
- Total non-GAAP revenue of $111.2 million in the second quarter of 2008 as compared to $92.3 million in the second quarter of 2007; total non-GAAP revenue of $220.8 million in the first six months of 2008 as compared to $181.9 million in the first six months of 2007; total GAAP revenue of $111.2 million in the second quarter of 2008 as compared to $92.2 million in the second quarter of 2007; total GAAP revenue of $220.8 million in the first six months of 2008 as compared to $180.1 million in the first six months of 2007;
- A non-GAAP operating profit margin of 48.4% in the second quarter of 2008 as compared to 43.4% in the second quarter of 2007; a non-GAAP operating profit margin of 47.9% in the first six months of 2008 as compared to 43.0% in the first six months of 2007; a GAAP operating profit margin of 39.4% in the second quarter of 2008 as compared to 33.0% in the second quarter of 2007; a GAAP operating profit margin of 38.8% in the first six months of 2008 as compared to 31.8% in the first six months of 2007;
- Non-GAAP net income of $34.7 million in the second quarter of 2008 as compared to $24.6 million in the second quarter of 2007; non-GAAP net income of $67.2 million in the first six months of 2008 as compared to $48.1 million in the first six months of 2007; GAAP net income of $28.1 million in the second quarter of 2008 as compared to GAAP net income of $18.3 million in the second quarter of 2007; GAAP net income of $54.0 million in the first six months of 2008 as compared to GAAP net income of $34.4 million in the first six months of 2007; and
- Non-GAAP diluted earnings per share of $0.42 in the second quarter of 2008 as compared to $0.30 in the second quarter of 2007; non-GAAP diluted earnings per share of $0.82 in the first six months of 2008 as compared to $0.59 in the first six months of 2007; GAAP diluted earnings per share of $0.34 in the second quarter of 2008 as compared to GAAP diluted earnings per share of $0.23 in the second quarter of 2007; GAAP diluted earnings per share of $0.66 in the first six months of 2008 as compared to GAAP diluted earnings per share of $0.43 in the first six months of 2007.
The Company’s GAAP results reflect stock-based compensation charges of approximately $3.2 million ($2.5 million after tax) or $0.03 diluted earnings per share for the second quarter of 2008 and approximately $5.9 million ($4.7 million after tax) or $0.06 diluted earnings per share for the first six months of 2008.
The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2008 discussed below, represent non-GAAP financial measures. A reconciliation of these measures to the appropriate GAAP measures, for the three months and six months ended June 30, 2008 and 2007, and for the 2008 financial outlook, is included in the condensed financial information included in this release.
“Compared to a year ago, this quarter’s
revenues increased over 20% while non-GAAP diluted earnings per share
increased 40%. Our continuing focus on our customers and our technology
has produced record cash flows from operations of $55.1 million for the
second quarter and $92.3 million for the first six months of 2008, which
has allowed us to pay off the balance of the Fluent debt on June 30,
2008, well ahead of the 2011 contractual payment date. Based on our
first half performance, as well as the closing of the Ansoft acquisition
on July 31, 2008, we are updating our third quarter and 2008 full year
guidance to include the impact of the combined operations beginning
August 1, 2008, ” said Cashman.
