"Overall, we had a challenging quarter, but we still delivered earnings at the upper end of our guidance, with strong gross and operating margins. As expected, we were highly impacted by the combination of the uncertain macroeconomic environment and stiff currency headwinds. Despite these obstacles, we remain encouraged by the continued interest in our product strategy and vision. However, as we have seen throughout the first part of this year, most of our customers were also impacted by the uncertainty of the global economy and are continuing to wait for the economy to show more signs of stability or improvement before committing to increasing their investment rates. In the interim, we have worked hard to anticipate and modulate our business model around a whole host of variables that are largely outside of our control. We believe that our first quarter results are a clear demonstration that the ANSYS team has continued to focus on those elements of our business that we can control - namely our resource deployment and spending, which has resulted in strong margins, solid recurring revenue and cash flows, and continued profitability for the quarter. With the recent commercial release of ANSYS® 12.0, we have also significantly extended the breadth and depth of our world-class engineering simulation platform, positively positioning us for the future," stated Jim Cashman, ANSYS president and CEO.
ANSYS' first quarter 2009 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 2009 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 $121.4 million and total GAAP revenue of $116.3 million in the first quarter of 2009 as compared to total non-GAAP revenue of $109.5 million and total GAAP revenue of $109.5 million in the first quarter of 2008;
- A non-GAAP operating profit margin of 46.1% in the first quarter of 2009 as compared to 47.3% in the first quarter of 2008; a GAAP operating profit margin of 29.9% in the first quarter of 2009 as compared to 38.2% in the first quarter of 2008;
- Non-GAAP net income of $34.5 million in the first quarter of 2009 as compared to $32.5 million in the first quarter of 2008; GAAP net income of $21.1 million in the first quarter of 2009 as compared to GAAP net income of $25.9 million in the first quarter of 2008; and
- Non-GAAP diluted earnings per share of $0.37 in the first quarter of 2009 as compared to $0.40 in the first quarter of 2008; GAAP diluted earnings per share of $0.23 in the first quarter of 2009 as compared to GAAP diluted earnings per share of $0.32 in the first quarter of 2008.
The Company's GAAP results reflect stock-based compensation charges of approximately $3.1 million ($2.5 million after tax) or $0.03 diluted earnings per share for the first quarter of 2009.
The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2009 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures, for the three months ended March 31, 2009 and 2008, and for the 2009 financial outlook, are included in the condensed financial information included in this release.
Management's Remaining 2009 Financial Outlook
The Company has provided its 2009 revenue and earnings per share guidance below. The earnings per share guidance is provided on both a GAAP basis and a non-GAAP basis. Non-GAAP diluted earnings per share excludes charges for stock-based compensation and acquisition-related amortization of intangible assets.
Second Quarter 2009 Guidance
The Company currently expects the following for the quarter ending June 30, 2009:
- GAAP revenue in the range of $118 - $124 million
- Non-GAAP revenue in the range of $120 - $126 million
- GAAP diluted earnings per share of $0.20 - $0.26
- Non-GAAP diluted earnings per share of $0.34 - $0.38
Fiscal Year 2009 Guidance
The Company currently expects the following for the fiscal year ending December 31, 2009:
- GAAP revenue in the range of $502 - $552 million
- Non-GAAP revenue in the range of $510 - $560 million
- GAAP diluted earnings per share of $1.01 - $1.30
- Non-GAAP diluted earnings per share of $1.54 - $1.81
