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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): August 3, 2005
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ANSYS. INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 0-20853 04-3219960
(State or Other Jurisdiction of (Commission (I.R.S. Employer
Incorporation or Organization) File Number) Identification No.)
275 Technology Drive, Canonsburg, PA 15317
(Address of Principal Executive Offices) (Zip Code)
(Registrant's Telephone Number, Including Area Code) (724) 746-3304
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ITEM 2.02 REGULATION FD DISCLOSURE
The Information contained in this Item of this Current Report on Form 8-K
is being furnished pursuant to "Item 2.02. Results of Operations and Financial
Condition" of Form 8-K.
The information in this Current Report is being furnished and shall not be
deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934, as amended, or otherwise subject to the liabilities of such Section. The
information in this Current Report shall not be incorporated by reference into
any registration statement or other document pursuant to the Securities Act of
1933, except as shall be expressly set forth by specific reference in such
filing.
On August 3, 2005, ANSYS, Inc. issued an earnings release announcing its
financial results for the second quarter ended June 30, 2005. A copy of the
earnings release is attached as Exhibit 99.1
ITEM 9.01 FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
EXHIBIT
NUMBER DESCRIPTION
------- ----------------------------------------------------
99.1 Press Release of the Registrant dated August 3, 2005
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
ANSYS, INC.
(Registrant)
Date: August 3, 2005 By: /s/ MARIA T. SHIELDS
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Maria T. Shields - Chief Financial Officer,
VP of Finance and Administration
(Ms. Shields is the Principal Financial and
Accounting Officer and has been duly
authorized to sign on behalf of the
Registrant)
Exhibit 99.1
ANSYS DELIVERS RECORD 2005 SECOND QUARTER RESULTS WITH 18% REVENUE GROWTH,
26% GAAP EPS GROWTH AND 24% ADJUSTED EPS GROWTH
SOUTHPOINTE, Pa., Aug. 3 /PRNewswire-FirstCall/ -- ANSYS, Inc.
(Nasdaq: ANSS), a global innovator of simulation software and technologies
designed to optimize product development processes, today announced second
quarter 2005 results. ANSYS' second quarter GAAP results include:
-- Total revenue of $37.7 million, as compared to $32.0 million in the
second quarter of 2004; total revenue of $75.3 million in the first six
months of 2005 as compared to $63.3 million for the six months ended
June 30, 2004;
-- Net income of $9.8 million, as compared to $7.6 million in the second
quarter of 2004; net income of $19.5 million in the first six months of
2005 as compared to $14.7 million for the first six months of 2004;
-- An operating profit margin of 35.4% as compared to 33.4% for the second
quarter of 2004; an operating profit margin of 35.5% as compared to
32.6% for the first six months of 2004;
-- Diluted earnings per share of $0.29, as compared to $0.23 for the second
quarter of 2004; diluted earnings per share of $0.58 through June 30,
2005 as compared to $0.45 for the first six months of 2004;
-- Cash flows from operations of $17.6 million for the second quarter of
2005 and $32.9 million for the first six months of 2005; and
-- Cash and short-term investment balances totaling $163.4 million as of
June 30, 2005.
Excluding acquisition-related amortization (see detail below), ANSYS' second
quarter adjusted (non-GAAP) results include:
-- An adjusted operating profit margin of 38.4% as compared to 36.1% for
the second quarter of 2004; an adjusted operating profit margin of 38.5%
as compared to 35.4% for the first six months of 2004; and
-- Adjusted diluted earnings per share of $0.31 as compared to $0.25 for
the second quarter of 2004; and adjusted diluted earnings per share of
$0.62 compared to $0.48 for the six-month period ended June 30, 2004.
ANSYS President and CEO, Jim Cashman commented, "We are pleased to announce
another quarter of solid financial results driven by a combination of
double-digit revenue growth in all major geographies and continued strength in
our core business."
Mr. Cashman continued, "Overall we are encouraged by what we have been able
to deliver in the first half of this year and remain optimistic about our
long-term business prospects. We believe that our performance underscores our
commitment to remaining customer focused and operationally disciplined to drive
results across multiple fronts. During the quarter, we also repurchased
approximately 92,000 shares of common stock in the open market, as we believe
this is a good use of capital and will enhance long-term shareholder value."
Mr. Cashman concluded, "During this quarter, we continued to demonstrate
success and progress against our overall business plan as was evidenced by the
recent major releases of new and enhanced software products and the expansion of
customer and partner relationships. The repeat recognition of FORTUNE and
Business 2.0 is gratifying and a credit to the entire ANSYS team - including
dedicated employees, a network of valued partners and a loyal customer base -
who have helped us create a successful foundation to achieve leading-edge
technological and operational excellence as we continue to position ANSYS as a
preeminent global innovator of simulation software."
Recent highlights for the Company include the following:
-- Announced ANSYS(R) 10.0, which offers major advances in performance,
ease-of-use, interoperability and coupled physics technology, building
upon the significant advances delivered with ANSYS 9.0 and taking full
advantage of the ANSYS Workbench(TM) infrastructure for integrated CAE.
-- Announced partnership with RoboBat, a leading supplier of analytical and
CAD software solutions for the structural engineer, to offer integration
of RoboBat's Engineering System Open Platform software with ANSYS
Workbench technology which expands users' access to structural
engineering applications and increases their productivity.
-- Advanced its AUTODYN(R) software, developed by Century Dynamics, Inc. (a
subsidiary of ANSYS, Inc.), Version 6.0 which brings increased fluid
structure interaction capabilities for fast, transient dynamics of
solids, fluids, gases and their interactions.
-- Selected as official computational fluid dynamics supplier to Emirates
Team New Zealand, the sailing team who won the America's Cup from 1995
to 2003 and is seeking to recapture victory in 2007.
-- Named to FORTUNE Small Business magazine's annual list of the "100
Fastest-Growing Small Companies in America" for second consecutive year.
-- Recognized for the fourth consecutive year in Business 2.0's Annual "B2
100" Ranking of Fastest-Growing Technology Companies.
-- Presented fourth annual 2005 College Design Engineering Award to a
University of Washington team of engineering students as part of its
continuing support of engineering education.
The adjusted results highlighted above, and the adjusted estimates for 2005
discussed below, represent non-GAAP (Generally Accepted Accounting Principles)
financial measures. A reconciliation of these measures to the appropriate GAAP
measures, for the three months and six months ended June 30, is included in the
condensed financial information included in this release.
Adjustments to Reported GAAP Financial Results
-- Acquisition-Related Amortization:
As previously announced, the Company completed its acquisition of Century
Dynamics, Inc. in January 2005. In previous years, the Company also acquired
CFX, CADOE S.A. and ICEM CFD Engineering. These acquisitions have all been
accounted for as purchases, resulting in the recording of a significant amount
of identifiable intangible assets.
ANSYS is providing, and has historically provided, its current quarter GAAP
results as well as financial results that have been adjusted for the impact of
acquisition-related amortization. The Company believes that these non-GAAP
measures supplement its consolidated GAAP financial statements as they provide a
consistent basis for comparison between quarters that are not influenced by
certain non-cash items and are therefore useful to investors in helping them to
better understand the Company's operating results. In certain instances, such as
when intangibles are acquired through business acquisitions or become fully
amortized, amortization expense associated with acquired intangibles also makes
period-to-period comparisons difficult because amortization expense may appear
in one period but not in the comparable period. Management uses these non-GAAP
financial measures internally to evaluate the Company's business performance;
however, these measures are not intended to supersede or replace the GAAP
results.
Management's 2005 Outlook
Based upon our first half results and our current visibility into revenues
and expenditures for the remainder of 2005, the Company currently projects that
full year revenue will grow in the 13 to 15% range and that 2005 diluted
earnings per share, adjusted to exclude acquisition-related amortization, will
be in the range of $1.23 to $1.25. The Company's current outlook relative to a
GAAP diluted earnings per share estimate will be in the range of $1.15 to $1.17.
The preceding estimates do not reflect expenses associated with employee stock
options. The Company expects to begin recording stock option expense effective
January 1, 2006 in accordance with recent guidance issued by the Securities and
Exchange Commission.
ANSYS will hold a conference call at 10:30 Eastern Time on August 3, 2005 to
discuss second quarter results as well as to provide guidance regarding business
prospects. The dial in number is 800-289-0494 or 913-981-5520 and the passcode
is "ANSYS". A replay will be available until August 10, by dialing 888-203-1112
or 719-457-0820 and the passcode is "ANSYS" or "26797". The conference call will
be webcast live as well as archived and can be accessed, along with other
financial information, on ANSYS' website, located at
http://www.ansys.com/corporate/investors.asp .
About ANSYS, Inc.
ANSYS, Inc., founded in 1970, develops and globally markets engineering
simulation software and technologies widely used by engineers and designers
across a broad spectrum of industries. The Company focuses on the development of
open and flexible solutions that enable users to analyze designs directly on the
desktop, providing a common platform for fast, efficient and cost- conscious
product development, from design concept to final-stage testing and validation.
Headquartered in Canonsburg, Pennsylvania U.S.A. with more than 25 strategic
sales locations throughout the world, ANSYS, Inc. employs approximately 600
people and distributes its products through a network of channel partners in
over 40 countries. Visit http://www.ansys.com for more information.
Certain statements contained in the press release regarding matters that are
not historical facts, including statements regarding our current estimates for
full year revenue growth and earnings per share are "forward-looking" statements
(as defined in the Private Securities Litigation Reform Act of 1995). Because
such statements are subject to risks and uncertainties, actual results may
differ materially from those expressed or implied by such forward- looking
statements. All forward-looking statements in this press release are subject to
risks and uncertainties. These include the risk of a general economic downturn
in one or more of ANSYS' primary geographic markets, the risk that the
assumptions underlying ANSYS' anticipated revenues and expenditures will change
or prove inaccurate, the risk that ANSYS has overestimated its ability to
maintain growth and profitability and control costs, 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, risks of problems arising from customer contract cancellations,
uncertainties regarding customer acceptance of new products, the risk that
ANSYS' operating results will be adversely affected by possible delays in
developing, completing, or shipping new or enhanced products, risks that
enhancements to the Company's products may not produce anticipated sales,
uncertainties regarding fluctuations in quarterly results, including
uncertainties regarding the timing of orders from significant customers, 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 2004
Annual Report and Form 10-K. We undertake no obligation to publicly update or
revise any forward-looking statements, whether changes occur as a result of new
information or future events after the date they were made.
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 channel partners provide sales, support and training for
customers. Information about ANSYS, Inc. and its products can be found on the
Worldwide Web at www.ansys.com.
ANSYS, ANSYS Workbench, CFX, AUTODYN, and any and all ANSYS, Inc. product
and service names are registered trademarks or trademarks of ANSYS, Inc. or its
subsidiaries located in the United States or other countries. ICEM CFD is a
trademark licensed by ANSYS, Inc. All other trademarks or registered trademarks
are the property of their respective owners.
Reconciliation of Non-GAAP Measures
This earnings release contains non-GAAP financial measures. For purposes of
Regulation G, a non-GAAP financial measure is a numerical measure of a
registrant's historical or future financial performance, financial position or
cash flows that excludes amounts, or is subject to adjustments that have the
effect of excluding amounts, that are included in the most directly comparable
measure calculated and presented in accordance with GAAP in the statement of
income, balance sheet or statement of cash flows of the issuer; or includes
amounts, or is subject to adjustments that have the effect of including amounts,
that are excluded from the most directly comparable measure so calculated and
presented. In this regard, GAAP refers to generally accepted accounting
principles in the United States. Pursuant to the requirements of Regulation G,
the Company has provided a reconciliation of the adjusted (non- GAAP) financial
measures to the most directly comparable GAAP financial measures.
Adjusted operating profit margin and adjusted diluted earnings per share are
discussed in this earnings release because management uses this information in
evaluating the results of the continuing operations of the business and believes
that this information provides the users of the financial statements a valuable
insight into the operating results. Additionally, management believes that it is
in the best interest of its investors to provide financial information that will
facilitate comparison of both historical and future results and allows greater
transparency to supplemental information used by management in its financial and
operational decision making. Management encourages investors to review the
reconciliations of the non-GAAP financial measures to the most directly
comparable GAAP measures that are provided within the financial information
attached to this news release.
ANSYS, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
Three months ended Six months ended
----------------------- -----------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
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Revenue:
Software licenses $ 19,794 $ 16,353 $ 40,269 $ 32,677
Maintenance and service 17,862 15,649 35,011 30,657
Total revenue 37,656 32,002 75,280 63,334
Cost of sales:
Software licenses 1,160 1,179 2,413 2,516
Amortization of software
and acquired technology 881 754 1,788 1,509
Maintenance and service 3,796 3,045 7,654 6,128
Total cost of sales 5,837 4,978 11,855 10,153
Gross profit 31,819 27,024 63,425 53,181
Operating expenses:
Selling and marketing 6,143 6,032 12,571 12,086
Research and development 7,506 6,483 14,819 12,830
Amortization 385 285 711 572
General and administrative 4,457 3,546 8,575 7,045
Total operating
expenses 18,491 16,346 36,676 32,533
Operating income 13,328 10,678 26,749 20,648
Other income 1,046 146 1,659 376
Income before income tax
provision 14,374 10,824 28,408 21,024
Income tax provision 4,599 3,247 8,950 6,307
Net income $ 9,775 $ 7,577 $ 19,458 $ 14,717
Earnings per share - basic:
Basic earnings per share $ 0.31 $ 0.25 $ 0.62 $ 0.48
Weighted average shares
- basic 31,667 30,800 31,579 30,716
Earnings per share - diluted:
Diluted earnings per share $ 0.29 $ 0.23 $ 0.58 $ 0.45
Weighted average shares
- diluted 33,782 32,966 33,688 32,862
ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
For the three months ended June 30, 2005
(in thousands, except per share data)
(Unaudited)
As Adjusted
Reported Adjustments Results
---------- ----------- ----------
Revenue:
Software licenses $ 19,794 - $ 19,794
Maintenance and service 17,862 - 17,862
Total revenue 37,656 - 37,656
Cost of sales:
Software licenses 1,160 - 1,160
Amortization of software
and acquired technology 881 (751)(a) 130
Maintenance and service 3,796 - 3,796
Total cost of sales 5,837 (751) 5,086
Gross profit 31,819 751 32,570
Operating expenses:
Selling and marketing 6,143 - 6,143
Research and development 7,506 - 7,506
Amortization 385 (385)(a) -
General and administrative 4,457 - 4,457
Total operating
expenses 18,491 (385) 18,106
Operating income 13,328 1,136 14,464
Other income 1,046 - 1,046
Income before income tax
provision 14,374 1,136 15,510
Income tax provision 4,599 398(b) 4,997
Net income $ 9,775 $ 738 $ 10,513
Earnings per share - basic:
Basic earnings per share $ 0.31 $ 0.33
Weighted average shares
- basic 31,667 31,667
Earnings per share - diluted:
Diluted earnings per share $ 0.29 $ 0.31
Weighted average shares
- diluted 33,782 33,782
(a) Amount represents amortization expense associated with intangible assets
acquired in business acquisitions, including amounts primarily related to
acquired software, customer list and non-compete agreements.
(b) Amount represents the income tax impact of the amortization expense
adjustments referred to in (a) above.
ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
For the three months ended June 30, 2004
(in thousands, except per share data)
(Unaudited)
As Adjusted
Reported Adjustments Results
---------- ----------- ----------
Revenue:
Software licenses $ 16,353 - $ 16,353
Maintenance and service 15,649 - 15,649
Total revenue 32,002 - 32,002
Cost of sales:
Software licenses 1,179 - 1,179
Amortization of software
and acquired technology 754 (602)(a) 152
Maintenance and service 3,045 - 3,045
Total cost of sales 4,978 (602) 4,376
Gross profit 27,024 602 27,626
Operating expenses:
Selling and marketing 6,032 - 6,032
Research and development 6,483 - 6,483
Amortization 285 (285)(a) -
General and administrative 3,546 - 3,546
Total operating
expenses 16,346 (285) 16,061
Operating income 10,678 887 11,565
Other income 146 - 146
Income before income tax
provision 10,824 887 11,711
Income tax provision 3,247 310(b) 3,557
Net income $ 7,577 $ 577 $ 8,154
Earnings per share - basic:
Basic earnings per share $ 0.25 $ 0.26
Weighted average shares
- basic 30,800 30,800
Earnings per share - diluted:
Diluted earnings per share $ 0.23 $ 0.25
Weighted average shares
- diluted 32,966 32,966
(a) Amount represents amortization expense associated with intangible assets
acquired in business acquisitions, including amounts primarily related to
acquired software, customer list and non-compete agreements.
(b) Amount represents the income tax impact of the amortization expense
adjustments referred to in (a) above.
ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
For the six months ended June 30, 2005
(in thousands, except per share data)
(Unaudited)
As Adjusted
Reported Adjustments Results
---------- ----------- ----------
Revenue:
Software licenses $ 40,269 - $ 40,269
Maintenance and service 35,011 - 35,011
Total revenue 75,280 - 75,280
Cost of sales:
Software licenses 2,413 - 2,413
Amortization of software
and acquired technology 1,788 (1,513)(a) 275
Maintenance and service 7,654 - 7,654
Total cost of sales 11,855 (1,513) 10,342
Gross profit 63,425 1,513 64,938
Operating expenses:
Selling and marketing 12,571 - 12,571
Research and development 14,819 - 14,819
Amortization 711 (711)(a) -
General and administrative 8,575 - 8,575
Total operating
expenses 36,676 (711) 35,965
Operating income 26,749 2,224 28,973
Other income 1,659 - 1,659
Income before income tax
provision 28,408 2,224 30,632
Income tax provision 8,950 779(b) 9,729
Net income $ 19,458 $ 1,445 $ 20,903
Earnings per share - basic:
Basic earnings per share $ 0.62 $ 0.66
Weighted average shares
- basic 31,579 31,579
Earnings per share - diluted:
Diluted earnings per share $ 0.58 $ 0.62
Weighted average shares
- diluted 33,688 33,688
(a) Amount represents amortization expense associated with intangible assets
acquired in business acquisitions, including amounts primarily related to
acquired software, customer list and non-compete agreements.
(b) Amount represents the income tax impact of the amortization expense
adjustments referred to in (a) above.
ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
For the six months ended June 30, 2004
(in thousands, except per share data)
(Unaudited)
As Adjusted
Reported Adjustment Results
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Revenue:
Software licenses $ 32,677 - $ 32,677
Maintenance and service 30,657 - 30,657
Total revenue 63,334 - 63,334
Cost of sales:
Software licenses 2,516 - 2,516
Amortization of software
and acquired technology 1,509 (1,219)(a) 290
Maintenance and service 6,128 - 6,128
Total cost of sales 10,153 (1,219) 8,934
Gross profit 53,181 1,219 54,400
Operating expenses:
Selling and marketing 12,086 - 12,086
Research and development 12,830 - 12,830
Amortization 572 (572)(a) -
General and administrative 7,045 - 7,045
Total operating
expenses 32,533 (572) 31,961
Operating income 20,648 1,791 22,439
Other income 376 - 376
Income before income tax
provision 21,024 1,791 22,815
Income tax provision 6,307 626(b) 6,933
Net income $ 14,717 $ 1,165 $ 15,882
Earnings per share - basic:
Basic earnings per share $ 0.48 $ 0.52
Weighted average shares
- basic 30,716 30,716
Earnings per share - diluted:
Diluted earnings per share $ 0.45 $ 0.48
Weighted average shares
- diluted 32,862 32,862
(a) Amount represents amortization expense associated with intangible assets
acquired in business acquisitions, including amounts primarily related to
acquired software, customer list and non-compete agreements.
(b) Amount represents the income tax impact of the amortization expense
adjustments referred to in (a) above.
ANSYS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
June 30, December 31,
2005 2004
------------ ------------
ASSETS:
Cash & short-term investments $ 163,370 $ 138,446
Accounts receivable, net 15,359 18,792
Other assets 83,282 82,408
Total assets $ 262,011 $ 239,646
LIABILITIES & STOCKHOLDERS' EQUITY:
Deferred revenue $ 49,465 $ 43,906
Other liabilities 15,977 20,271
Stockholders' equity 196,569 175,469
Total liabilities
& stockholders' equity $ 262,011 $ 239,646
CONTACT: Lisa O'Connor, Treasurer of ANSYS, Inc., +1-724-514-1782, or
lisa.oconnor@ansys.com /
Web site: http://www.ansys.com
http://www.ansys.com/corporate/investors.asp /