ANST Ansoft Corp (MM)

Ansoft Corporation (NASDAQ:ANST) today announced financial results for its first quarter of fiscal 2008 ended July 31, 2007. Revenue for the first quarter totaled $19.9 million, an increase of 15% compared to $17.3 million reported in the previous fiscal year's first quarter. Operating income for the first quarter was $5.2 million representing an 84% increase when compared to operating income of $2.8 million in the previous fiscal year's first quarter. On a generally accepted accounting principles (GAAP) basis, net income for the first quarter was $3.9 million, or $0.15 per diluted share, representing a 69% increase when compared to GAAP net income of $2.3 million, or $0.09 per diluted share in the previous fiscal year's first quarter. GAAP net income for first quarter includes employee stock-based compensation expense of $0.2 million, or $0.01 per diluted share. This compares to employee stock-based compensation expense of $0.6 million, or $0.02 per diluted share in the previous fiscal year�s first quarter. Additionally, GAAP net income for both the current and previous year�s first quarter includes acquisition related amortization of $0.3 million, or $0.01 per diluted share. During the current quarter, the Company repurchased 853,632 shares of its common stock. �We are pleased to report strong revenue and earnings growth for the first quarter,� said Nicholas Csendes, Ansoft�s President and CEO. �For the next fiscal quarter, we anticipate continued revenue growth of around 10-15%.� Ansoft is a leading developer of high-performance electronic design automation (EDA) software. Engineers use Ansoft software to achieve first-pass system success when designing mobile communication and Internet-access devices, broadband networking components and systems, integrated circuits (ICs), printed circuit boards (PCBs) and electromechanical systems. Ansoft markets its products worldwide through its own direct sales force and has comprehensive customer-support and training offices throughout North America, Asia and Europe. This press release contains forward-looking statements including those related to revenue growth for the current fiscal year that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements are based on management�s current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statement, including, but not limited to, management�s ability to forecast revenues and control expenses and the amount, timing and structure of software licenses. For further information regarding risks and uncertainties associated with Ansoft�s business, please refer to the �Management�s Discussion and Analysis of Financial Condition and Results of Operations� section of Ansoft�s SEC filings, including, but not limited to, its annual report on Form 10-K for the fiscal year ended April 30, 2007 and quarterly reports on Form 10-Q, copies of which may be obtained at Ansoft�s website at www.ansoft.com/about/investor/index.cfm. All information in this release is as of August 14, 2007. Ansoft undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Ansoft�s expectations. ANSOFT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS �(In thousands, except per share amounts) (unaudited) � Three months ended July 31, 2007 2006 Revenue License $ 9,658 $ 8,185 Service and other 10,253 9,138 Total revenue 19,911 17,323 Costs of revenue License 136 120 Service and other 411 333 Total cost of revenue 547 453 Gross profit 19,364 16,870 Operating Expenses Sales and marketing 7,617 7,478 Research and development 4,713 4,826 General and administrative 1,525 1,384 Amortization 290 346 Total operating expenses 14,145 14,034 Income from operations 5,219 2,836 Other income, net 831 815 Income before income taxes 6,050 3,651 Income tax expense 2,179 1,362 Net income $ 3,871 $ 2,289 Net income per share Basic $ 0.16 $ 0.10 Diluted $ 0.15 $ 0.09 Weighted average shares used in calculation Basic 23,725 23,609 Diluted 25,859 26,174 ANSOFT CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (unaudited) � � July 31, April 30, 2007 2007 � Assets Current assets Cash and cash equivalents $ 38,188 $ 49,356 Accounts receivable, net of allowance for doubtful Accounts of $1,059 and $973, respectively 14,383 24,994 Deferred income taxes 4,055 1,441 Prepaid expenses and other current assets 2,499 � 2,566 � Total current assets 59,125 78,357 � Equipment and furniture, net of accumulated depreciation of $7,286 and $7,019, respectively 2,450 2,514 Marketable securities 21,997 22,383 Other assets 156 155 Deferred income taxes 5,388 5,352 Goodwill 1,239 1,239 Other intangible assets, net 880 � 1,170 � Total assets $ 91,235 � $ 111,170 � � Liabilities and stockholders' equity Current liabilities Accounts payable $ 258 $ 626 Accrued payroll 1,074 3,380 Accrued income taxes 324 603 Other accrued expenses 3,917 4,130 Current portion of deferred revenue 24,616 � 26,244 � Total current liabilities 30,189 34,983 Accrued income taxes 3,325 - Long-term portion of deferred revenue 1,081 � 1,404 � Total liabilities 34,595 36,387 � Stockholders' equity Preferred stock , par value $0.01 per share; 1,000 shares authorized, no shares outstanding - - Common stock , par value $0.01 per share; 50,000 shares authorized; issued 29,576 and 29,258 shares, respectively and outstanding 23,420 and 23,956, respectively � 296 293 Additional paid-in capital 88,115 85,754 Treasury stock, 6,156 and 5,302 shares, respectively (73,443 ) (49,176 ) Accumulated other comprehensive loss (1,075 ) (964 ) Retained earnings 42,747 � 38,876 � Total stockholders' equity 56,640 � 74,783 � Total liabilities and stockholders' equity $ 91,235 � $ 111,170 �