CIMdata PLM Industry Summary Online Archive
16 November 2005
Financial News
Ansoft Corporation Second Quarter Earnings Double
Ansoft Corporation announced financial results for its second quarter of fiscal 2006 ended October 31, 2005.
Revenue for the second quarter totaled $18 million, an increase of 13% compared to $15.9 million reported in the previous fiscal year's second quarter. On a non-GAAP basis, net income for the second quarter was $4.3 million, or $0.34 per diluted share, representing a 103% increase when compared to net income of $2.1 million, or $0.16 per diluted share in the previous fiscal year's second quarter. On a generally accepted accounting principles (GAAP) basis, net income for the second quarter was $4.1 million, or $0.32 per diluted share, compared to GAAP net income of $1.9 million, or $0.14 per diluted share in the previous fiscal year's second quarter.
During the quarter, the Company elected to claim a federal tax credit and refund related to foreign taxes previously paid. As a result, second quarter net income includes a tax benefit of $0.5 million for an expected refund of prior years federal tax payments. The Company anticipates utilizing excess foreign tax credits claimed during the current fiscal year. This would favorably impact the full year effective rate by approximately 7%.
"We are pleased to report that our earnings for the second quarter have more than doubled on continued strong revenue growth," said Nicholas Csendes, Ansoft's President and CEO. "For the balance of the fiscal year, we expect continued revenue growth of around 10-15% with earnings increasing around 25% over the last fiscal year."
Pro forma results represent non-GAAP financial measures and exclude the impact of amortization of intangible assets. A reconciliation of these amounts to the appropriate GAAP amounts, for the three months ended October 31, 2005 and 2004 is included with this press release.
Ansoft is a developer of high-performance electronic design automation (EDA) software. Engineers use Ansoft software to design state-of-the-art electronic products, such as cellular phones, Internet-access devices, broadband networking components and systems, integrated circuits (ICs), printed circuit boards (PCBs), automotive electronic systems and power electronics. 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.
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 and quarterly reports on Form 10-Q, copies of which may be obtained at Ansoft's website at http://www.ansoft.com/about/investor/index.cfm .
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