EX-99.1 3 j0587701exv99w1.txt EXHIBIT 99.1 EXHIBIT 99.1 ANSOFT CORPORATION THIRD QUARTER RESULTS - 13% INCREASE IN REVENUE Pittsburgh, Pennsylvania - February 18, 2004 - Ansoft Corporation (NASDAQ: ANST) today announced financial results for its third quarter of fiscal 2004 ended January 31, 2004. Revenue for the third quarter totaled $14 million, an increase of 13% compared to $12.4 million reported in the previous fiscal year's third quarter. Net income for the third quarter was $941,000, or $0.07 per diluted share, as compared to a net loss of ($58,000), or ($0.00) per diluted share in the previous fiscal year's third quarter. "We are pleased with our continued growth and profitability," commented Nicholas Csendes, Ansoft's President and CEO. "For the balance of the fiscal year, we continue to see growth of 10% - 15% and increasing profitability." Ansoft is a leading developer of high performance EDA software. Ansoft software is used by electrical engineers to design state of the art technology products, such as cellular phones, internet networking equipment, satellites, computer chips and circuit boards, electronic sensors and electric motors. Ansoft markets its products through its own direct worldwide sales force, and has comprehensive customer support offices throughout North America, Asia and Europe. This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward looking statements involve risks and uncertainties about the Company's business that are detailed from time to time in the Company's SEC reports, including the reports on Form 10-K for the year ended April 30, 2003. 1 ANSOFT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share amounts)
Three months ended January 31, Nine months ended January 31, 2004 2003 2004 2003 -------- -------- -------- -------- Revenue License $ 8,024 $ 7,003 $ 20,258 $ 17,893 Service and other 5,958 5,359 16,633 14,314 -------- -------- -------- -------- Total revenue 13,982 12,362 36,891 32,207 Costs of revenue License 171 137 477 518 Service and other 285 241 805 696 -------- -------- -------- -------- Total cost of revenue 456 378 1,282 1,214 -------- -------- -------- -------- Gross profit 13,526 11,984 35,609 30,993 Operating Expenses Sales and marketing 6,803 6,111 19,462 18,383 Research and development 3,806 4,272 11,402 14,779 General and administrative 1,148 1,110 3,445 3,117 Amortization 761 858 2,379 2,570 -------- -------- -------- -------- Total operating expenses 12,518 12,351 36,688 38,849 -------- -------- -------- -------- Income (loss) from operations 1,008 (367) (1,079) (7,856) Other income, net 247 294 715 856 -------- -------- -------- -------- Income (loss) before income taxes 1,255 (73) (364) (7,000) Income tax expense (benefit) 314 (15) (90) (1,401) -------- -------- -------- -------- Net income (loss) $ 941 $ (58) $ (274) $ (5,599) ======== ======== ======== ======== Net income (loss) per share Basic $ 0.08 $ (0.00) $ (0.02) $ (0.47) ======== ======== ======== ======== Diluted $ 0.07 $ (0.00) $ (0.02) $ (0.47) ======== ======== ======== ======== Weighted average shares used in calculation Basic 11,640 11,764 11,650 11,840 ======== ======== ======== ======== Diluted 13,306 11,764 11,650 11,840 ======== ======== ======== ========
- more - 2 ANSOFT CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands)
January 31, April 30, 2004 2003 -------- -------- (unaudited) Assets Current assets Cash and cash equivalents $ 10,129 $ 7,173 Accounts receivable 9,228 13,968 Deferred income taxes 274 310 Prepaid expenses and other assets 676 842 -------- -------- Total current assets 20,307 22,293 Equipment and furniture 3,607 3,829 Marketable securities 25,656 21,785 Other assets 404 436 Deferred taxes - non current 5,066 4,909 Goodwill 1,239 1,239 Intangible assets 6,178 8,663 -------- -------- Total assets $ 62,457 $ 63,154 ======== ======== Liabilities and stockholders' equity Current liabilities Accounts payable and accrued expenses $ 2,052 $ 2,449 Deferred revenue 10,103 10,879 -------- -------- Total current liabilities 12,155 13,328 Line of credit 10,000 10,000 -------- -------- Total liabilities 22,155 23,328 Stockholders' equity Preferred stock -- -- Common stock 125 123 Additional paid-in capital 56,701 55,522 Treasury stock (6,418) (3,954) Other accumulated comprehensive income (loss) 1,330 (703) Accumulated deficit (11,436) (11,162) -------- -------- Total stockholders' equity 40,302 39,826 Total liabilities and stockholders' equity $ 62,457 $ 63,154 ======== ========
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