Ansoft Corporation Revenue Increases 15%; Operating Income Increases over 35%

Share Name	Share Symbol	Market	Type
Ansoft Corp (MM)	NASDAQ:ANST	NASDAQ	Common Stock

Ansoft (NASDAQ:ANST)
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Ansoft Corporation (NASDAQ: ANST) today announced financial results for its third quarter of fiscal 2008 ended January 31, 2008. Revenue for the third quarter totaled $26.1 million, an increase of 15% compared to $22.7 million reported in the previous fiscal year's third quarter. Operating income for the third quarter was $10.0 million representing a 36% increase when compared to operating income of $7.4 million in the previous fiscal year's third quarter. On a generally accepted accounting principles (GAAP) basis, net income for the third quarter was $6.5 million, or $0.26 per diluted share. This compares to GAAP net income of $6.3 million, or $0.24 per diluted share in the previous fiscal year's third quarter. GAAP net income for the prior year�s third quarter included a tax benefit of $1.1 million, or $0.04 per diluted share for the retroactive enactment of the US Research and Development Tax Credit. GAAP net income for the third quarter includes employee stock-based compensation expense of $0.3 million, or $0.01 per diluted share versus $0.6 million, or $0.02 per diluted share in the previous fiscal year�s third quarter. Additionally, GAAP net income for both the current and previous year�s third quarter includes acquisition related amortization of $0.3 million, or $0.01 per diluted share. �We are pleased to report strong revenue growth in both domestic and international markets,� said Nicholas Csendes, Ansoft�s President and CEO. �For the fourth quarter, we expect 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 Ansoft�s public reports filed with the SEC, 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 February 14, 2008. 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 endedJanuary 31, Nine months endedJanuary 31, 2008 � 2007 2008 � 2007 Revenue License $ 14,992 $ 13,147 $ 37,076 $ 32,270 Service and other � 11,146 � 9,584 � 32,359 � 28,290 Total revenue 26,138 22,731 69,435 60,560 Costs of revenue License 167 164 459 425 Service and other � 465 � 403 � 1,308 � 1,096 Total cost of revenue 632 567 1,767 1,521 Gross profit 25,506 22,164 67,668 59,039 Operating Expenses Sales and marketing 9,108 8,030 25,754 23,646 Research and development 4,750 5,016 14,273 14,572 General and administrative 1,317 1,451 4,095 4,075 Amortization � 295 � 290 � 875 � 982 Total operating expenses � 15,470 � 14,787 � 44,997 � 43,275 Income from operations 10,036 7,377 22,671 15,764 Other income, net � 778 � 576 � 2,334 � 1,968 Income before income taxes 10,814 7,953 25,005 17,732 Income tax expense � 4,305 � 1,642 � 9,394 � 5,422 Net income $ 6,509 $ 6,311 $ 15,611 $ 12,310 Net income per share Basic $ 0.28 $ 0.27 $ 0.67 $ 0.52 Diluted $ 0.26 $ 0.24 $ 0.61 $ 0.47 Weighted average shares used in calculation Basic � 23,329 � 23,599 � 23,451 � 23,609 Diluted � 25,182 � 26,138 � 25,454 � 26,163 � � � � ANSOFT CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (unaudited) � January 31, April 30, 2008 2007 � Assets Current assets Cash and cash equivalents $ 30,530 $ 49,356 Accounts receivable, net of allowance for doubtful accounts of $1,184 and $973, respectively 20,497 24,994 Deferred income taxes 4,027 1,441 Prepaid expenses and other current assets � 2,218 � � 2,566 � Total current assets 57,272 78,357 � Equipment and furniture, net of accumulated depreciation of $7,732 and $7,019, respectively 2,233 2,514 Marketable securities 33,580 22,383 Other assets 164 155 Deferred income taxes 4,866 5,352 Goodwill 1,239 1,239 Other intangible assets, net � 295 � � 1,170 � Total assets $ 99,649 � $ 111,170 � Liabilities and stockholders' equity Current liabilities Accounts payable $ 214 $ 626 Accrued payroll 1,768 3,380 Accrued income taxes 2,618 603 Other accrued expenses 4,592 4,130 Current portion of deferred revenue � 23,695 � � 26,244 � Total current liabilities 32,887 34,983 Accrued income taxes 3,444 - Long-term portion of deferred revenue � 1,272 � � 1,404 � Total liabilities 37,603 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 29,973 and 29,258 shares, respectively and outstanding 23,322 and 23,956, respectively 300 293 Additional paid-in capital 92,064 85,754 Treasury stock, 6,651 and 5,302 shares, respectively (85,884 ) (49,176 ) Accumulated other comprehensive income (loss) 1,079 (964 ) Retained earnings � 54,487 � � 38,876 � Total stockholders' equity � 62,046 � � 74,783 � Total liabilities and stockholders' equity $ 99,649 � $ 111,170 �

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ANST Ansoft Corp (MM)