Celebrates Major Milestone of One Year Anniversary of Fluent Acquisition: Company Raises Full Year Outlook: ANSYS, a global innovator of simulation software and technologies designed to optimize product development processes, today announced a new Company record for first quarter non-GAAP operating results. "We are very excited to start off 2007 with record first quarter operating results. These results are the outcome of the persistent dedication and efforts of the global ANSYS team and demonstrate our continued progress in executing on our long-term vision," stated Jim Cashman, ANSYS President and CEO. "We entered into this fiscal year with enthusiasm and momentum, and we continue to be pleased with the measurable progress against our integration plans for the Fluent acquisition, particularly as we have reached another important milestone with the one year anniversary this week." ANSYS' first quarter 2007 financial results are presented below. The non-GAAP results exclude the income statement effects of stock-based compensation, purchase accounting for deferred revenue and acquisition-related amortization of intangible assets. Non-GAAP and GAAP results reflect: -- Total non-GAAP revenue of $89.6 million in the first quarter of 2007 and total GAAP revenue of $87.9 million in the first quarter of 2007 as compared to $46.0 million in the first quarter of 2006; -- A non-GAAP operating profit margin of 42.6% in the first quarter of 2007 as compared to 43.4% in the first quarter of 2006; a GAAP operating profit margin of 30.5% in the first quarter of 2007 as compared to 38.7% in the first quarter of 2006; -- Non-GAAP net income of $23.5 million in the first quarter of 2007 as compared to $14.5 million in the first quarter of 2006; GAAP net income of $16.2 million in the first quarter of 2007 as compared to GAAP net income of $12.9 million in the first quarter of 2006; and -- Non-GAAP diluted earnings per share of $0.58 in the first quarter of 2007 as compared to $0.42 in the first quarter of 2006; GAAP diluted earnings per share of $0.40 in the first quarter of 2007 as compared to GAAP diluted earnings per share of $0.38 in the first quarter of 2006. The Company's GAAP results reflect stock-based compensation charges of approximately $2.2 million ($1.8 million after tax) or $0.04 diluted earnings per share for the first quarter of 2007. The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2007 discussed below, represent non-GAAP financial measures. A reconciliation of these measures to the appropriate GAAP measures, for the three months ended March 31, 2007 and 2006, and for the 2007 financial outlook, is included in the condensed financial information included in this release. Continuing his comments, Cashman noted, "We remain committed to provide an unparalleled array of world-class engineering simulation solutions as demonstrated by the recent delivery of new product releases to the market, which included ANSYS 11.0. This release represents the continued advancement of our integrated, best-in-class computer-aided engineering (CAE) functionality, including advanced analysis, meshing, optimization, multiphysics and multibody dynamics." Cashman concluded, "Looking ahead, our first quarter results lay the groundwork for continued momentum in 2007, and as such, we are increasing our outlook for the year. We believe that we are well positioned to invest and capitalize on the global market opportunities for growth, leveraging our extensive customer base, strategic vision, technology leadership, and solid business model, to drive technological and operational excellence." Second Quarter 2007 Guidance The Company currently expects the following for the quarter ending June 30, 2007: -- GAAP revenue in the range of $87 - $89 million -- Non-GAAP revenue in the range of $87 - $89 million -- GAAP diluted earnings per share of $0.35 - $0.38 -- Non-GAAP diluted earnings per share of $0.52 - $0.53 Fiscal Year 2007 Guidance -- The Company currently expects the following for the fiscal year ending December 31, 2007: -- GAAP revenue in the range of $363 - $366 million -- Non-GAAP revenue in the range of $365 - $368 million -- GAAP diluted earnings per share of $1.46 - $1.53 -- Non-GAAP diluted earnings per share of $2.14 - $2.17 Non-GAAP revenue and diluted earnings per share are supplemental financial measures and should not be considered as a substitute for, or superior to, revenue and diluted earnings per share determined in accordance with GAAP. ANSYS will hold a conference call at 10:30 a.m. Eastern Time on May 3, 2007 to discuss first quarter results. To participate in the live conference call, dial 913-312-1264 or 888-802-2278 and enter the passcode "ANSYS" or "26797". The call will be recorded and a replay will be available approximately two hours after the call ends. The replay will be available for one week by dialing 719-457-0820 or 888-203-1112 and entering the passcode "ANSYS" or "26797". The archived webcast can be accessed, along with other financial information, on ANSYS' website at its Web site.