ANSYS, Inc. Reports 2006 Fourth Quarter Record Operating Results as Fluent Integration Momentum Continues

Company Announces Increase to 2007 Initial Outlook

SOUTHPOINTE, Feb. 20 -- ANSYS, Inc. (Nasdaq: ANSS), a global innovator of simulation software and technologies designed to optimize product development processes, today announced a new Company record for fourth quarter and annual non-GAAP operating results, and an increase in its outlook for 2007 non-GAAP results.

"I am pleased to report another record year for our company," commented ANSYS President and CEO, Jim Cashman. "During 2006, despite the significant time and resources that were invested in our Fluent integration activities, the results for the fourth quarter and the year demonstrate the outcome of the continued focus of and execution by the ANSYS team. The results are also indicative of continued strong growth in our core business, complemented by the positive impact of the integration of the Fluent operations. Our financial performance during this past year reflects that our long-term vision and strategy continue to resonate with, and are very much aligned with, the needs and visions of our customers throughout the globe."

ANSYS' fourth quarter and year-to-date 2006 financial results are presented below. ANSYS' 2006 GAAP results are impacted by a one-time charge of $28.1 million, which was recorded in the second quarter of 2006, and related to in-process research and development associated with the May 2006 acquisition of Fluent. The non-GAAP results exclude the income statement effects of stock-based compensation, purchase accounting for deferred revenue, acquisition-related amortization of intangible assets and the one-time acquired in-process research and development charge. Non-GAAP and GAAP results reflect:
· Total non-GAAP revenue of $90.4 million in the fourth quarter of 2006 as compared to $43.7 million in the fourth quarter of 2005; total non- GAAP revenue of $282.0 million in 2006 as compared to $158.0 million in 2005; total GAAP revenue of $85.2 million in the fourth quarter of 2006 as compared to $43.7 million in the fourth quarter of 2005; total GAAP revenue of $263.6 million in 2006 as compared to $158.0 million in 2005;
· A non-GAAP operating profit margin of 38.1% in the fourth quarter of 2006 as compared to 42.8% in the fourth quarter of 2005; a non-GAAP operating profit margin of 38.7% in 2006 as compared to 39.9% in 2005; a GAAP operating profit margin of 23.4% in the fourth quarter of 2006 as compared to 40.6% in the fourth quarter of 2005; a GAAP operating profit margin of 13.7% in 2006 as compared to 37.2% in 2005;
· Non-GAAP net income of $21.5 million in the fourth quarter of 2006 as compared to $13.9 million in the fourth quarter of 2005; non-GAAP net income of $70.7 million in 2006 as compared to $46.7 million in 2005; GAAP net income of $12.3 million in the fourth quarter of 2006 as compared to GAAP net income of $13.3 million in the fourth quarter of 2005; GAAP net income of $14.2 million in 2006 as compared to GAAP net income of $43.9 million in 2005; and
· Non-GAAP diluted earnings per share of $0.53 in the fourth quarter of 2006 as compared to $0.41 in the fourth quarter of 2005; non-GAAP diluted earnings per share of $1.85 in 2006 as compared to $1.38 in 2005; GAAP diluted earnings per share of $0.30 in the fourth quarter of 2006 as compared to GAAP diluted earnings per share of $0.39 in the fourth quarter of 2005; GAAP diluted earnings per share of $0.37 in 2006 as compared to GAAP diluted earnings per share of $1.30 in 2005.
·
Continuing his comments on 2006 performance, Cashman noted, "2006 has been a very productive and successful year for ANSYS as we completed a significant acquisition that has transformed our business and significantly extended the capabilities of our broad-based engineering simulation portfolio. We have also further expanded the diversity of our customer base, our geographic presence and our wealth of employee talent. The foundation that we have been building over the course of many years has generated a solid business model that positions the Company for future success and growth."

Cashman concluded with, "Our business continues to generate a significant level of cash from operations. During 2006, we deployed cash to partially fund the Fluent acquisition, aggressively pay down our debt and to fund capital expenditures that expanded our product offerings and improved our overall productivity. There is strong business and customer momentum as we begin 2007, and we are truly excited about the opportunities and challenges that lie ahead."

About ANSYS, Inc.
ANSYS, Inc., founded in 1970, develops and globally markets engineering simulation software and technologies widely used by engineers and designers across a broad spectrum of industries. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for fast, efficient and cost- conscious product development, from design concept to final-stage testing and validation. The Company and its global network of channel partners provide sales, support and training for customers. Headquartered in Canonsburg, Pennsylvania U.S.A. with more than 40 strategic sales locations throughout the world, ANSYS, Inc. and its subsidiaries employ approximately 1,400 people and distribute ANSYS products through a network of channel partners in over 40 countries. Visit http://www.ansys.com for more information.


Per ulteriori informazioni:
Chiara Possenti
AxiCom Italia Srl, - Ufficio stampa
Tel : 02. 75 26 111
E-mail: chiara.possenti@axicom.it

Carlo Gomarasca
ANSYS
Tel : 02. 89 01 33 78
E-mail: carlo.gomarasca@ansys.com