ANSYS, Inc. Q1 2008 Earnings Call Transcript

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2008-05-13 11:50:11.0

Tags: ANSYS Inc.

Question-and-Answer Session

Operator

(Operator instructions) We'll take our first question from Andrew Matorin with Bear Stearns. Please go ahead.

Andrew Matorin Bear Stearns

Thank you, just with respect to the product roadmap, if you could give us a little more color. I think you said on the prepared remarks that the expectation was back loaded towards the ends of the year. Does everything remain on schedule with that release?

Jim Cashman

Well, within the normal ranges. We are still – we talked about – we've always talked about – first of all, the date has never been formally announced. Second of all, we always said it would be the latter part of this year, and first availabilities are still targeted for the end of the year. Then there is a lot of distribution issues, so probably mass distribution even spilling of course over into 2009, but basically within the parameters of what we have always talked about.

Andrew Matorin Bear Stearns

Okay. And then Maria, if you could just give a little bit more color on the G&A line item. It seemed like it did decline more materially sequentially than perhaps we might have anticipated–

Maria Shields

Yes, I tried to highlight that, Andrew. We are definitely seeing the financial upsides of a lot of the integration efforts that we've gone through on the Fluent acquisition for the past almost two years now. Well, yes, two years now.

Jim Cashman

Yes.

Maria Shields

Yes, so between reduction in consulting cost, improvement in process and efficiencies we've gained over the past two years, there are also – we were undoubtedly focused on some other things this quarter relative to getting the Ansoft transaction done. So I think you'll see kind of a similar model going forward. Once we close the Ansoft deal, we'll have to make investments in third parties to help us integrate them. It will tick up but then eventually for the long term, it will tick back down.

Andrew Matorin Bear Stearns

Okay. So were there any headcount reductions other than the consulting costs that came down? And were those consulting costs incremental to the combined organization as a way to facilitate the integration process?

Maria Shields

Yes. We do not – in any of the acquisitions that we've done, we never ramp up the full-time headcount for things that, quite frankly, are shorter-term in nature. So if we have got a year plan to, say, migrate everybody on to the – our financial platform, we don't hire eight or nine people full time to deal with those issues. We usually do it between a combination of our own internal existing resources, plus we supplement with folks that have the experience that we need to get it done as quickly and as efficiently as we can, and we definitely have been doing that since May of 2006, but a lot of that heavy lifting is now behind us.

 

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