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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, DC 20549
 FORM 10-K
  þ
    
    Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
 for the fiscal year ended April 30, 2007
 or
 o
    
    Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
 for the transition period from  to
 Commission file number 000-27874
 ANSOFT CORPORATION
  Delaware
    
    72-1001909(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 225 West Station Square, Suite 200
Pittsburgh, Pennsylvania
    
    15219-1119(Address of principal executive offices)
    
    (Zip Code)
    o þ
 o þ
 þ o
 þ
  o þ o
 o þ




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##### Table of Contents



TABLE OF CONTENTS
 Item of Form 10-K
    
    
    
    PagePart I1.
    
    Business
    
    
    31A.
    
    Risk Factors
    
    
    81B.
    
    Unresolved Staff Comments
    
    
    112.
    
    Properties
    
    
    123.
    
    Legal Proceedings
    
    
    124.
    
    Submission of Matters to a Vote of Security Holders
    
    
    12Part II5.
    
    Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    136.
    
    Selected Financial Data
    
    
    167.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    177A.
    
    Quantitative and Qualitative Disclosure about Market Risk
    
    
    248.
    
    Financial Statements and Supplementary Data
    
    
    259.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosures
    
    
    449A.
    
    Controls and Procedures
    
    
    449B.
    
    Other Information
    
    
    47Part III10.
    
    Directors and Executive Officers of the Registrant
    
    
    4711.
    
    Executive Compensation
    
    
    4712.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    4713.
    
    Certain Relationships and Related Transactions
    
    
    4714.
    
    Principal Accounting Fees and Services
    
    
    47Part IV15.
    
    Exhibits and Financial Statement Schedules
    
    
    48Exhibit Index
    
    
    49Signatures
    
    
    50EX-23.1EX-31.1EX-31.2EX-32.1
 2




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PART I
  
 ITEM 1. BUSINESS
 Overview
  Industry Background
 Logic Design and Synthesis Functional Design and Analysis Physical
Design and Verification
   3




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The Ansoft Solution
  Ansoft Strategy
  Products
  Ansoft High Performance Electronics Software
 HFSS
 Nexxim®
 SIwave
 Q3D Extractor®
 Ansoft Designer®
 4




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Turbo Package Analyzer (TPA)
 AnsoftLinks
 Full-Wave Spice
 Optimetrics
 Ansofts Electromechanical (EM) Software
 Maxwell 3D® 
 SIMPLORER® 
 RMxprt
 AnsoftLinks
 Optimetrics
 Research and Development
  5




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Sales and Marketing
   Customers
  Customer Service and Support
   6




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Competition
   
    
    High performance (problem complexity) and accuracy;
    
    Short run time;
    
    Ease of use;
    
    Depth and breadth of product features;
    
    High quality user support;
    
    Interoperability; and
    
    Price.
 Proprietary Rights
  Seasonal Effects
  Employees
  7




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Other Information
  
 ITEM 1A. RISK FACTORS
 Our Future Operating Results Are Uncertain.
  Our Quarterly Operating Results Are Difficult To Predict.
   8




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Our Stock Price Is Volatile.
  
    
    Actual or anticipated fluctuations in our operating results;
    
    Announcements of technological innovations and new or enhanced products by us or our
competitors;
    
    New contractual relationships with strategic partners by us or our competitors;
    
    Proposed acquisitions by us or our competitors; and
    
    Financial results that fail to meet public market analyst expectations of performance.
  We May Lose Competitive Advantages If Our Proprietary Rights Are Inadequately Protected.
  We May Be Unable To Attract And Retain The Key Management And Technical Personnel That We Need To
Succeed.
  We Depend On International Sales for a Significant Percentage Of Our Revenue.
  9




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
    
    The impact of recessionary environments in foreign economies;
    
    Longer receivables collection periods and greater difficulty in accounts receivable collection;
    
    Difficulties in staffing and managing foreign operations;
    
    Political and economic instability;
    
    Unexpected changes in regulatory requirements;
    
    Reduced protection of intellectual property rights in some countries; and
    
    Tariffs and other trade barriers and import/export regulations.
  We Need To Successfully Manage Our Expanding Operations.
  We Depend On The Growth Of The Communications, Semiconductor And Electronics Industries.
  We Are Controlled By Our Principal Stockholders And Management Which May Limit Your Ability To
Influence Stockholder Matters.
  10




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Anti-Takeover Provisions in Ansofts Certificate Of Incorporation, Bylaws, And Under Delaware Law
Could Prevent An Acquisition.
  
 ITEM 1B. UNRESOLVED STAFF COMMENTS
  11




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ITEM 2. PROPERTIES
  
 ITEM 3. LEGAL PROCEEDINGS
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  12




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PART II
 
 ITEM 5.
    
    MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES
OF EQUITY SECURITIES
 Market Information.
  High
    
    LowFiscal year ended April 30, 20061st Quarter
    
    $
    12.79
    
    
    $
    10.702nd Quarter
    
    
    16.00
    
    
    
    12.063rd Quarter
    
    
    17.75
    
    
    
    15.074th Quarter
    
    
    22.09
    
    
    
    16.93Fiscal year ended April 30, 20071st Quarter
    
    $
    23.20
    
    
    $
    17.772nd Quarter
    
    
    28.10
    
    
    
    19.723rd Quarter
    
    
    28.99
    
    
    
    23.654th Quarter
    
    
    33.49
    
    
    
    27.75Fiscal year ended April 30, 20081st Quarter (through June 7, 2007)
    
    $
    35.05
    
    
    $
    31.33
   13




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Measurement Period(Fiscal Year covered)
    
    Ansoft Corporation
    
    Nasdaq Composite Index
    
    Nasdaq Computer Index4/30/02
    
    
    100
    
    
    
    100
    
    
    
    1004/30/03
    
    
    75
    
    
    
    84
    
    
    
    854/30/04
    
    
    123
    
    
    
    114
    
    
    
    1074/30/05
    
    
    205
    
    
    
    114
    
    
    
    1094/30/06
    
    
    390
    
    
    
    138
    
    
    
    1254/30/07
    
    
    570
    
    
    
    150
    
    
    
    138
 Dividends.
  Holders.
  Securities Authorized for Issuance Under Equity Compensation Plans.
  14




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Number ofsecurities to beissued upon
    
    Weighted-average
    
    Number of securitiesexercise of
    
    exercise price of
    
    remaining availableoutstanding
    
    outstanding
    
    for future issuanceoptions, warrants
    
    options, warrants
    
    under equityPlan Category
    
    and rights
    
    and rights
    
    compensation plansEquity
compensation plans
approved by
security holders
    
    
    3,551,942
    
    
    $
    5.18
    
    
    
    1,202,000Total
    
    
    3,551,942
    
    
    $
    5.18
    
    
    
    1,202,000
 Issuer Purchases of Equity Securities.
  Total number of
    
    Maximumshares
    
    number ofrepurchased as
    
    shares that mayTotal
    
    
    
    
    
    part of publicly
    
    yet benumber of
    
    Average
    
    announced
    
    repurchasedshares
    
    price paid
    
    plans or
    
    under the plansPeriod
    
    repurchased
    
    per share
    
    programs
    
    or programs (1)Feb. 1, 2007 - Feb. 28, 2007
    
    
    19,000
    
    
    $
    30.19
    
    
    
    6,149,820
    
    
    
    1,850,180March 1, 2007 - March 31, 2007
    
    
    22,000
    
    
    $
    31.11
    
    
    
    6,171,820
    
    
    
    1,828,180April 1, 2007 - April 30, 2007
    
    
    20,000
    
    
    $
    32.40
    
    
    
    6,191,820
    
    
    
    1,808,180Total
    
    
    61,000
    
    
    $
    31.25
 
 (1)
    
    All repurchases were made pursuant to a share repurchase program publicly announced in 1998
and amended in 2002 and 2004. On March 1, 2006, the Company announced that the Board of
Directors voted to amend its existing common stock repurchase program to permit the Company to
acquire an additional 2,000,000 shares of its common stock. Unless terminated earlier by
resolution of our Board of Directors, the share repurchase program will expire when we have
repurchased all shares authorized for repurchase thereunder. Under the plan the Company is
authorized to repurchase 8,000,000 shares.  15




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ITEM 6. SELECTED FINANCIAL DATA
  Fiscal Year Ended April 30,2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003(in thousands, except per share data)Consolidated Statement of Operations DataRevenue:License
    
    $
    51,026
    
    
    $
    42,849
    
    
    $
    39,322
    
    
    $
    32,301
    
    
    $
    27,540Service and other
    
    
    38,113
    
    
    
    34,362
    
    
    
    28,348
    
    
    
    22,352
    
    
    
    19,779Total revenue
    
    
    89,139
    
    
    
    77,211
    
    
    
    67,670
    
    
    
    54,653
    
    
    
    47,319Cost of revenue:License
    
    
    607
    
    
    
    535
    
    
    
    505
    
    
    
    702
    
    
    
    683Service and other
    
    
    1,590
    
    
    
    1,420
    
    
    
    1,349
    
    
    
    1,155
    
    
    
    970Total cost of revenue
    
    
    2,197
    
    
    
    1,955
    
    
    
    1,854
    
    
    
    1,857
    
    
    
    1,653Gross profit
    
    
    86,942
    
    
    
    75,256
    
    
    
    65,816
    
    
    
    52,796
    
    
    
    45,666Operating expenses:Sales and marketing
    
    
    33,792
    
    
    
    31,506
    
    
    
    31,108
    
    
    
    26,930
    
    
    
    24,611Research and development
    
    
    19,662
    
    
    
    17,016
    
    
    
    16,901
    
    
    
    15,690
    
    
    
    18,588General and administrative
    
    
    5,672
    
    
    
    5,060
    
    
    
    4,861
    
    
    
    4,488
    
    
    
    4,284Amortization
    
    
    1,272
    
    
    
    1,467
    
    
    
    1,552
    
    
    
    3,182
    
    
    
    3,428Total operating expenses
    
    
    60,398
    
    
    
    55,049
    
    
    
    54,422
    
    
    
    50,290
    
    
    
    50,911Income (loss) from operations
    
    
    26,544
    
    
    
    20,207
    
    
    
    11,394
    
    
    
    2,506
    
    
    
    (5,245
    )Other income, net (1)
    
    
    2,636
    
    
    
    1,395
    
    
    
    2,206
    
    
    
    904
    
    
    
    1,152Income (loss) before income taxes
    
    
    29,180
    
    
    
    21,602
    
    
    
    13,600
    
    
    
    3,410
    
    
    
    (4,093
    )Income tax expense (benefit)
    
    
    8,936
    
    
    
    3,805
    
    
    
    4,159
    
    
    
    854
    
    
    
    (970
    )Net income (loss)
    
    $
    20,244
    
    
    $
    17,797
    
    
    $
    9,441
    
    
    $
    2,556
    
    
    $
    (3,123
    )Basic net income (loss) per share (2)
    
    $
    0.86
    
    
    $
    0.75
    
    
    $
    0.41
    
    
    $
    0.11
    
    
    $
    (0.13
    )Diluted net income (loss) per share (2)
    
    $
    0.77
    
    
    $
    0.69
    
    
    $
    0.36
    
    
    $
    0.10
    
    
    $
    (0.13
    )Weighted average shares outstanding  basic (2)
    
    
    23,650
    
    
    
    23,694
    
    
    
    23,242
    
    
    
    23,344
    
    
    
    23,618Weighted average shares outstanding  diluted (2)
    
    
    26,182
    
    
    
    25,851
    
    
    
    25,892
    
    
    
    26,496
    
    
    
    23,618
 
 1
    
    Includes net realized gain (loss) on the sale of marketable securities of ($87 ),
($2), $732, ($7), and $113 and other than temporary declines on marketable securities of
$0, $0, $27, $0, and $78 for the fiscal years ended April 30, 2007, 2006, 2005, 2004,and
2003, respectively.2
    
    All share and per share information have been adjusted to reflect the two-for-one
stock split effected in the form of a 100% stock dividend that was declared on March 7,
2006 and distributed on May 9, 2006. April 30,2007
    
    2006
    
    2005
    
    2004
    
    2003(in thousands)Consolidated Balance Sheet DataCash and cash equivalents
    
    $
    49,356
    
    
    $
    16,456
    
    
    $
    11,910
    
    
    $
    15,218
    
    
    $
    7,173Working capital
    
    
    43,374
    
    
    
    11,091
    
    
    
    7,578
    
    
    
    10,707
    
    
    
    8,965Total assets
    
    
    111,170
    
    
    
    85,080
    
    
    
    73,421
    
    
    
    67,636
    
    
    
    63,154Long term liabilities
    
    
    1,404
    
    
    
    1,088
    
    
    
    1,039
    
    
    
    10,242
    
    
    
    10,000Total stockholders equity
    
    
    74,783
    
    
    
    56,261
    
    
    
    49,285
    
    
    
    41,686
    
    
    
    39,826
 16




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ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  Overview
    2007
    
    2006
    
    2005High Performance Electronics
    
    
    82
    %
    
    
    82
    %
    
    
    81
    %Electromechanical
    
    
    18
    %
    
    
    18
    %
    
    
    19
    %
 Critical Accounting Policies
  
    
    Revenue Recognition
    
    Valuation of Accounts Receivable
    
    Impairment of Long-Lived Assets
    
    Impairment of Marketable Securities Available for Sale
    
    Deferred Tax Asset Valuation Allowance
 
 17




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18




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Results of Operations
 Fiscal Year Ended
    
    
    Fiscal Year EndedApril 30
    
    
    April 30Percent
    
    
    
    
    
    
    
    
    
    
    Percent(in thousands)
    
    2007
    
    
    2006
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeRevenue
    
    $
    89,139
    
    
    $
    77,211
    
    
    
    15.4
    %
    
    $
    77,211
    
    
    $
    67,670
    
    
    
    14.1
    %Cost of revenue
    
    
    2,197
    
    
    
    1,955
    
    
    
    12.4
    %
    
    
    1,955
    
    
    
    1,854
    
    
    
    5.4
    %Gross profit
    
    
    86,942
    
    
    
    75,256
    
    
    
    15.5
    %
    
    
    75,256
    
    
    
    65,816
    
    
    
    14.3
    %Sales and marketing
    
    
    33,792
    
    
    
    31,506
    
    
    
    7.3
    %
    
    
    31,506
    
    
    
    31,108
    
    
    
    1.3
    %Research and development
    
    
    19,662
    
    
    
    17,016
    
    
    
    15.6
    %
    
    
    17,016
    
    
    
    16,901
    
    
    
    0.7
    %General and administrative
    
    
    5,672
    
    
    
    5,060
    
    
    
    12.1
    %
    
    
    5,060
    
    
    
    4,861
    
    
    
    4.1
    %Amortization
    
    
    1,272
    
    
    
    1,467
    
    
    
    (13.3
    %)
    
    
    1,467
    
    
    
    1,552
    
    
    
    (5.5
    %)Total operating expenses
    
    
    60,398
    
    
    
    55,049
    
    
    
    9.7
    %
    
    
    55,049
    
    
    
    54,422
    
    
    
    1.2
    %Income from operations
    
    
    26,544
    
    
    
    20,207
    
    
    
    31.4
    %
    
    
    20,207
    
    
    
    11,394
    
    
    
    77.3
    %Net realized gain (loss) on sale of securities
    
    
    (87
    )
    
    
    (2
    )
    
    
    *
    
    
    
    (2
    )
    
    
    732
    
    
    
    Other income and interest expense, net
    
    
    2,723
    
    
    
    1,397
    
    
    
    94.9
    %
    
    
    1,397
    
    
    
    1,474
    
    
    
    (5.2
    %)Income before income taxes
    
    
    29,180
    
    
    
    21,602
    
    
    
    35.1
    %
    
    
    21,602
    
    
    
    13,600
    
    
    
    58.8
    %Income tax expense
    
    
    8,936
    
    
    
    3,805
    
    
    
    134.8
    %
    
    
    3,805
    
    
    
    4,159
    
    
    
    (8.5
    %)Net income
    
    $
    20,244
    
    
    $
    17,797
    
    
    
    13.7
    %
    
    $
    17,797
    
    
    $
    9,441
    
    
    
    88.5
    %
 
 *
    
    Percentage not meaningful. Year Ended April 30, 2007 compared with Year Ended April 30, 2006
 Revenue.
  19




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Cost of revenue
 Sales and marketing expenses
 Research and development expenses
 General and administrative expenses.
 Amortization expense.
 Net realized loss on sale of securities
 Other income and interest expense, net
 20




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Income tax expense.
 Year Ended April 30, 2006 compared with Year Ended April 30, 2005
 Revenue.
   Cost of revenue
 Sales and marketing expenses
 Research and development expenses
 General and administrative expenses.
 21




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##### Table of Contents



Amortization expense.
 Net realized gain (loss) on sale of securities
 Other income and interest expense, net
 Income tax expense.
 Quarterly Results of Operations
  Fiscal 2007
    
    Fiscal 2006April 30,
    
    Jan. 31,
    
    Oct. 31,
    
    July 31,
    
    April 30,
    
    Jan. 31,
    
    Oct. 31,
    
    July 31,2007
    
    2007
    
    2006
    
    2006
    
    2006
    
    2006
    
    2005
    
    2005(in thousands, except per share data)Total revenue
    
    $
    28,579
    
    
    $
    22,731
    
    
    $
    20,506
    
    
    $
    17,323
    
    
    $
    24,738
    
    
    $
    19,655
    
    
    $
    18,028
    
    
    $
    14,790Income from operations
    
    $
    10,780
    
    
    $
    7,377
    
    
    $
    5,551
    
    
    $
    2,836
    
    
    $
    8,775
    
    
    $
    5,459
    
    
    $
    4,566
    
    
    $
    1,407Net income
    
    $
    7,934
    
    
    $
    6,311
    
    
    $
    3,710
    
    
    $
    2,289
    
    
    $
    8,273
    
    
    $
    4,260
    
    
    $
    4,095
    
    
    $
    1,169Basic net income per share
    
    $
    0.33
    
    
    $
    0.27
    
    
    $
    0.16
    
    
    $
    0.10
    
    
    $
    0.35
    
    
    $
    0.18
    
    
    $
    0.17
    
    
    $
    0.05Diluted net income per share
    
    $
    0.30
    
    
    $
    0.24
    
    
    $
    0.14
    
    
    $
    0.09
    
    
    $
    0.32
    
    
    $
    0.16
    
    
    $
    0.16
    
    
    $
    0.05Weighted average number of
shares outstanding basic
    
    
    23,804
    
    
    
    23,599
    
    
    
    23,609
    
    
    
    23,609
    
    
    
    23,685
    
    
    
    23,698
    
    
    
    23,588
    
    
    
    23,834 diluted
    
    
    26,233
    
    
    
    26,138
    
    
    
    26,151
    
    
    
    26,174
    
    
    
    25,811
    
    
    
    25,914
    
    
    
    25,784
    
    
    
    25,954
 22




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Liquidity and Capital Resources
     Contractual Obligations
    
    Total
    
    Less than 1 Year
    
    1-3 Years
    
    3-5 Years
    
    More than 5 YearsOperating Lease Obligations
    
    $
    7,016
    
    
    $
    2,254
    
    
    $
    2,757
    
    
    $
    1,864
    
    
    $
    141
 Stock Repurchase Program
   Foreign Currency Fluctuations.
 23




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Seasonal Effects
  
 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
    Fiscal year ended
    
    Fiscal year ended
    
    Fiscal year endedForeign Currency
    
    April 30, 2007
    
    April 30, 2006
    
    April 30, 2005Yen
    
    
    117.70
    
    
    
    113.78
    
    
    
    107.75Euro
    
    
    1.29
    
    
    
    1.22
    
    
    
    1.24
 24




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##### Table of Contents



ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 INDEX TO FINANCIAL STATEMENTS
 PageReport of Independent Registered Public Accounting Firm
    
    
    26Consolidated Balance Sheets as of April 30, 2007 and 2006
    
    
    27Consolidated Statements of Operations for the fiscal years ended April 30, 2007, 2006 and 2005
    
    
    28Consolidated Statements of Stockholders Equity and Comprehensive Income for the fiscal years
ended April 30, 2007, 2006 and 2005
    
    
    29Consolidated Statements of Cash Flows for the fiscal years ended April 30, 2007, 2006 and 2005
    
    
    30Notes to Consolidated Financial Statements
    
    
    31Financial Statement Schedule: Schedule II  Valuation and Qualifying Accounts and Reserves
    
    
    48
 25




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
    Share Based Payment
   
 26




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##### Table of Contents



ANSOFT CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS
 (in thousands, except per share amounts)
 April 30,
    
    
    April 30,2007
    
    
    2006AssetsCurrent assetsCash and cash equivalents
    
    $
    49,356
    
    
    $
    16,456Accounts receivable, net of allowance for doubtful
accounts of $973 and $545, respectively
    
    
    24,994
    
    
    
    20,264Deferred income taxes
    
    
    1,441
    
    
    
    164Prepaid expenses and other assets
    
    
    2,566
    
    
    
    1,938Total current assets
    
    
    78,357
    
    
    
    38,822Equipment and furniture, net
    
    
    2,514
    
    
    
    2,599Marketable securities
    
    
    22,383
    
    
    
    33,621Other assets
    
    
    155
    
    
    
    131Deferred income taxes
    
    
    5,352
    
    
    
    6,226Goodwill
    
    
    1,239
    
    
    
    1,239Other intangible assets, net
    
    
    1,170
    
    
    
    2,442Total assets
    
    $
    111,170
    
    
    $
    85,080Liabilities and stockholders equityCurrent liabilitiesAccounts payable
    
    $
    626
    
    
    $
    274Accrued payroll
    
    
    3,380
    
    
    
    3,027Accrued income taxes
    
    
    603
    
    
    
    928Other accrued expenses
    
    
    4,130
    
    
    
    3,609Current portion of deferred revenue
    
    
    26,244
    
    
    
    19,893Total current liabilities
    
    
    34,983
    
    
    
    27,731Long-term liabilitiesLong-term portion of deferred revenue
    
    
    1,404
    
    
    
    1,088Total liabilities
    
    
    36,387
    
    
    
    28,819Stockholders equityPreferred 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 29,258 and 28,576 shares,
respectively and outstanding 23,956 and 23,764,
respectively
    
    
    293
    
    
    
    286Additional paid-in capital
    
    
    85,754
    
    
    
    76,795Treasury stock, 5,302 and 4,812 shares, respectively
    
    
    (49,176
    )
    
    
    (37,913
    )Accumulated other comprehensive loss
    
    
    (964
    )
    
    
    (1,539
    )Retained earnings
    
    
    38,876
    
    
    
    18,632Total stockholders equity
    
    
    74,783
    
    
    
    56,261Total liabilities and stockholders equity
    
    $
    111,170
    
    
    $
    85,080
   27




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##### Table of Contents



ANSOFT CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except per share amounts)
 Fiscal Year Ended April 30,
    
    2007
    
    
    2006
    
    
    2005RevenueLicense
    
    $
    51,026
    
    
    $
    42,849
    
    
    $
    39,322Service and other
    
    
    38,113
    
    
    
    34,362
    
    
    
    28,348Total revenue
    
    
    89,139
    
    
    
    77,211
    
    
    
    67,670Cost of revenueLicense revenue
    
    
    607
    
    
    
    535
    
    
    
    505Service and other
    
    
    1,590
    
    
    
    1,420
    
    
    
    1,349Total cost of revenue
    
    
    2,197
    
    
    
    1,955
    
    
    
    1,854Gross profit
    
    
    86,942
    
    
    
    75,256
    
    
    
    65,816Operating ExpensesSales and marketing
    
    
    33,792
    
    
    
    31,506
    
    
    
    31,108Research and development
    
    
    19,662
    
    
    
    17,016
    
    
    
    16,901General and administrative
    
    
    5,672
    
    
    
    5,060
    
    
    
    4,861Amortization
    
    
    1,272
    
    
    
    1,467
    
    
    
    1,552Total operating expenses
    
    
    60,398
    
    
    
    55,049
    
    
    
    54,422Income from operations
    
    
    26,544
    
    
    
    20,207
    
    
    
    11,394Net realized gain (loss) on sale of securities
    
    
    (87
    )
    
    
    (2
    )
    
    
    732Other income
    
    
    2,723
    
    
    
    1,397
    
    
    
    1,574Interest expense
    
    
    
    
    
    
    
    
    
    
    (100
    )Income before income taxes
    
    
    29,180
    
    
    
    21,602
    
    
    
    13,600Income taxes expense
    
    
    8,936
    
    
    
    3,805
    
    
    
    4,159Net income
    
    $
    20,244
    
    
    $
    17,797
    
    
    $
    9,441Basic net income per share
    
    $
    0.86
    
    
    $
    0.75
    
    
    $
    0.41Diluted net income per share
    
    $
    0.77
    
    
    $
    0.69
    
    
    $
    0.36Weighted average shares outstanding  basic
    
    
    23,650
    
    
    
    23,694
    
    
    
    23,242Weighted average shares outstanding  diluted
    
    
    26,182
    
    
    
    25,851
    
    
    
    25,892
   28




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##### Table of Contents



ANSOFT CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME
 (in thousands)
 AccumulatedCommon
    
    
    
    
    
    
    Additional
    
    
    Treasury
    
    
    
    
    
    
    Other
    
    
    Retained EarningsComprehensive
    
    
    Stock
    
    
    
    
    
    
    Paid-in
    
    
    Stock
    
    
    
    
    
    
    Comprehensive
    
    
    (AccumulatedIncome (Loss)
    
    
    Shares
    
    
    Amount
    
    
    Capital
    
    
    Shares
    
    
    Amount
    
    
    Income (Loss)
    
    
    Deficit)Balance, April 30, 2004
    
    
    
    
    
    
    25,556
    
    
    $
    258
    
    
    $
    58,433
    
    
    
    (2,068
    )
    
    $
    (9,090
    )
    
    $
    691
    
    
    $
    (8,606
    )Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,568
    )
    
    
    (12,672
    )
    
    
    
    
    
    
    Issuance of common stock
    
    
    
    
    
    
    2,246
    
    
    
    22
    
    
    
    7,221
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Tax effect of stock option exercises
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,616
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net income
    
    $
    9,441
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,441Foreign currency translation
    
    
    359
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    359
    
    
    
    Reclassification adjustment
    
    
    (705
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (705
    )
    
    
    Change in unrealized gain on marketable securities
    
    
    (683
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (683
    )
    
    
    Comprehensive income
    
    $
    8,412
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance, April 30, 2005
    
    
    
    
    
    
    27,802
    
    
    $
    280
    
    
    $
    70,270
    
    
    
    (3,636
    )
    
    $
    (21,762
    )
    
    $
    (338
    )
    
    $
    835Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,176
    )
    
    
    (16,151
    )
    
    
    
    
    
    
    Issuance of common stock
    
    
    
    
    
    
    774
    
    
    
    6
    
    
    
    2,754
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Tax effect of stock option exercises
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,771
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net income
    
    $
    17,797
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,797Foreign currency translation
    
    
    (240
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (240
    )
    
    
    Reclassification adjustment
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    Change in unrealized gain on marketable securities
    
    
    (963
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (963
    )
    
    
    Comprehensive income
    
    $
    16,596
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance, April 30, 2006
    
    
    
    
    
    
    28,576
    
    
    $
    286
    
    
    $
    76,795
    
    
    
    (4,812
    )
    
    $
    (37,913
    )
    
    $
    (1,539
    )
    
    $
    18,632Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (490
    )
    
    
    (11,263
    )
    
    
    
    
    
    
    Issuance of common stock
    
    
    
    
    
    
    682
    
    
    
    7
    
    
    
    2,456
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Tax effect of stock option exercises
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,923
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,580
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net income
    
    $
    20,244
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,244Foreign currency translation
    
    
    (708
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (708
    )
    
    
    Reclassification adjustment
    
    
    87
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    87
    
    
    
    Change in unrealized loss on marketable securities
    
    
    1,196
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,196
    
    
    
    Comprehensive income
    
    $
    20,819
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance, April 30, 2007
    
    
    
    
    
    
    29,258
    
    
    $
    293
    
    
    $
    85,754
    
    
    
    (5,302
    )
    
    $
    (49,176
    )
    
    $
    (964
    )
    
    $
    38,876
   29




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##### Table of Contents



ANSOFT CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (in thousands)
 Fiscal year ended April 30,2007
    
    
    2006
    
    
    2005Cash flows from operating activitiesNet income
    
    $
    20,244
    
    
    $
    17,797
    
    
    $
    9,441Adjustments to reconcile net income to net cash provided by operating activitiesDepreciation
    
    
    1,019
    
    
    
    1,326
    
    
    
    1,608Amortization
    
    
    1,725
    
    
    
    1,875
    
    
    
    1,879Stock-based compensation
    
    
    2,580
    
    
    
    
    
    
    
    Excess tax benefit from stock-based compensation
    
    
    (3,923
    )
    
    
    
    
    
    
    Deferred taxes
    
    
    (403
    )
    
    
    16
    
    
    
    (905
    )Non-cash charge on marketable securities
    
    
    
    
    
    
    
    
    
    
    27Loss (gain) on sale of marketable securities
    
    
    87
    
    
    
    2
    
    
    
    (732
    )Changes in assets and liabilitiesAccounts receivable
    
    
    (4,624
    )
    
    
    (3,125
    )
    
    
    (6,862
    )Prepaid expenses and other assets
    
    
    (633
    )
    
    
    (815
    )
    
    
    (490
    )Other long-term assets and liabilities, net
    
    
    (24
    )
    
    
    (14
    )
    
    
    196Accounts payable and accrued expenses
    
    
    4,768
    
    
    
    6,029
    
    
    
    6,108Deferred revenue
    
    
    6,440
    
    
    
    2,879
    
    
    
    6,224Net cash provided by operating activities
    
    
    27,256
    
    
    
    25,970
    
    
    
    16,494Cash flows from investing activitiesPurchases of equipment and furniture
    
    
    (936
    )
    
    
    (1,134
    )
    
    
    (797
    )Proceeds from the sale of marketable securities
    
    
    17,000
    
    
    
    3,177
    
    
    
    17,531Purchase of marketable securities
    
    
    (5,017
    )
    
    
    (9,676
    )
    
    
    (21,537
    )Net cash provided by (used in) investing activities
    
    
    11,047
    
    
    
    (7,633
    )
    
    
    (4,803
    )Repayment of line of credit
    
    
    
    
    
    
    
    
    
    
    (10,000
    )Purchase of treasury stock
    
    
    (11,263
    )
    
    
    (16,151
    )
    
    
    (12,672
    )Proceeds from the issuance of common stock
    
    
    2,463
    
    
    
    2,760
    
    
    
    7,243Excess tax benefit from stock-based compensation
    
    
    3,923
    
    
    
    
    
    
    
    Net cash used in financing activities
    
    
    (4,877
    )
    
    
    (13,391
    )
    
    
    (15,429
    )Effect of exchange rate changes
    
    
    (526
    )
    
    
    (400
    )
    
    
    430Cash and cash equivalents at beginning of year
    
    
    16,456
    
    
    
    11,910
    
    
    
    15,218Cash and cash equivalents at end of year
    
    $
    49,356
    
    
    $
    16,456
    
    
    $
    11,910Supplemental disclosures of cash flow informationCash paid (received) for income taxes
    
    $
    4,904
    
    
    $
    (695
    )
    
    $
    856Cash paid for interest
    
    $
    
    
    
    $
    
    
    
    $
    106
  30




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##### Table of Contents



ANSOFT CORPORATION AND SUBSIDIARIES
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (in thousands, except per share amounts)
 1. Nature of Business and Summary of Significant Accounting Policies
 Nature of Business
  Principles of Consolidation and Basis of Presentation
    Use of Estimates
  Cash Equivalents
  Allowance for Doubtful Accounts
  31




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##### Table of Contents



Marketable Securities
  Equipment and Furniture
  Goodwill and Other Intangible Assets
   Impairment of Long-Lived Assets
  Revenue Recognition
   32




---



##### Table of Contents



Deferred revenue
  Software Development Costs
  Income Taxes
  Reclassification
  Net Income Per Share
  33




---



##### Table of Contents



Income
    
    
    Shares
    
    
    Per share amountFiscal year ended April 30, 2007Basic net income per share
    
    $
    20,244
    
    
    
    23,650
    
    
    $
    0.86Effect of dilutive securities:Stock options
    
    
    
    
    
    
    2,532
    
    
    
    (0.09
    )Diluted net income per share
    
    $
    20,244
    
    
    
    26,182
    
    
    $
    0.77Fiscal year ended April 30, 2006Basic net income per share
    
    $
    17,797
    
    
    
    23,694
    
    
    $
    0.75Effect of dilutive securities:Stock options
    
    
    
    
    
    
    2,157
    
    
    
    (0.06
    )Diluted net income per share
    
    $
    17,797
    
    
    
    25,851
    
    
    $
    0.69Fiscal year ended April 30, 2005Basic net income per share
    
    $
    9,441
    
    
    
    23,242
    
    
    $
    0.41Effect of dilutive securities:Stock options
    
    
    
    
    
    
    2,650
    
    
    
    (0.05
    )Diluted net income per share
    
    $
    9,441
    
    
    
    25,892
    
    
    $
    0.36
 Stock-Based Compensation
    34




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##### Table of Contents



Fiscal Year
    
    Fiscal Yearended April 30,
    
    ended April 30,2006
    
    2005Net income as reported
    
    $
    17,797
    
    
    $
    9,441Deduct: Total stock-based compensation expense
determined under fair value based method, net
of tax
    
    
    (2,037
    )
    
    
    (2,289
    )Pro forma net income
    
    $
    15,760
    
    
    $
    7,152Net income per basic common share, as reported
    
    $
    0.75
    
    
    $
    0.41Pro forma net income per basic common share
    
    $
    0.67
    
    
    $
    0.31Net income per diluted common share, as reported
    
    $
    0.69
    
    
    $
    0.36Pro forma net income per diluted common share
    
    $
    0.61
    
    
    $
    0.28
   Fiscal Year
    
    Fiscal Year
    
    Fiscal Yearended April 30,
    
    ended April 30,
    
    ended April 30,2007
    
    2006
    
    2005Risk-free rate (%)
    
    
    4.64
    
    
    
    4.23
    
    
    
    4.02Volatility (%)
    
    
    47.25
    
    
    
    67.35
    
    
    
    70.65Expected life (in years)
    
    
    5.3
    
    
    
    6.0
    
    
    
    6.0Dividend yield (%)
    
    
    0.00
    
    
    
    0.00
    
    
    
    0.00
  Comprehensive Income
  35




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##### Table of Contents



April 30,2007
    
    
    2006Foreign currency translation gain (loss)
    
    $
    (672
    )
    
    $
    36Unrealized loss on available for sale securities
    
    
    (292
    )
    
    
    (1,575
    )Accumulated other comprehensive loss
    
    $
    (964
    )
    
    $
    (1,539
    )
 Foreign Currency Translation
  Fair Value of Financial Instruments
  2. Recent Accounting Pronouncements
     36




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##### Table of Contents



3. Equipment and Furniture
  April 30,2007
    
    
    2006Computers and equipment
    
    $
    7,459
    
    
    $
    6,928Furniture and fixtures
    
    
    1,138
    
    
    
    1,048Leasehold improvements
    
    
    936
    
    
    
    8729,533
    
    
    
    8,848Less allowances for depreciation and amortization
    
    
    7,019
    
    
    
    6,249$
    2,514
    
    
    $
    2,599
 4. Other Intangible Assets
  April 30,2007
    
    
    2006Customer list
    
    $
    18,488
    
    
    $
    18,488Non-compete
    
    
    2,500
    
    
    
    2,500Purchased technology
    
    
    2,230
    
    
    
    2,230Trademark
    
    
    212
    
    
    
    21223,430
    
    
    
    23,430Less allowances for amortization
    
    
    22,260
    
    
    
    20,988$
    1,170
    
    
    $
    2,442
  5. Marketable Securities
  Amortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gain
    
    
    (Loss)
    
    
    ValueApril 30, 2007Bond Funds
    
    $
    2,696
    
    
    $
    10
    
    
    $
    (6
    )
    
    $
    2,700Corporate Bonds
    
    
    19,979
    
    
    
    38
    
    
    
    (334
    )
    
    
    19,683Total marketable securities
    
    $
    22,675
    
    
    $
    48
    
    
    $
    (340
    )
    
    $
    22,383April 30, 2006Bond Funds
    
    $
    17,061
    
    
    $
    44
    
    
    $
    (868
    )
    
    $
    16,237Corporate Bonds
    
    
    18,135
    
    
    
    2
    
    
    
    (753
    )
    
    
    17,384Total marketable securities
    
    $
    35,196
    
    
    $
    46
    
    
    $
    (1,621
    )
    
    $
    33,621
   37




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##### Table of Contents



Less than 12 Months
    
    
    12 Months or Longer
    
    
    TotalFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedDescription of Securities
    

    Value
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesBond Funds
    
    $
    
    
    
    $
    
    
    
    $
    1,395
    
    
    $
    6
    
    
    $
    1,395
    
    
    $
    6Corporate Bonds
    
    $
    1,094
    
    
    $
    15
    
    
    $
    15,535
    
    
    $
    319
    
    
    $
    16,629
    
    
    $
    334Total
    
    $
    1,094
    
    
    $
    15
    
    
    $
    16,930
    
    
    $
    325
    
    
    $
    18,024
    
    
    $
    340
  Amortized Cost
    
    
    Fair ValueDue in one year or less
    
    $
    484
    
    
    $
    474Due after one year through five years.
    
    $
    16,701
    
    
    $
    16,458Due after five years through ten years
    
    $
    2,794
    
    
    $
    2,751Due after ten years
    
    $
    
    
    
    $
    Total
    
    $
    19,979
    
    
    $
    19,683
  6. Line of Credit
    7. Leases
  Year ending April 30,2008
    
    
    2,2542009
    
    
    1,6582010
    
    
    1,0992011
    
    
    1,0192012
    
    
    845
 38




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##### Table of Contents



8. Common Stock Options
   Weighted-AverageRemainingWeighted-Average
    
    Contractual Life
    
    AggregateNumber of Shares
    
    Exercise Price
    
    (Years)
    
    Intrinsic ValueOutstanding, April 30, 2006
    
    
    4,177
    
    
    $
    4.36Granted
    
    
    90
    
    
    $
    28.45Exercised
    
    
    (682
    )
    
    $
    3.61Cancelled
    
    
    (33
    )
    
    $
    8.50Outstanding, April 30, 2007
    
    
    3,552
    
    
    $
    5.18
    
    
    
    4.33
    
    
    $
    96,308Exercisable, April 30, 2007
    
    
    3,039
    
    
    $
    4.34
    
    
    
    3.86
    
    
    $
    84,937
    Weighted-AverageNumber of Shares
    
    Fair ValueNonvested, April 30, 2006
    
    
    1,104
    
    
    $
    4.19Granted
    
    
    90
    
    
    $
    13.66Vested
    
    
    (648
    )
    
    $
    3.96Forfeited
    
    
    (33
    )
    
    $
    5.91Nonvested, April 30, 2007
    
    
    513
    
    
    $
    6.05
 39




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##### Table of Contents



Options Outstanding
    
    Options ExercisableWeighted-Average
    
    Weighted-
    
    
    
    
    
    Weighted-Remaining
    
    Average
    
    
    
    
    
    AverageContractual
    
    Exercise
    
    
    
    
    
    ExerciseRange Of Exercise Prices
    
    Shares
    
    Life (Years)
    
    Price
    
    Shares
    
    Price$2.37-$3.56
    
    
    1,250
    
    
    
    3.00
    
    
    
    2.58
    
    
    
    1,069
    
    
    
    2.58$3.57-$5.34
    
    
    1,318
    
    
    
    4.28
    
    
    
    4.50
    
    
    
    1,294
    
    
    
    4.50$5.35-$8.03
    
    
    752
    
    
    
    5.12
    
    
    
    6.57
    
    
    
    640
    
    
    
    6.53$8.04-$12.04
    
    
    82
    
    
    
    7.56
    
    
    
    10.01
    
    
    
    24
    
    
    
    9.89$12.05-$18.07
    
    
    47
    
    
    
    8.16
    
    
    
    13.75
    
    
    
    9
    
    
    
    13.92$18.08-$27.12
    
    
    45
    
    
    
    9.25
    
    
    
    22.88
    
    
    
    3
    
    
    
    20.69$27.13-$32.29
    
    
    58
    
    
    
    9.91
    
    
    
    31.09
    
    
    
    
    
    
    
    
 9. Segment Reporting, Export Sales and Credit Risk
   2007
    
    2006
    
    2005High Performance Electronics
    
    
    82
    %
    
    
    82
    %
    
    
    81
    %Electromechanical
    
    
    18
    %
    
    
    18
    %
    
    
    19
    %
    10. Income Tax
  April 30,2007
    
    
    2006
    
    
    2005Domestic
    
    $
    28,079
    
    
    $
    20,848
    
    
    $
    12,470Foreign
    
    
    1,101
    
    
    
    754
    
    
    
    1,130Total
    
    $
    29,180
    
    
    $
    21,602
    
    
    $
    13,600
 40




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##### Table of Contents



April 30,2007
    
    
    2006
    
    
    2005Current:Federal
    
    $
    7,142
    
    
    $
    2,554
    
    
    $
    4,474State
    
    
    1,781
    
    
    
    953
    
    
    
    468Foreign
    
    
    416
    
    
    
    282
    
    
    
    122Total
    
    
    9,339
    
    
    
    3,789
    
    
    
    5,064Deferred:Federal
    
    
    112
    
    
    
    87
    
    
    
    (1,291
    )State
    
    
    (81
    )
    
    
    (29
    )
    
    
    7Foreign
    
    
    (434
    )
    
    
    (42
    )
    
    
    379Total
    
    
    (403
    )
    
    
    16
    
    
    
    (905
    )Total expense for income tax
    
    $
    8,936
    
    
    $
    3,805
    
    
    $
    4,159
  April 30,2007
    
    
    2006
    
    
    2005Income tax expense at statutory rate
    
    $
    10,213
    
    
    $
    7,561
    
    
    $
    4,623State income tax, net of federal benefit
    
    
    1,086
    
    
    
    634
    
    
    
    503Research and development credit
    
    
    (2,176
    )
    
    
    (1,056
    )
    
    
    (1,108
    )Rate differential between U.S and foreign taxes
    
    
    81
    
    
    
    54
    
    
    
    174Change in valuation allowance
    
    
    (404
    )
    
    
    (1,131
    )
    
    
    (197
    )Foreign tax credit
    
    
    
    
    
    
    (2,365
    )
    
    
    Stock-based compensation
    
    
    406
    
    
    
    
    
    
    
    Other, net
    
    
    (270
    )
    
    
    108
    
    
    
    164Actual income tax expense
    
    $
    8,936
    
    
    $
    3,805
    
    
    $
    4,159
   Fiscal year ending April 30,2007
    
    
    2006
    
    
    2005Tax effect of stock option exercises
    
    $
    (3,923
    )
    
    $
    (3,771
    )
    
    $
    (4,616
    )
 41




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##### Table of Contents



April 30,2007
    
    
    2006Deferred tax assets:Net operating loss carryforward
    
    $
    393
    
    
    $
    434Capital loss carryovers
    
    
    804
    
    
    
    160Allowance for doubtful accounts
    
    
    370
    
    
    
    164Alternative minimum tax credit carryforward
    
    
    
    
    
    
    282Research and development tax credit carryforward
    
    
    1,570
    
    
    
    1,637Intangible assets
    
    
    3,530
    
    
    
    3,996Stock-based compensation
    
    
    323
    
    
    
    Accrued expenses
    
    
    325
    
    
    
    Furniture and equipment
    
    
    282
    
    
    
    312Net unrealized losses on available for sale securities
    
    
    111
    
    
    
    1,212Total gross deferred tax assets
    
    
    7,708
    
    
    
    8,197Less valuation allowance
    
    
    (915
    )
    
    
    (1,807
    )Net deferred taxes
    
    $
    6,793
    
    
    $
    6,390
    11. Employee Benefit Plan
  12. Commitments And Contingencies
  42




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43




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##### Table of Contents



ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
  
 ITEM 9A. CONTROLS AND PROCEDURES
            44




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
      45




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##### Table of Contents



46




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##### Table of Contents



ITEM 9B. OTHER INFORMATION
  
 ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
  
 ITEM 11. EXECUTIVE COMPENSATION
  
 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS, MANAGEMENT AND RELATED STOCKHOLDER
MATTERS
  
 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
  
 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
  47




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##### Table of Contents



PART IV
 
 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
  PageReport of Independent Registered Public Accounting Firm
    
    
    26Consolidated Balance Sheets as of April 30, 2007 and 2006
    
    
    27Consolidated Statements of Operations for the years ended April 30, 2007, 2006 and 2005
    
    
    28Consolidated Statements of Stockholders Equity and Comprehensive Income for the years
ended April 30, 2007, 2006 and 2005
    
    
    29Consolidated Statements of Cash Flows for the years ended April 30, 2007, 2006 and 2005
    
    
    30Notes to Consolidated Financial Statements
    
    
    31
    Financial statement schedules not listed above have been omitted because they are inapplicable, are
not required under applicable provisions of Regulation S-X, or the information that would otherwise
be included in such schedules is contained in the registrants financial statements or accompanying
notes.
  
    AdditionsBalance as of
    
    (Deductions)
    
    
    
    
    
    Balance as ofthe Beginning
    
    Charged to Costs
    
    
    
    
    
    the End ofof the Period
    
    and Expenses
    
    Deductions
    
    the PeriodYear ended
April 30, 2007
Allowance for
doubtful accounts
    
    
    545
    
    
    
    564
    
    
    
    (136
    )
    
    
    973Year ended April
30, 2006 Allowance
for doubtful
accounts
    
    
    425
    
    
    
    143
    
    
    
    (23
    )
    
    
    545Year ended April
30, 2005 Allowance
for doubtful
accounts
    
    
    903
    
    
    
    (197
    )
    
    
    (281
    )
    
    
    425
 48




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##### Table of Contents



EXHIBIT INDEX
  ExhibitNumber
    
    Description3.1
    
    Amended and Restated Certificate of Incorporation of the Company (incorporated by
reference to Exhibit 3.1 to the Registrants Annual Report on Form 10-K for the year
ended April 30, 2006, file number 000-27874)3.3
    
    Bylaws of the Company (incorporated by reference from Registration Statement No. 333-1398)10.1
    
    1988 Stock Option Plan of the Company (incorporated by reference from Registration
Statement No. 333-1398)**10.2
    
    1995 Stock Option Plan of the Company (incorporated by reference from Registration
Statement No. 333-1398)**10.3
    
    Zoltan Cendes Stock Option Agreement, dated April 30, 1995 (incorporated by reference
from Registration Statement No. 333-1398)10.4
    
    Loan Agreement by and between Ansoft Corporation and PNC Bank, National Association dated
October 21, 2004 (incorporated by reference to Exhibit 99.1 to the Registrants Current
Report on Form 8-K filed October 21, 2004, file number 000-27874)10.5
    
    Jacob K. White Stock Option Agreement dated February 1, 1996, as amended (incorporated by
reference from Registration Statement No. 333-40189)10.6
    
    John N. Whelihan Stock Option Agreement dated February 1, 1996, as amended (incorporated
by reference from Registration Statement No. 333-40189)10.7
    
    Agilent HFSS Technology and License Transfer Agreement dated May 1, 2001 (incorporated
by reference to Exhibit 10.12 to the Registrants Annual Report on Form 10-K for the year
ended April 30, 2003, file number 000-27874)10.8
    
    Letter dated October 28, 2005 amending the Loan Agreement by and between Ansoft
Corporation and PNC Bank, National Association dated October 21, 2004 (incorporated by
reference to Exhibit 10.13 to the Registrants Form 10-Q for the period ended October 31,
2005, file number 000-27874).10.9
    
    2006 Stock Incentive Plan of the Company (incorporated by reference to Exhibit 10.9 to
the Registrants Annual Report on Form 10-K for the for the year ended April 30, 2006,
file number 000-27874) **10.10
    
    Letter dated October 20, 2006 amending the Loan Agreement by and between Ansoft
Corporation and PNC Bank, National Association dated October 21, 2004 Company
(incorporated by reference to Exhibit 10.14 to the Registrants Form 10-Q for the period
ended October 31, 2006, file number 000-27874).14
    
    Code of Business Conduct  this code of ethics may be accessed at the Companys website: www.ansoft.com21.1
    
    Subsidiaries of the registrant (incorporated by reference from the Companys Annual
Report on Form 10-K for the fiscal year ended April 30, 1997, file number 000-27874)31.1
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)31.2
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)32.1
    
    Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (filed herewith)
 
 **
    
    Incentive or stock compensation plan of the Company 49




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##### Table of Contents



SIGNATURES
  ANSOFT CORPORATIONBy
    /s/ Nicholas CsendesNicholas CsendesPresident  Signature
    
    Title/s/ Nicholas Csendes

Nicholas Csendes
    
    Director, President and Chief Executive Officer

(Principal Executive Officer)/s/ Thomas A.N. Miller

Thomas A.N. Miller
    
    Chief Financial Officer

(Principal Financial and Accounting Officer)/s/ Zoltan J. Cendes

Zoltan J. Cendes
    
    Director, Chief Technology Officer
and Chairman of the Board of Directors/s/ Peter Robbins

Peter Robbins
    
    Director/s/ Paul Quast

Paul Quast
    
    Director/s/ John N. Whelihan

John N. Whelihan
    
    Director
 50