Avant! Reports 29th Consecutive Quarter of Record Growth

10% Increase in Revenue

16% Increase in Pro forma Diluted EPS



Apr 27, 2001, 01:00 ET from Avant! Corporation

    FREMONT, Calif., April 27 /PRNewswire/ --
 Avant! Corporation (Nasdaq:   AVNT) today reported record results for its first
 quarter ended March 31, 2001. For the quarter, revenue was a record
 $94 million, a 10 percent increase over same quarter 2000 revenue of
 $85 million. Pro forma diluted earnings per share, excluding merger,
 in-process research and development expenses and venture capital investment
 gains/losses, was also a record $0.48, a 16 percent increase over comparable
 2000 pro forma earnings per share of $0.41.
     Reported diluted earnings per share for the quarter, including merger,
 in-process research and development expenses and venture capital investment
 gains/losses, was $0.38, compared to $0.47 last year. Results for the first
 quarter of 2001 include an unrealized investment loss of $6.1 million,
 compared to an unrealized investment gain of $6.3 million in the same period
 last year. As of March 31, 2001, the value of the venture capital investment
 is approximately $28 million. The original investment of $10 million was made
 in 1998.
     "Avant!'s success in the EDA industry is the result of our focus on three
 fundamental corporate values:  customers, technology and people," said
 Gerald C. Hsu, chairman, CEO, and president of Avant!. "This quarter's record
 financial performance in a difficult economic climate is a testament to
 Avant!'s fundamental business strength."
 
     Avant!'s conference call regarding its earnings for the first quarter of
 2001 will be held on April 30, 2001, at 5:00 a.m. PDT (8:00 a.m. EDT).
 
     -- The call-in number is:
                Domestic       888-810-3140 Confirmation # 5070172
                International  212-547-0192 Confirmation # 5070172
 
     -- The replay number is:
 
                Domestic       800-759-1057 Confirmation # 5621
                International  402-998-0466 Confirmation # 5621
                Replay runs through May 30, 2001, 3:00 p.m. PDT
 
     -- Avant!'s conference call will also be available over the Internet.
        Please visit www.avanticorp.com or www.prnewswire.com.
 
     The statements contained in this release that are not purely historical
 are forward looking statements within the meaning of Section 21E of the
 Securities and Exchange Act of 1934, including statements regarding the
 Company's expectations, beliefs, hopes, intentions or strategies regarding the
 future. Forward-looking statements include statements regarding future sales,
 market growth and competition. All forward-looking statements included in this
 document are based upon information available to the Company as of the date
 hereof, and the Company assumes no obligation to update any such
 forward-looking statement. Actual results could differ materially from the
 Company's current expectations. Factors that could cause or contribute to such
 differences, several of which are outside the control of Avant!, include but
 are not limited to:  several criminal and civil litigation matters in which
 the company is involved; the ability to successfully integrate Avant!'s
 operations with those of the companies it has acquired; the ability to
 successfully manage the company's expanding operations; the ability to attract
 and retain the key management and technical personnel needed to operate the
 company successfully; the ability to compete successfully in the integrated
 circuit design automation software market; and the difficulty of predicting
 quarterly operating results. Further discussion of these and other potential
 risk factors may be found in the Company's annual Form 10-K filings and
 quarterly Form 10-Q filings. These forms are filed with the Securities and
 Exchange Commission.
 
     About Avant!
     Avant! Corporation develops, markets, and supports integrated circuit (IC)
 design automation software solutions (from system definition to mask
 synthesis) for the rapid design of multimillion gate products including system
 on chip (SoC). These ICs power the consumer electronics, Internet
 infrastructure, wireless, telecommunications, and automotive products. The
 Company is the leading provider of physical foundation IP libraries for IC
 design and provides a full suite of software for integrated circuit design,
 process simulation, device modeling, and mask synthesis.
     Avant! is a global company with over 65 offices in 18 countries.
 Telephone:  510-413-8000. Fax:  510-413-8080. Worldwide web:
 http://www.avanticorp.com .
 
     NOTE:  Avant! is a trademark of Avant! Corporation. All other company and
 product names mentioned herein are trademarks or registered trademarks of
 their respective owners and should be treated as such.
 
                               AVANT! CORPORATION
                 PRO FORMA CONSOLIDATED STATEMENTS OF EARNINGS
       EXCLUDING MERGER, IN-PROCESS RESEARCH AND DEVELOPMENT EXPENSES AND
                   VENTURE CAPITAL INVESTMENT (LOSSES)/GAINS
                     (in thousands, except per share data)
                                  (unaudited)
 
                                                      Three Months Ended
                                                   March 31,         March 31,
                                                     2001              2000
     Revenue:
             Software                               $56,459           $54,200
             Services                                37,204            31,019
                        Total revenue                93,663            85,219
     Costs and expenses:
             Costs of software                        1,587             1,092
             Costs of services                        6,172             5,358
             Selling and marketing                   27,426            24,089
             Research and development                22,518            21,641
             General and administrative               8,984             7,723
                  Total operating expenses           66,687            59,903
                  Earnings from operations           26,976            25,316
 
             Interest income and other, net           2,565             1,105
                  Earnings before income taxes       29,541            26,421
             Income taxes                            11,078             9,908
                  Net earnings                       18,463            16,513
 
     Pro forma earnings per share excluding
      merger, in-process research and
      development expenses and venture capital
      investment (losses)/gains
 
     Basic                                            $0.49             $0.42
     Diluted                                          $0.48             $0.41
 
     Weighted average shares outstanding:
     Basic                                           37,375            38,908
     Diluted                                         38,490            39,871
 
                               AVANT! CORPORATION
                      CONSOLIDATED STATEMENTS OF EARNINGS
                     (in thousands, except per share data)
                                  (unaudited)
 
                                                      Three Months Ended
                                                   March 31,         March 31,
                                                     2001              2000
     Revenue:
             Software                               $56,459           $54,200
             Services                                37,204            31,019
                   Total revenue                     93,663            85,219
     Costs and expenses:
             Costs of software                        1,587             1,092
             Costs of services                        6,172             5,358
             Selling and marketing                   27,426            24,089
             Research and development                22,518            21,641
             General and administrative               8,984             7,723
             Merger and in-process research
              and development                            --             1,822
                  Total operating expenses           66,687            61,725
                  Earnings from operations           26,976            23,494
 
             Equity investment (losses)/gains
               from venture capital investment       (6,084)            6,332
             Interest income and other, net           2,565               987
                  Earnings before income taxes       23,457            30,813
             Income taxes                             8,796            11,908
                  Net earnings                       14,661            18,905
 
     Earnings per share:
     Basic                                            $0.39             $0.49
     Diluted                                          $0.38             $0.47
 
     Weighted average shares outstanding:
     Basic                                           37,375            38,908
     Diluted                                         38,490            39,871
 
                               AVANT! CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                 (in thousands)
                                  (unaudited)
 
                                                  March 31,       December 31,
                                                     2001              2000
     Assets
     Cash and short-term investments               $248,075          $288,216
     Accounts receivable, net                        59,123            76,572
     Prepaid expenses and other current assets       47,134            46,701
           Total current assets                     354,332           411,489
     Equipment, furniture and fixtures, net          25,158            26,821
     Goodwill and other intangibles, net             31,106            35,124
     Other assets                                   170,982            88,456
           Total assets                            $581,578          $561,890
 
     Liabilities and Stockholders' Equity
     Accounts payable, accruals and income taxes   $126,986          $137,612
     Deferred revenue                                88,461            70,459
           Total current liabilities                215,447           208,071
     Other noncurrent liabilities                     8,097             7,918
           Total liabilities                        223,544           215,989
     Stockholders' equity                           358,034           345,901
           Total liabilities and
            stockholders' equity                   $581,578          $561,890
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X87818525
 
 

SOURCE Avant! Corporation
    FREMONT, Calif., April 27 /PRNewswire/ --
 Avant! Corporation (Nasdaq:   AVNT) today reported record results for its first
 quarter ended March 31, 2001. For the quarter, revenue was a record
 $94 million, a 10 percent increase over same quarter 2000 revenue of
 $85 million. Pro forma diluted earnings per share, excluding merger,
 in-process research and development expenses and venture capital investment
 gains/losses, was also a record $0.48, a 16 percent increase over comparable
 2000 pro forma earnings per share of $0.41.
     Reported diluted earnings per share for the quarter, including merger,
 in-process research and development expenses and venture capital investment
 gains/losses, was $0.38, compared to $0.47 last year. Results for the first
 quarter of 2001 include an unrealized investment loss of $6.1 million,
 compared to an unrealized investment gain of $6.3 million in the same period
 last year. As of March 31, 2001, the value of the venture capital investment
 is approximately $28 million. The original investment of $10 million was made
 in 1998.
     "Avant!'s success in the EDA industry is the result of our focus on three
 fundamental corporate values:  customers, technology and people," said
 Gerald C. Hsu, chairman, CEO, and president of Avant!. "This quarter's record
 financial performance in a difficult economic climate is a testament to
 Avant!'s fundamental business strength."
 
     Avant!'s conference call regarding its earnings for the first quarter of
 2001 will be held on April 30, 2001, at 5:00 a.m. PDT (8:00 a.m. EDT).
 
     -- The call-in number is:
                Domestic       888-810-3140 Confirmation # 5070172
                International  212-547-0192 Confirmation # 5070172
 
     -- The replay number is:
 
                Domestic       800-759-1057 Confirmation # 5621
                International  402-998-0466 Confirmation # 5621
                Replay runs through May 30, 2001, 3:00 p.m. PDT
 
     -- Avant!'s conference call will also be available over the Internet.
        Please visit www.avanticorp.com or www.prnewswire.com.
 
     The statements contained in this release that are not purely historical
 are forward looking statements within the meaning of Section 21E of the
 Securities and Exchange Act of 1934, including statements regarding the
 Company's expectations, beliefs, hopes, intentions or strategies regarding the
 future. Forward-looking statements include statements regarding future sales,
 market growth and competition. All forward-looking statements included in this
 document are based upon information available to the Company as of the date
 hereof, and the Company assumes no obligation to update any such
 forward-looking statement. Actual results could differ materially from the
 Company's current expectations. Factors that could cause or contribute to such
 differences, several of which are outside the control of Avant!, include but
 are not limited to:  several criminal and civil litigation matters in which
 the company is involved; the ability to successfully integrate Avant!'s
 operations with those of the companies it has acquired; the ability to
 successfully manage the company's expanding operations; the ability to attract
 and retain the key management and technical personnel needed to operate the
 company successfully; the ability to compete successfully in the integrated
 circuit design automation software market; and the difficulty of predicting
 quarterly operating results. Further discussion of these and other potential
 risk factors may be found in the Company's annual Form 10-K filings and
 quarterly Form 10-Q filings. These forms are filed with the Securities and
 Exchange Commission.
 
     About Avant!
     Avant! Corporation develops, markets, and supports integrated circuit (IC)
 design automation software solutions (from system definition to mask
 synthesis) for the rapid design of multimillion gate products including system
 on chip (SoC). These ICs power the consumer electronics, Internet
 infrastructure, wireless, telecommunications, and automotive products. The
 Company is the leading provider of physical foundation IP libraries for IC
 design and provides a full suite of software for integrated circuit design,
 process simulation, device modeling, and mask synthesis.
     Avant! is a global company with over 65 offices in 18 countries.
 Telephone:  510-413-8000. Fax:  510-413-8080. Worldwide web:
 http://www.avanticorp.com .
 
     NOTE:  Avant! is a trademark of Avant! Corporation. All other company and
 product names mentioned herein are trademarks or registered trademarks of
 their respective owners and should be treated as such.
 
                               AVANT! CORPORATION
                 PRO FORMA CONSOLIDATED STATEMENTS OF EARNINGS
       EXCLUDING MERGER, IN-PROCESS RESEARCH AND DEVELOPMENT EXPENSES AND
                   VENTURE CAPITAL INVESTMENT (LOSSES)/GAINS
                     (in thousands, except per share data)
                                  (unaudited)
 
                                                      Three Months Ended
                                                   March 31,         March 31,
                                                     2001              2000
     Revenue:
             Software                               $56,459           $54,200
             Services                                37,204            31,019
                        Total revenue                93,663            85,219
     Costs and expenses:
             Costs of software                        1,587             1,092
             Costs of services                        6,172             5,358
             Selling and marketing                   27,426            24,089
             Research and development                22,518            21,641
             General and administrative               8,984             7,723
                  Total operating expenses           66,687            59,903
                  Earnings from operations           26,976            25,316
 
             Interest income and other, net           2,565             1,105
                  Earnings before income taxes       29,541            26,421
             Income taxes                            11,078             9,908
                  Net earnings                       18,463            16,513
 
     Pro forma earnings per share excluding
      merger, in-process research and
      development expenses and venture capital
      investment (losses)/gains
 
     Basic                                            $0.49             $0.42
     Diluted                                          $0.48             $0.41
 
     Weighted average shares outstanding:
     Basic                                           37,375            38,908
     Diluted                                         38,490            39,871
 
                               AVANT! CORPORATION
                      CONSOLIDATED STATEMENTS OF EARNINGS
                     (in thousands, except per share data)
                                  (unaudited)
 
                                                      Three Months Ended
                                                   March 31,         March 31,
                                                     2001              2000
     Revenue:
             Software                               $56,459           $54,200
             Services                                37,204            31,019
                   Total revenue                     93,663            85,219
     Costs and expenses:
             Costs of software                        1,587             1,092
             Costs of services                        6,172             5,358
             Selling and marketing                   27,426            24,089
             Research and development                22,518            21,641
             General and administrative               8,984             7,723
             Merger and in-process research
              and development                            --             1,822
                  Total operating expenses           66,687            61,725
                  Earnings from operations           26,976            23,494
 
             Equity investment (losses)/gains
               from venture capital investment       (6,084)            6,332
             Interest income and other, net           2,565               987
                  Earnings before income taxes       23,457            30,813
             Income taxes                             8,796            11,908
                  Net earnings                       14,661            18,905
 
     Earnings per share:
     Basic                                            $0.39             $0.49
     Diluted                                          $0.38             $0.47
 
     Weighted average shares outstanding:
     Basic                                           37,375            38,908
     Diluted                                         38,490            39,871
 
                               AVANT! CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                 (in thousands)
                                  (unaudited)
 
                                                  March 31,       December 31,
                                                     2001              2000
     Assets
     Cash and short-term investments               $248,075          $288,216
     Accounts receivable, net                        59,123            76,572
     Prepaid expenses and other current assets       47,134            46,701
           Total current assets                     354,332           411,489
     Equipment, furniture and fixtures, net          25,158            26,821
     Goodwill and other intangibles, net             31,106            35,124
     Other assets                                   170,982            88,456
           Total assets                            $581,578          $561,890
 
     Liabilities and Stockholders' Equity
     Accounts payable, accruals and income taxes   $126,986          $137,612
     Deferred revenue                                88,461            70,459
           Total current liabilities                215,447           208,071
     Other noncurrent liabilities                     8,097             7,918
           Total liabilities                        223,544           215,989
     Stockholders' equity                           358,034           345,901
           Total liabilities and
            stockholders' equity                   $581,578          $561,890
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X87818525
 
 SOURCE  Avant! Corporation

RELATED LINKS

http://www.avanticorp.com