Company Initiates Q3 2017 Outlook and
Raises FY 2017 Outlook
ANSYS, Inc. (NASDAQ:ANSS), today reported second quarter 2017 GAAP
and non-GAAP revenue growth of 8% in constant currency. Recurring
revenue, which is comprised of lease license and annual maintenance
revenue, grew by double-digits in constant currency and totaled 76%
of revenue for the second quarter, on both a GAAP and non-GAAP
basis. The Company also reported 3% and 6% growth in diluted
earnings per share on a GAAP and non-GAAP basis, respectively.
Ajei Gopal, ANSYS President and CEO, commented,
“I am delighted to see our focus on sales execution has resulted in
another quarter of excellent financial performance that surpassed
the high end of our expectations for both revenue and earnings. Our
second quarter success was led by 13% revenue growth in our
business in North America and 7% growth in Asia, and is a testament
to the strength of our product portfolio and our strong customer
relationships. Europe continues to lag, but we are making good
progress in addressing the organizational and go-to-market issues
that will be key to future performance.”
Gopal further stated, “With the acquisition of
Computational Engineering International, we have added
industry-leading visualization and post-processing capabilities to
our broad portfolio. Our expanded capabilities will enable our
customers to gain new insight as they increasingly rely on our
simulation capabilities to drive innovation and develop the
products of tomorrow.”
Maria Shields, ANSYS CFO, stated, “We posted
another quarter of strong operating results as evidenced by record
second quarter revenue, deferred revenue and backlog, and operating
cash flows. Our operating margin and earnings performance
were both above the high end of our guidance, driven by the
over-performance in revenues and a slower pace of hiring than
planned. We also continued to return capital to our stockholders
through the repurchase of an incremental one million shares. In
addition, during the quarter, we achieved another important
milestone in our history as a public company by joining the ranks
of America’s leading companies in the S&P 500.”
Financial Results
ANSYS' second quarter and year-to-date 2017 and
2016 financial results are presented below. The 2017 and 2016
non-GAAP results exclude the income statement effects of
acquisition adjustments to deferred revenue, the impact of
stock-based compensation, acquisition-related amortization of
intangible assets and acquisition-related transaction costs.
The 2017 non-GAAP results also exclude restructuring charges.
As previously announced on our February earnings
call, we implemented a workforce realignment that began in the
fourth quarter of 2016 and that is intended to accelerate the shift
of investments toward preferred strategic initiatives and higher
growth opportunities. These actions resulted in GAAP
restructuring charges of $2.0 million ($1.4 million, net of tax) in
the second quarter related to one-time severance benefits and other
costs related to the realignment. We expect to incur
additional charges of up to $2.0 million, or $1.3 million net of
tax, primarily during the third quarter of 2017.
GAAP and non-GAAP results:
|
|
GAAP |
|
|
Non-GAAP |
(in millions,
except percentages and per share data) |
|
Q2 2017 |
|
|
Q2 2016 |
|
|
%Change |
|
|
Q2 2017 |
|
|
Q2 2016 |
|
|
%Change |
Revenue |
|
$ |
263.9 |
|
|
|
$ |
246.1 |
|
|
|
7 |
% |
|
|
$ |
264.3 |
|
|
|
$ |
246.1 |
|
|
|
7 |
% |
Net income |
|
$ |
69.7 |
|
|
|
$ |
69.6 |
|
|
|
0 |
% |
|
|
$ |
86.4 |
|
|
|
$ |
83.2 |
|
|
|
4 |
% |
Earnings per share |
|
$ |
0.80 |
|
|
|
$ |
0.78 |
|
|
|
3 |
% |
|
|
$ |
0.99 |
|
|
|
$ |
0.93 |
|
|
|
6 |
% |
Operating profit
margin |
|
37.3 |
% |
|
|
38.3 |
% |
|
|
|
|
|
48.3 |
% |
|
|
46.9 |
% |
|
|
|
Operating cash
flow |
|
$ |
112.2 |
|
|
|
$ |
71.6 |
|
|
|
57 |
% |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
Non-GAAP |
(in millions,
except percentages and per share data) |
|
YTD 2017 |
|
|
YTD 2016 |
|
|
%Change |
|
|
YTD 2017 |
|
|
YTD 2016 |
|
|
%Change |
Revenue |
|
$ |
517.3 |
|
|
|
$ |
472.0 |
|
|
|
10 |
% |
|
|
$ |
517.9 |
|
|
|
$ |
472.1 |
|
|
|
10 |
% |
Net income |
|
$ |
133.0 |
|
|
|
$ |
126.1 |
|
|
|
6 |
% |
|
|
$ |
163.9 |
|
|
|
$ |
152.6 |
|
|
|
7 |
% |
Earnings per share |
|
$ |
1.53 |
|
|
|
$ |
1.41 |
|
|
|
9 |
% |
|
|
$ |
1.88 |
|
|
|
$ |
1.70 |
|
|
|
11 |
% |
Operating profit
margin |
|
35.5 |
% |
|
|
38.0 |
% |
|
|
|
|
|
47.3 |
% |
|
|
46.7 |
% |
|
|
|
Operating cash
flow |
|
$ |
238.1 |
|
|
|
$ |
182.4 |
|
|
|
31 |
% |
|
|
|
|
|
|
|
|
|
The non-GAAP financial results highlighted
above, and the non-GAAP financial outlook for 2017 discussed below,
represent non-GAAP financial measures. Reconciliations of these
measures to the appropriate GAAP measures, for the three and six
months ended June 30, 2017 and 2016, and for the 2017
financial outlook, are included in the condensed financial
information included in this release.
2017 Financial Outlook
The Company's third quarter and fiscal year 2017
revenue and earnings per share guidance is provided below. The
Company last provided its guidance on May 3, 2017. The
previously provided fiscal year 2017 guidance has been updated to
reflect the Company's performance during the first half of 2017, as
well as adjustments to operational and economic expectations,
including changes in currency exchange rates, for the remainder of
the year. The revenue and earnings per share guidance is
provided on both a GAAP and a non-GAAP basis. Non-GAAP financial
measures exclude the income statement effects of acquisition
accounting adjustments to deferred revenue, stock-based
compensation expense, acquisition-related amortization of
intangible assets, restructuring charges and acquisition-related
transaction expenses.
Third Quarter 2017 Guidance
The Company currently expects the following for the quarter
ending September 30, 2017:
- GAAP revenue in the range of $256.6 - $266.0 million
- Non-GAAP revenue in the range of $258.0 - $267.0 million
- GAAP diluted earnings per share of $0.71 - $0.80
- Non-GAAP diluted earnings per share of $0.94 - $0.98
Fiscal Year 2017 Guidance
The Company currently expects the following for the fiscal year
ending December 31, 2017:
- GAAP revenue in the range of $1.050 - $1.071 billion
- Non-GAAP revenue in the range of $1.053 - $1.073 billion
- GAAP diluted earnings per share of $3.00 - $3.18
- Non-GAAP diluted earnings per share of $3.77 - $3.89
Conference Call Information
ANSYS will hold a conference call at
8:30 a.m. Eastern Time on August 3, 2017 to
discuss second quarter results. The Company will provide its
prepared remarks on the Company’s investor relations homepage and
as an exhibit in its Form 8-K in advance of the call to provide
shareholders and analysts with additional time and detail for
analyzing its results in preparation for the conference call. The
prepared remarks will not be read on the call - only brief remarks
will be made prior to the Q&A session.
To participate in the live conference call, dial
855-239-2942 (US) or 412-542-4124 (Canada & Int’l). The call
will be recorded and a replay will be available approximately one
hour after the call ends. The replay will be available for 10 days
by dialing (877) 344-7529 (US), (855) 669-9658 (Canada) or (412)
317-0088 (Int’l) and entering the passcode 10109928. The archived
webcast can be accessed, along with other financial information, on
ANSYS' website at
http://investors.ansys.com/events-and-presentations/events.aspx.
|
ANSYS, INC. AND SUBSIDIARIES |
Condensed Consolidated Balance
Sheets |
(Unaudited) |
(in
thousands) |
|
June 30, 2017 |
|
|
December 31, 2016 |
ASSETS: |
|
|
|
|
|
Cash
& short-term investments |
|
$ |
863,482 |
|
|
$ |
822,860 |
Accounts
receivable, net |
|
83,223 |
|
|
107,192 |
Goodwill |
|
1,342,968 |
|
|
1,337,215 |
Other
intangibles, net |
|
153,639 |
|
|
172,619 |
Other
assets |
|
317,653 |
|
|
360,640 |
Total
assets |
|
$ |
2,760,965 |
|
|
$ |
2,800,526 |
LIABILITIES
& STOCKHOLDERS' EQUITY: |
|
|
|
|
|
Deferred
revenue |
|
$ |
411,646 |
|
|
$ |
403,279 |
Other
liabilities |
|
159,904 |
|
|
188,842 |
Stockholders' equity |
|
2,189,415 |
|
|
2,208,405 |
Total
liabilities & stockholders' equity |
|
$ |
2,760,965 |
|
|
$ |
2,800,526 |
|
ANSYS, INC. AND SUBSIDIARIES |
Condensed Consolidated Statements of
Income |
(Unaudited) |
|
|
Three Months Ended |
|
|
Six Months Ended |
(in thousands,
except per share data) |
|
June 30, 2017 |
|
|
June 30, 2016 |
|
|
June 30, 2017 |
|
|
June 30, 2016 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Software
licenses |
|
$ |
149,880 |
|
|
|
$ |
141,087 |
|
|
|
$ |
291,788 |
|
|
|
$ |
267,138 |
|
Maintenance and service |
|
114,044 |
|
|
|
104,982 |
|
|
|
225,541 |
|
|
|
204,837 |
|
Total
revenue |
|
263,924 |
|
|
|
246,069 |
|
|
|
517,329 |
|
|
|
471,975 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
Software
licenses |
|
7,525 |
|
|
|
6,534 |
|
|
|
16,802 |
|
|
|
13,272 |
|
Amortization |
|
8,952 |
|
|
|
9,520 |
|
|
|
17,888 |
|
|
|
19,031 |
|
Maintenance and service |
|
19,861 |
|
|
|
20,957 |
|
|
|
38,679 |
|
|
|
39,993 |
|
Total
cost of sales |
|
36,338 |
|
|
|
37,011 |
|
|
|
73,369 |
|
|
|
72,296 |
|
Gross profit |
|
227,586 |
|
|
|
209,058 |
|
|
|
443,960 |
|
|
|
399,679 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative |
|
77,051 |
|
|
|
64,259 |
|
|
|
150,468 |
|
|
|
122,028 |
|
Research
and development |
|
49,002 |
|
|
|
47,443 |
|
|
|
103,380 |
|
|
|
92,115 |
|
Amortization |
|
3,139 |
|
|
|
3,201 |
|
|
|
6,246 |
|
|
|
6,359 |
|
Total
operating expenses |
|
129,192 |
|
|
|
114,903 |
|
|
|
260,094 |
|
|
|
220,502 |
|
Operating income |
|
98,394 |
|
|
|
94,155 |
|
|
|
183,866 |
|
|
|
179,177 |
|
Interest income |
|
1,668 |
|
|
|
1,077 |
|
|
|
2,917 |
|
|
|
2,027 |
|
Other (expense) income,
net |
|
(190 |
) |
|
|
246 |
|
|
|
(1,344 |
) |
|
|
52 |
|
Income before income
tax provision |
|
99,872 |
|
|
|
95,478 |
|
|
|
185,439 |
|
|
|
181,256 |
|
Income tax
provision |
|
30,142 |
|
|
|
25,850 |
|
|
|
52,403 |
|
|
|
55,160 |
|
Net income |
|
$ |
69,730 |
|
|
|
$ |
69,628 |
|
|
|
$ |
133,036 |
|
|
|
$ |
126,096 |
|
Earnings per share –
basic: |
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share |
|
$ |
0.82 |
|
|
|
$ |
0.79 |
|
|
|
$ |
1.56 |
|
|
|
$ |
1.43 |
|
Weighted
average shares |
|
85,167 |
|
|
|
87,638 |
|
|
|
85,311 |
|
|
|
87,876 |
|
Earnings per share –
diluted: |
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share |
|
$ |
0.80 |
|
|
|
$ |
0.78 |
|
|
|
$ |
1.53 |
|
|
|
$ |
1.41 |
|
Weighted
average shares |
|
86,895 |
|
|
|
89,305 |
|
|
|
87,060 |
|
|
|
89,694 |
|
|
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Non-GAAP
Measures |
(Unaudited) |
|
|
Three Months Ended |
|
|
June 30, 2017 |
|
|
June 30, 2016 |
(in thousands,
except percentages and per share data) |
|
As Reported |
|
|
Adjustments |
|
|
|
Non-GAAP Results |
|
|
As Reported |
|
|
Adjustments |
|
|
|
Non-GAAP Results |
Total revenue |
|
$ |
263,924 |
|
|
|
$ |
424 |
|
(1) |
|
|
$ |
264,348 |
|
|
|
$ |
246,069 |
|
|
|
$ |
— |
|
|
|
|
$ |
246,069 |
|
Operating income |
|
98,394 |
|
|
|
29,163 |
|
(2) |
|
|
127,557 |
|
|
|
94,155 |
|
|
|
21,255 |
|
(4) |
|
|
115,410 |
|
Operating profit
margin |
|
37.3 |
% |
|
|
|
|
|
|
48.3 |
% |
|
|
38.3 |
% |
|
|
|
|
|
|
46.9 |
% |
Net income |
|
$ |
69,730 |
|
|
|
$ |
16,659 |
|
(3) |
|
|
$ |
86,389 |
|
|
|
$ |
69,628 |
|
|
|
$ |
13,542 |
|
(5) |
|
|
$ |
83,170 |
|
Earnings per share –
diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share |
|
$ |
0.80 |
|
|
|
|
|
|
|
$ |
0.99 |
|
|
|
$ |
0.78 |
|
|
|
|
|
|
|
$ |
0.93 |
|
Weighted
average shares |
|
86,895 |
|
|
|
|
|
|
|
86,895 |
|
|
|
89,305 |
|
|
|
|
|
|
|
89,305 |
|
(1) Amount represents the revenue not reported during the period
as a result of the acquisition accounting adjustment associated
with the accounting for deferred revenue in business
combinations.
(2) Amount represents $14.1 million of stock-based compensation
expense, $12.1 million of amortization expense associated with
intangible assets acquired in business combinations, $2.0 million
of restructuring charges, $0.5 million of transaction expenses
related to business combinations and the $0.4 million adjustment to
revenue as reflected in (1) above.
(3) Amount represents the impact of the adjustments to operating
income referred to in (2) above, adjusted for the related
income tax impact of $12.5 million.
(4) Amount represents $12.7 million of amortization expense
associated with intangible assets acquired in business combinations
and $8.5 million of stock-based compensation expense.
(5) Amount represents the impact of the adjustments to operating
income referred to in (4) above, adjusted for the related
income tax impact of $7.7 million.
|
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Non-GAAP
Measures |
(Unaudited) |
|
Six Months Ended |
|
June 30, 2017 |
|
|
June 30, 2016 |
(in thousands,
except percentages and per share data) |
As Reported |
|
|
Adjustments |
|
Non-GAAP Results |
|
|
As Reported |
|
|
Adjustments |
|
Non-GAAP Results |
Total revenue |
$ |
517,329 |
|
|
|
$ |
567 |
|
(1) |
|
|
$ |
517,896 |
|
|
|
$ |
471,975 |
|
|
|
$ |
103 |
|
(4) |
|
|
$ |
472,078 |
|
Operating income |
183,866 |
|
|
|
61,274 |
|
(2) |
|
|
245,140 |
|
|
|
179,177 |
|
|
|
41,105 |
|
(5) |
|
|
220,282 |
|
Operating profit
margin |
35.5 |
% |
|
|
|
|
47.3 |
% |
|
|
38.0 |
% |
|
|
|
|
46.7 |
% |
Net income |
$ |
133,036 |
|
|
|
$ |
30,842 |
|
(3) |
|
|
$ |
163,878 |
|
|
|
$ |
126,096 |
|
|
|
$ |
26,507 |
|
(6) |
|
|
$ |
152,603 |
|
Earnings per share –
diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share |
$ |
1.53 |
|
|
|
|
|
$ |
1.88 |
|
|
|
$ |
1.41 |
|
|
|
|
|
$ |
1.70 |
|
Weighted
average shares |
87,060 |
|
|
|
|
|
87,060 |
|
|
|
89,694 |
|
|
|
|
|
89,694 |
|
(1) Amount represents the revenue not reported during the period
as a result of the acquisition accounting adjustment associated
with the accounting for deferred revenue in business
combinations.
(2) Amount represents $24.6 million of stock-based compensation
expense, $24.1 million of amortization expense associated with
intangible assets acquired in business combinations, $11.3 million
of restructuring charges, $0.7 million of transaction expenses
related to business combinations and the $0.6 million adjustment to
revenue as reflected in (1) above.
(3) Amount represents the impact of the adjustments to operating
income referred to in (2) above, adjusted for the related
income tax impact of $30.4 million.
(4) Amount represents the revenue not reported during the period
as a result of the acquisition accounting adjustment associated
with the accounting for deferred revenue in business
combinations.
(5) Amount represents $25.4 million of amortization expense
associated with intangible assets acquired in business
combinations, $15.6 million of stock-based compensation expense and
the $0.1 million adjustment to revenue as reflected in (4)
above.
(6) Amount represents the impact of the adjustments to operating
income referred to in (5) above, adjusted for the related
income tax impact of $14.6 million.
|
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Forward-Looking
Guidance |
Quarter Ending September 30, 2017 |
|
|
Earnings Per ShareRange - Diluted |
U.S. GAAP
expectation |
|
$0.71 - $0.80 |
Adjustment to exclude
acquisition adjustments to deferred revenue |
|
$0.01 |
Adjustment to exclude
acquisition-related amortization |
|
$0.09 - $0.10 |
Adjustment to exclude
stock-based compensation |
|
$0.07 - $0.10 |
Adjustment to exclude
restructuring charges |
|
$0.01 - $0.02 |
Non-GAAP
expectation |
|
$0.94 - $0.98 |
|
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Forward-Looking
Guidance |
Year Ending December 31, 2017 |
|
|
Earnings Per ShareRange - Diluted |
U.S. GAAP
expectation |
|
$3.00 - $3.18 |
Adjustment to exclude
acquisition adjustments to deferred revenue |
|
$0.02 |
Adjustment to exclude
acquisition-related amortization |
|
$0.36 - $0.37 |
Adjustment to exclude
stock-based compensation |
|
$0.23 - $0.27 |
Adjustment to exclude
restructuring charges |
|
$0.09 - $0.10 |
Adjustment to exclude
acquisition-related transaction expenses |
|
$0.01 |
Non-GAAP
expectation |
|
$3.77 - $3.89 |
|
|
|
Use of Non-GAAP Measures
The Company provides non-GAAP revenue, non-GAAP
operating income, non-GAAP operating profit margin, non-GAAP net
income and non-GAAP diluted earnings per share as supplemental
measures to GAAP regarding the Company's operational performance.
These financial measures exclude the impact of certain items and,
therefore, have not been calculated in accordance with GAAP. A
detailed explanation of each of the adjustments to such financial
measures is described below. This press release also contains a
reconciliation of each of these non-GAAP financial measures to its
most comparable GAAP financial measure.
Management uses non-GAAP financial measures
(a) to evaluate the Company's historical and prospective
financial performance as well as its performance relative to its
competitors, (b) to set internal sales targets and spending
budgets, (c) to allocate resources, (d) to measure
operational profitability and the accuracy of forecasting,
(e) to assess financial discipline over operational
expenditures and (f) as an important factor in determining
variable compensation for management and its employees. In
addition, many financial analysts that follow the Company focus on
and publish both historical results and future projections based on
non-GAAP financial measures. The Company believes that it is in the
best interest of its investors to provide this information to
analysts so that they accurately report the non-GAAP financial
information. Moreover, investors have historically requested and
the Company has historically reported these non-GAAP financial
measures as a means of providing consistent and comparable
information with past reports of financial results.
While management believes that these non-GAAP
financial measures provide useful supplemental information to
investors, there are limitations associated with the use of these
non-GAAP financial measures. These non-GAAP financial measures are
not prepared in accordance with GAAP, are not reported by all of
the Company’s competitors and may not be directly comparable to
similarly titled measures of the Company’s competitors due to
potential differences in the exact method of calculation. The
Company compensates for these limitations by using these non-GAAP
financial measures as supplements to GAAP financial measures and by
reviewing the reconciliations of the non-GAAP financial measures to
their most comparable GAAP financial measures.
The adjustments to these non-GAAP financial
measures, and the basis for such adjustments, are outlined
below:
Acquisition accounting for deferred
revenue and its related tax impact. Historically, the
Company has consummated acquisitions in order to support its
strategic and other business objectives. In accordance with
the fair value provisions applicable to the accounting for business
combinations, acquired deferred revenue is often recorded on the
opening balance sheet at an amount that is lower than the
historical carrying value. Although this acquisition accounting
requirement has no impact on the Company's business or cash flow,
it adversely impacts the Company's reported GAAP revenue in the
reporting periods following an acquisition. In order to provide
investors with financial information that facilitates comparison of
both historical and future results, the Company provides non-GAAP
financial measures which exclude the impact of the acquisition
accounting adjustment. The Company believes that this non-GAAP
financial adjustment is useful to investors because it allows
investors to (a) evaluate the effectiveness of the methodology
and information used by management in its financial and operational
decision-making, and (b) compare past and future reports of
financial results of the Company as the revenue reduction related
to acquired deferred revenue will not recur when related annual
lease licenses and software maintenance contracts are renewed in
future periods.
Amortization of intangible assets from
acquisitions and its related tax impact. The Company
incurs amortization of intangible assets, included in its GAAP
presentation of amortization expense, related to various
acquisitions it has made. Management excludes these expenses and
their related tax impact for the purpose of calculating non-GAAP
operating income, non-GAAP operating profit margin, non-GAAP net
income and non-GAAP diluted earnings per share when it evaluates
the continuing operational performance of the Company because these
costs are fixed at the time of an acquisition, are then amortized
over a period of several years after the acquisition and generally
cannot be changed or influenced by management after the
acquisition. Accordingly, management does not consider these
expenses for purposes of evaluating the performance of the Company
during the applicable time period after the acquisition, and it
excludes such expenses when making decisions to allocate resources.
The Company believes that these non-GAAP financial measures are
useful to investors because they allow investors to
(a) evaluate the effectiveness of the methodology and
information used by management in its financial and operational
decision-making, and (b) compare past reports of financial
results of the Company as the Company has historically reported
these non-GAAP financial measures.
Stock-based compensation expense and its
related tax impact. The Company incurs expense
related to stock-based compensation included in its GAAP
presentation of cost of software licenses; cost of maintenance and
service; research and development expense; and selling, general and
administrative expense. Stock-based compensation expense (benefit)
incurred in connection with the Company's deferred compensation
plan held in a rabbi trust includes an offsetting benefit (charge)
recorded in other income (expense). Although stock-based
compensation is an expense of the Company and viewed as a form of
compensation, management excludes these expenses for the purpose of
calculating non-GAAP operating income, non-GAAP operating profit
margin, non-GAAP net income and non-GAAP diluted earnings per share
when it evaluates the continuing operational performance of the
Company. Management similarly excludes income (expense) related to
assets held in a rabbi trust in connection with the Company's
deferred compensation plan. Specifically, the Company excludes
stock-based compensation and income related to assets held in the
deferred compensation plan rabbi trust during its annual budgeting
process and its quarterly and annual assessments of the Company's
and management's performance. The annual budgeting process is the
primary mechanism whereby the Company allocates resources to
various initiatives and operational requirements. Additionally, the
annual review by the board of directors during which it compares
the Company's historical business model and profitability to the
planned business model and profitability for the forthcoming year
excludes the impact of stock-based compensation. In evaluating the
performance of senior management and department managers, charges
related to stock-based compensation are excluded from expenditure
and profitability results. In fact, the Company records stock-based
compensation expense into a stand-alone cost center for which no
single operational manager is responsible or accountable. In this
way, management is able to review, on a period-to-period basis,
each manager's performance and assess financial discipline over
operational expenditures without the effect of stock-based
compensation. The Company believes that these non-GAAP financial
measures are useful to investors because they allow investors to
(a) evaluate the Company's operating results and the
effectiveness of the methodology used by management to review the
Company's operating results, and (b) review historical
comparability in the Company's financial reporting as well as
comparability with competitors' operating results.
Restructuring charges and the related
tax impact. The Company occasionally incurs expenses for
restructuring its workforce included in its GAAP presentation of
cost of software licenses; cost of maintenance and service;
research and development expense; and selling, general and
administrative expense. Management excludes these expenses for the
purpose of calculating non-GAAP operating income, non-GAAP
operating profit margin, non-GAAP net income and non-GAAP diluted
earnings per share when it evaluates the continuing operational
performance of the Company, as it generally does not incur these
expenses as a part of its operations. The Company believes that
these non-GAAP financial measures are useful to investors because
they allow investors to (a) evaluate the Company's operating
results and the effectiveness of the methodology used by management
to review the Company's operating results, and (b) review
historical comparability in the Company's financial reporting as
well as comparability with competitors' operating results.
Transaction costs related to business
combinations. The Company incurs expenses for
professional services rendered in connection with business
combinations, which are included in its GAAP presentation of
selling, general and administrative expense. These expenses are
generally not tax-deductible. Management excludes these
acquisition-related transaction expenses for the purpose of
calculating non-GAAP operating income, non-GAAP operating profit
margin, non-GAAP net income and non-GAAP diluted earnings per share
when it evaluates the continuing operational performance of the
Company, as it generally would not have otherwise incurred these
expenses in the periods presented as a part of its operations. The
Company believes that these non-GAAP financial measures are useful
to investors because they allow investors to (a) evaluate the
Company's operating results and the effectiveness of the
methodology used by management to review the Company's operating
results, and (b) review historical comparability in the
Company's financial reporting as well as comparability with
competitors' operating results.
Non-GAAP financial measures are not in
accordance with, or an alternative for, GAAP. The Company's
non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable GAAP financial
measures, and should be read only in conjunction with the Company's
consolidated financial statements prepared in accordance with
GAAP.
The Company has provided a reconciliation of the
non-GAAP financial measures to the most directly comparable GAAP
financial measures as listed below:
GAAP Reporting
Measure |
|
|
|
Non-GAAP
Reporting Measure |
Revenue |
|
|
|
Non-GAAP Revenue |
Operating Income |
|
|
|
Non-GAAP Operating
Income |
Operating Profit
Margin |
|
|
|
Non-GAAP Operating
Profit Margin |
Net Income |
|
|
|
Non-GAAP Net
Income |
Diluted Earnings Per
Share |
|
|
|
Non-GAAP Diluted
Earnings Per Share |
|
|
|
|
|
About ANSYS, Inc.
If you’ve ever seen a rocket launch, flown on an airplane,
driven a car, used a computer, touched a mobile device, crossed a
bridge, or put on wearable technology, chances are you've used a
product where ANSYS software played a critical role in its
creation. ANSYS is the global leader in Pervasive Engineering
Simulation. We help the world's most innovative companies deliver
radically better products to their customers. By offering the best
and broadest portfolio of engineering simulation software, we help
them solve the most complex design challenges and create products
limited only by imagination. Founded in 1970, ANSYS employs
thousands of professionals, many of whom are expert M.S. and
Ph.D.-level engineers in finite element analysis, computational
fluid dynamics, electronics, semiconductors, embedded software and
design optimization. Headquartered south of Pittsburgh,
Pennsylvania, U.S.A., ANSYS has more than 75 strategic sales
locations throughout the world with a network of channel partners
in 40+ countries. Visit www.ansys.com for more
information.
Forward Looking Information
Certain statements contained in this press
release regarding matters that are not historical facts, including,
but not limited to, statements regarding our projections for
revenue and earnings per share for the third quarter of 2017,
fiscal year 2017 (both GAAP and non-GAAP to exclude acquisition
accounting adjustments to deferred revenue, acquisition-related
amortization, stock-based compensation expense, acquisition-related
transaction costs and, restructuring charges and related tax
impacts); statements about management's views concerning the
Company's prospects and outlook for 2017, including statements and
projections relating to the impact of stock-based compensation,
statements regarding management's use of non-GAAP financial
measures, statements regarding the Company’s workforce realignment
and its intended impacts, the expected timing of recording
additional restructuring charges, statements regarding our progress
in addressing organizational and go-to-market issues and its impact
on our future performance, and statements regarding the impact of
our acquisition of Computational Engineering International
including its impact on our capabilities and ability to enable our
customers to gain new insight as they increasingly rely on our
simulation capabilities to drive innovation and develop the
products of tomorrow are "forward-looking" statements (as defined
in the Private Securities Litigation Reform Act of 1995). Because
such statements are subject to risks and uncertainties, actual
results may differ materially from those expressed or implied by
such forward-looking statements. All forward-looking statements in
this press release are subject to risks and uncertainties
including, but not limited to, the risk that adverse conditions in
the global and domestic markets will significantly affect ANSYS’
customers’ ability to purchase products from the Company at the
same level as prior periods or to pay for the Company’s products
and services, the risk that declines in the ANSYS’ customers’
business may lengthen customer sales cycles, the risk of declines
in the economy of one or more of ANSYS’ primary geographic regions,
the risk that ANSYS’ revenues and operating results will be
adversely affected by changes in currency exchange rates or
economic declines in any of the countries in which ANSYS conducts
transactions, the risk that the assumptions underlying ANSYS'
anticipated revenues and expenditures will change or prove
inaccurate, the risk that ANSYS has overestimated its ability to
maintain growth and profitability and control costs, uncertainties
regarding the demand for ANSYS' products and services in future
periods, uncertainties regarding customer acceptance of new
products, the risk of ANSYS’ products future compliance with
industry quality standards and its potential impact on the
Company’s financial results, the risk that the Company may need to
change its pricing models due to competition and its potential
impact on the Company’s financial results, the risk that ANSYS'
operating results will be adversely affected by possible delays in
developing, completing or shipping new or enhanced products, the
risk that enhancements to the Company's products or products
acquired in acquisitions may not produce anticipated sales, the
risk that the Company may not be able to recruit and retain key
executives and technical personnel, the risk that third parties may
misappropriate the Company’s proprietary technology or develop
similar technology independently, the risk of unauthorized access
to and distribution of the Company’s source code, the risk of the
Company’s implementation of its new IT systems, the risk of
difficulties in the relationship with ANSYS’ independent regional
channel partners, the risk of ANSYS’ reliance on perpetual licenses
and the result that any change in customer licensing behavior may
have on the Company’s financial results, the risk that ANSYS may
not achieve the anticipated benefits of its acquisitions or that
the integration of the acquired technologies or products with the
Company’s existing product lines may not be successful, the risk of
periodic reorganizations and changes within ANSYS’ sales
organization, the risk of industry consolidation and the impact it
may have on customer purchasing decisions, and other factors that
are detailed from time to time in reports filed by ANSYS, Inc. with
the Securities and Exchange Commission, including ANSYS, Inc.'s
2016 Annual Report and Form 10-K. We undertake no obligation to
publicly update or revise any forward-looking statements, whether
changes occur as a result of new information or future events,
after the date they were made.
ANSYS and any and all ANSYS, Inc. brand,
product, service and feature names, logos and slogans are
registered trademarks or trademarks of ANSYS, Inc. or its
subsidiaries in the United States or other countries. All
other brand, product, service and feature names or trademarks are
the property of their respective owners.
Visit www.ansys.com for more information. The
ANSYS IR App is now available for download
on iTunes and Google Play. ANSYS also has a strong
presence on the major social channels. To join the simulation
conversation, please visit: www.ansys.com/Social@ANSYS
Beginning end-of-day September 15, 2017, ANSYS
will observe a Quiet Period during which the business outlook as
provided in this press release and the most recent Annual Report on
Form 10-K and Quarterly Report on Form 10-Q no longer constitute
the Company's current expectations. During the Quiet Period,
the business outlook in these documents should be considered
historical, speaking as of prior to the Quiet Period only and not
subject to any update by the Company. During the Quiet
Period, ANSYS' representatives will not comment on ANSYS' business
outlook, financial results or expectations. The Quiet Period
will extend until the day when ANSYS' third quarter 2017 earnings
release is published, which is currently scheduled for November 2,
2017.
Contact:
Investors:
Annette Arribas, CTP
724.820.3700
annette.arribas@ansys.com
Media:
Amy Pietzak
724.820.4367
amy.pietzak@ansys.com
ANSYS (NASDAQ:ANSS)
Historical Stock Chart
From Mar 2024 to Apr 2024
ANSYS (NASDAQ:ANSS)
Historical Stock Chart
From Apr 2023 to Apr 2024