Third Quarter 2017
ANSYS, Inc. (NASDAQ:ANSS), today reported third quarter 2017 GAAP
and non-GAAP revenue growth of 12% in constant currency. Recurring
revenue, which is comprised of lease license and annual maintenance
revenue, grew by double digits in constant currency and totaled 75%
of revenue for the third quarter on both a GAAP and non-GAAP basis.
The Company also reported 9% and 11% growth in diluted earnings per
share on a GAAP and non-GAAP basis, respectively.
Ajei Gopal, ANSYS President and CEO, commented,
“The ANSYS strategy of Pervasive Simulation is resonating with our
customers and partners. We continue to build new and expand
existing relationships with customers around the world. During Q3,
we closed 25 seven-figure deals, including a three-year deal of
over $45 million, the largest in the Company’s history. Our focus
on sales execution has resulted in another quarter of excellent
financial performance. Our third quarter success was led by
double-digit revenue growth in both North America and Asia-Pacific.
We also saw improved performance in Europe, which rose 5% in
constant currency. Overall, our results demonstrate the continued
progress we are making toward achieving our goal of sustainable,
double-digit top line growth by 2020.”
Maria Shields, ANSYS CFO, stated, “Our Q3
financial results are validation that our continued focus on
execution and disciplined investing in our business is yielding
measurable results. The strong business performance exceeded the
high end of our expectations as evidenced by double-digit growth in
revenue, non-GAAP EPS, and deferred revenue and backlog. Our
operating margin and earnings results were both well above the high
end of our guidance, driven primarily by the overperformance in
revenue. Due to our increased confidence in the fourth quarter, as
well as the overperformance in the third quarter, we are raising
our Q4 and FY 2017 revenue guidance by $6 million and $20 million
at the midpoint, respectively.”
Financial Results
ANSYS' third 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, stock-based
compensation, amortization of acquired intangible assets and
acquisition-related transaction costs. The 2017 non-GAAP results
also exclude restructuring charges.
GAAP and non-GAAP results:
|
GAAP |
|
Non-GAAP |
(in millions,
except percentages and per share data) |
Q3 2017 |
|
Q3 2016 |
|
%Change |
|
Q3 2017 |
|
Q3 2016 |
|
%Change |
Revenue |
$ |
275.6 |
|
|
$ |
245.9 |
|
|
12% |
|
|
$ |
276.8 |
|
|
$ |
245.9 |
|
|
13% |
|
Net income |
$ |
73.6 |
|
|
$ |
69.6 |
|
|
6% |
|
|
$ |
91.3 |
|
|
$ |
84.2 |
|
|
8% |
|
Earnings per share |
$ |
0.85 |
|
|
$ |
0.78 |
|
|
9% |
|
|
$ |
1.05 |
|
|
$ |
0.95 |
|
|
11% |
|
Operating profit
margin |
38.5 |
% |
|
40.7 |
% |
|
|
|
48.7 |
% |
|
49.6 |
% |
|
|
Operating cash
flow |
$ |
88.9 |
|
|
$ |
84.4 |
|
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
Non-GAAP |
(in millions,
except percentages and per share data) |
YTD2017 |
|
YTD2016 |
|
%Change |
|
YTD2017 |
|
YTD2016 |
|
%Change |
Revenue |
$ |
792.9 |
|
|
$ |
717.8 |
|
|
10% |
|
|
$ |
794.7 |
|
|
$ |
717.9 |
|
|
11% |
|
Net income |
$ |
206.7 |
|
|
$ |
195.7 |
|
|
6% |
|
|
$ |
255.1 |
|
|
$ |
236.8 |
|
|
8% |
|
Earnings per share |
$ |
2.38 |
|
|
$ |
2.19 |
|
|
9% |
|
|
$ |
2.94 |
|
|
$ |
2.65 |
|
|
11% |
|
Operating profit
margin |
36.6 |
% |
|
38.9 |
% |
|
|
|
47.8 |
% |
|
47.7 |
% |
|
|
Operating cash
flow |
$ |
327.0 |
|
|
$ |
266.8 |
|
|
23% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 nine
months ended September 30, 2017 and 2016, and for the 2017
financial outlook, are included in the condensed financial
information included in this release.
Management's 2017 Financial Outlook
The Company's fourth quarter and fiscal year
2017 revenue and earnings per share guidance is provided below. The
Company last provided its guidance on August 2, 2017. The
previously provided fiscal year 2017 guidance has been updated to
reflect the Company's performance during the first nine months 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
adjustments to deferred revenue, stock-based compensation,
amortization of acquired intangible assets, restructuring charges
and acquisition-related transaction costs.
Fourth Quarter 2017 Guidance
The Company currently expects the following for the quarter
ending December 31, 2017:
- GAAP revenue in the range of $283.0 - $292.0 million
- Non-GAAP revenue in the range of $284.0 - $293.0 million
- GAAP diluted earnings per share of $0.78 - $0.86
- Non-GAAP diluted earnings per share of $0.99 - $1.05
Fiscal Year 2017 Guidance
The Company currently expects the following for the fiscal year
ending December 31, 2017:
- GAAP revenue in the range of $1.076 - $1.085 billion
- Non-GAAP revenue in the range of $1.079 - $1.088 billion
- GAAP diluted earnings per share of $3.17 - $3.25
- Non-GAAP diluted earnings per share of $3.93 - $3.99
As discussed at the Company’s Investor Day in September, the
Company expects to issue its guidance for 2018 after the completion
of its annual planning process, which is currently underway, and
commensurate with the reporting of its fourth quarter earnings in
February 2018.
Conference Call Information
ANSYS will hold a conference call at
8:30 a.m. Eastern Time on November 2, 2017 to
discuss third 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 and 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 within two hours
after the call. 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 10113369. 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) |
September 30, 2017 |
|
December 31, 2016 |
ASSETS: |
|
|
|
Cash
& short-term investments |
$ |
926,635 |
|
|
$ |
822,860 |
|
Accounts
receivable, net |
91,356 |
|
|
107,192 |
|
Goodwill |
1,353,444 |
|
|
1,337,215 |
|
Other
intangibles, net |
154,996 |
|
|
172,619 |
|
Other
assets |
319,582 |
|
|
360,640 |
|
Total
assets |
$ |
2,846,013 |
|
|
$ |
2,800,526 |
|
LIABILITIES
& STOCKHOLDERS' EQUITY: |
|
|
|
Deferred
revenue |
$ |
381,727 |
|
|
$ |
403,279 |
|
Other
liabilities |
177,032 |
|
|
188,842 |
|
Stockholders' equity |
2,287,254 |
|
|
2,208,405 |
|
Total
liabilities & stockholders' equity |
$ |
2,846,013 |
|
|
$ |
2,800,526 |
|
|
|
|
|
|
|
|
|
|
ANSYS, INC. AND SUBSIDIARIES |
Condensed Consolidated Statements of
Income |
(Unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
(in thousands,
except per share data) |
September 30, 2017 |
|
September 30, 2016 |
|
September 30, 2017 |
|
September 30, 2016 |
Revenue: |
|
|
|
|
|
|
|
Software
licenses |
$ |
156,580 |
|
|
$ |
139,530 |
|
|
$ |
448,368 |
|
|
$ |
406,668 |
|
Maintenance and service |
119,005 |
|
|
106,332 |
|
|
344,546 |
|
|
311,169 |
|
Total
revenue |
275,585 |
|
|
245,862 |
|
|
792,914 |
|
|
717,837 |
|
Cost of sales: |
|
|
|
|
|
|
|
Software
licenses |
7,395 |
|
|
6,433 |
|
|
24,197 |
|
|
19,705 |
|
Amortization |
9,004 |
|
|
9,513 |
|
|
26,892 |
|
|
28,544 |
|
Maintenance and service |
19,584 |
|
|
19,640 |
|
|
58,263 |
|
|
59,633 |
|
Total
cost of sales |
35,983 |
|
|
35,586 |
|
|
109,352 |
|
|
107,882 |
|
Gross profit |
239,602 |
|
|
210,276 |
|
|
683,562 |
|
|
609,955 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Selling,
general and administrative |
80,015 |
|
|
61,537 |
|
|
230,483 |
|
|
183,565 |
|
Research
and development |
50,144 |
|
|
45,418 |
|
|
153,524 |
|
|
137,533 |
|
Amortization |
3,260 |
|
|
3,222 |
|
|
9,506 |
|
|
9,581 |
|
Total
operating expenses |
133,419 |
|
|
110,177 |
|
|
393,513 |
|
|
330,679 |
|
Operating income |
106,183 |
|
|
100,099 |
|
|
290,049 |
|
|
279,276 |
|
Interest income |
1,910 |
|
|
1,083 |
|
|
4,827 |
|
|
3,110 |
|
Other expense, net |
(168 |
) |
|
(189 |
) |
|
(1,512 |
) |
|
(137 |
) |
Income before income
tax provision |
107,925 |
|
|
100,993 |
|
|
293,364 |
|
|
282,249 |
|
Income tax
provision |
34,295 |
|
|
31,436 |
|
|
86,698 |
|
|
86,596 |
|
Net income |
$ |
73,630 |
|
|
$ |
69,557 |
|
|
$ |
206,666 |
|
|
$ |
195,653 |
|
Earnings per share –
basic: |
|
|
|
|
|
|
|
Earnings
per share |
$ |
0.87 |
|
|
$ |
0.80 |
|
|
$ |
2.43 |
|
|
$ |
2.23 |
|
Weighted
average shares |
84,774 |
|
|
86,959 |
|
|
85,132 |
|
|
87,570 |
|
Earnings per share –
diluted: |
|
|
|
|
|
|
|
Earnings
per share |
$ |
0.85 |
|
|
$ |
0.78 |
|
|
$ |
2.38 |
|
|
$ |
2.19 |
|
Weighted
average shares |
86,588 |
|
|
88,676 |
|
|
86,902 |
|
|
89,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Non-GAAP
Measures |
(Unaudited) |
|
Three Months Ended |
|
September 30, 2017 |
|
September 30, 2016 |
(in thousands,
except percentages and per share data) |
As Reported |
|
Adjustments |
|
Non-GAAP Results |
|
As Reported |
|
Adjustments |
|
Non-GAAP Results |
Total revenue |
$ |
275,585 |
|
|
$ |
1,181 |
|
(1) |
|
$ |
276,766 |
|
|
$ |
245,862 |
|
|
$ |
— |
|
|
$ |
245,862 |
|
Operating income |
106,183 |
|
|
28,711 |
|
(2) |
|
134,894 |
|
|
100,099 |
|
|
21,885 |
|
(4) |
|
121,984 |
|
Operating profit
margin |
38.5 |
% |
|
|
|
48.7 |
% |
|
40.7 |
% |
|
|
|
49.6 |
% |
Net income |
$ |
73,630 |
|
|
$ |
17,638 |
|
(3) |
|
$ |
91,268 |
|
|
$ |
69,557 |
|
|
$ |
14,638 |
|
(5) |
|
$ |
84,195 |
|
Earnings per share –
diluted: |
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share |
$ |
0.85 |
|
|
|
|
$ |
1.05 |
|
|
$ |
0.78 |
|
|
|
|
$ |
0.95 |
|
Weighted
average shares |
86,588 |
|
|
|
|
86,588 |
|
|
88,676 |
|
|
|
|
88,676 |
|
(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 $14.8 million of stock-based compensation
expense, $12.3 million of amortization expense associated with
intangible assets acquired in business combinations, $0.5 million
of restructuring charges and the $1.2 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 $11.0 million and rabbi trust income of $0.1
million.
(4) Amount represents $12.7 million of amortization expense
associated with intangible assets acquired in business
combinations, $9.0 million of stock-based compensation expense and
$0.2 million of transaction expenses related to business
combinations.
(5) Amount represents the impact of the adjustments to operating
income referred to in (4) above, adjusted for the related
income tax impact of $7.2 million.
|
|
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Non-GAAP
Measures |
(Unaudited) |
|
Nine Months Ended |
|
September 30, 2017 |
|
September 30, 2016 |
(in thousands,
except percentages and per share data) |
As Reported |
|
Adjustments |
|
Non-GAAP Results |
|
As Reported |
|
Adjustments |
|
Non-GAAP Results |
Total revenue |
$ |
792,914 |
|
|
$ |
1,748 |
|
(1) |
|
$ |
794,662 |
|
|
$ |
717,837 |
|
|
$ |
103 |
|
(4) |
|
$ |
717,940 |
|
Operating income |
290,049 |
|
|
89,985 |
|
(2) |
|
380,034 |
|
|
279,276 |
|
|
62,990 |
|
(5) |
|
342,266 |
|
Operating profit
margin |
36.6 |
% |
|
|
|
47.8 |
% |
|
38.9 |
% |
|
|
|
47.7 |
% |
Net income |
$ |
206,666 |
|
|
$ |
48,480 |
|
(3) |
|
$ |
255,146 |
|
|
$ |
195,653 |
|
|
$ |
41,145 |
|
(6) |
|
$ |
236,798 |
|
Earnings per share –
diluted: |
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share |
$ |
2.38 |
|
|
|
|
$ |
2.94 |
|
|
$ |
2.19 |
|
|
|
|
$ |
2.65 |
|
Weighted
average shares |
86,902 |
|
|
|
|
86,902 |
|
|
89,355 |
|
|
|
|
89,355 |
|
(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 $39.4 million of stock-based compensation
expense, $36.4 million of amortization expense associated with
intangible assets acquired in business combinations, $11.7 million
of restructuring charges, $0.7 million of transaction expenses
related to business combinations and the $1.7 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 $41.4 million and rabbi trust income of $0.1
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 $38.1 million of amortization expense
associated with intangible assets acquired in business
combinations, $24.6 million of stock-based compensation expense,
$0.2 million of transaction expenses related to business
combinations 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 $21.8 million.
|
|
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Forward-Looking
Guidance |
Quarter Ending December 31, 2017 |
|
Earnings Per ShareRange - Diluted |
U.S. GAAP
expectation |
$0.78 - $0.86 |
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 |
$0.09 - $0.10 |
Non-GAAP
expectation |
$0.99 - $1.05 |
|
|
|
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Forward-Looking
Guidance |
Year Ending December 31, 2017 |
|
Earnings Per ShareRange - Diluted |
U.S. GAAP
expectation |
$3.17 - $3.25 |
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 |
$0.26 - $0.27 |
Adjustment
to exclude restructuring charges |
$0.09 |
Adjustment
to exclude acquisition-related transaction expenses |
$0.01 |
Non-GAAP
expectation |
$3.93 - $3.99 |
|
|
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, derived from closed
acquisitions, 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 fourth quarter of 2017 and
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 with related tax
impacts); statements about management's views concerning the
Company's prospects and outlook for 2017; statements about
increased confidence in the fourth quarter; statements and
projections relating to the impact of stock-based compensation;
statements regarding management's use of non-GAAP financial
measures; and statements regarding the strength of customer demand
for our products 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 on 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 December 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 constitutes
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' fourth quarter 2017 earnings release is
published, which is currently scheduled for February 22, 2018.
Contact:
Investors: Annette Arribas,
CTP724.820.3700annette.arribas@ansys.com
Media: Amy Pietzak724.820.4367 amy.pietzak@ansys.com
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