Board of Directors Increases the
Authorized Share Repurchase Program to Five
Million SharesManagement Provides Initial Q1 2016
Outlook - Updates FY 2016 Outlook
ANSYS, Inc. (NASDAQ:ANSS) today reported fourth quarter and FY 2015
GAAP revenue growth of 4% and 8%, respectively, and non-GAAP
revenue growth of 4% and 7%, respectively, all in constant
currency. Recurring revenue, which is comprised of lease
license and annual maintenance revenue, totaled 70% of non-GAAP
revenue for the fourth quarter and 72% for the year.
For the quarter, the Company reported non-GAAP
diluted earnings per share of $0.91 and GAAP diluted earnings per
share of $0.75. For the fiscal year, the Company achieved non-GAAP
diluted earnings per share of $3.42 and GAAP diluted earnings per
share of $2.76.
Jim Cashman, ANSYS president & CEO, stated, “The fourth
quarter presented us with a combination of both challenges and
opportunities. Our earnings surpassed the high end of our
expectations, while Q4 revenue came in at the low end of our
expectations. Quarterly sales bookings showed strong improvement,
exceeding the revenue growth rate, and contributed to a record
total deferred revenue and backlog balance of $504 million.
Operating cash flows increased 18% over Q4 2014.”
He continued, “We also continued to return capital to our
stockholders through the repurchase of 1.0 million shares in the
fourth quarter, bringing our total 2015 repurchase to 3.8 million
shares. During the year, we focused our efforts on expanding our
direct sales capacity, investing in innovation and beginning a
multiple-year journey of upgrading our infrastructure to support
our ongoing growth goals. While we did not accomplish all
that we set out to do at the beginning of 2015, we believe that we
are very well positioned as we enter 2016.”
Cashman concluded, “We continue to strongly execute on our
strategic vision to drive growth through continuous product
innovation. In January 2016, we released ANSYS® 17.0 -
delivering the most comprehensive set of physics features that
we’ve released in our 45-year history. We’ve improved performance
by a full order of magnitude, giving 10x the productivity, 10x
greater insight into product designs and 10x the performance to
design and innovate more quickly and efficiently than
ever.”
ANSYS' fourth quarter and 2015 financial results
are presented below. The 2015 and 2014 non-GAAP results exclude the
income statement effects of acquisition accounting adjustments to
deferred revenue, as well as the impact of stock-based
compensation, acquisition-related amortization of intangible assets
acquired in business combinations and transaction costs related to
business combinations.
|
GAAP |
|
Non-GAAP |
(in millions, except
EPS and %’s) |
Q4 2015 |
Q4 2014 |
% Change |
|
Q4 2015 |
Q4 2014 |
% Change |
|
|
|
|
|
|
|
|
Revenue |
$ |
251.6 |
|
$ |
254.4 |
|
|
(1 |
%) |
|
$ |
252.0 |
|
$ |
255.5 |
|
|
(1 |
%) |
Net income |
$ |
68.0 |
|
$ |
69.6 |
|
|
(2 |
%) |
|
$ |
82.4 |
|
$ |
86.3 |
|
|
(4 |
%) |
Earnings per share |
$ |
0.75 |
|
$ |
0.74 |
|
|
1 |
% |
|
$ |
0.91 |
|
$ |
0.92 |
|
|
(1 |
%) |
Operating profit
margin |
|
38.5 |
% |
|
37.0 |
% |
|
|
|
47.5 |
% |
|
47.0 |
% |
|
Operating cash
flow |
$ |
109.2 |
|
$ |
92.3 |
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
Non-GAAP |
|
(in millions, except
EPS and %’s) |
YTD 2015 |
YTD 2014 |
% Change |
|
YTD 2015 |
YTD 2014 |
% Change |
|
|
|
|
|
|
|
|
Revenue |
$ |
942.8 |
|
$ |
936.0 |
|
|
1 |
% |
|
$ |
944.5 |
|
$ |
941.4 |
|
|
0 |
% |
Net income |
$ |
252.5 |
|
$ |
254.7 |
|
|
(1 |
%) |
|
$ |
313.4 |
|
$ |
323.4 |
|
|
(3 |
%) |
Earnings per share |
$ |
2.76 |
|
$ |
2.70 |
|
|
2 |
% |
|
$ |
3.42 |
|
$ |
3.43 |
|
|
0 |
% |
Operating profit
margin |
|
37.5 |
% |
|
37.1 |
% |
|
|
|
47.5 |
% |
|
48.0 |
% |
|
Operating cash
flow |
$ |
367.5 |
|
$ |
385.3 |
|
|
(5 |
%) |
|
|
|
|
The
Company's GAAP results reflect stock-based compensation charges of
approximately $8.2 million ($5.0 million after tax) or $0.06
diluted earnings per share for the fourth quarter of 2015 and
approximately $34.0 million ($22.3 million after tax) or $0.24
diluted earnings per share for fiscal year 2015.
The non-GAAP financial results highlighted above, and the
non-GAAP financial outlook for 2016 discussed below, represent
non-GAAP financial measures. Reconciliations of these measures to
the appropriate GAAP measures for the three and twelve months ended
December 31, 2015 and 2014, and for the 2016 financial outlook, are
included in the condensed financial information included in this
release.
Constant Currency
In the discussion above, the Company makes reference to revenue
growth rates in constant currency. Constant currency amounts
exclude the effects of foreign currency fluctuations on the
reported results. To present this information, the results
for 2015 for entities whose functional currency is a currency other
than the U.S. Dollar were converted to U.S. Dollars at rates that
were in effect for 2014, rather than the actual exchange rates in
effect for 2015.
Information Regarding Increased Share Repurchase
Authorization
During fiscal year 2015, the Company repurchased 3.8 million
shares, including 1.0 million shares repurchased during the quarter
ended December 31, 2015, leaving 2.1 million shares available for
repurchase under the existing authorization. Today, the Company
announced that the Board of Directors has again increased the
authorized share repurchase program to 5.0 million shares.
2016 Financial Outlook
The Company’s first quarter and fiscal year 2016 revenue and
earnings per share guidance is provided below. The Company last
provided its guidance on November 5, 2015. The previously
provided fiscal year 2016 guidance has been updated to reflect
changes in currency exchange rates and to consider the recent
increases in economic uncertainty and market volatility. The
revenue and earnings per share guidance is provided on both a GAAP
basis and a non-GAAP basis. Non-GAAP diluted earnings per
share excludes charges for stock-based compensation, the income
statement effects of acquisition accounting for deferred revenue,
acquisition-related amortization of intangible assets and
transaction expenses related to business combinations.
First Quarter 2016 Guidance
The Company currently expects the following for the quarter
ending March 31, 2016:
- GAAP revenue in the range of $224.0 - $232.0
million
- Non-GAAP revenue in the range of $224.0 - $232.0 million
- GAAP diluted earnings per share of $0.57 - $0.62
- Non-GAAP diluted earnings per share of $0.74 - $0.77
Fiscal Year 2016 Guidance
The Company currently expects the following for the fiscal year
ending December 31, 2016:
- GAAP revenue in the range of $995.0 - $1,030 million ($1.03
billion)
- Non-GAAP revenue in the range of $995.0 million - $1,030
million ($1.03 billion)
- GAAP diluted earnings per share of $2.86 - $3.05
- Non-GAAP diluted earnings per share of $3.53 - $3.69
These statements are forward-looking and actual results may
differ materially. Non-GAAP diluted earnings per share is a
supplemental financial measure and should not be considered as a
substitute for, or superior to, diluted earnings per share
determined in accordance with GAAP.
Conference Call Information
ANSYS will hold a conference call at 10:30 a.m. Eastern Time on
February 25, 2016 to discuss fourth quarter and fiscal year 2015
results. To participate in the live conference call, dial
866-652-5200 (US) or 412-317-6060 (Canada & INT’L). The call
will be recorded and a replay will be available approximately two
hours after the call ends. The replay will be available for one
week by dialing 877-344-7529 (US), 855-669-9658 (CAN) or
412-317-0088 (Int’l) and entering the pass code 10079946. The
archived webcast can be accessed, along with other financial
information, on ANSYS' website at http://investors.ansys.com.
ANSYS, INC. AND SUBSIDIARIES |
Condensed Consolidated Balance Sheets |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
December 31, 2014 |
ASSETS: |
|
|
|
|
|
|
|
|
Cash and
short-term investments |
$ |
784,614 |
|
|
$ |
788,778 |
|
Accounts
receivable, net |
|
91,579 |
|
|
|
101,229 |
|
Goodwill |
|
|
1,332,348 |
|
|
|
1,312,182 |
|
Other
intangibles, net |
|
|
220,553 |
|
|
|
259,312 |
|
Other
assets |
|
|
300,810 |
|
|
|
291,378 |
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
2,729,904 |
|
|
$ |
2,752,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES and STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
Deferred
revenue |
$ |
364,644 |
|
|
$ |
332,664 |
|
Other
liabilities |
|
170,833 |
|
|
|
202,714 |
|
Stockholders'
equity |
|
2,194,427 |
|
|
|
2,217,501 |
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
2,729,904 |
|
|
$ |
2,752,879 |
|
ANSYS, INC.
AND SUBSIDIARIES |
|
Consolidated Statements of Income |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended |
|
Twelve
Months Ended |
|
|
December 31,
2015 |
|
December
31, 2014 |
|
December
31, 2015 |
|
December
31, 2014 |
Revenue: |
|
|
|
|
|
|
|
|
Software licenses |
$ |
149,450 |
|
|
$ |
157,619 |
|
|
$ |
555,105 |
|
|
$ |
564,502 |
|
|
Maintenance and service |
|
102,197 |
|
|
|
96,756 |
|
|
|
387,648 |
|
|
|
371,519 |
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
251,647 |
|
|
|
254,375 |
|
|
|
942,753 |
|
|
|
936,021 |
|
|
|
|
|
|
|
|
|
|
Cost of
sales: |
|
|
|
|
|
|
|
|
Software licenses |
|
8,057 |
|
|
|
9,004 |
|
|
|
29,105 |
|
|
|
30,607 |
|
|
Amortization |
|
9,837 |
|
|
|
9,455 |
|
|
|
38,755 |
|
|
|
37,653 |
|
|
Maintenance and service |
|
19,098 |
|
|
|
21,310 |
|
|
|
79,386 |
|
|
|
85,126 |
|
|
Total cost of sales |
|
36,992 |
|
|
|
39,769 |
|
|
|
147,246 |
|
|
|
153,386 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
214,655 |
|
|
|
214,606 |
|
|
|
795,507 |
|
|
|
782,635 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling, general and
administrative |
|
71,963 |
|
|
|
72,374 |
|
|
|
253,603 |
|
|
|
246,376 |
|
|
Research and development |
|
41,392 |
|
|
|
42,170 |
|
|
|
168,831 |
|
|
|
165,421 |
|
|
Amortization |
|
4,357 |
|
|
|
6,014 |
|
|
|
19,394 |
|
|
|
23,388 |
|
|
Total operating expenses |
|
117,712 |
|
|
|
120,558 |
|
|
|
441,828 |
|
|
|
435,185 |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
96,943 |
|
|
|
94,048 |
|
|
|
353,679 |
|
|
|
347,450 |
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
704 |
|
|
|
796 |
|
|
|
2,829 |
|
|
|
3,002 |
|
Other income
(expense), net |
|
153 |
|
|
|
(963 |
) |
|
|
257 |
|
|
|
(2,313 |
) |
|
|
|
|
|
|
|
|
|
Income before
income tax provision |
|
97,800 |
|
|
|
93,881 |
|
|
|
356,765 |
|
|
|
348,139 |
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
29,779 |
|
|
|
24,248 |
|
|
|
104,244 |
|
|
|
93,449 |
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
68,021 |
|
|
$ |
69,633 |
|
|
$ |
252,521 |
|
|
$ |
254,690 |
|
|
|
|
|
|
|
|
|
Earnings per
share – basic: |
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.77 |
|
|
$ |
0.76 |
|
|
$ |
2.82 |
|
|
$ |
2.77 |
|
|
Weighted average shares –
basic |
|
88,626 |
|
|
|
91,595 |
|
|
|
89,561 |
|
|
|
92,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share – diluted: |
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.75 |
|
|
$ |
0.74 |
|
|
$ |
2.76 |
|
|
$ |
2.70 |
|
|
Weighted average shares –
diluted |
|
90,549 |
|
|
|
93,584 |
|
|
|
91,502 |
|
|
|
94,194 |
|
ANSYS, INC. AND
SUBSIDIARIES |
Reconciliation
of Non-GAAP Measures |
(Unaudited) |
(in thousands,
except percentages and per share data) |
|
|
Three Months
Ended |
|
|
December
31, 2015 |
|
December
31, 2014 |
|
As
Reported |
Adjustments |
Non-GAAP
Results |
|
As
Reported |
Adjustments |
Non-GAAP
Results |
|
|
|
|
|
|
|
|
Total revenue |
$ |
251,647 |
|
$
360 (1) |
$ |
252,007 |
|
|
$ |
254,375 |
|
$
1,114 (4) |
$ |
255,489 |
|
Operating income |
|
96,943 |
|
22,780
(2) |
|
119,723 |
|
|
|
94,048 |
|
25,973
(5) |
|
120,021 |
|
Operating profit
margin |
|
38.5 |
% |
|
|
47.5 |
% |
|
|
37.0 |
% |
|
|
47.0 |
% |
Net income |
$ |
68,021 |
|
$14,396
(3) |
$ |
82,417 |
|
|
$ |
69,633 |
|
$16,656
(6) |
$ |
86,289 |
|
Earnings per share –
diluted: |
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.75 |
|
|
$ |
0.91 |
|
|
$ |
0.74 |
|
|
$ |
0.92 |
|
Weighted average shares
- diluted |
|
90,549 |
|
|
|
90,549 |
|
|
|
93,584 |
|
|
|
93,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amount represents the revenue not reported during the period
as a result of the acquisition accounting adjustment associated
with accounting for deferred revenue in business combinations.
(2) Amount represents $14.2 million of amortization expense
associated with intangible assets acquired in business
combinations, $8.2 million of stock-based compensation expense 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 $8.4 million.
(4) Amount represents the revenue not reported during the period
as a result of the acquisition accounting adjustment associated
with accounting for deferred revenue in business combinations.
(5) Amount represents $15.5 million of amortization expense
associated with intangible assets acquired in business
combinations, $9.3 million of stock-based compensation expense, the
$1.1 million adjustment to revenue as reflected in (4) above and
$0.1 million of transaction expenses related to business
combinations.
(6) Amount represents the impact of the adjustments to operating
income referred to in (5) above, adjusted for the related income
tax impact of $9.3 million.
ANSYS, INC. AND
SUBSIDIARIES |
Reconciliation
of Non-GAAP Measures |
(Unaudited) |
(in thousands,
except percentages and per share data) |
|
|
Twelve Months
Ended |
|
|
|
|
|
December
31, 2015 |
|
December
31, 2014 |
|
As
Reported |
Adjustments |
Non-GAAP
Results |
|
As
Reported |
Adjustments |
Non-GAAP
Results |
|
|
|
|
|
|
|
|
Total revenue |
$ |
942,753 |
|
$
1,725 (1) |
$ |
944,478 |
|
|
$ |
936,021 |
|
$
5,421 (4) |
$ |
941,442 |
|
Operating income |
|
353,679 |
|
94,665
(2) |
|
448,344 |
|
|
|
347,450 |
|
104,403
(5) |
|
451,853 |
|
Operating profit
margin |
|
37.5 |
% |
|
|
47.5 |
% |
|
|
37.1 |
% |
|
|
48.0 |
% |
Net income |
$ |
252,521 |
|
$60,854
(3) |
$ |
313,375 |
|
|
$ |
254,690 |
|
$68,719
(6) |
$ |
323,409 |
|
Earnings per share –
diluted: |
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
2.76 |
|
|
$ |
3.42 |
|
|
$ |
2.70 |
|
|
$ |
3.43 |
|
Weighted average shares -
diluted |
|
91,502 |
|
|
|
91,502 |
|
|
|
94,194 |
|
|
|
94,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amount represents the revenue not reported during the period
as a result of the acquisition accounting adjustment associated
with accounting for deferred revenue in business combinations.
(2) Amount represents $58.1 million of amortization expense
associated with intangible assets acquired in business
combinations, $34.0 million of stock-based compensation expense,
the $1.7 million adjustment to revenue as reflected in (1) above
and $0.8 million of transaction expenses related to business
combinations.
(3) Amount represents the impact of the adjustments to operating
income referred to in (2) above, adjusted for the related income
tax impact of $33.8 million.
(4) Amount represents the revenue not reported during the period
as a result of the acquisition accounting adjustment associated
with accounting for deferred revenue in business combinations.
(5) Amount represents $61.0 million of amortization expense
associated with intangible assets acquired in business
combinations, $36.9 million of stock-based compensation expense,
the $5.4 million adjustment to revenue as reflected in (4) above
and $1.1 million of transaction expenses related to business
combinations.
(6) Amount represents the impact of the adjustments to operating
income referred to in (5) above, adjusted for the related income
tax impact of $35.7 million.
ANSYS, INC. AND
SUBSIDIARIES |
Reconciliation of
Forward-Looking Guidance |
Quarter Ending
March 31, 2016 |
|
|
|
Earnings Per Share
Range – Diluted |
|
|
U.S. GAAP expectation |
$0.57 -
$0.62 |
Adjustment to exclude
acquisition–related amortization |
$0.08 -
$0.09 |
Adjustment to exclude
stock–based compensation |
$0.07 -
$0.08 |
|
|
Non-GAAP expectation |
$0.74 - $0.77 |
ANSYS, INC. AND
SUBSIDIARIES |
Reconciliation of
Forward-Looking Guidance |
Year Ending
December 31, 2016 |
|
|
|
Earnings Per Share
Range – Diluted |
|
|
U.S. GAAP expectation |
$2.86 -
$3.05 |
Adjustment to exclude
acquisition–related amortization |
$0.35 -
$0.36 |
Adjustment to exclude
stock–based compensation |
$0.29 -
$0.31 |
|
|
Non-GAAP expectation |
$3.53 - $3.69 |
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. 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. Specifically,
the Company excludes stock-based compensation 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.
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 continuing
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.
Pursuant to the requirements of Regulation G,
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.
ANSYS brings clarity and insight to customers' most complex
design challenges through fast, accurate and reliable engineering
simulation. Our technology enables organizations ― no matter their
industry ― to predict with confidence that their products will
thrive in the real world. Customers trust our software to help
ensure product integrity and drive business success through
innovation. Founded in 1970, ANSYS employs almost 2,800
professionals, many of them experts in engineering fields such as
finite element analysis, computational fluid dynamics, electronics
and electromagnetics, 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.
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 first quarter of 2016, fiscal year 2015 and
fiscal year 2016 (both GAAP and non-GAAP to exclude acquisition
accounting adjustments to deferred revenue, acquisition-related
amortization, stock-based compensation expense and
acquisition-related transaction costs); statements about
management's views concerning the Company's prospects and outlook
for 2016, 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 first quarter and beyond visibility,
statements regarding continuing to strongly execute on our
strategic vision to drive growth through continuous product
innovation, statements regarding ANSYS 17.0 giving 10X the
productivity, 10X greater insight into product designs and 10X the
performance to design and innovate more quickly and efficiently
than ever, statements regarding beginning a multiple-year journey
of upgrading our infrastructure to support our on-going growth
goals and our belief that we are very well positioned as we enter
2016 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, the risk that ANSYS has
overestimated the strength of the demand among its customers for
its products, uncertainties regarding customer acceptance of new
products, including ANSYS 17.0, 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
difficulties in the relationship with ANSYS’ independent regional
channel partners, 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, 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 2015
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
ANSS-F
Contact:
Investors:
Annette Arribas, CTP
724.820.3700
annette.arribas@ansys.com
Media:
Amy Pietzak
724.820.4367
amy.pietzak@ansys.com
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