Quarterly Highlights:
ANSYS, Inc. (NASDAQ:ANSS), today announced growth in both revenue
and diluted earnings per share for the second quarter of
2016. In constant currency, the Company reported both GAAP
and non-GAAP revenue growth of 4%, with GAAP and non-GAAP earnings
per share growth of 15% and 9%, respectively. Recurring
revenue, which is comprised of lease license and annual maintenance
revenue, totaled 74% of revenue for the second quarter.
“Q2 was a very solid quarter for ANSYS on many fronts, including
revenues in the upper half of our guidance range, and earnings
above the high end of our range, even in light of the ongoing
evolution to time-based licenses, cloud and enterprise
agreements. We are encouraged by the continued progress that
we are making in our sales growth initiatives across our major
markets, as demonstrated by the improved performance in our
business in Germany and Asia-Pacific, as well as ongoing
improvements in our channel partner performance. During the
quarter, we also continued to see good progress in our enterprise
sales initiatives. The underlying fundamentals of our
business performed in line with our expectations as evidenced by
continued strong margins, recurring revenue and a new record
deferred revenue and backlog balance of $524 million,” commented
Jim Cashman, ANSYS President & CEO. “During the quarter,
we released ANSYS® 17.1 and introduced the ANSYS SeaScapeTM
platform and SeaHawkTM solution. Based on big data
architecture with scalable server computation, solution times are
reduced from weeks to hours, while increasing accuracy. As we
committed at our recent Investor Day, we also continued to return
capital to our stockholders through the repurchase of shares.”
ANSYS' second quarter and year-to-date financial results are
presented below. The 2016 and 2015 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 2016 second
quarter and year-to-date results include approximately $2.4
million, or $0.03 per share, related to incremental tax benefits
associated with entity structuring and related repatriation
activities that were not included in the Company’s most recent
financial guidance.
GAAP and non-GAAP
results reflect: |
GAAP |
|
Non-GAAP |
(in millions, except
EPS and %’s) |
Q2 2016 |
Q2 2015 |
% Change |
|
Q2 2016 |
Q2 2015 |
% Change |
|
|
|
|
|
|
|
|
Revenue |
$ |
246.1 |
|
$ |
235.5 |
|
|
4 |
% |
|
$ |
246.1 |
|
$ |
235.9 |
|
|
4 |
% |
Net income |
$ |
69.6 |
|
$ |
62.3 |
|
|
12 |
% |
|
$ |
83.2 |
|
$ |
78.1 |
|
|
6 |
% |
Earnings per share |
$ |
0.78 |
|
$ |
0.68 |
|
|
15 |
% |
|
$ |
0.93 |
|
$ |
0.85 |
|
|
9 |
% |
Operating profit
margin |
|
38.3 |
% |
|
36.7 |
% |
|
|
|
46.9 |
% |
|
47.1 |
% |
|
Operating cash
flow |
$ |
70.0 |
|
$ |
66.4 |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
NON-GAAP |
|
|
YTD2016 |
YTD2015 |
%Change |
|
YTD2016 |
YTD2015 |
%Change |
|
|
|
|
|
|
|
|
Revenue |
$ |
472.0 |
|
$ |
453.3 |
|
|
4 |
% |
|
$ |
472.1 |
|
$ |
454.3 |
|
|
4 |
% |
Net income |
$ |
126.1 |
|
$ |
118.5 |
|
|
6 |
% |
|
$ |
152.6 |
|
$ |
148.9 |
|
|
2 |
% |
Earnings per share |
$ |
1.41 |
|
$ |
1.29 |
|
|
9 |
% |
|
$ |
1.70 |
|
$ |
1.62 |
|
|
5 |
% |
Operating profit
margin |
|
38.0 |
% |
|
36.7 |
% |
|
|
|
46.7 |
% |
|
47.2 |
% |
|
Operating cash
flow |
$ |
178.6 |
|
$ |
180.5 |
|
|
(1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's GAAP results reflect stock-based
compensation charges of $8.5 million ($5.6 million after tax), or
$0.06 diluted earnings per share, for the second quarter of 2016
and $15.6 million ($10.7 million after tax), or $0.12 diluted
earnings per share, for the first six months of 2016.
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 months and
six months ended June 30, 2016 and 2015, and for the 2016 financial
outlook, are included in the condensed financial information
included in this release.
Management's Remaining 2016 Financial
Outlook
The Company has provided its third quarter and
updated its 2016 revenue and earnings per share guidance below. The
revenue and earnings per share guidance is provided on both a GAAP
basis and a non-GAAP basis. Third quarter and fiscal year 2016
non-GAAP diluted earnings per share exclude the income statement
effects of acquisition accounting adjustments to deferred revenue,
stock-based compensation expense, acquisition-related amortization
of intangible assets and acquisition-related transaction
expenses.
Third Quarter and Fiscal Year 2016
Guidance
The Company currently expects the following for
the quarter ending September 30, 2016:
- GAAP and non-GAAP revenue in the range of $244 - $253
million
- GAAP diluted earnings per share of $0.73 - $0.78
- Non-GAAP diluted earnings per share of $0.90 - $0.94
The Company currently expects the following for the fiscal year
ending December 31, 2016:
- GAAP and non-GAAP revenue in the range of $990 - $1,010 million
($1.01 billion)
- GAAP diluted earnings per share of $2.93 - $3.06
- Non-GAAP diluted earnings per share of $3.57 - $3.67
Conference Call Information
ANSYS will hold a conference call at 10:30 a.m. Eastern Time on
August 4, 2016 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 10089891. 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 |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
December 31, 2015 |
|
|
|
|
|
Cash &
short-term investments |
|
$ |
843,765 |
|
|
$ |
784,614 |
|
Accounts
receivable, net |
|
|
|
85,506 |
|
|
|
91,579 |
|
Goodwill |
|
|
|
|
1,333,397 |
|
|
|
1,332,348 |
|
Other
intangibles, net |
|
|
|
|
196,933 |
|
|
|
220,553 |
|
Other
assets |
|
|
|
|
288,060 |
|
|
|
300,810 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
|
$ |
2,747,661 |
|
|
$ |
2,729,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
Deferred
revenue |
|
|
$ |
375,802 |
|
|
$ |
364,644 |
|
Other
liabilities |
|
|
|
135,999 |
|
|
|
170,833 |
|
Stockholders'
equity |
|
|
|
2,235,860 |
|
|
|
2,194,427 |
|
|
|
|
|
|
|
|
|
Total
liabilities & stockholders' equity |
|
$ |
2,747,661 |
|
|
$ |
2,729,904 |
|
ANSYS, INC.
AND SUBSIDIARIES |
Consolidated Statements of Income |
(in
thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30,2016 |
|
June
30, 2015 |
|
June
30, 2016 |
|
June
30, 2015 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
Software licenses |
$ |
141,087 |
|
|
$ |
140,489 |
|
|
$ |
267,138 |
|
|
$ |
265,458 |
|
|
|
Maintenance and
service |
|
104,982 |
|
|
|
94,996 |
|
|
|
204,837 |
|
|
|
187,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
246,069 |
|
|
|
235,485 |
|
|
|
471,975 |
|
|
|
453,266 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales: |
|
|
|
|
|
|
|
|
|
Software licenses |
|
6,534 |
|
|
|
6,950 |
|
|
|
13,272 |
|
|
|
14,159 |
|
|
|
Amortization |
|
9,520 |
|
|
|
9,743 |
|
|
|
19,031 |
|
|
|
19,100 |
|
|
|
Maintenance and
service |
|
20,957 |
|
|
|
21,092 |
|
|
|
39,993 |
|
|
|
40,414 |
|
|
|
Total cost of
sales |
|
37,011 |
|
|
|
37,785 |
|
|
|
72,296 |
|
|
|
73,673 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
209,058 |
|
|
|
197,700 |
|
|
|
399,679 |
|
|
|
379,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Selling, general and
administrative |
|
64,259 |
|
|
|
63,524 |
|
|
|
122,028 |
|
|
|
120,273 |
|
|
|
Research and
development |
|
47,443 |
|
|
|
42,646 |
|
|
|
92,115 |
|
|
|
82,655 |
|
|
|
Amortization |
|
3,201 |
|
|
|
5,035 |
|
|
|
6,359 |
|
|
|
10,112 |
|
|
|
Total operating
expenses |
|
114,903 |
|
|
|
111,205 |
|
|
|
220,502 |
|
|
|
213,040 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
94,155 |
|
|
|
86,495 |
|
|
|
179,177 |
|
|
|
166,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(59 |
) |
|
|
(122 |
) |
|
|
(145 |
) |
|
|
(276 |
) |
|
|
|
Interest
income |
|
1,077 |
|
|
|
795 |
|
|
|
2,027 |
|
|
|
1,451 |
|
|
|
|
Other income,
net |
|
305 |
|
|
|
91 |
|
|
|
197 |
|
|
|
858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income tax provision |
|
95,478 |
|
|
|
87,259 |
|
|
|
181,256 |
|
|
|
168,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
25,850 |
|
|
|
24,924 |
|
|
|
55,160 |
|
|
|
50,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
69,628 |
|
|
$ |
62,335 |
|
|
$ |
126,096 |
|
|
$ |
118,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share – basic: |
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
0.79 |
|
|
$ |
0.69 |
|
|
$ |
1.43 |
|
|
$ |
1.32 |
|
|
|
Weighted average shares –
basic |
|
87,638 |
|
|
|
89,866 |
|
|
|
87,876 |
|
|
|
89,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share – diluted: |
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.78 |
|
|
$ |
0.68 |
|
|
$ |
1.41 |
|
|
$ |
1.29 |
|
|
|
Weighted average shares –
diluted |
|
89,305 |
|
|
|
91,726 |
|
|
|
89,694 |
|
|
|
91,933 |
|
|
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Non-GAAP
Measures |
(Unaudited) |
(in thousands, except percentages and per
share data) |
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
June 30, 2016 |
June 30, 2015 |
|
|
|
|
|
|
|
|
AsReported |
Adjustments |
Non-GAAPResults |
AsReported |
Adjustments |
Non-GAAPResults |
|
|
|
|
|
|
|
Total revenue |
$ |
246,069 |
|
$
– |
$ |
246,069 |
|
$ |
235,485 |
|
$
393(3) |
$ |
235,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
94,155 |
|
21,255(1) |
|
115,410 |
|
|
86,495 |
|
24,495(4) |
|
110,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit margin |
|
38.3 |
% |
|
|
46.9 |
% |
|
36.7 |
% |
|
|
47.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
69,628 |
|
$ 13,542(2) |
$ |
83,170 |
|
$ |
62,335 |
|
$ 15,798(5) |
$ |
78,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted: |
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.78 |
|
|
$ |
0.93 |
|
$ |
0.68 |
|
|
$ |
0.85 |
|
Weighted average shares - diluted |
|
89,305 |
|
|
|
89,305 |
|
|
91,726 |
|
|
|
91,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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.
(2) Amount represents the
impact of the adjustments to operating income referred to in (1)
above, adjusted for the related income tax impact of $7.7
million. (3) 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.
(4) Amount represents
$14.8 million of amortization expense associated with intangible
assets acquired in business combinations, $9.0 million of
stock-based compensation expense, the $0.4 million adjustment to
revenue as reflected in (3) above and $0.3 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 $8.7
million.
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Non-GAAP
Measures |
(Unaudited) |
(in thousands, except percentages and per
share data) |
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
June 30, 2016 |
June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
AsReported |
Adjustments |
Non-GAAPResults |
AsReported |
Adjustments |
Non-GAAPResults |
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
471,975 |
|
$ 103(1) |
$ |
472,078 |
|
$ |
453,266 |
|
$
986(4) |
$ |
454,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
179,177 |
|
41,105(2) |
|
220,282 |
|
|
166,553 |
|
47,628(5) |
|
214,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit margin |
|
|
38.0 |
% |
|
|
46.7 |
% |
|
36.7 |
% |
|
|
47.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
126,096 |
|
$26,507(3) |
$ |
152,603 |
|
$ |
118,467 |
|
$30,480(6) |
$ |
148,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted: |
|
|
|
|
|
|
|
Diluted earnings per share |
|
$ |
1.41 |
|
|
$ |
1.70 |
|
$ |
1.29 |
|
|
$ |
1.62 |
|
Weighted average shares – diluted |
|
|
89,694 |
|
|
|
89,694 |
|
|
91,933 |
|
|
|
91,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
$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 (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 $14.6
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
$29.2 million of amortization expense associated with intangible
assets acquired in business combinations, $16.9 million of
stock-based compensation expense, the $1.0 million adjustment to
revenue as reflected in (4) above and $0.6 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 $17.1
million.
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Forward-Looking
Guidance |
Quarter Ending September 30, 2016 |
|
|
Earnings Per Share Range– Diluted |
|
|
U.S. GAAP expectation |
$0.73 - $0.78 |
Adjustment to exclude
acquisition–related amortization |
$ |
0.09 |
|
Adjustment to exclude
stock–based compensation |
$0.07 - $0.08 |
|
|
Non-GAAP expectation |
$0.90 - $0.94 |
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Forward-Looking
Guidance |
Year Ending December 31, 2016 |
|
|
Earnings Per Share Range– Diluted |
|
|
U.S. GAAP expectation |
$2.93 -
$3.06 |
Adjustment to exclude
acquisition–related amortization |
$0.35 -
$0.36 |
Adjustment to exclude
stock–based compensation |
$0.26 -
$0.28 |
|
|
Non-GAAP expectation |
$3.57 - $3.67 |
|
Non-GAAP Measures
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.
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
3,000 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 third quarter of 2016, 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 third quarter and
beyond visibility, statements regarding the ongoing evolution to
time-based licenses, cloud and enterprise agreements, statements
regarding continued progress in our sales growth initiatives across
our major markets, statements regarding ongoing improvements in our
channel partner performance, statements regarding progress in our
enterprise sales initiatives, statements regarding ANSYS 17.1, the
ANSYS SeaScape platform and SeaHawk solution, and statements
regarding continuing to return capital to stockholders through the
repurchase of shares 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 17.1,
ANSYS SeaScape platform, SeaHawk solution, and our elastic
licensing and cloud models, 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
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