ANNOUNCES ANNUAL MEETING OF STOCKHOLDERS
AND SETS RECORD DATE
Board of Directors Again Increases
the Authorized
Share
Repurchase
Program to Five Million
Shares Management Provides Initial Q1 2015 Outlook
- Updates FY 2015 Outlook Solely for Changes in
Currency
Highlights
- Fourth quarter GAAP revenue of $254.4 million and
non-GAAP revenue of $255.5 million
- Fiscal year 2014 GAAP revenue of $936.0 million and
non-GAAP revenue of $941.4 million
- Fourth quarter GAAP diluted EPS of $0.74 and non-GAAP
diluted EPS of $0.92
- Fiscal year 2014 GAAP diluted EPS of $2.70 and non-GAAP
diluted EPS of $3.43
- Operating cash flows of $92.3 million for the fourth
quarter and $385.3 million for fiscal year 2014
- Fourth quarter and fiscal year 2014 GAAP operating
profit margins of 37.0% and 37.1%, respectively, and non-GAAP
operating profit margins of 47.0% and 48.0%,
respectively
- Deferred revenue and backlog of $468.3 million at
December 31, 2014
- Repurchase of 1.5 million shares in the fourth quarter
and 3.0 million shares in FY 2014
- Annual Meeting of Stockholders on May 14, 2015 with a
record date of March 18, 2015
ANSYS, Inc. (Nasdaq:ANSS) today reported fourth quarter and FY 2014
revenue growth (both GAAP and non-GAAP) of 12% and 10%,
respectively, in constant currency. The Company also reported
non-GAAP earnings per share of $0.92 for the quarter and $3.43 for
the year, and GAAP earnings per share of $0.74 and $2.70 for the
quarter and the year, respectively. For comparative purposes, the
fourth quarter of 2013 earnings per share included a one-time,
$0.12 tax benefit. Recurring revenue, which is comprised of lease
license and annual maintenance revenue, totaled 66% of non-GAAP
revenue for the fourth quarter and 71% for the year.
Commenting on the Company's fourth quarter and fiscal year 2014
performance, Jim Cashman, ANSYS president & CEO, stated, "We
had a very strong finish to the year, achieving record revenue and
earnings, both of which surpassed the high end of our expectations.
Most importantly, we delivered double digit revenue growth in
constant currency for the quarter. We also reached an historic
milestone for the Company in 2014, surpassing $1 billion in total
sales bookings, which contributed to record cash flows that
increased 16% over FY 2013. We closed the year with a total
deferred revenue and backlog balance of $468 million, an increase
of 14% over 2013. The focus on sales execution initiatives and the
investments that we started back in 2013, including improving our
go-to-market strategies, drove our strong financial results for
2014. We achieved widespread success across our three major
geographies, with the U.S., Japan and Germany all delivering
double-digit GAAP and non-GAAP revenue growth in constant currency
in Q4. We also continued to return capital to our stockholders
through the repurchase of 1.5 million shares in the fourth quarter,
and recently achieved the $200 million near-term share repurchase
goal that we announced in our last earnings press release."
Cashman further stated, "In January 2015 we released ANSYS® 16.0
- the world's most advanced simulation software. With major
enhancements to our entire portfolio, including structures, fluids,
electronics and systems engineering solutions, the ANSYS platform
provides our customers with scalability, ease of use and
flexibility through customization and cloud-enabled applications.
We also recently implemented our new Elite Channel Partner program,
refocusing on this important component of our sales and support
model, while at the same time expanding our direct global sales
force. We believe that we are very well positioned as we enter
2015."
The ANSYS Annual Meeting of Stockholders will be held on
Thursday, May 14, 2015 at 250 Technology Drive, Canonsburg,
Pennsylvania. The Company has fixed the close of business on March
18, 2015 as the record date for determining whether stockholders
are entitled to notice of, and to vote at, the Annual Meeting and
any adjournments or postponements thereof.
ANSYS' fourth quarter and 2014 financial results are presented
below. The 2014 and 2013 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 and
transaction costs related to acquisitions.
|
GAAP |
Non-GAAP |
(in millions, except EPS and %'s) |
Q4 2014 |
Q4 2013 |
% Change |
Q4 2014 |
Q4 2013 |
% Change |
|
|
|
|
|
|
|
Revenue |
$ 254.4 |
$ 236.0 |
8% |
$ 255.5 |
$ 236.7 |
8% |
Net income |
$ 69.6 |
$ 75.9* |
(8%) |
$ 86.3 |
$ 91.6* |
(6%) |
Earnings per share |
$ 0.74 |
$ 0.80* |
(8%) |
$ 0.92 |
$ 0.96* |
(4%) |
Operating profit margin |
37.0% |
39.1% |
|
47.0% |
49.0% |
|
Operating cash flow |
$ 92.3 |
$ 85.0 |
9% |
|
|
|
|
|
|
|
|
|
|
|
GAAP |
Non-GAAP |
|
YTD 2014 |
YTD 2013 |
% Change |
YTD 2014 |
YTD 2013 |
% Change |
|
|
|
|
|
|
|
Revenue |
$ 936.0 |
$ 861.3 |
9% |
$ 941.4 |
$ 865.9 |
9% |
Net income |
$ 254.7 |
$ 245.3* |
4% |
$ 323.4 |
$ 311.5* |
4% |
Earnings per share |
$ 2.70 |
$ 2.58* |
5% |
$ 3.43 |
$ 3.27* |
5% |
Operating profit margin |
37.1% |
37.4% |
|
48.0% |
48.9% |
|
Operating cash flow |
$ 385.3 |
$ 333.0 |
16% |
|
|
|
*The Company's 2013 fourth quarter and fiscal
year GAAP and non-GAAP results include approximately $11.0 million
of incremental tax benefits, or $0.12 per diluted share, related to
the notification from the Internal Revenue Service that the Joint
Committee on Taxation took no exception to the Company's tax
returns that were filed for 2009 and 2010, eliminating the
uncertainty regarding refund claims filed in connection with these
returns.
The Company's GAAP results reflect stock-based compensation
charges of approximately $9.3 million ($6.1 million after tax) or
$0.06 diluted earnings per share for the fourth quarter of 2014 and
approximately $36.9 million ($25.9 million after tax) or $0.28
diluted earnings per share for fiscal year 2014.
The non-GAAP financial results highlighted above, and the
non-GAAP financial outlook for 2015 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, 2014 and 2013, and for the 2015 financial outlook, are
included in the condensed financial information included in this
release.
Information Regarding Increased Share Repurchase
Authorization
In November 2014, the Company's Board of Directors increased the
authorization for the repurchase of shares from the remaining 1.6
million shares under its then existing authorization to 5.0 million
shares. The Company also announced that it expected to be more
aggressive in its share repurchase activity and set a repurchase
target of $200 million over the next two quarters ending March 31,
2015. The Company entered into a Rule 10b5-1 trading plan
during the fourth quarter of 2014 to facilitate the execution of
the repurchases and achieved the $200 million repurchase goal
during January 2015. During fiscal year 2014, the Company
repurchased 3.0 million shares, including 1.5 million shares
repurchased during the quarter ended December 31, 2014, leaving 3.5
million shares available for repurchase under the existing
authorization as of December 31, 2014. As of January 31, 2015,
the Company had approximately 2.5 million shares remaining in its
authorized program. Today, the Company announced that the
Board of Directors has again increased the authorized share
repurchase program to 5.0 million shares.
Management's 2015 Financial Outlook
The Company's first quarter and fiscal year 2015 revenue and
earnings per share guidance is provided below. The Company last
provided its guidance on November 5, 2014. The previously
provided fiscal year 2015 guidance has been updated to reflect
changes in currency exchange rates. The Company's acquisition
of the assets of Newmerical Technologies International did not have
a meaningful impact on its guidance. 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 acquisition-related
transaction expenses.
First Quarter 2015 Guidance
The Company currently expects the following for the quarter
ending March 31, 2015:
- GAAP revenue in the range of $216.5 - $224.5
million
- Non-GAAP revenue in the range of $217.0 - $225.0 million
- GAAP diluted earnings per share of $0.54 - $0.62
- Non-GAAP diluted earnings per share of $0.74 - $0.79
Fiscal Year 2015 Guidance
The Company currently expects the following for the fiscal year
ending December 31, 2015:
- GAAP revenue in the range of $944.8 - $974.8 million
- Non-GAAP revenue in the range of $946.0 - $976.0 million
- GAAP diluted earnings per share of $2.70 - $2.85
- Non-GAAP diluted earnings per share of $3.40 - $3.51
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 26, 2015 to discuss fourth quarter and fiscal year 2014
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 10058823. 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,
2014 |
December 31,
2013 |
ASSETS: |
|
|
|
|
|
Cash and short-term investments |
$ 788,778 |
$ 742,986 |
Accounts receivable, net |
101,229 |
97,845 |
Goodwill |
1,312,182 |
1,255,704 |
Other intangibles, net |
259,312 |
291,390 |
Other assets |
312,602 |
334,457 |
|
|
|
Total assets |
$ 2,774,103 |
$ 2,722,382 |
|
|
|
|
|
|
LIABILITIES and STOCKHOLDERS'
EQUITY: |
|
|
|
|
|
Deferred revenue |
$ 332,664 |
$ 309,775 |
Other liabilities |
223,938 |
276,361 |
Stockholders' equity |
2,217,501 |
2,136,246 |
|
|
|
Total liabilities and stockholders'
equity |
$ 2,774,103 |
$ 2,722,382 |
|
|
ANSYS, INC. AND
SUBSIDIARIES |
Consolidated Statements
of Income |
(in thousands, except
per share data) |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December 31,
2014 |
December 31,
2013 |
December 31,
2014 |
December 31,
2013 |
Revenue: |
|
|
|
|
Software licenses |
$ 157,619 |
$ 147,767 |
$ 564,502 |
$ 528,944 |
Maintenance and service |
96,756 |
88,253 |
371,519 |
332,316 |
|
|
|
|
|
Total revenue |
254,375 |
236,020 |
936,021 |
861,260 |
|
|
|
|
|
Cost of sales: |
|
|
|
|
Software licenses |
9,004 |
8,385 |
30,607 |
28,363 |
Amortization |
9,455 |
9,225 |
37,653 |
38,298 |
Maintenance and service |
21,310 |
20,999 |
85,126 |
80,031 |
Total cost of sales |
39,769 |
38,609 |
153,386 |
146,692 |
|
|
|
|
|
Gross profit |
214,606 |
197,411 |
782,635 |
714,568 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Selling, general and administrative |
72,374 |
62,287 |
246,376 |
218,907 |
Research and development |
42,170 |
37,880 |
165,421 |
151,439 |
Amortization |
6,014 |
4,992 |
23,388 |
22,359 |
Total operating expenses |
120,558 |
105,159 |
435,185 |
392,705 |
|
|
|
|
|
Operating income |
94,048 |
92,252 |
347,450 |
321,863 |
|
|
|
|
|
Interest expense |
(201) |
(202) |
(779) |
(1,169) |
Interest income |
796 |
710 |
3,002 |
2,841 |
Other expense, net |
(762) |
(195) |
(1,534) |
(1,046) |
|
|
|
|
|
Income before income tax provision |
93,881 |
92,565 |
348,139 |
322,489 |
|
|
|
|
|
Income tax provision |
24,248 |
16,636 |
93,449 |
77,162 |
|
|
|
|
|
Net income |
$ 69,633 |
$ 75,929 |
$ 254,690 |
$ 245,327 |
|
|
|
|
|
Earnings per share – basic: |
|
|
|
|
Basic earnings per share |
$ 0.76 |
$ 0.82 |
$ 2.77 |
$ 2.65 |
Weighted average shares – basic |
91,595 |
92,454 |
92,067 |
92,691 |
|
|
|
|
|
|
|
|
|
|
Earnings per share – diluted: |
|
|
|
|
Diluted earnings per share |
$ 0.74 |
$ 0.80 |
$ 2.70 |
$ 2.58 |
Weighted average shares – diluted |
93,584 |
95,084 |
94,194 |
95,139 |
|
|
ANSYS, INC. AND
SUBSIDIARIES |
Reconciliation of
Non-GAAP Measures |
(Unaudited) |
(in thousands, except
percentages and per share data) |
|
|
|
|
Three Months
Ended |
|
|
|
|
December 31,
2014 |
December 31,
2013 |
|
As
Reported |
Adjustments |
Non- GAAP
Results |
As
Reported |
Adjustments |
Non- GAAP
Results |
|
|
|
|
|
|
|
Total revenue |
$254,375 |
$ 1,114 (1) |
$255,489 |
$236,020 |
$ 676 (4) |
$236,696 |
Operating income |
94,048 |
25,973 (2) |
120,021 |
92,252 |
23,783 (5) |
116,035 |
Operating profit margin |
37.0% |
|
47.0% |
39.1% |
|
49.0% |
Net income |
$ 69,633 |
$16,656 (3) |
$ 86,289 |
$ 75,929 |
$15,705 (6) |
$ 91,634 |
Earnings per share – diluted: |
|
|
|
|
|
|
Diluted earnings per share |
$ 0.74 |
|
$ 0.92 |
$ 0.80 |
|
$ 0.96 |
Weighted average shares - diluted |
93,584 |
|
93,584 |
95,084 |
|
95,084 |
|
|
|
|
|
|
|
|
(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 $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 (1) above and $0.1 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 $9.3
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 $14.2
million of amortization expense associated with intangible assets
acquired in business combinations, $8.6 million of stock-based
compensation expense, the $0.7 million adjustment to revenue as
reflected in (4) above and $0.3 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 $8.1
million. |
|
Note: The Company's 2013
fourth quarter and fiscal year GAAP and non-GAAP results include
approximately $11.0 million of incremental tax benefits, or $0.12
per diluted share, related to the notification from the Internal
Revenue Service that the Joint Committee on Taxation took no
exception to the Company's tax returns that were filed for 2009 and
2010, eliminating the uncertainty regarding refund claims filed in
connection with these returns. |
|
|
ANSYS, INC. AND
SUBSIDIARIES |
Reconciliation of
Non-GAAP Measures |
(Unaudited) |
(in thousands, except
percentages and per share data) |
|
|
|
|
Twelve Months
Ended |
|
|
|
|
December 31,
2014 |
December 31,
2013 |
|
As
Reported |
Adjustments |
Non- GAAP
Results |
As
Reported |
Adjustments |
Non- GAAP
Results |
|
|
|
|
|
|
|
Total revenue |
$936,021 |
$ 5,421 (1) |
$941,442 |
$861,260 |
$ 4,632 (4) |
$865,892 |
Operating income |
347,450 |
104,403 (2) |
451,853 |
321,863 |
101,232 (5) |
423,095 |
Operating profit margin |
37.1% |
|
48.0% |
37.4% |
|
48.9% |
Net income |
$254,690 |
$68,719 (3) |
$323,409 |
$245,327 |
$66,197 (6) |
$311,524 |
Earnings per share – diluted: |
|
|
|
|
|
|
Diluted earnings per share |
$ 2.70 |
|
$ 3.43 |
$ 2.58 |
|
$ 3.27 |
Weighted average shares - diluted |
94,194 |
|
94,194 |
95,139 |
|
95,139 |
|
|
|
|
|
|
|
|
(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 $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 (1) above and $1.1 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 $35.7
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 $60.7
million of amortization expense associated with intangible assets
acquired in business combinations, $35.3 million of stock-based
compensation expense, the $4.6 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 $35.0
million. |
|
Note: The Company's 2013
fourth quarter and fiscal year GAAP and non-GAAP results include
approximately $11.0 million of incremental tax benefits, or $0.12
per diluted share, related to the notification from the Internal
Revenue Service that the Joint Committee on Taxation took no
exception to the Company's tax returns that were filed for 2009 and
2010, eliminating the uncertainty regarding refund claims filed in
connection with these returns. |
|
|
ANSYS, INC. AND
SUBSIDIARIES Reconciliation of Forward-Looking
Guidance Quarter Ending March 31,
2015 |
|
|
|
Earnings Per Share Range –
Diluted |
|
|
U.S. GAAP expectation |
$0.54 -- $0.62 |
Adjustment to exclude acquisition accounting
adjustment to deferred revenue |
$0.00 --$0.01 |
Adjustment to exclude acquisition–related
amortization |
$0.10 -- $0.11 |
Adjustment to exclude stock–based
compensation |
$0.07 -- $0.08 |
|
|
Non-GAAP expectation |
$0.74 -- $0.79 |
|
|
ANSYS, INC. AND
SUBSIDIARIES Reconciliation of Forward-Looking
Guidance Year Ending December 31,
2015 |
|
|
|
Earnings Per Share Range –
Diluted |
|
|
U.S. GAAP expectation |
$2.70 -- $2.85 |
Adjustment to exclude acquisition accounting
adjustment to deferred revenue |
$.01 |
Adjustment to exclude acquisition–related
amortization |
$0.38 -- $0.40 |
Adjustment to exclude stock–based
compensation |
$0.27 -- $0.29 |
|
|
Non-GAAP expectation |
$3.40 -- $3.51 |
|
|
|
|
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 our Company focus on and publish
both historical results and future projections based on non-GAAP
financial measures. We believe that it is in the best interest of
our 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 the Company's
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 intangibles from acquisitions and its
related tax impact. The Company incurs amortization of
intangibles, included in its GAAP presentation of amortization
expense, related to various acquisitions it has made in recent
years. 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 its 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 costs 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 its
financial reporting, as well as comparability with competitors'
operating results.
Non-GAAP financial measures are not in accordance with, or an
alternative for, generally accepted accounting principles in the
United States. 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 over 2,700
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 2015 and fiscal year 2015
(both GAAP and non-GAAP to exclude acquisition accounting
adjustments to deferred revenue, acquisition-related amortization
and stock-based compensation expense and acquisition-related
transaction costs); statements about management's views concerning
the Company's prospects and outlook for 2015, 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 ANSYS 16.0 being the worlds
most advanced simulation software, statements regarding the ANSYS
platform proving our customers with scalability, ease of use and
flexibility through customization and cloud-enabled applications,
statements regarding our new Elite Channel Partner Program,
statements related to the expansion of our global sales force and
statements regarding the Company's belief regarding its positioning
entering 2015 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® 16.0, 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 2014
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 – 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:
Tom Smithyman
724.820.4340
tom.smithyman@ansys.com
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