Despite a more challenging global environment as a result of the
COVID-19 pandemic than we expected at the time of our February 2020
financial guidance, ANSYS, Inc.'s (NASDAQ: ANSS) first quarter
revenue, earnings and operating margin landed toward the middle of
the guidance ranges. First quarter 2020 GAAP and non-GAAP revenue
came in at $305.0 million and $308.9 million, respectively, a
decrease of 4% and 3% in reported currency, respectively, or 3% for
each in constant currency, when compared to the first quarter of
2019. For the first quarter of 2020, the Company reported earnings
per share of $0.53 and $0.83 on a GAAP and non-GAAP basis,
respectively, compared to $1.01 and $1.29 on a GAAP and non-GAAP
basis, respectively, for the first quarter of 2019.
Ajei Gopal, Ansys President & CEO, stated,
“I am very proud that the Ansys team has come together, despite
working remotely, to close deals and to continue providing
outstanding support to our customers. That effort, in the face of
uncertain global economic conditions, has led to Ansys delivering
financial results near the midpoint of our guidance. We have also
continued to drive innovation across our multiphysics portfolio
through organic product development seen in Ansys 2020 Release 1 as
well as through acquisitions.
Despite the market uncertainties, we believe
that our strategy of making simulation pervasive across the product
lifecycle remains more relevant than ever. That strategy
accelerates customers’ key research and development initiatives -
which are often less impacted by economic slowdowns - including
emerging areas like electrification, autonomy, 5G, and the
industrial internet of things. These companies understand the need
for continued investment to maintain, or even build upon, their
competitive advantage. So we will continue to focus on executing
this strategy while prudently investing in growth opportunities
that put us in a stronger position for the long term.”
Maria Shields, Ansys CFO, stated, “Although the
current economic environment will continue to have a negative
impact on our revenue and ACV growth, we entered into the COVID-19
crisis fiscally disciplined and with the benefit of a strong
financial position and a high level of recurring sources comprising
our ACV. Despite the challenging backdrop, key Q1 results reflect
the strength and resiliency of our business model with cash of $718
million and deferred revenue and backlog of $835 million, an
increase of 24% over the year-ago period. Given the high level of
near-term economic uncertainty, we will continue to be fiscally
disciplined by closely managing our discretionary spending. At the
same time, we will continue to try to strike the right balance
between short- and long-term strategic investments that we believe
will position us well for the future. Our 50 year history as a
leader in engineering simulation, best-in-class product portfolio
and long-standing customer relationships that have been built over
decades give us confidence that we will emerge from this crisis
better positioned to respond to the needs of our customers and to
capitalize on our long-term growth aspirations.”
On April 1, 2020, Ansys acquired Lumerical Inc.
(Lumerical), a leading developer of photonic design and simulation
tools, for a purchase price of approximately $107.5 million, paid
in cash. The acquisition adds photonic products to the Company's
multiphysics portfolio, providing its customers with a full set of
solutions to solve their next-generation product challenges.
Financial Results
Ansys' first quarter 2020 and 2019 financial
results are presented below. The 2020 and 2019 non-GAAP results
exclude the income statement effects of the acquisition accounting
adjustments to deferred revenue, stock-based compensation,
amortization of acquired intangible assets, transaction costs
related to business combinations, and adjustments related to the
transition tax associated with the Tax Cuts and Jobs Act.
GAAP and non-GAAP results are as follows:
|
GAAP |
|
Non-GAAP |
(in millions, except
percentages and per share data) |
Q1 2020 |
|
Q1 2019 |
|
% Change |
|
Q1 2020 |
|
Q1 2019 |
|
% Change |
Revenue |
$ |
305.0 |
|
|
$ |
317.1 |
|
|
(4 |
)% |
|
$ |
308.9 |
|
|
$ |
319.9 |
|
|
(3 |
)% |
Net income |
$ |
46.1 |
|
|
$ |
86.2 |
|
|
(47 |
)% |
|
$ |
72.3 |
|
|
$ |
110.7 |
|
|
(35 |
)% |
Diluted earnings per
share |
$ |
0.53 |
|
|
$ |
1.01 |
|
|
(48 |
)% |
|
$ |
0.83 |
|
|
$ |
1.29 |
|
|
(36 |
)% |
Operating profit margin |
11.2 |
% |
|
30.2 |
% |
|
|
|
29.3 |
% |
|
42.9 |
% |
|
|
The non-GAAP financial results highlighted
above, and the non-GAAP financial outlook for 2020 discussed below,
represent non-GAAP financial measures. Reconciliations of these
measures to the appropriate GAAP measures, for the three months
ended March 31, 2020 and 2019, and for the 2020 financial
outlook, can be found in the condensed financial information
included in this release.
Other Financial Metrics
(in millions, except
percentages) |
Q1 2020 |
|
Q1 2019 |
|
% Change |
|
% Change in Constant Currency |
Annual Contract Value (ACV) |
$ |
301.1 |
|
|
$ |
303.5 |
|
|
(1 |
)% |
|
— |
% |
Operating cash flows |
$ |
147.4 |
|
|
$ |
151.6 |
|
|
(3 |
)% |
|
|
ACV is a metric the Company uses to better
understand the business. There is no GAAP measure comparable to
ACV. ACV is composed of the following:
- the annualized value of maintenance
and lease contracts with start dates or anniversary dates during
the period, plus
- the value of perpetual license
contracts with start dates during the period, plus
- the annualized value of fixed-term
services contracts with start dates or anniversary dates during the
period, plus
- the value of work performed during
the period on fixed-deliverable services contracts.
Management's 2020 Financial Outlook
The Company's second quarter and fiscal year
2020 revenue and diluted earnings per share guidance is provided
below. The Company is also providing its fiscal year 2020 guidance
for ACV and operating cash flows. The revenue and diluted earnings
per share guidance is provided on both a GAAP and non-GAAP basis.
Non-GAAP financial measures exclude the income statement effects of
acquisition adjustments to deferred revenue, stock-based
compensation, amortization of acquired intangible assets and
acquisition-related transaction costs.
The financial guidance below reflects the
Company's current estimates of the adverse impacts of the global
pandemic. This guidance is based on certain assumptions made by the
Company and the Company's evaluation of factual information it has
determined to be relevant. In addition, the guidance includes the
expected impact of the Company's acquisition of Lumerical, which
closed on April 1, 2020. Additional details related to the
Company's financial guidance, including assumptions and economic
impacts of COVID-19, are detailed in its prepared remarks
document.
Second Quarter 2020
Guidance
The Company currently expects the following for the quarter
ending June 30, 2020:
(in millions, except per share data) |
GAAP |
|
Non-GAAP |
Revenue |
$330.9 - $370.9 |
|
$335.0 - $375.0 |
Diluted earnings per
share |
$0.55 - $0.92 |
|
$1.01 - $1.33 |
Fiscal Year 2020 Guidance
The Company currently expects the following for the fiscal year
ending December 31, 2020:
(in millions, except per share data) |
GAAP |
|
Non-GAAP |
Revenue |
$1,543.6 - $1,618.6 |
|
$1,555.0 - $1,630.0 |
Diluted earnings per
share |
$3.84 - $4.62 |
|
$5.61 - $6.23 |
In the second quarter and fiscal year 2020
guidance reflected above, the expected impacts of non-GAAP
adjustments associated with the acquisition accounting for deferred
revenue, inclusive of an estimate for the Lumerical acquisition,
are $4.1 million and $11.4 million, respectively. The Company has
not yet performed a valuation of the acquired deferred revenue for
its Lumerical acquisition. Until such valuation is completed, the
expected impacts on revenue will remain preliminary estimates that
are likely to change.
(in millions) |
Other Financial Metrics |
ACV |
$1,500.0 - $1,575.0 |
Operating cash flows |
$425.0 - $470.0 |
Conference Call Information
Ansys will hold a conference call at
8:30 a.m. Eastern Time on May 7, 2020 to
discuss first 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
stockholders and analysts with additional time and detail for
analyzing its results in preparation for the conference call. The
prepared remarks will not be read on the call, and only brief
remarks will be made prior to the Q&A session. The Company will
also post a complementary investor presentation titled "Q1 2020
Investor Presentation" that can be accessed by clicking Events
& Presentations, then Presentations at
https://investors.ansys.com.
To participate in the live conference call, dial
855-239-2942 (US) or 412-542-4124 (Canada & Int’l). The call
will be recorded and a replay will be available within two hours
after the call. The replay will be available by dialing (877)
344-7529 (US), (855) 669-9658 (Canada) or (412) 317-0088 (Int’l)
and entering the passcode 10142248. The archived webcast can be
accessed, along with other financial information, on Ansys' website
at
https://investors.ansys.com/events-and-presentations/events-calendar.
ANSYS, INC. AND SUBSIDIARIES |
Condensed Consolidated Balance Sheets |
(Unaudited) |
(in
thousands) |
March 31, 2020 |
|
December 31, 2019 |
ASSETS: |
|
|
|
Cash & short-term investments |
$ |
718,030 |
|
|
$ |
872,382 |
|
Accounts receivable, net |
337,105 |
|
|
433,479 |
|
Goodwill |
2,398,684 |
|
|
2,413,280 |
|
Other intangibles, net |
458,136 |
|
|
476,711 |
|
Other assets |
614,130 |
|
|
643,035 |
|
Total assets |
$ |
4,526,085 |
|
|
$ |
4,838,887 |
|
LIABILITIES &
STOCKHOLDERS' EQUITY: |
|
|
|
Current deferred revenue |
$ |
352,964 |
|
|
$ |
351,353 |
|
Long-term debt |
423,607 |
|
|
423,531 |
|
Other liabilities |
457,164 |
|
|
610,624 |
|
Stockholders' equity |
3,292,350 |
|
|
3,453,379 |
|
Total liabilities & stockholders' equity |
$ |
4,526,085 |
|
|
$ |
4,838,887 |
|
ANSYS, INC. AND SUBSIDIARIES |
Condensed Consolidated Statements of Income |
(Unaudited) |
|
Three Months Ended |
(in thousands, except
per share data) |
March 31, 2020 |
|
March 31, 2019 |
Revenue: |
|
|
|
Software licenses |
$ |
87,830 |
|
|
$ |
123,044 |
|
Maintenance and service |
217,155 |
|
|
194,086 |
|
Total revenue |
304,985 |
|
|
317,130 |
|
Cost of sales: |
|
|
|
Software licenses |
4,926 |
|
|
4,708 |
|
Amortization |
9,552 |
|
|
4,547 |
|
Maintenance and service |
35,638 |
|
|
25,560 |
|
Total cost of sales |
50,116 |
|
|
34,815 |
|
Gross profit |
254,869 |
|
|
282,315 |
|
Operating expenses: |
|
|
|
Selling, general and administrative |
130,522 |
|
|
112,169 |
|
Research and development |
86,112 |
|
|
70,738 |
|
Amortization |
4,162 |
|
|
3,759 |
|
Total operating expenses |
220,796 |
|
|
186,666 |
|
Operating income |
34,073 |
|
|
95,649 |
|
Interest income |
2,775 |
|
|
3,442 |
|
Interest expense |
(3,651 |
) |
|
(91 |
) |
Other income (expense), net |
127 |
|
|
(334 |
) |
Income before income tax
provision |
33,324 |
|
|
98,666 |
|
Income tax (benefit)
provision |
(12,740 |
) |
|
12,436 |
|
Net income |
$ |
46,064 |
|
|
$ |
86,230 |
|
Earnings per share – basic: |
|
|
|
Earnings per share |
$ |
0.54 |
|
|
$ |
1.03 |
|
Weighted average shares |
85,798 |
|
|
83,764 |
|
Earnings per share –
diluted: |
|
|
|
Earnings per share |
$ |
0.53 |
|
|
$ |
1.01 |
|
Weighted average shares |
87,369 |
|
|
85,493 |
|
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Non-GAAP Measures |
(Unaudited) |
|
Three Months Ended |
|
March 31, 2020 |
|
March 31, 2019 |
(in thousands, except
percentages and per share data) |
GAAP Results |
|
Adjustments |
|
Non-GAAP Results |
|
GAAP Results |
|
Adjustments |
|
Non-GAAP Results |
Total revenue |
$ |
304,985 |
|
|
$ |
3,912 |
|
(1 |
) |
$ |
308,897 |
|
|
$ |
317,130 |
|
|
$ |
2,780 |
|
(4 |
) |
$ |
319,910 |
|
Operating income |
34,073 |
|
|
56,500 |
|
(2 |
) |
90,573 |
|
|
95,649 |
|
|
41,537 |
|
(5 |
) |
137,186 |
|
Operating profit margin |
11.2 |
% |
|
|
|
29.3 |
% |
|
30.2 |
% |
|
|
|
42.9 |
% |
Net income |
$ |
46,064 |
|
|
$ |
26,241 |
|
(3 |
) |
$ |
72,305 |
|
|
$ |
86,230 |
|
|
$ |
24,440 |
|
(6 |
) |
$ |
110,670 |
|
Earnings per share –
diluted: |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
$ |
0.53 |
|
|
|
|
$ |
0.83 |
|
|
$ |
1.01 |
|
|
|
|
$ |
1.29 |
|
Weighted average shares |
87,369 |
|
|
|
|
87,369 |
|
|
85,493 |
|
|
|
|
85,493 |
|
(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 $30.9 million of
stock-based compensation expense, $7.0 million of excess payroll
taxes related to stock-based awards, $13.7 million of amortization
expense associated with intangible assets acquired in business
combinations, $1.0 million of transaction expenses related to
business combinations and the $3.9 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,
decreased for the related GAAP to non-GAAP tax provision impact of
$30.3 million based on a normalized non-GAAP annual effective tax
rate of 19.5%.
(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 $23.8 million of
stock-based compensation expense, $4.0 million of excess payroll
taxes related to stock-based awards, $8.3 million of amortization
expense associated with intangible assets acquired in business
combinations, $2.7 million of transaction expenses related to
business combinations and the $2.8 million adjustment to revenue as
reflected in (4) above.
(6) Amount represents the impact of the
adjustments to operating income referred to in (5) above,
decreased for the related income tax impact of $15.6 million,
adjustments related to the transition tax associated with the Tax
Cuts and Jobs Act of $1.3 million, and rabbi trust income of $0.2
million.
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Forward-Looking Guidance |
Quarter Ending June 30, 2020 |
|
Earnings Per Share - Diluted |
U.S. GAAP expectation |
$0.55 - $0.92 |
Exclusions before tax: |
|
Acquisition adjustments to deferred revenue |
$0.05 |
Acquisition-related amortization |
$0.16 - $0.17 |
Stock-based compensation and related excess payroll tax |
$0.38 - $0.44 |
Adjustment for income tax
effect |
($0.18) - ($0.20) |
Non-GAAP expectation |
$1.01 - $1.33 |
ANSYS, INC. AND SUBSIDIARIES |
Reconciliation of Forward-Looking Guidance |
Year Ending December 31, 2020 |
|
Earnings Per Share - Diluted |
U.S. GAAP expectation |
$3.84 - $4.62 |
Exclusions before tax: |
|
Acquisition adjustments to deferred revenue |
$0.13 |
Acquisition-related amortization |
$0.63 - $0.67 |
Stock-based compensation and related excess payroll tax |
$1.59 - $1.77 |
Adjustment for income tax
effect |
($0.74) - ($0.80) |
Non-GAAP expectation |
$5.61 - $6.23 |
Use of Non-GAAP Measures
We provide 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 our 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.
We use non-GAAP financial measures (a) to
evaluate our historical and prospective financial performance as
well as our performance relative to our 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 employees. In addition, many financial analysts that
follow us 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 we have historically reported, these non-GAAP
financial measures as a means of providing consistent and
comparable information with past reports of financial results.
While we believe 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 our
competitors and may not be directly comparable to similarly titled
measures of our competitors due to potential differences in the
exact method of calculation. We compensate 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. Historically, we have consummated
acquisitions in order to support our 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
our business or cash flow, it adversely impacts our 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, we provide
non-GAAP financial measures which exclude the impact of the
acquisition accounting adjustment. We believe 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 us in our financial and operational
decision-making, and (b) compare our past and future reports
of financial results 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. We incur amortization of intangible
assets, included in our GAAP presentation of amortization expense,
related to various acquisitions we have made. We exclude 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 we evaluate our continuing
operational performance 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 us after the acquisition. Accordingly, we do not
consider these expenses for purposes of evaluating our performance
during the applicable time period after the acquisition, and we
exclude such expenses when making decisions to allocate resources.
We believe 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 us in our
financial and operational decision-making, and (b) compare our
past reports of financial results as we have historically reported
these non-GAAP financial measures.
Stock-based compensation
expense. We incur expense related to stock-based
compensation included in our GAAP presentation of cost of
maintenance and service; research and development expense; and
selling, general and administrative expense. This non-GAAP
adjustment also includes excess payroll tax expense related to
stock-based compensation. Stock-based compensation expense
(benefit) incurred in connection with our deferred compensation
plan held in a rabbi trust includes an offsetting benefit (charge)
recorded in other income (expense). Although stock-based
compensation is an expense and viewed as a form of compensation, we
exclude 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 we evaluate our
continuing operational performance. We similarly exclude income
(expense) related to assets held in a rabbi trust in connection
with our deferred compensation plan. Specifically, we exclude
stock-based compensation and income (expense) related to assets
held in the deferred compensation plan rabbi trust during our
annual budgeting process and our quarterly and annual assessments
of our performance. The annual budgeting process is the primary
mechanism whereby we allocate resources to various initiatives and
operational requirements. Additionally, the annual review by our
board of directors during which it compares our 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 our
senior management and department managers, charges related to
stock-based compensation are excluded from expenditure and
profitability results. In fact, we record stock-based compensation
expense into a stand-alone cost center for which no single
operational manager is responsible or accountable. In this way, we
can 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. We believe that
these non-GAAP financial measures are useful to investors because
they allow investors to (a) evaluate our operating results and
the effectiveness of the methodology used by us to review our
operating results, and (b) review historical comparability in
our financial reporting as well as comparability with competitors'
operating results.
Transaction costs related to business
combinations. We incur expenses for professional
services rendered in connection with business combinations, which
are included in our GAAP presentation of selling, general and
administrative expense. These expenses are generally not
tax-deductible. We exclude these acquisition-related transaction
expenses, derived from announced acquisitions, for the purpose of
calculating non-GAAP operating income, non-GAAP operating profit
margin, non-GAAP net income and non-GAAP diluted earnings per share
when we evaluate our continuing operational performance, as we
generally would not have otherwise incurred these expenses in the
periods presented as a part of our operations. We believe that
these non-GAAP financial measures are useful to investors because
they allow investors to (a) evaluate our operating results and
the effectiveness of the methodology used by us to review our
operating results, and (b) review historical comparability in
our financial reporting as well as comparability with competitors'
operating results.
Tax Cuts and Jobs Act. We
recorded impacts to our income tax provision related to the
enactment of the Tax Cuts and Jobs Act of 2017, specifically for
the transition tax related to unrepatriated cash and the impacts of
the tax rate change on net deferred tax assets. We exclude these
impacts for the purpose of calculating non-GAAP net income and
non-GAAP diluted earnings per share when we evaluate our continuing
operational performance, as (i) the charges are not expected to
recur as part of our normal operations and (ii) the charges
resulted from the extremely infrequent event of major U.S. tax
reform, the last such reform having occurred in 1986. We believe
that these non-GAAP financial measures are useful to investors
because they allow investors to (a) evaluate our operating
results and the effectiveness of the methodology used by us to
review our operating results, and (b) review historical
comparability in our financial reporting.
Non-GAAP tax provision. We
utilize a normalized non-GAAP annual effective tax rate (AETR) to
calculate non-GAAP measures. This methodology provides better
consistency across interim reporting periods by eliminating the
effects of non-recurring items and aligning the non-GAAP tax rate
with our expected geographic earnings mix. To project this rate, we
analyzed our historic and projected non-GAAP earnings mix by
geography along with other factors such as our current tax
structure, recurring tax credits and incentives, and expected tax
positions. On an annual basis we will re-evaluate this rate for
significant items that may materially affect our projections.
Non-GAAP financial measures are not in
accordance with, or an alternative for, GAAP. Our 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 our consolidated financial
statements prepared in accordance with GAAP.
We have 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
If you've ever seen a rocket launch, flown on an
airplane, driven a car, used a computer, touched a mobile device,
crossed a bridge or put on wearable technology, chances are you've
used a product where Ansys software played a critical role in its
creation. Ansys is the global leader in engineering
simulation. Through our strategy of Pervasive Engineering
Simulation, we help the world's most innovative companies deliver
radically better products to their customers. By offering the best
and broadest portfolio of engineering simulation software, we help
them solve the most complex design challenges and create products
limited only by imagination. Founded in 1970, Ansys is
headquartered south of Pittsburgh, Pennsylvania, U.S.A. Visit
https://www.ansys.com for more information.
Forward-Looking Information
This document contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are statements that
provide current expectations or forecasts of future events based on
certain assumptions. Forward-looking statements are subject to
risks, uncertainties, and factors relating to our business which
could cause our actual results to differ materially from the
expectations expressed in or implied by such forward-looking
statements. Many of these risks, uncertainties, and factors are
currently amplified by, and may continue to be amplified by, the
COVID-19 pandemic. Forward-looking statements use words such as
“anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,”
“intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “project,”
“should,” “target,” or other words of similar meaning.
Forward-looking statements include those about market opportunity,
including our total addressable market. Risks, uncertainties, and
factors that could cause actual results to differ materially from
those implied by these forward-looking statements include: current
and potential future impacts of the COVID-19 pandemic on the global
economy and our business, financial position, results of operations
and cash flows; adverse changes in global economic and/or political
conditions; declines in our customers’ businesses resulting in
adverse changes in customer procurement patterns; disruptions in
accounts receivable and cash flow due to customers’ liquidity
challenges and commercial deterioration; uncertainties regarding
demand for our products and services in the future and our
customers’ acceptance of new products, including those arising from
the need of customers to utilize our products from remote
locations; plans for future capital spending; delays or declines in
anticipated sales due to reduced or altered sales and marketing
interactions with customers; disruptions in the global economy and
financial markets that may limit or delay availability of credit
under existing or new credit facilities, or that may limit our
ability to obtain credit or financing on acceptable terms or at
all; investments in complementary companies, products, services and
technologies; our ability to complete and successfully integrate
our acquisitions and realize the financial and business benefits of
the transactions; political, economic, regulatory and public health
and safety risks and uncertainties in the countries and regions in
which we operate; impacts from tariffs, trade sanctions, export
license requirements or other trade barriers; the effect of changes
in currency exchange rates and changes in interest rates; potential
variations in our sales forecasts compared to actual sales; the
volatility of our stock price; failures or errors in our products
and services; our industry’s rapidly changing technology; the
quality of our products, including the strength of features,
functionality and integrated multi-physics capabilities; lease
license volatility; higher than anticipated costs for research and
development or slowdown in our research and development activities;
increased pricing pressure as a result of the competitive
environment in which we operate; our ability to recruit and retain
key personnel including any delays in recruitment caused by
restrictions on travel and in person interactions and the absence
of key personnel or teams due to illness or recuperation; our
ability to protect our proprietary technology; cybersecurity
threats or other security breaches, including in relation to an
increased level of our activity that is occurring from remote
global off-site locations; disclosure and misuse of employee or
customer data whether as a result of a cybersecurity incident or
otherwise; implementation of our new IT systems; investments in
global sales and marketing organizations and global business
infrastructure; dependence on our channel partners for the
distribution of our products; increased volatility in our revenue
due to the timing, duration and value of multi-year lease
contracts; our reliance on high renewal rates for annual lease and
maintenance contracts; operational disruptions generally or
specifically in connection with transitions to and from remote work
environments, or the failure of our technological infrastructure;
the outcome of contingencies, including legal proceedings and
government or regulatory investigations and service tax audit
cases; uncertainty regarding income tax estimates in the
jurisdictions in which we operate; changes in accounting principles
or standards; the effect of changes in tax laws and regulations in
the jurisdictions in which we operate; the uncertainty of estimates
relating to the impact on reported revenue related to the
acquisition accounting treatment of deferred revenue; and other
risks and uncertainties described in our reports filed from time to
time with the Securities and Exchange Commission. We caution
readers not to place undue reliance upon any such forward-looking
statements, which speak only as of the date they are made. We
undertake no obligation to publicly update forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
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 https://investors.ansys.com for more
information.
ANSS - F
Contact: |
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Investors: |
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Virginea Gibson |
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724.820.4225 |
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virginea.gibson@ansys.com |
Media: |
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Mary Kate Joyce |
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724.820.4368 |
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marykate.joyce@ansys.com |
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