Third Quarter 2017
- GAAP revenue of $275.6 million and non-GAAP revenue of $276.8 million
- GAAP diluted earnings per share of $0.85 and non-GAAP diluted earnings per share of $1.05
- GAAP operating profit margin of 38.5% and non-GAAP operating profit margin of 48.7%
- Operating cash flows of $88.9 million for the quarter and $327.0 million for the first nine months
Other Highlights
- Deferred revenue and backlog of $669.3 million at September 30, 2017, an increase of 38% over Q3 2016
PITTSBURGH, Nov. 01, 2017 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ:ANSS), today reported third quarter 2017 GAAP and non-GAAP revenue growth of 12% in constant currency. Recurring revenue, which is comprised of lease license and annual maintenance revenue, grew by double digits in constant currency and totaled 75% of revenue for the third quarter on both a GAAP and non-GAAP basis. The Company also reported 9% and 11% growth in diluted earnings per share on a GAAP and non-GAAP basis, respectively.
Ajei Gopal, ANSYS President and CEO, commented, “The ANSYS strategy of Pervasive Simulation is resonating with our customers and partners. We continue to build new and expand existing relationships with customers around the world. During Q3, we closed 25 seven-figure deals, including a three-year deal of over $45 million, the largest in the Company’s history. Our focus on sales execution has resulted in another quarter of excellent financial performance. Our third quarter success was led by double-digit revenue growth in both North America and Asia-Pacific. We also saw improved performance in Europe, which rose 5% in constant currency. Overall, our results demonstrate the continued progress we are making toward achieving our goal of sustainable, double-digit top line growth by 2020.”
Maria Shields, ANSYS CFO, stated, “Our Q3 financial results are validation that our continued focus on execution and disciplined investing in our business is yielding measurable results. The strong business performance exceeded the high end of our expectations as evidenced by double-digit growth in revenue, non-GAAP EPS, and deferred revenue and backlog. Our operating margin and earnings results were both well above the high end of our guidance, driven primarily by the overperformance in revenue. Due to our increased confidence in the fourth quarter, as well as the overperformance in the third quarter, we are raising our Q4 and FY 2017 revenue guidance by $6 million and $20 million at the midpoint, respectively.”
Financial Results
ANSYS' third quarter and year-to-date 2017 and 2016 financial results are presented below. The 2017 and 2016 non-GAAP results exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets and acquisition-related transaction costs. The 2017 non-GAAP results also exclude restructuring charges.
GAAP and non-GAAP results:
| GAAP | Non-GAAP | ||||||||||||||||||||
| (in millions, except percentages and per share data) | Q3 2017 | Q3 2016 | % Change | Q3 2017 | Q3 2016 | % Change | |||||||||||||||
| Revenue | $ | 275.6 | $ | 245.9 | 12% | $ | 276.8 | $ | 245.9 | 13% | |||||||||||
| Net income | $ | 73.6 | $ | 69.6 | 6% | $ | 91.3 | $ | 84.2 | 8% | |||||||||||
| Earnings per share | $ | 0.85 | $ | 0.78 | 9% | $ | 1.05 | $ | 0.95 | 11% | |||||||||||
| Operating profit margin | 38.5 | % | 40.7 | % | 48.7 | % | 49.6 | % | |||||||||||||
| Operating cash flow | $ | 88.9 | $ | 84.4 | 5% | ||||||||||||||||
| GAAP | Non-GAAP | ||||||||||||||||||||
| (in millions, except percentages and per share data) | YTD 2017 | YTD 2016 | % Change | YTD 2017 | YTD 2016 | % Change | |||||||||||||||
| Revenue | $ | 792.9 | $ | 717.8 | 10% | $ | 794.7 | $ | 717.9 | 11% | |||||||||||
| Net income | $ | 206.7 | $ | 195.7 | 6% | $ | 255.1 | $ | 236.8 | 8% | |||||||||||
| Earnings per share | $ | 2.38 | $ | 2.19 | 9% | $ | 2.94 | $ | 2.65 | 11% | |||||||||||
| Operating profit margin | 36.6 | % | 38.9 | % | 47.8 | % | 47.7 | % | |||||||||||||
| Operating cash flow | $ | 327.0 | $ | 266.8 | 23% | ||||||||||||||||
The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2017 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures, for the three and nine months ended September 30, 2017 and 2016, and for the 2017 financial outlook, are included in the condensed financial information included in this release.
Management's 2017 Financial Outlook
The Company's fourth quarter and fiscal year 2017 revenue and earnings per share guidance is provided below. The Company last provided its guidance on August 2, 2017. The previously provided fiscal year 2017 guidance has been updated to reflect the Company's performance during the first nine months of 2017, as well as adjustments to operational and economic expectations, including changes in currency exchange rates, for the remainder of the year. The revenue and earnings per share guidance is provided on both a GAAP and a non-GAAP basis. Non-GAAP financial measures exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, restructuring charges and acquisition-related transaction costs.
Fourth Quarter 2017 Guidance
The Company currently expects the following for the quarter ending December 31, 2017:
- GAAP revenue in the range of $283.0 - $292.0 million
- Non-GAAP revenue in the range of $284.0 - $293.0 million
- GAAP diluted earnings per share of $0.78 - $0.86
- Non-GAAP diluted earnings per share of $0.99 - $1.05
Fiscal Year 2017 Guidance
The Company currently expects the following for the fiscal year ending December 31, 2017:
- GAAP revenue in the range of $1.076 - $1.085 billion
- Non-GAAP revenue in the range of $1.079 - $1.088 billion
- GAAP diluted earnings per share of $3.17 - $3.25
- Non-GAAP diluted earnings per share of $3.93 - $3.99
As discussed at the Company’s Investor Day in September, the Company expects to issue its guidance for 2018 after the completion of its annual planning process, which is currently underway, and commensurate with the reporting of its fourth quarter earnings in February 2018.
Conference Call Information
ANSYS will hold a conference call at 8:30 a.m. Eastern Time on November 2, 2017 to discuss third quarter results. The Company will provide its prepared remarks on the Company’s investor relations homepage and as an exhibit in its Form 8-K in advance of the call to provide shareholders and analysts with additional time and detail for analyzing its results in preparation for the conference call. The prepared remarks will not be read on the call and only brief remarks will be made prior to the Q&A session.
To participate in the live conference call, dial 855-239-2942 (US) or 412-542-4124 (Canada & Int’l). The call will be recorded and a replay will be available within two hours after the call. The replay will be available for 10 days by dialing (877) 344-7529 (US), (855) 669-9658 (Canada) or (412) 317-0088 (Int’l) and entering the passcode 10113369. The archived webcast can be accessed, along with other financial information, on ANSYS' website at http://investors.ansys.com/events-and-presentations/events.aspx.
| ANSYS, INC. AND SUBSIDIARIES | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (Unaudited) | |||||||
| (in thousands) | September 30, 2017 | December 31, 2016 | |||||
| ASSETS: | |||||||
| Cash & short-term investments | $ | 926,635 | $ | 822,860 | |||
| Accounts receivable, net | 91,356 | 107,192 | |||||
| Goodwill | 1,353,444 | 1,337,215 | |||||
| Other intangibles, net | 154,996 | 172,619 | |||||
| Other assets | 319,582 | 360,640 | |||||
| Total assets | $ | 2,846,013 | $ | 2,800,526 | |||
| LIABILITIES & STOCKHOLDERS' EQUITY: | |||||||
| Deferred revenue | $ | 381,727 | $ | 403,279 | |||
| Other liabilities | 177,032 | 188,842 | |||||
| Stockholders' equity | 2,287,254 | 2,208,405 | |||||
| Total liabilities & stockholders' equity | $ | 2,846,013 | $ | 2,800,526 | |||
| ANSYS, INC. AND SUBSIDIARIES | |||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in thousands, except per share data) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||
| Revenue: | |||||||||||||||
| Software licenses | $ | 156,580 | $ | 139,530 | $ | 448,368 | $ | 406,668 | |||||||
| Maintenance and service | 119,005 | 106,332 | 344,546 | 311,169 | |||||||||||
| Total revenue | 275,585 | 245,862 | 792,914 | 717,837 | |||||||||||
| Cost of sales: | |||||||||||||||
| Software licenses | 7,395 | 6,433 | 24,197 | 19,705 | |||||||||||
| Amortization | 9,004 | 9,513 | 26,892 | 28,544 | |||||||||||
| Maintenance and service | 19,584 | 19,640 | 58,263 | 59,633 | |||||||||||
| Total cost of sales | 35,983 | 35,586 | 109,352 | 107,882 | |||||||||||
| Gross profit | 239,602 | 210,276 | 683,562 | 609,955 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 80,015 | 61,537 | 230,483 | 183,565 | |||||||||||
| Research and development | 50,144 | 45,418 | 153,524 | 137,533 | |||||||||||
| Amortization | 3,260 | 3,222 | 9,506 | 9,581 | |||||||||||
| Total operating expenses | 133,419 | 110,177 | 393,513 | 330,679 | |||||||||||
| Operating income | 106,183 | 100,099 | 290,049 | 279,276 | |||||||||||
| Interest income | 1,910 | 1,083 | 4,827 | 3,110 | |||||||||||
| Other expense, net | (168 | ) | (189 | ) | (1,512 | ) | (137 | ) | |||||||
| Income before income tax provision | 107,925 | 100,993 | 293,364 | 282,249 | |||||||||||
| Income tax provision | 34,295 | 31,436 | 86,698 | 86,596 | |||||||||||
| Net income | $ | 73,630 | $ | 69,557 | $ | 206,666 | $ | 195,653 | |||||||
| Earnings per share – basic: | |||||||||||||||
| Earnings per share | $ | 0.87 | $ | 0.80 | $ | 2.43 | $ | 2.23 | |||||||
| Weighted average shares | 84,774 | 86,959 | 85,132 | 87,570 | |||||||||||
| Earnings per share – diluted: | |||||||||||||||
| Earnings per share | $ | 0.85 | $ | 0.78 | $ | 2.38 | $ | 2.19 | |||||||
| Weighted average shares | 86,588 | 88,676 | 86,902 | 89,355 | |||||||||||
| ANSYS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||
| September 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||
| (in thousands, except percentages and per share data) | As Reported | Adjustments | Non- GAAP Results | As Reported | Adjustments | Non- GAAP Results | |||||||||||||||||||
| Total revenue | $ | 275,585 | $ | 1,181 | (1) | $ | 276,766 | $ | 245,862 | $ | — | $ | 245,862 | ||||||||||||
| Operating income | 106,183 | 28,711 | (2) | 134,894 | 100,099 | 21,885 | (4) | 121,984 | |||||||||||||||||
| Operating profit margin | 38.5 | % | 48.7 | % | 40.7 | % | 49.6 | % | |||||||||||||||||
| Net income | $ | 73,630 | $ | 17,638 | (3) | $ | 91,268 | $ | 69,557 | $ | 14,638 | (5) | $ | 84,195 | |||||||||||
| Earnings per share – diluted: | |||||||||||||||||||||||||
| Earnings per share | $ | 0.85 | $ | 1.05 | $ | 0.78 | $ | 0.95 | |||||||||||||||||
| Weighted average shares | 86,588 | 86,588 | 88,676 | 88,676 | |||||||||||||||||||||
(1) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with the accounting for deferred revenue in business combinations.
(2) Amount represents $14.8 million of stock-based compensation expense, $12.3 million of amortization expense associated with intangible assets acquired in business combinations, $0.5 million of restructuring charges and the $1.2 million adjustment to revenue as reflected in (1) above.
(3) Amount represents the impact of the adjustments to operating income referred to in (2) above, adjusted for the related income tax impact of $11.0 million and rabbi trust income of $0.1 million.
(4) Amount represents $12.7 million of amortization expense associated with intangible assets acquired in business combinations, $9.0 million of stock-based compensation expense and $0.2 million of transaction expenses related to business combinations.
(5) Amount represents the impact of the adjustments to operating income referred to in (4) above, adjusted for the related income tax impact of $7.2 million.
| ANSYS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||||
| September 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||
| (in thousands, except percentages and per share data) | As Reported | Adjustments | Non- GAAP Results | As Reported | Adjustments | Non- GAAP Results | |||||||||||||||||||
| Total revenue | $ | 792,914 | $ | 1,748 | (1) | $ | 794,662 | $ | 717,837 | $ | 103 | (4) | $ | 717,940 | |||||||||||
| Operating income | 290,049 | 89,985 | (2) | 380,034 | 279,276 | 62,990 | (5) | 342,266 | |||||||||||||||||
| Operating profit margin | 36.6 | % | 47.8 | % | 38.9 | % | 47.7 | % | |||||||||||||||||
| Net income | $ | 206,666 | $ | 48,480 | (3) | $ | 255,146 | $ | 195,653 | $ | 41,145 | (6) | $ | 236,798 | |||||||||||
| Earnings per share – diluted: | |||||||||||||||||||||||||
| Earnings per share | $ | 2.38 | $ | 2.94 | $ | 2.19 | $ | 2.65 | |||||||||||||||||
| Weighted average shares | 86,902 | 86,902 | 89,355 | 89,355 | |||||||||||||||||||||
(1) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with the accounting for deferred revenue in business combinations.
(2) Amount represents $39.4 million of stock-based compensation expense, $36.4 million of amortization expense associated with intangible assets acquired in business combinations, $11.7 million of restructuring charges, $0.7 million of transaction expenses related to business combinations and the $1.7 million adjustment to revenue as reflected in (1) above.
(3) Amount represents the impact of the adjustments to operating income referred to in (2) above, adjusted for the related income tax impact of $41.4 million and rabbi trust income of $0.1 million.
(4) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with the accounting for deferred revenue in business combinations.
(5) Amount represents $38.1 million of amortization expense associated with intangible assets acquired in business combinations, $24.6 million of stock-based compensation expense, $0.2 million of transaction expenses related to business combinations and the $0.1 million adjustment to revenue as reflected in (4) above.
(6) Amount represents the impact of the adjustments to operating income referred to in (5) above, adjusted for the related income tax impact of $21.8 million.
| ANSYS, INC. AND SUBSIDIARIES | |||
| Reconciliation of Forward-Looking Guidance | |||
| Quarter Ending December 31, 2017 | |||
| Earnings Per Share Range - Diluted | |||
| U.S. GAAP expectation | $0.78 - $0.86 | ||
| Adjustment to exclude acquisition adjustments to deferred revenue | $0.01 | ||
| Adjustment to exclude acquisition-related amortization | $0.09 - $0.10 | ||
| Adjustment to exclude stock-based compensation | $0.09 - $0.10 | ||
| Non-GAAP expectation | $0.99 - $1.05 | ||
| ANSYS, INC. AND SUBSIDIARIES | |||
| Reconciliation of Forward-Looking Guidance | |||
| Year Ending December 31, 2017 | |||
| Earnings Per Share Range - Diluted | |||
| U.S. GAAP expectation | $3.17 - $3.25 | ||
| Adjustment to exclude acquisition adjustments to deferred revenue | $0.02 | ||
| Adjustment to exclude acquisition-related amortization | $0.36 - $0.37 | ||
| Adjustment to exclude stock-based compensation | $0.26 - $0.27 | ||
| Adjustment to exclude restructuring charges | $0.09 | ||
| Adjustment to exclude acquisition-related transaction expenses | $0.01 | ||
| Non-GAAP expectation | $3.93 - $3.99 | ||
Use of Non-GAAP Measures
The Company provides non-GAAP revenue, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share as supplemental measures to GAAP regarding the Company's operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to such financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure.
Management uses non-GAAP financial measures (a) to evaluate the Company's historical and prospective financial performance as well as its performance relative to its competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and its employees. In addition, many financial analysts that follow the Company focus on and publish both historical results and future projections based on non-GAAP financial measures. The Company believes that it is in the best interest of its investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested and the Company has historically reported these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.
While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all of the Company’s competitors and may not be directly comparable to similarly titled measures of the Company’s competitors due to potential differences in the exact method of calculation. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.
The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below:
Acquisition accounting for deferred revenue and its related tax impact. Historically, the Company has consummated acquisitions in order to support its strategic and other business objectives. In accordance with the fair value provisions applicable to the accounting for business combinations, acquired deferred revenue is often recorded on the opening balance sheet at an amount that is lower than the historical carrying value. Although this acquisition accounting requirement has no impact on the Company's business or cash flow, it adversely impacts the Company's reported GAAP revenue in the reporting periods following an acquisition. In order to provide investors with financial information that facilitates comparison of both historical and future results, the Company provides non-GAAP financial measures which exclude the impact of the acquisition accounting adjustment. The Company believes that this non-GAAP financial adjustment is useful to investors because it allows investors to (a) evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making, and (b) compare past and future reports of financial results of the Company as the revenue reduction related to acquired deferred revenue will not recur when related annual lease licenses and software maintenance contracts are renewed in future periods.
Amortization of intangible assets from acquisitions and its related tax impact. The Company incurs amortization of intangible assets, included in its GAAP presentation of amortization expense, related to various acquisitions it has made. Management excludes these expenses and their related tax impact for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by management after the acquisition. Accordingly, management does not consider these expenses for purposes of evaluating the performance of the Company during the applicable time period after the acquisition, and it excludes such expenses when making decisions to allocate resources. The Company believes that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making, and (b) compare past reports of financial results of the Company as the Company has historically reported these non-GAAP financial measures.
Stock-based compensation expense and its related tax impact. The Company incurs expense related to stock-based compensation included in its GAAP presentation of cost of software licenses; cost of maintenance and service; research and development expense; and selling, general and administrative expense. Stock-based compensation expense (benefit) incurred in connection with the Company's deferred compensation plan held in a rabbi trust includes an offsetting benefit (charge) recorded in other income (expense). Although stock-based compensation is an expense of the Company and viewed as a form of compensation, management excludes these expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company. Management similarly excludes income (expense) related to assets held in a rabbi trust in connection with the Company's deferred compensation plan. Specifically, the Company excludes stock-based compensation and income related to assets held in the deferred compensation plan rabbi trust during its annual budgeting process and its quarterly and annual assessments of the Company's and management's performance. The annual budgeting process is the primary mechanism whereby the Company allocates resources to various initiatives and operational requirements. Additionally, the annual review by the board of directors during which it compares the Company's historical business model and profitability to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, the Company records stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, management is able to review, on a period-to-period basis, each manager's performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. The Company believes that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the Company's operating results and the effectiveness of the methodology used by management to review the Company's operating results, and (b) review historical comparability in the Company's financial reporting as well as comparability with competitors' operating results.
Restructuring charges and the related tax impact. The Company occasionally incurs expenses for restructuring its workforce included in its GAAP presentation of cost of software licenses; cost of maintenance and service; research and development expense; and selling, general and administrative expense. Management excludes these expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company, as it generally does not incur these expenses as a part of its operations. The Company believes that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the Company's operating results and the effectiveness of the methodology used by management to review the Company's operating results, and (b) review historical comparability in the Company's financial reporting as well as comparability with competitors' operating results.
Transaction costs related to business combinations. The Company incurs expenses for professional services rendered in connection with business combinations, which are included in its GAAP presentation of selling, general and administrative expense. These expenses are generally not tax-deductible. Management excludes these acquisition-related transaction expenses, derived from closed acquisitions, for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company, as it generally would not have otherwise incurred these expenses in the periods presented as a part of its operations. The Company believes that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the Company's operating results and the effectiveness of the methodology used by management to review the Company's operating results, and (b) review historical comparability in the Company's financial reporting as well as comparability with competitors' operating results.
Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
The Company has provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:
| GAAP Reporting Measure | Non-GAAP Reporting Measure |
| Revenue | Non-GAAP Revenue |
| Operating Income | Non-GAAP Operating Income |
| Operating Profit Margin | Non-GAAP Operating Profit Margin |
| Net Income | Non-GAAP Net Income |
| Diluted Earnings Per Share | Non-GAAP Diluted Earnings Per Share |
About ANSYS, Inc.
If you’ve ever seen a rocket launch, flown on an airplane, driven a car, used a computer, touched a mobile device, crossed a bridge, or put on wearable technology, chances are you've used a product where ANSYS software played a critical role in its creation. ANSYS is the global leader in Pervasive Engineering Simulation. We help the world's most innovative companies deliver radically better products to their customers. By offering the best and broadest portfolio of engineering simulation software, we help them solve the most complex design challenges and create products limited only by imagination. Founded in 1970, ANSYS employs thousands of professionals, many of whom are expert M.S. and Ph.D.-level engineers in finite element analysis, computational fluid dynamics, electronics, semiconductors, embedded software and design optimization. Headquartered south of Pittsburgh, Pennsylvania, U.S.A., ANSYS has more than 75 strategic sales locations throughout the world with a network of channel partners in 40+ countries. Visit www.ansys.com for more information.
Forward-Looking Information
Certain statements contained in this press release regarding matters that are not historical facts, including, but not limited to, statements regarding our projections for revenue and earnings per share for the fourth quarter of 2017 and fiscal year 2017 (both GAAP and non-GAAP to exclude acquisition accounting adjustments to deferred revenue, acquisition-related amortization, stock-based compensation expense, acquisition-related transaction costs and restructuring charges with related tax impacts); statements about management's views concerning the Company's prospects and outlook for 2017; statements about increased confidence in the fourth quarter; statements and projections relating to the impact of stock-based compensation; statements regarding management's use of non-GAAP financial measures; and statements regarding the strength of customer demand for our products are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements in this press release are subject to risks and uncertainties, including, but not limited to, the risk that adverse conditions in the global and domestic markets will significantly affect ANSYS’ customers’ ability to purchase products from the Company at the same level as prior periods or to pay for the Company’s products and services; the risk that declines in the ANSYS’ customers’ business may lengthen customer sales cycles; the risk of declines in the economy of one or more of ANSYS’ primary geographic regions; the risk that ANSYS’ revenues and operating results will be adversely affected by changes in currency exchange rates or economic declines in any of the countries in which ANSYS conducts transactions; the risk that the assumptions underlying ANSYS' anticipated revenues and expenditures will change or prove inaccurate; the risk that ANSYS has overestimated its ability to maintain growth and profitability, and control costs; uncertainties regarding the demand for ANSYS' products and services in future periods; uncertainties regarding customer acceptance of new products; the risk of ANSYS’ products' future compliance with industry quality standards and its potential impact on the Company’s financial results; the risk that the Company may need to change its pricing models due to competition and its potential impact on the Company’s financial results; the risk that ANSYS' operating results will be adversely affected by possible delays in developing, completing or shipping new or enhanced products; the risk that enhancements to the Company's products or products acquired in acquisitions may not produce anticipated sales; the risk that the Company may not be able to recruit and retain key executives and technical personnel; the risk that third parties may misappropriate the Company’s proprietary technology or develop similar technology independently; the risk of unauthorized access to and distribution of the Company’s source code; the risk of the Company’s implementation of its new IT systems; the risk of difficulties in the relationship with ANSYS’ independent regional channel partners; the risk of ANSYS’ reliance on perpetual licenses and the result that any change in customer licensing behavior may have on the Company’s financial results; the risk that ANSYS may not achieve the anticipated benefits of its acquisitions or that the integration of the acquired technologies or products with the Company’s existing product lines may not be successful; the risk of periodic reorganizations and changes within ANSYS’ sales organization; the risk of industry consolidation and the impact it may have on customer purchasing decisions; and other factors that are detailed from time to time in reports filed by ANSYS, Inc. with the Securities and Exchange Commission, including ANSYS, Inc.'s 2016 Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether changes occur as a result of new information or future events, after the date they were made.
ANSYS and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.
Visit www.ansys.com for more information. The ANSYS IR App is now available for download on iTunes and Google Play. ANSYS also has a strong presence on the major social channels. To join the simulation conversation, please visit www.ansys.com/Social@ANSYS.
Beginning end-of-day December 15, 2017, ANSYS will observe a Quiet Period during which the business outlook as provided in this press release and the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q no longer constitutes the Company's current expectations. During the Quiet Period, the business outlook in these documents should be considered historical, speaking as of prior to the Quiet Period only and not subject to any update by the Company. During the Quiet Period, ANSYS' representatives will not comment on ANSYS' business outlook, financial results or expectations. The Quiet Period will extend until the day when ANSYS' fourth quarter 2017 earnings release is published, which is currently scheduled for February 22, 2018.
Contact:
Investors:
Annette Arribas, CTP
724.820.3700
annette.arribas@ansys.com
Media:
Amy Pietzak
724.820.4367
amy.pietzak@ansys.com