ANSYS, Inc. Reports Record Third Quarter Results That Highlight
Strong Margins And EPS Overperformance
PITTSBURGH, Nov. 1, 2012 /PRNewswire/ --
Highlights
- GAAP revenue of $196.9 million
and non-GAAP revenue of $199.8
million
- GAAP diluted earnings per share of $0.54 and non-GAAP diluted earnings per share of
$0.74
- Operating cash flows of $70.4
million
- GAAP operating profit margin of 37.4% and non-GAAP operating
profit margin of 51.0%
ANSYS, Inc. (NASDAQ: ANSS) today announced third quarter 2012
results with total non-GAAP revenue up 12% as compared to Q3 2011,
while non-GAAP net income increased 13% compared to Q3 2011.
Year-to-date non-GAAP revenue and net income increased 17% and 16%,
respectively, compared to the first nine months of 2011.
Non-GAAP earnings per share increased 12% for the quarter and 15%
for the first nine months of 2012, each as compared to the same
period in 2011.
(Logo: http://photos.prnewswire.com/prnh/20110127/MM38091LOGO
)
"We continue to have tremendous opportunity as demonstrated by
these third quarter record results. However, we are facing a
challenging and uncertain environment, which has led to a
noticeable lengthening of procurement cycles," stated Jim Cashman, ANSYS president & CEO.
"In spite of these realities, our business model provided strong
earnings, which exceeded the guidance range, and revenues in the
mid-range of our guidance. Customer interest remains strong,
but we expect these macro-economic challenges and longer sales
cycles to continue through the remainder of the year and into the
next. At the core of the business, the long-term remains
driven by customer reliance on our solutions to help fuel their
internal innovation, while a strong balance sheet, cash flows,
margins and recurring revenue base provide stability through the
short-term economic ripples. With the upcoming release of
ANSYS® 14.5, the breadth and depth of our engineering
simulation portfolio continues to expand. We are
well-positioned to continue to deliver long-term value to our
customers and stockholders."
ANSYS' third quarter and year-to-date 2012 financial results are
presented below. The 2012 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 the acquisition of Esterel
Technologies, Inc. The 2011 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 the acquisition of Apache Design,
Inc.
GAAP and non-GAAP results reflect:
- Total GAAP revenue of $196.9
million in the third quarter of 2012 as compared to
$172.9 million in the third quarter
of 2011; total GAAP revenue of $577.3
million in the first nine months of 2012 as compared to
$493.2 million in the first nine
months of 2011; total non-GAAP revenue of $199.8 million in the third quarter of 2012 as
compared to $177.9 million in the
third quarter of 2011; total non-GAAP revenue of $583.2 million in the first nine months of 2012
as compared to $498.2 million in the
first nine months of 2011;
- A GAAP operating profit margin of 37.4% in the third quarter of
2012 as compared to 37.8% in the third quarter of 2011; a GAAP
operating profit margin of 36.8% in the first nine months of 2012
as compared to 39.0% in the first nine months of 2011; a non-GAAP
operating profit margin of 51.0% in the third quarter of 2012 as
compared to 50.6% in the third quarter of 2011; a non-GAAP
operating profit margin of 50.4% in the first nine months of 2012
as compared to 50.7% in the first nine months of 2011;
- GAAP net income of $51.6 million
in the third quarter of 2012 as compared to $45.5 million in the third quarter of 2011; GAAP
net income of $147.4 million in the
first nine months of 2012 as compared to $133.2 million in the first nine months of 2011;
non-GAAP net income of $70.4 million
in the third quarter of 2012 as compared to $62.1 million in the third quarter of 2011;
non-GAAP net income of $201.5 million
in the first nine months of 2012 as compared to $174.1 million in the first nine months of
2011;
- GAAP diluted earnings per share of $0.54 in the third quarter of 2012 as compared to
$0.48 in the third quarter of 2011;
GAAP diluted earnings per share of $1.55 in the first nine months of 2012 as
compared to $1.41 in the first nine
months of 2011; non-GAAP diluted earnings per share of $0.74 in the third quarter of 2012 as compared to
$0.66 in the third quarter of 2011;
non-GAAP diluted earnings per share of $2.12 in the first nine months of 2012 as
compared to $1.85 in the first nine
months of 2011; and
- Operating cash flows of $70.4
million in the third quarter of 2012 as compared to
$66.3 million in the third quarter of
2011; operating cash flows of $228.8
million in the first nine months of 2012 as compared to
operating cash flows of $230.0
million in the first nine months of 2011.
The Company's GAAP results reflect stock-based compensation
charges of approximately $8.1 million
($6.0 million after tax) or
$0.06 diluted earnings per share for
the third quarter of 2012 and approximately $23.9 million ($17.6
million after tax) or $0.19
diluted earnings per share for the first nine months of 2012.
The non-GAAP financial results highlighted above, and the non-GAAP
financial outlook for 2012 and 2013 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, 2012 and 2011, and for
the 2012 and 2013 financial outlook, are included in the condensed
financial information included in this release.
Management's Remaining 2012 and Preliminary 2013 Financial
Outlook
The Company is providing its 2012 revenue and earnings per share
guidance below, as well as its preliminary outlook for 2013. The
earnings per share guidance is provided on both a GAAP and a
non-GAAP basis. Non-GAAP revenue and non-GAAP diluted earnings per
share exclude charges for stock-based compensation, the income
statement effects of acquisition accounting for deferred revenue,
acquisition-related amortization of intangible assets and
acquisition-related expenses.
Fourth Quarter 2012 Guidance
The Company currently expects the following for the quarter
ending December 31, 2012:
- GAAP revenue in the range of $211.3 -
$218.3 million
- Non-GAAP revenue in the range of $215.0
- $222.0 million
- GAAP diluted earnings per share of $0.49
- $0.55
- Non-GAAP diluted earnings per share of $0.71 - $0.74
Fiscal Year 2012 Guidance
The Company currently expects the following for the fiscal year
ending December 31, 2012:
- GAAP revenue in the range of $788.6 -
$795.6 million
- Non-GAAP revenue in the range of $798.2
- $805.2 million
- GAAP diluted earnings per share of $2.04
- $2.10
- Non-GAAP diluted earnings per share of $2.83 - $2.86
Fiscal Year 2013 Preliminary Outlook
The Company currently expects the following for the fiscal year
ending December 31, 2013:
- GAAP revenue in the range of $880.6 -
$905.6 million
- Non-GAAP revenue in the range of $885.0
- $910.0 million
- GAAP diluted earnings per share of $2.29
- $2.43
- Non-GAAP diluted earnings per share of $3.00 - $3.12
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 November 1, 2012 to discuss third quarter
results. To participate in the live conference call, dial
800-860-2442 (US) or 412-858-4600 (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 ten days by dialing
877-344-7529 (US) or 412-317-0088 (Canada and Int'l) and entering the pass code
10019986. 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2012
|
|
December 31,
2011
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
Cash &
short-term investments
|
|
$555,341
|
|
$472,404
|
Accounts
receivable, net
|
|
|
77,861
|
|
84,602
|
Goodwill
|
|
|
|
1,252,706
|
|
1,225,375
|
Other
intangibles, net
|
|
|
|
368,980
|
|
383,420
|
Other
assets
|
|
|
|
303,416
|
|
282,669
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
$2,558,304
|
|
$2,448,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
|
$273,636
|
|
$259,155
|
Long-term
debt (including current portion)
|
|
|
79,723
|
|
127,572
|
Other
liabilities
|
|
|
308,455
|
|
307,270
|
Stockholders' equity
|
|
|
1,896,490
|
|
1,754,473
|
|
|
|
|
|
|
|
|
Total liabilities &
stockholders' equity
|
|
$2,558,304
|
|
$2,448,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANSYS,
INC. AND SUBSIDIARIES
|
Condensed Consolidated Statements of
Income
|
(in
thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
September 30,
2012
|
|
September 30,
2011
|
|
September 30,
2012
|
|
September 30,
2011
|
Revenue:
|
|
|
|
|
|
|
|
|
Software
licenses
|
$123,027
|
|
$104,477
|
|
$359,933
|
|
$297,780
|
|
Maintenance and service
|
73,882
|
|
68,458
|
|
217,337
|
|
195,460
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
196,909
|
|
172,935
|
|
577,270
|
|
493,240
|
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Software
licenses
|
5,473
|
|
4,220
|
|
17,758
|
|
10,144
|
|
Amortization
|
10,244
|
|
8,993
|
|
30,583
|
|
23,993
|
|
Maintenance and service
|
18,039
|
|
17,814
|
|
54,494
|
|
51,535
|
|
Total cost of
sales
|
33,756
|
|
31,027
|
|
102,835
|
|
85,672
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
163,153
|
|
141,908
|
|
474,435
|
|
407,568
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling,
general and administrative
|
49,195
|
|
43,180
|
|
143,424
|
|
123,786
|
|
Research
and development
|
33,506
|
|
28,899
|
|
98,422
|
|
78,779
|
|
Amortization
|
6,800
|
|
4,500
|
|
19,975
|
|
12,587
|
|
Total operating
expenses
|
89,501
|
|
76,579
|
|
261,821
|
|
215,152
|
|
|
|
|
|
|
|
|
|
Operating
income
|
73,652
|
|
65,329
|
|
212,614
|
|
192,416
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(632)
|
|
(753)
|
|
(2,173)
|
|
(2,330)
|
Interest
income
|
774
|
|
789
|
|
2,562
|
|
2,196
|
Other
(expense) income, net
|
(355)
|
|
78
|
|
(1,010)
|
|
(544)
|
|
|
|
|
|
|
|
|
|
Income
before income tax provision
|
73,439
|
|
65,443
|
|
211,993
|
|
191,738
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
21,820
|
|
19,897
|
|
64,573
|
|
58,520
|
|
|
|
|
|
|
|
|
|
Net
income
|
$51,619
|
|
$45,546
|
|
$147,420
|
|
$133,218
|
|
|
|
|
|
|
|
|
Earnings
per share – basic:
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
$0.56
|
|
$0.49
|
|
$1.59
|
|
$1.45
|
|
Weighted
average shares – basic
|
92,448
|
|
92,277
|
|
92,631
|
|
91,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share - diluted:
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
$0.54
|
|
$0.48
|
|
$1.55
|
|
$1.41
|
|
Weighted
average shares – diluted
|
94,755
|
|
94,445
|
|
94,958
|
|
94,268
|
|
|
|
|
|
|
|
|
|
|
|
ANSYS,
INC. AND SUBSIDIARIES
|
Reconciliation of Non-GAAP Measures
|
(Unaudited)
|
(in
thousands, except percentages and per share
data)
|
|
|
Three
Months Ended
|
|
September 30, 2012
|
September 30, 2011
|
|
As
Reported
|
Adjustments
|
Non-GAAP Results
|
As
Reported
|
Adjustments
|
Non-GAAP Results
|
Total
revenue
|
$196,909
|
$
2,923(1)
|
$199,832
|
$172,935
|
$4,925(4)
|
$177,860
|
Operating
income
|
73,652
|
28,265(2)
|
101,917
|
65,329
|
24,665(5)
|
89,994
|
Operating
profit margin
|
37.4%
|
|
51.0%
|
37.8%
|
|
50.6%
|
Net
income
|
$51,619
|
$18,815(3)
|
$70,434
|
$45,546
|
$16,557(6)
|
$62,103
|
Earnings
per share – diluted:
|
|
|
|
|
|
|
Diluted earnings per
share
|
$0.54
|
|
$0.74
|
$0.48
|
|
$0.66
|
Weighted average
shares - diluted
|
94,755
|
|
94,755
|
94,445
|
|
94,445
|
|
|
|
|
|
|
|
|
(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 $17.0
million of amortization expense associated with intangible
assets acquired in business combinations, $8.1 million of stock-based compensation expense,
the $2.9 million adjustment to
revenue as reflected in (1) above and $0.2
million of transaction expenses related to the Esterel
acquisition.
(3) Amount represents the impact of the adjustments
to operating income referred to in (2) above, adjusted for the
related income tax impact of $9.5
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 $13.5
million of amortization expense associated with intangible
assets acquired in business combinations, $6.1 million of stock-based compensation expense,
the $4.9 million adjustment to
revenue as reflected in (4) above and $0.2
million of transaction expenses related to the Apache
acquisition.
(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.
ANSYS,
INC. AND SUBSIDIARIES
|
Reconciliation of Non-GAAP Measures
|
(Unaudited)
|
(in
thousands, except percentages and per share
data)
|
|
|
Nine
Months Ended
|
|
September 30, 2012
|
September 30, 2011
|
|
As
Reported
|
Adjustments
|
Non-GAAP Results
|
As
Reported
|
Adjustments
|
Non-GAAP Results
|
Total
revenue
|
$577,270
|
$5,916(1)
|
$583,186
|
$493,240
|
$4,925(4)
|
$498,165
|
Operating
income
|
212,614
|
81,264(2)
|
293,878
|
192,416
|
60,072(5)
|
252,488
|
Operating
profit margin
|
36.8%
|
|
50.4%
|
39.0%
|
|
50.7%
|
Net
income
|
$147,420
|
$54,040(3)
|
$201,460
|
$133,218
|
$40,917(6)
|
$174,135
|
Earnings
per share – diluted:
|
|
|
|
|
|
|
Diluted earnings per
share
|
$1.55
|
|
$2.12
|
$1.41
|
|
$1.85
|
Weighted average
shares - diluted
|
94,958
|
|
94,958
|
94,268
|
|
94,268
|
(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 $50.6
million of amortization expense associated with intangible
assets acquired in business combinations, $23.9 million of stock-based compensation
expense, the $5.9 million adjustment
to revenue as reflected in (1) above and $0.9 million of transaction expenses related to
the Esterel acquisition.
(3) Amount represents the impact of the adjustments to
operating income referred to in (2) above, adjusted for the related
income tax impact of $27.2
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 $36.6
million of amortization expense associated with intangible
assets acquired in business combinations, $16.6 million of stock-based compensation
expense, the $4.9 million adjustment
to revenue as reflected in (4) above and $2.0 million of transaction expenses related to
the Apache acquisition.
(6) Amount represents the impact of the adjustments to
operating income referred to in (5) above, adjusted for the related
income tax impact of $19.2
million.
ANSYS,
INC. AND SUBSIDIARIES
|
Reconciliation of Forward-Looking
Guidance
|
Quarter
Ending December 31, 2012
|
|
|
|
Earnings Per Share Range – Diluted
|
|
|
U.S. GAAP
expectation
|
$0.49 -
$0.55
|
Adjustment
to exclude acquisition accounting adjustment to deferred
revenue
|
$0.02 -
$0.03
|
Adjustment
to exclude acquisition–related amortization
|
$0.11 -
$0.12
|
Adjustment
to exclude stock–based compensation
|
$0.06 -
$0.07
|
|
|
Non-GAAP
expectation
|
$0.71 -
$0.74
|
ANSYS,
INC. AND SUBSIDIARIES
|
Reconciliation of Forward-Looking
Guidance
|
Year
Ending December 31, 2012
|
|
|
|
Earnings Per Share Range – Diluted
|
|
|
U.S. GAAP
expectation
|
$2.04 -
$2.10
|
Adjustment
to exclude acquisition accounting adjustment to deferred
revenue
|
$0.06 -
$0.07
|
Adjustment
to exclude acquisition–related amortization
|
$0.44 -
$0.45
|
Adjustment
to exclude acquisition-related transaction costs
|
$0.01
|
Adjustment
to exclude stock–based compensation
|
$0.25 -
$0.26
|
|
|
Non-GAAP
expectation
|
$2.83 -
$2.86
|
ANSYS,
INC. AND SUBSIDIARIES
|
Reconciliation of Forward-Looking
Guidance
|
Year
Ending December 31, 2013
|
|
|
|
Earnings Per Share Range – Diluted
|
|
|
U.S. GAAP
expectation
|
$2.29 -
$2.43
|
Adjustment
to exclude acquisition accounting adjustment to deferred
revenue
|
$0.03
|
Adjustment
to exclude acquisition–related amortization
|
$0.39 -
$0.40
|
Adjustment
to exclude stock–based compensation
|
$0.27 -
$0.28
|
|
|
Non-GAAP
expectation
|
$3.00 -
$3.12
|
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 approximately 2,400
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 65 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, fiscal year 2012 and 2013 outlook
(both GAAP and non-GAAP, as applicable, to exclude purchase
accounting for deferred revenue, acquisition-related amortization
and stock-based compensation expense), statements about
management's views concerning the Company's prospects and outlook
for 2013, 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 fourth quarter and beyond visibility,
statements regarding the Company continuing to have tremendous
opportunity, statements regarding facing a challenging and
uncertain environment and lengthening procurement cycles,
statements regarding the Company's customers' interest level,
statements regarding expecting macro-economic challenges and longer
sales cycles to continue through the remainder of the year and into
the next, statements regarding the long-term remaining driven by
customer reliance on the Company's solutions and the cause of that
reliance, statements regarding the strength of the Company's
balance sheet, cash flows, margins and recurring revenue base and
their impact on the Company in the short term, statements regarding
the upcoming release of ANSYS 14.5, statements regarding the
breadth and depth of our engineering simulation portfolio
continuing to expand, and statements regarding the Company being
well-positioned to continue to deliver long-term value to our
customers and stockholders, 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 economy and financial markets will
significantly affect ANSYS' customers' ability to make new
purchases from the Company or to pay for prior purchases, the risk
of declines in the economy of one or more of ANSYS' primary
geographic regions, the risk that ANSYS' operating results will be
adversely affected by changes in currency exchange rates, 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 the upcoming release of ANSYS 14.5, 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 may not produce anticipated sales, the risk that third
parties may misappropriate the Company's proprietary technology or
develop similar technology independently, the risk of difficulties
in the relationship with ANSYS' independent regional channel
partners, the risk that the expected income tax impacts of the
merger of the Company's Japan
subsidiaries will not be realized in one or more future periods,
the risk that ANSYS may not achieve the perceived benefits of the
Esterel acquisition or that the integration of Esterel 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 2011 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.
ANSS-F
SOURCE ANSYS, Inc.