First Quarter 2017
- GAAP revenue of $253.4 million and non-GAAP revenue of $253.5 million
- GAAP diluted earnings per share of $0.73 and non-GAAP diluted earnings per share of $0.89
- Operating cash flows of $125.9 million, a 14% increase over Q1 2016
- GAAP operating profit margin of 33.7% and non-GAAP operating profit margin of 46.4%
- Deferred revenue and backlog of $652.6 million at March 31, 2017, an increase of 29% over Q1 2016
- Repurchased 1.0 million shares in the first quarter at an average price of $100.35 per share
PITTSBURGH, May 03, 2017 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ:ANSS), today reported first quarter 2017 GAAP and non-GAAP revenue growth of 13% in constant currency. Recurring revenue, which is comprised of lease license and annual maintenance revenue, totaled 78% of revenue for the first quarter. The Company also reported 16% growth in diluted earnings per share on both a GAAP and non-GAAP basis.
“Innovative companies rely on ANSYS’ industry-leading solutions to tame product complexity and improve time to market. Our strong start to the year demonstrates that customer demand for ANSYS’ product portfolio is stronger than ever,” said Ajei Gopal, ANSYS President and CEO. “I am delighted to see our focus on sales execution has resulted in substantial year-over-year growth in software license revenues, in double-digit revenue growth in both North America and Asia-Pacific, and in continued solid performance from our channel partners, most notably in China, India, and South Korea. While our European business has shown early signs of revitalization, for example with double-digit growth in France, we still have organizational and go-to-market work ahead of us to get Europe delivering on par with our other geographies. We are committed to investing in our business to capture the exciting long-term opportunities we see ahead,” Gopal added.
Maria Shields, ANSYS CFO, stated, “The underlying fundamentals of our business performed above the high end of our expectations as evidenced by our record first quarter revenue, deferred revenue and backlog, and cash flows. Earnings were also very strong for the quarter, growing double digits, and our operating margin was above the high end of our guidance, driven by the over-performance in revenues. We also continued to return capital to our stockholders through the repurchase of one million shares under our recently increased share repurchase plan.”
ANSYS' first quarter 2017 financial results are presented below. The 2017 and 2016 non-GAAP results exclude the income statement effects of acquisition adjustments to deferred revenue, the impact of stock-based compensation, acquisition-related amortization of intangible assets and acquisition-related transaction costs. The 2017 first quarter non-GAAP results also exclude restructuring charges.
As previously announced on our February earnings call, we implemented a workforce realignment that began in the fourth quarter of 2016 and that is intended to accelerate the shift of investments toward preferred strategic initiatives and higher growth opportunities. These actions resulted in GAAP restructuring charges of $9.3 million ($6.2 million, net of tax) in the first quarter related to one-time severance benefits and other costs related to the realignment. We expect to incur additional charges of $2.0 - $4.0 million, or $1.3 - $2.8 million, net of tax, primarily during the second quarter of 2017.
GAAP and non-GAAP results reflect:
|(in millions, except percentages and per share data)||Q1 2017||Q1 2016||
|Q1 2017||Q1 2016||
|Earnings per share||$||0.73||$||0.63||16||%||$||0.89||$||0.77||16||%|
|Operating profit margin||33.7||%||37.6||%||46.4||%||46.4||%|
|Operating cash flow||$||125.9||$||110.7||14||%|
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 months ended March 31, 2017 and 2016, and for the 2017 financial outlook, are included in the condensed financial information included in this release.
2017 Financial Outlook
The Company's first quarter and fiscal year 2017 revenue and earnings per share guidance is provided below. The Company last provided its guidance on February 23, 2017. The previously provided fiscal year 2017 guidance has been updated to reflect the Company's first quarter performance, as well as adjustments to operational and economic expectations 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 accounting adjustments to deferred revenue, stock-based compensation expense, acquisition-related amortization of intangible assets, restructuring charges and acquisition-related transaction expenses.