Company Initiates Q3 2017 Outlook and Raises FY 2017 Outlook
Second Quarter 2017
- GAAP revenue of $263.9 million and non-GAAP revenue of $264.3 million
- GAAP diluted earnings per share of $0.80 and non-GAAP diluted earnings per share of $0.99
- Operating cash flows of $112.2 million, a 57% increase over Q2 2016
- GAAP operating profit margin of 37.3% and non-GAAP operating profit margin of 48.3%
- Deferred revenue and backlog of $655.8 million at June 30, 2017, an increase of 25% over Q2 2016
- Repurchased 1.0 million shares in the second quarter at an average price of $122.94 and 2.0 million shares in the first six months at an average price of $111.65
PITTSBURGH, Aug. 02, 2017 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ:ANSS), today reported second quarter 2017 GAAP and non-GAAP revenue growth of 8% in constant currency. Recurring revenue, which is comprised of lease license and annual maintenance revenue, grew by double-digits in constant currency and totaled 76% of revenue for the second quarter, on both a GAAP and non-GAAP basis. The Company also reported 3% and 6% growth in diluted earnings per share on a GAAP and non-GAAP basis, respectively.
Ajei Gopal, ANSYS President and CEO, commented, “I am delighted to see our focus on sales execution has resulted in another quarter of excellent financial performance that surpassed the high end of our expectations for both revenue and earnings. Our second quarter success was led by 13% revenue growth in our business in North America and 7% growth in Asia, and is a testament to the strength of our product portfolio and our strong customer relationships. Europe continues to lag, but we are making good progress in addressing the organizational and go-to-market issues that will be key to future performance.”
Gopal further stated, “With the acquisition of Computational Engineering International, we have added industry-leading visualization and post-processing capabilities to our broad portfolio. Our expanded capabilities will enable our customers to gain new insight as they increasingly rely on our simulation capabilities to drive innovation and develop the products of tomorrow.”
Maria Shields, ANSYS CFO, stated, “We posted another quarter of strong operating results as evidenced by record second quarter revenue, deferred revenue and backlog, and operating cash flows. Our operating margin and earnings performance were both above the high end of our guidance, driven by the over-performance in revenues and a slower pace of hiring than planned. We also continued to return capital to our stockholders through the repurchase of an incremental one million shares. In addition, during the quarter, we achieved another important milestone in our history as a public company by joining the ranks of America’s leading companies in the S&P 500.”
ANSYS' second 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, the impact of stock-based compensation, acquisition-related amortization of intangible assets and acquisition-related transaction costs. The 2017 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 $2.0 million ($1.4 million, net of tax) in the second quarter related to one-time severance benefits and other costs related to the realignment. We expect to incur additional charges of up to $2.0 million, or $1.3 million net of tax, primarily during the third quarter of 2017.
GAAP and non-GAAP results:
|(in millions, except percentages and per share data)||Q2 2017||Q2 2016||
|Q2 2017||Q2 2016||
|Earnings per share||$||0.80||$||0.78||3||%||$||0.99||$||0.93||6||%|
|Operating profit margin||37.3||%||38.3||%||48.3||%||46.9||%|
|Operating cash flow||$||112.2||$||71.6||57||%|