ANSYS Reports Q2 2016 Financial Results

Quarterly Highlights:

GAAP and non-GAAP revenue of $246.1 million
GAAP diluted earnings per share of $0.78 and non-GAAP diluted earnings per share of $0.93
GAAP operating profit margin of 38.3% and non-GAAP operating profit margin of 46.9%
Record high deferred revenue and backlog of $523.6 million at June 30, 2016
Repurchased 1.0 million shares in the second quarter at an average price of $86.08 and 1.5 million shares in the first six months at an average price of $85.84

PITTSBURGH, Aug. 04, 2016 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ:ANSS), today announced growth in both revenue and diluted earnings per share for the second quarter of 2016. In constant currency, the Company reported both GAAP and non-GAAP revenue growth of 4%, with GAAP and non-GAAP earnings per share growth of 15% and 9%, respectively. Recurring revenue, which is comprised of lease license and annual maintenance revenue, totaled 74% of revenue for the second quarter.

“Q2 was a very solid quarter for ANSYS on many fronts, including revenues in the upper half of our guidance range, and earnings above the high end of our range, even in light of the ongoing evolution to time-based licenses, cloud and enterprise agreements. We are encouraged by the continued progress that we are making in our sales growth initiatives across our major markets, as demonstrated by the improved performance in our business in Germany and Asia-Pacific, as well as ongoing improvements in our channel partner performance. During the quarter, we also continued to see good progress in our enterprise sales initiatives. The underlying fundamentals of our business performed in line with our expectations as evidenced by continued strong margins, recurring revenue and a new record deferred revenue and backlog balance of $524 million,” commented Jim Cashman, ANSYS President & CEO. “During the quarter, we released ANSYS^® 17.1 and introduced the ANSYS SeaScape^TM platform and SeaHawk^TM solution. Based on big data architecture with scalable server computation, solution times are reduced from weeks to hours, while increasing accuracy. As we committed at our recent Investor Day, we also continued to return capital to our stockholders through the repurchase of shares.”

ANSYS' second quarter and year-to-date financial results are presented below. The 2016 and 2015 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 2016 second quarter and year-to-date results include approximately $2.4 million, or $0.03 per share, related to incremental tax benefits associated with entity structuring and related repatriation activities that were not included in the Company’s most recent financial guidance.

GAAP and non-GAAP results reflect:	GAAP									Non-GAAP
(in millions, except EPS and %’s)	Q2 2016			Q2 2015			% Change			Q2 2016			Q2 2015			% Change

Revenue	$	246.1		$	235.5			4	%	$	246.1		$	235.9			4	%
Net income	$	69.6		$	62.3			12	%	$	83.2		$	78.1			6	%
Earnings per share	$	0.78		$	0.68			15	%	$	0.93		$	0.85			9	%
Operating profit margin		38.3	%		36.7	%					46.9	%		47.1	%
Operating cash flow	$	70.0		$	66.4			5	%

				GAAP									NON-GAAP
	YTD 2016			YTD 2015			% Change			YTD 2016			YTD 2015			% Change

Revenue	$	472.0		$	453.3			4	%	$	472.1		$	454.3			4	%
Net income	$	126.1		$	118.5			6	%	$	152.6		$	148.9			2	%
Earnings per share	$	1.41		$	1.29			9	%	$	1.70		$	1.62			5	%
Operating profit margin		38.0	%		36.7	%					46.7	%		47.2	%
Operating cash flow	$	178.6		$	180.5			(1	%)

The Company's GAAP results reflect stock-based compensation charges of $8.5 million ($5.6 million after tax), or $0.06 diluted earnings per share, for the second quarter of 2016 and $15.6 million ($10.7 million after tax), or $0.12 diluted earnings per share, for the first six months of 2016.

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