Ansys, Inc. Reports Record Revenue and Earnings Results for

Ansys, Inc. Reports Record Revenue and Earnings Results for Fourth Quarter and Fiscal Year 2011

The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2011 and 2012 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures for the three and twelve months ended December 31, 2011 and 2010, and for the 2012 financial outlook, are included in the condensed financial information included in this release.

Management's 2012 Financial Outlook

The Company's first quarter and 2012 revenue and earnings per share guidance is provided below. The Company last provided its guidance on November 3, 2011. The previously provided guidance has been updated to factor in unfavorable currency changes that are partially offset by an improved business outlook. The earnings per share guidance is provided on both a GAAP basis and a non-GAAP basis. Non-GAAP diluted earnings per share excludes 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.

First Quarter 2012 Guidance

The Company currently expects the following for the quarter ending March 31, 2012:

GAAP Revenue in the range of $182.8 - $189.8 million
Non-GAAP Revenue in the range of $185.0 - $192.0 million
GAAP diluted earnings per share of $0.43 - $0.49
Non-GAAP diluted earnings per share of $0.64 - $0.67

Fiscal Year 2012 Guidance

The Company currently expects the following for the fiscal year ending December 31, 2012:

GAAP revenue in the range of $804.6 - $826.6 million
Non-GAAP revenue in the range of $808.0 - $830.0 million
GAAP diluted earnings per share of $2.01 - $2.17
Non-GAAP diluted earnings per share of $2.77 - $2.87

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 February 23, 2012 to discuss fourth quarter and fiscal year 2011 results. To participate in the live conference call, dial 800-860-2442 (US), 866-605-3852 (Canada) or 412-858-4600 (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 10008769. 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)

	December 31, 2011	December 31, 2010
ASSETS:

Cash & short-term investments	$ 472,404	$ 472,934
Accounts receivable, net	84,602	76,604
Goodwill	1,225,375	1,035,083
Other intangibles, net	383,420	278,320
Other assets	282,669	263,935

Total assets	$ 2,448,470	$ 2,126,876


LIABILITIES & STOCKHOLDERS' EQUITY:

Deferred revenue	$ 259,155	$ 199,805
Long-term debt (including current portion)	127,572	159,525
Other liabilities	307,270	237,617
Stockholders' equity	1,754,473	1,529,929

Total liabilities & stockholders' equity	$ 2,448,470	$ 2,126,876


ANSYS, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)

		Three Months Ended		Twelve Months Ended
		December 31, 2011	December 31, 2010	December 31, 2011	December 31, 2010
Revenue:
	Software licenses	$ 128,101	$ 105,060	$425,881	$ 351,033
	Maintenance and service	70,108	61,513	265,568	229,203

	Total revenue	198,209	166,573	691,449	580,236

Cost of sales:
	Software licenses	5,740	3,296	15,884	10,770
	Amortization	9,735	8,185	33,728	32,757
	Maintenance and service	17,867	15,326	69,402	57,352
	Total cost of sales	33,342	26,807	119,014	100,879

Gross profit		164,867	139,766	572,435	479,357

Operating expenses:
	Selling, general and administrative	56,571	46,935	180,357	155,096
	Research and development	29,751	23,317	108,530	88,990
	Amortization	5,402	4,129	17,989	16,003
	Total operating expenses	91,724	74,381	306,876	260,089

Operating income		73,143	65,385	265,559	219,268

Interest expense		(1,002)	(792)	(3,332)	(4,488)
Interest income		804	630	3,000	1,911
Other income (expense), net		175	645	(369)	(297)

Income before income tax provision		73,120	65,868	264,858	216,394

Income tax provision		25,663	16,728	84,183	63,262

Net income		$ 47,457	$ 49,140	$ 180,675	$ 153,132

Earnings per share – basic:
	Basic earnings per share	$ 0.51	$ 0.54	$ 1.96	$ 1.69
	Weighted average shares – basic	92,496	91,278	92,120	90,684


Earnings per share - diluted:
	Diluted earnings per share	$ 0.50	$ 0.52	$ 1.91	$ 1.64
	Weighted average shares – diluted	94,720	93,706	94,381	93,209

ANSYS, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures *(Unaudited)* *(in thousands, except percentages and per share data)*
	Three Months Ended
	December 31, 2011			December 31, 2010
	As	Non-GAAP		As	Non-GAAP
	Reported	Adjustments	Results	Reported	Adjustments	Results

Total revenue	$198,209	$4,696(1)	$202,905	$166,573		$166,573

Operating income	73,143	26,478(2)	99,621	65,385	$17,429(4)	82,814

Operating profit margin	36.9%		49.1%	39.3%		49.7%

Net income	$47,457	$17,384(3)	$64,841	$49,140	$11,479(5)	$60,619

Earnings per share - diluted:
Diluted earnings per share	$0.50		$0.68	$0.52		$0.65
Weighted average shares - diluted	94,720		94,720	93,706		93,706
(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 $15.1 million of amortization expense associated with intangible assets acquired in business acquisitions, $6.5 million of stock-based compensation expense, the $4.7 million adjustment to revenue as reflected in (1) above and $0.1 million of transaction expenses related to the Apache 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 $9.1 million. (4) Amount represents $12.3 million of amortization expense associated with intangible assets acquired in business acquisitions and a $5.1 million charge for stock-based compensation. (5) Amount represents the impact of the adjustments to operating income referred to in (4) above, adjusted for the related income tax impact of $6.0 million.

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