PITTSBURGH, Penn., Feb. 25 — ANSYS, Inc. (NASDAQ: ANSS) today reported fourth quarter and FY 2015 GAAP revenue growth of 4% and 8%, respectively, and non-GAAP revenue growth of 4% and 7%, respectively, all in constant currency.  Recurring revenue, which is comprised of lease license and annual maintenance revenue, totaled 70% of non-GAAP revenue for the fourth quarter and 72% for the year.

For the quarter, the Company reported non-GAAP diluted earnings per share of $0.91 and GAAP diluted earnings per share of $0.75. For the fiscal year, the Company achieved non-GAAP diluted earnings per share of $3.42 and GAAP diluted earnings per share of $2.76.

Jim Cashman, ANSYS president & CEO, stated, “The fourth quarter presented us with a combination of both challenges and opportunities.  Our earnings surpassed the high end of our expectations, while Q4 revenue came in at the low end of our expectations. Quarterly sales bookings showed strong improvement, exceeding the revenue growth rate, and contributed to a record total deferred revenue and backlog balance of $504 million.  Operating cash flows increased 18% over Q4 2014.”

He continued, “We also continued to return capital to our stockholders through the repurchase of 1.0 million shares in the fourth quarter, bringing our total 2015 repurchase to 3.8 million shares. During the year, we focused our efforts on expanding our direct sales capacity, investing in innovation and beginning a multiple-year journey of upgrading our infrastructure to support our ongoing growth goals.  While we did not accomplish all that we set out to do at the beginning of 2015, we believe that we are very well positioned as we enter 2016.”

Cashman concluded, “We continue to strongly execute on our strategic vision to drive growth through continuous product innovation.  In January 2016, we released ANSYS 17.0 – delivering the most comprehensive set of physics features that we’ve released in our 45-year history. We’ve improved performance by a full order of magnitude, giving 10x the productivity, 10x greater insight into product designs and 10x the performance to design and innovate more quickly and efficiently than ever.”

ANSYS’ fourth quarter and 2015 financial results are presented below. The 2015 and 2014 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 acquired in business combinations and transaction costs related to business combinations.

Constant Currency

In the discussion above, the Company makes reference to revenue growth rates in constant currency.  Constant currency amounts exclude the effects of foreign currency fluctuations on the reported results.  To present this information, the results for 2015 for entities whose functional currency is a currency other than the U.S. Dollar were converted to U.S. Dollars at rates that were in effect for 2014, rather than the actual exchange rates in effect for 2015.

Information Regarding Increased Share Repurchase Authorization

During fiscal year 2015, the Company repurchased 3.8 million shares, including 1.0 million shares repurchased during the quarter ended December 31, 2015, leaving 2.1 million shares available for repurchase under the existing authorization. Today, the Company announced that the Board of Directors has again increased the authorized share repurchase program to 5.0 million shares.

2016 Financial Outlook

The Company’s first quarter and fiscal year 2016 revenue and earnings per share guidance is provided below. The Company last provided its guidance on November 5, 2015.  The previously provided fiscal year 2016 guidance has been updated to reflect changes in currency exchange rates and to consider the recent increases in economic uncertainty and market volatility.  The revenue and 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 transaction expenses related to business combinations.

First Quarter 2016 Guidance 

The Company currently expects the following for the quarter ending March 31, 2016:

• GAAP revenue in the range of $224.0 – $232.0 million
• Non-GAAP revenue in the range of $224.0 – $232.0 million
• GAAP diluted earnings per share of $0.57 – $0.62
• Non-GAAP diluted earnings per share of $0.74 – $0.77

Fiscal Year 2016 Guidance 

The Company currently expects the following for the fiscal year ending December 31, 2016:

• GAAP revenue in the range of $995.0 – $1,030 million ($1.03 billion)
• Non-GAAP revenue in the range of $995.0 million – $1,030 million ($1.03 billion)
• GAAP diluted earnings per share of $2.86 – $3.05
• Non-GAAP diluted earnings per share of $3.53 – $3.69

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 25, 2016 to discuss fourth quarter and fiscal year 2015 results. To participate in the live conference call, dial 866-652-5200 (US) or 412-317-6060 (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 one week by dialing 877-344-7529 (US), 855-669-9658 (CAN) or 412-317-0088 (Int’l) and entering the pass code 10079946. The archived webcast can be accessed, along with other financial information, on ANSYS’ website at http://investors.ansys.com.

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 almost 2,800 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 75 strategic sales locations throughout the world with a network of channel partners in 40+ countries.

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Source: ANSYS