Management's Remaining 2016 and Preliminary 2017 Financial Outlook
The Company has provided its fourth quarter and updated its 2016 revenue and earnings per share guidance below, as well as provided its preliminary outlook for 2017. The revenue and earnings per share guidance is provided on both a GAAP basis 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 and acquisition-related transaction expenses.
Fourth Quarter 2016 Guidance
The Company currently expects the following for the quarter ending December 31, 2016:
- GAAP and non-GAAP revenue in the range of $263.0 - $272.0 million
- GAAP diluted earnings per share of $0.77 - $0.83
- Non-GAAP diluted earnings per share of $0.94 - $0.99
Fiscal Year 2016 Guidance
The Company currently expects the following for the fiscal year ending December 31, 2016:
- GAAP and non-GAAP revenue in the range of $981.0 - $990.0 million
- GAAP diluted earnings per share of $2.96 - $3.03
- Non-GAAP diluted earnings per share of $3.59 - $3.64
Fiscal Year 2017 Preliminary Outlook
The Company currently expects the following for the fiscal year ending December 31, 2017:
- GAAP and non-GAAP revenue in the range of $1.02 - $1.06 billion
- GAAP diluted earnings per share of $3.01 - $3.27
- Non-GAAP diluted earnings per share of $3.67 - $3.89
Conference Call Information
ANSYS will hold a conference call at 10:30 a.m. Eastern Time on November 3, 2016 to discuss third quarter results. The Company will provide its prepared remarks on the Company’s investor relations homepage and as an exhibit in its Form 8-K in advance of the call to provide shareholders and analysts with additional time and detail for analyzing its results in preparation for the conference call. The prepared remarks will not be read on the call - only brief remarks will be made prior to the Q&A session.
To participate in the live conference call, dial 855-239-2942 (US) or 412-542-4124 (Canada & Int’l). The call will be recorded and a replay will be available approximately one hour after the call ends. The replay will be available for 10 days by dialing 877-344-7529 (US), (855) 669-9658 (Canada) or 412-317-0088 (Int’l) and entering the passcode 10094868. The archived webcast can be accessed, along with other financial information, on ANSYS' website at http://investors.ansys.com/events-and-presentations/events.aspx.
| ANSYS, INC. AND SUBSIDIARIES | |||||
| Condensed Consolidated Balance Sheets | |||||
| (Unaudited) | |||||
| (in thousands) | September 30, 2016 | December 31, 2015 | |||
| ASSETS: | |||||
| Cash & short-term investments | 838,272 | 784,614 | |||
| Accounts receivable, net | 85,273 | 91,579 | |||
| Goodwill | 1,333,531 | 1,332,348 | |||
| Other intangibles, net | 184,768 | 220,553 | |||
| Other assets | 288,513 | 300,810 | |||
| Total assets | 2,730,357 | 2,729,904 | |||
| LIABILITIES & STOCKHOLDERS' EQUITY: | |||||
| Deferred revenue | 359,979 | 364,644 | |||
| Other liabilities | 140,613 | 170,833 | |||
| Stockholders' equity | 2,229,765 | 2,194,427 | |||
| Total liabilities & stockholders' equity | 2,730,357 | 2,729,904 | |||
| ANSYS, INC. AND SUBSIDIARIES | |||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in thousands, except per share data) |
September 30,
2016 |
September 30,
2015 |
September 30,
2016 |
September 30,
2015 | |||||||||||
| Revenue: | |||||||||||||||
| Software licenses | $ | 139,530 | $ | 140,197 | $ | 406,668 | $ | 405,655 | |||||||
| Maintenance and service | 106,332 | 97,643 | 311,169 | 285,451 | |||||||||||
| Total revenue | 245,862 | 237,840 | 717,837 | 691,106 | |||||||||||
| Cost of sales: | |||||||||||||||
| Software licenses | 6,433 | 6,889 | 19,705 | 21,048 | |||||||||||
| Amortization | 9,513 | 9,818 | 28,544 | 28,918 | |||||||||||
| Maintenance and service | 19,640 | 19,874 | 59,633 | 60,288 | |||||||||||
| Total cost of sales | 35,586 | 36,581 | 107,882 | 110,254 | |||||||||||
| Gross profit | 210,276 | 201,259 | 609,955 | 580,852 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 61,537 | 61,367 | 183,565 | 181,640 | |||||||||||
| Research and development | 45,418 | 44,784 | 137,533 | 127,439 | |||||||||||
| Amortization | 3,222 | 4,925 | 9,581 | 15,037 | |||||||||||
| Total operating expenses | 110,177 | 111,076 | 330,679 | 324,116 | |||||||||||
| Operating income | 100,099 | 90,183 | 279,276 | 256,736 | |||||||||||
| Interest expense | (30 | ) | (95 | ) | (175 | ) | (371 | ) | |||||||
| Interest income | 1,083 | 674 | 3,110 | 2,125 | |||||||||||
| Other (expense) income, net | (159 | ) | (383 | ) | 38 | 475 | |||||||||
| Income before income tax provision | 100,993 | 90,379 | 282,249 | 258,965 | |||||||||||
| Income tax provision | 31,436 | 24,346 | 86,596 | 74,465 | |||||||||||
| Net income | $ | 69,557 | $ | 66,033 | $ | 195,653 | $ | 184,500 | |||||||
| Earnings per share – basic: | |||||||||||||||
| Earnings per share | $ | 0.80 | $ | 0.74 | $ | 2.23 | $ | 2.05 | |||||||
| Weighted average shares | 86,959 | 89,694 | 87,570 | 89,873 | |||||||||||
| Earnings per share – diluted: | |||||||||||||||
| Earnings per share | $ | 0.78 | $ | 0.72 | $ | 2.19 | $ | 2.01 | |||||||
| Weighted average shares | 88,676 | 91,593 | 89,355 | 91,820 | |||||||||||
