Management's 2017 Financial Outlook
The Company's fourth quarter and fiscal year 2017 revenue and earnings per share guidance is provided below. The Company last provided its guidance on August 2, 2017. The previously provided fiscal year 2017 guidance has been updated to reflect the Company's performance during the first nine months of 2017, as well as adjustments to operational and economic expectations, including changes in currency exchange rates, for the remainder of the year. The revenue and earnings per share guidance is provided on both a GAAP and a non-GAAP basis. Non-GAAP financial measures exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, restructuring charges and acquisition-related transaction costs.
Fourth Quarter 2017 Guidance
The Company currently expects the following for the quarter ending December 31, 2017:
- GAAP revenue in the range of $283.0 - $292.0 million
- Non-GAAP revenue in the range of $284.0 - $293.0 million
- GAAP diluted earnings per share of $0.78 - $0.86
- Non-GAAP diluted earnings per share of $0.99 - $1.05
Fiscal Year 2017 Guidance
The Company currently expects the following for the fiscal year ending December 31, 2017:
- GAAP revenue in the range of $1.076 - $1.085 billion
- Non-GAAP revenue in the range of $1.079 - $1.088 billion
- GAAP diluted earnings per share of $3.17 - $3.25
- Non-GAAP diluted earnings per share of $3.93 - $3.99
As discussed at the Company’s Investor Day in September, the Company expects to issue its guidance for 2018 after the completion of its annual planning process, which is currently underway, and commensurate with the reporting of its fourth quarter earnings in February 2018.
Conference Call Information
ANSYS will hold a conference call at 8:30 a.m. Eastern Time on November 2, 2017 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 and 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 within two hours after the call. 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 10113369. 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, 2017 | December 31, 2016 | |||||
| ASSETS: | |||||||
| Cash & short-term investments | $ | 926,635 | $ | 822,860 | |||
| Accounts receivable, net | 91,356 | 107,192 | |||||
| Goodwill | 1,353,444 | 1,337,215 | |||||
| Other intangibles, net | 154,996 | 172,619 | |||||
| Other assets | 319,582 | 360,640 | |||||
| Total assets | $ | 2,846,013 | $ | 2,800,526 | |||
| LIABILITIES & STOCKHOLDERS' EQUITY: | |||||||
| Deferred revenue | $ | 381,727 | $ | 403,279 | |||
| Other liabilities | 177,032 | 188,842 | |||||
| Stockholders' equity | 2,287,254 | 2,208,405 | |||||
| Total liabilities & stockholders' equity | $ | 2,846,013 | $ | 2,800,526 | |||
| ANSYS, INC. AND SUBSIDIARIES | |||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in thousands, except per share data) |
September 30,
2017 |
September 30,
2016 |
September 30,
2017 |
September 30,
2016 | |||||||||||
| Revenue: | |||||||||||||||
| Software licenses | $ | 156,580 | $ | 139,530 | $ | 448,368 | $ | 406,668 | |||||||
| Maintenance and service | 119,005 | 106,332 | 344,546 | 311,169 | |||||||||||
| Total revenue | 275,585 | 245,862 | 792,914 | 717,837 | |||||||||||
| Cost of sales: | |||||||||||||||
| Software licenses | 7,395 | 6,433 | 24,197 | 19,705 | |||||||||||
| Amortization | 9,004 | 9,513 | 26,892 | 28,544 | |||||||||||
| Maintenance and service | 19,584 | 19,640 | 58,263 | 59,633 | |||||||||||
| Total cost of sales | 35,983 | 35,586 | 109,352 | 107,882 | |||||||||||
| Gross profit | 239,602 | 210,276 | 683,562 | 609,955 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 80,015 | 61,537 | 230,483 | 183,565 | |||||||||||
| Research and development | 50,144 | 45,418 | 153,524 | 137,533 | |||||||||||
| Amortization | 3,260 | 3,222 | 9,506 | 9,581 | |||||||||||
| Total operating expenses | 133,419 | 110,177 | 393,513 | 330,679 | |||||||||||
| Operating income | 106,183 | 100,099 | 290,049 | 279,276 | |||||||||||
| Interest income | 1,910 | 1,083 | 4,827 | 3,110 | |||||||||||
| Other expense, net | (168 | ) | (189 | ) | (1,512 | ) | (137 | ) | |||||||
| Income before income tax provision | 107,925 | 100,993 | 293,364 | 282,249 | |||||||||||
| Income tax provision | 34,295 | 31,436 | 86,698 | 86,596 | |||||||||||
| Net income | $ | 73,630 | $ | 69,557 | $ | 206,666 | $ | 195,653 | |||||||
| Earnings per share – basic: | |||||||||||||||
| Earnings per share | $ | 0.87 | $ | 0.80 | $ | 2.43 | $ | 2.23 | |||||||
| Weighted average shares | 84,774 | 86,959 | 85,132 | 87,570 | |||||||||||
| Earnings per share – diluted: | |||||||||||||||
| Earnings per share | $ | 0.85 | $ | 0.78 | $ | 2.38 | $ | 2.19 | |||||||
| Weighted average shares | 86,588 | 88,676 | 86,902 | 89,355 | |||||||||||
