Company Achieves Strong Operating Margins and EPS Growth
Company Updates 201 5 Guidance and Provides Preliminary 201 6 Outlook
Highlights
- GAAP revenue of $237.8 million and non-GAAP revenue of $238.2 million
- GAAP diluted earnings per share of $0.72 and non-GAAP diluted earnings per share of $0.90
- Operating cash flows of $77.8 million
- GAAP operating profit margin of 37.9% and non-GAAP operating profit margin of 48.0%
- Repurchased 1,250,000 shares during the third quarter and 2,792,911 shares in the first nine months
PITTSBURGH, Nov. 5, 2015 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ:ANSS), today announced growth in both revenue and diluted earnings per share for the third quarter of 2015. In constant currency, the Company reported GAAP and non-GAAP revenue growth of 9%. GAAP and non-GAAP diluted earnings per share were $0.72 and $0.90, respectively, for the third quarter. Recurring revenue, which is comprised of lease license and annual maintenance revenue, totaled 72% of revenue for the third quarter. Year-to-date revenue growth in constant currency was also 9% on both a GAAP and non-GAAP basis. Recurring revenue totaled 73% of year-to-date revenue.
Commenting on the Company's third quarter 2015 performance, Jim Cashman, ANSYS president & CEO stated, "The results of the third quarter demonstrate the Company's ability to execute effectively and to continuously drive growth. Despite currency headwinds and varying macroeconomic conditions around the world, our diversified business model and predictable, recurring revenue streams enabled us to produce solid top and bottom line results. Our non-GAAP earnings per share surpassed the high end of the range of our expected results for the quarter."
He continued, "As we look toward the balance of 2015 and into 2016, we could not be more excited about the opportunities that lie ahead. Our recent acquisitions of Gear Design Solutions and Delcross have further enhanced our capabilities in IoT and RF systems analysis. Adoption rates of simulation solutions across engineering disciplines will continue to grow as ease of use expands, computational ability grows and cloud solutions are adopted. ANSYS is uniquely positioned as a market leader with a comprehensive solution. We are confident that we will continue to drive shareholder value – and return capital to shareholders – while simultaneously investing in the long-term growth of our company."
ANSYS' third quarter and year-to-date 2015 financial results are presented below. The 2015 and 2014 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.
| GAAP | NON-GAAP | |||||
| (in million, except EPS and %'s) | Q3 2015 | Q3 2014 | % Change | Q3 2015 | Q3 2014 | % Change |
| Revenue | $ 237.8 | $ 234.0 | 2% | $ 238.2 | $ 235.5 | 1% |
| Net income | $ 66.0 | $ 65.5 | 1% | $ 82.0 | $ 83.7 | (2%) |
| Earnings per share | $ 0.72 | $ 0.70 | 3% | $ 0.90 | $ 0.89 | 1% |
| Operating profit margin | 37.9% | 38.8% | 48.0% | 50.4% | ||
| Operating cash flow | $ 77.8 | $ 81.6 | (5%) | |||
| GAAP | NON-GAAP | |||||
| YTD 2015 | YTD 2014 | % Change | YTD 2015 | YTD 2014 | % Change | |
| Revenue | $ 691.1 | $ 681.6 | 1% | $ 692.5 | $ 686.0 | 1% |
| Net income | $ 184.5 | $ 185.1 | 0% | $ 231.0 | $ 237.1 | (3%) |
| Earnings per share | $ 2.01 | $ 1.96 | 3% | $ 2.52 | $ 2.51 | 0% |
| Operating profit margin | 37.1% | 37.2% | 47.5% | 48.4% | ||
| Operating cash flow | $ 258.3 | $ 293.0 | (12%) | |||
The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2015 and 2016 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures for the three and nine months ended September 30, 2015 and 2014, and for the 2015 and 2016 financial outlook, are included in the condensed financial information included in this release.
Management's Remaining 2015 and Preliminary 2016 Financial Outlook
The Company is providing its 2015 revenue and earnings per share guidance below, as well as its preliminary outlook for 2016. The revenue and earnings per share guidance is provided on both a GAAP and a non-GAAP basis. The Company's non-GAAP financial measures exclude charges for stock-based compensation, the income statement effects of acquisition accounting for deferred revenue, acquisition-related amortization of intangible assets and acquisition-related transaction expenses.
Fourth Quarter 2015 Guidance
The Company currently expects the following for the quarter ending December 31, 2015:
- GAAP revenue in the range of $251.7 - $259.7 million
- Non-GAAP revenue in the range of $252.0 - $260.0 million
- GAAP diluted earnings per share of $0.66 - $0.73
- Non-GAAP diluted earnings per share of $0.83 - $0.88
Fiscal Year 2015 Guidance
The Company currently expects the following for the fiscal year ending December 31, 2015:
- GAAP revenue in the range of $942.8 - $950.8 million
- Non-GAAP revenue in the range of $944.5 - $952.5 million
- GAAP diluted earnings per share of $2.67 - $2.74
- Non-GAAP diluted earnings per share of $3.35 - $3.40
