Fourth Quarter 2017
- GAAP revenue of $302.3 million and non-GAAP revenue of $303.4 million
- GAAP diluted earnings per share of $0.61 and non-GAAP diluted earnings per share of $1.07
- GAAP operating profit margin of 33.3% and non-GAAP operating profit margin of 42.6%
- Operating cash flows of $103.5 million
Fiscal Year 2017
- GAAP revenue of $1,095.3 million and non-GAAP revenue of $1,098.1 million
- GAAP diluted earnings per share of $2.98 and non-GAAP diluted earnings per share of $4.01
- GAAP operating profit margin of 35.7% and non-GAAP operating profit margin of 46.4%
- Operating cash flows of $430.4 million
- Deferred revenue and backlog of $769.7 million at December 31, 2017, an increase of 21% over Q4 2016
- Repurchased 0.8 million shares in the fourth quarter at an average price of $150.33 and 2.8 million shares in FY 2017 at an average price of $122.20
PITTSBURGH, Feb. 21, 2018 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ:ANSS), today reported fourth quarter 2017 GAAP and non-GAAP revenue growth of 9% in constant currency. For FY 2017, GAAP and non-GAAP revenue growth was 10% and 11%, respectively, in constant currency. Recurring revenue, which comprises lease license and annual maintenance revenue, totaled 70% and 71% of revenue for the fourth quarter on a GAAP and non-GAAP basis, respectively. For FY 2017, recurring revenue totaled 75% of revenue. For the fourth quarter, the Company reported decreased diluted earnings per share of 24% on a GAAP basis and 9% growth in diluted earnings per share on a non-GAAP basis. For FY 2017, the Company reported a decrease of less than 1% and an increase of 10% in diluted earnings per share on a GAAP and non-GAAP basis, respectively. The GAAP diluted earnings per share amounts were significantly impacted by the Tax Cuts and Jobs Act.
Ajei Gopal, ANSYS President and CEO, commented, “Our performance in 2017 significantly exceeded my expectations coming into the year. We broke through the $1 billion revenue barrier, we grew our annual revenue by double-digits for the first time in five years, and we were added to the S&P 500 Index. We have made continued progress with our go-to-market initiatives, as illustrated by the 21% annual growth in our deferred revenue and backlog, ending the year at a record $770 million. We did all of this while maintaining industry-leading margins, delivering higher-than-expected EPS and extending our technology lead against the competition."
In addition, Gopal stated, "In January 2018, we released ANSYS® 19, the most feature-rich release in our nearly 50-year history of innovation. We are excited about the pipeline of opportunities that lie ahead for 2018 and beyond. Customer feedback has been outstanding, and product downloads have been strong. Our flagship products are the heart of our success, and we'll continue to support the core use cases for these solutions and expand them to support emerging customer initiatives like autonomous vehicles and smart connected products. We are also reaching new audiences with solutions like Discovery LiveTM, which is available for trial and sale through a new e-commerce portal that premiered this month.”
Maria Shields, ANSYS CFO, stated, “The strength of our core business and our dedication to execution is reflected in our strong financial performance for both the quarter and the year. Our Q4 and fiscal year 2017 revenues and earnings represented new company records. We also ended the year with record operating cash flows and deferred revenue and backlog, demonstrating progress toward our stated long-term goal of sustained, double-digit revenue growth. To achieve our growth objectives, we will continue to move forward with investments in our core products, high-growth adjacent markets and our business infrastructure.”
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Tax Reform). Tax Reform makes broad and complex changes to the U.S. tax code. The new law adversely impacted our GAAP income tax provision for Q4 2017. In connection with our initial analysis of the impact of Tax Reform, a discrete net tax expense of $17.9 million was recorded in the period ending December 31, 2017, primarily consisting of $1.9 million for the revaluation of net deferred tax assets related to the corporate rate reduction and $16.0 million for the transition tax. In addition to the $17.9 million charge, we would have recognized a $4.8 million benefit in the fourth quarter related to foreign earnings repatriation, but this benefit was eliminated due to Tax Reform. These items were excluded for non-GAAP purposes as discussed in the Non-GAAP Measures section below.
ANSYS' fourth quarter and fiscal year 2017 and 2016 financial results are presented below. The 2017 and 2016 non-GAAP results exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, acquisition-related transaction costs, restructuring charges and the impact of the Tax Cuts and Jobs Act.
GAAP and non-GAAP results:
|(in millions, except percentages and per share data)||Q4 2017||Q4 2016||
|Q4 2017||Q4 2016||
|Earnings per share||$||0.61||$||0.80||(24||)%||$||1.07||$||0.98||9||%|
|Operating profit margin||33.3||%||35.8||%||42.6||%||45.1||%|
|Operating cash flow||$||103.5||$||99.2||4||%|