Ajei Gopal, ANSYS president & CEO, stated, “The demand for ANSYS’ portfolio has never been stronger. The merger of the physical and digital worlds is creating an unprecedented disruption, resulting in amazing new products such as self-driving vehicles, personalized medical devices and smart buildings. But the complexity required to develop these products is immense. ANSYS is the only company with the depth and breadth of simulation capabilities to empower our customers to bring this next generation of products to the market.”
“I am very pleased with our strong finish to the year and am encouraged by our early progress on our 2017 initiatives. The underlying fundamentals of our business performed within expectations as evidenced by our record revenue and deferred revenue and backlog, all while maintaining continued strong margins,” said Gopal. “I am very encouraged by our progress in sales growth initiatives in North America and Asia-Pacific, which grew 10% and 12% in constant currency, respectively. Our European business had some challenges, and we have made changes to improve our sales execution. We saw continued improvements in our channel partners’ performance, most notably in China and India, where we had strong double-digit growth for the quarter and the full year. During Q4 we had thirty-seven customers with orders in excess of $1 million, including eight enterprise agreements, bringing the total number of enterprise agreements to eighteen for 2016, three above our previous projection.”
Maria Shields, ANSYS CFO, stated, “To continue to strengthen our position, as part of our 2017 annual planning process, we are implementing a workforce realignment that is intended to accelerate investments toward strategic initiatives and higher growth opportunities, while also allowing the company to maintain the gross and operating margins that we communicated last November. Through this realignment, we intend to reduce expenses across the business and to reallocate resources and ongoing investments to align with the company’s future plans. These actions resulted in GAAP restructuring charges of $3.4 million ($2.4 million, net of tax) in the fourth quarter and are expected to result in additional charges in 2017 of approximately $10 to $15 million ($7 – $10 million, net of tax) for one-time severance benefits and other costs related to the realignment. The majority of the 2017 charges are currently expected to be recorded in the first quarter of 2017, with the remainder being recorded in the second quarter. The company anticipates that substantially all of the cash payments related to these charges will be made in 2017.”
A complete chart of the financial results is available here.
About ANSYS, Inc.
If you’ve ever seen a rocket launch, flown on an airplane, driven a car, used a computer, touched a mobile device, crossed a bridge, or put on wearable technology, chances are you’ve used a product where ANSYS software played a critical role in its creation. ANSYS is the global leader in engineering simulation. They help the world’s most innovative companies deliver radically better products to their customers. By offering the best and broadest portfolio of engineering simulation software, we help them solve the most complex design challenges and create products limited only by imagination. Founded in 1970, ANSYS employs thousands of professionals, many of whom are expert M.S. and Ph.D.-level engineers in finite element analysis, computational fluid dynamics, electronics, semiconductors, embedded software and design optimization.
Headquartered south of Pittsburgh, Pennsylvania, USA, ANSYS has more than 75 strategic sales locations throughout the world with a network of channel partners in 40+ countries.
For more information, please visit www.ansys.com.