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Wednesday, November 05, 2014

ANSYS, Inc. Reports 10% Revenue Growth for Third Quarter Company Achieves Strong Operating Margins and EPS Growth

ANSYS, Inc. today announced its third quarter and year-to-date financial results. For the third quarter, the company achieved GAAP and non-GAAP revenue growth of 10% in reported and constant currency. GAAP and non-GAAP net income increased 5% and 6%, respectively, as compared to Q3 2013. Non-GAAP earnings per share of $0.89 and GAAP earnings per share of $0.70 both exceeded the Company's expectations. Recurring revenue, which is comprised of lease license and annual maintenance revenue, totaled 72% of non-GAAP revenue for the third quarter.

Year-to-date GAAP and non-GAAP revenue increased 9% in reported and constant currency. GAAP and non-GAAP net income increased 9% and 8%, respectively, compared to the first nine months of 2013. GAAP and non-GAAP earnings per share increased 10% and 9% for the first nine months of 2014 as compared to the same period in 2013. Recurring revenue totaled 73% of non-GAAP revenue for the first nine months of 2014.

Commenting on the Company's third quarter 2014 performance, Jim Cashman, ANSYS president & CEO stated, "Our strong financial results in the third quarter reflect double-digit revenue growth in both North America and Asia-Pacific, driven by strength in our electronics, semiconductor and aerospace verticals. Our European business was mixed, with regional weakness in our Germany business, offset by improved growth in France, the UK, Italy and Spain. Our cash flows from operations increased by 25% over Q3 2013 and our operating margin strengthened to 50.4%. During the third quarter, we also continued to return capital to our stockholders through the repurchase of over 460,000 shares. While we see strong customer interest across our broad portfolio, our top 100 customers continue to broaden and expand their simulation investments at a faster pace than the overall base. We remain very confident in the long-term opportunity and are excited about an important upcoming milestone, the release of ANSYS® 16.0. This next release of our complete product portfolio will be even more powerful and user-friendly, positioning us well to deliver on our long-term growth goals."

Cashman further stated, "With regard to the increased share repurchase authorization, we believe this underscores our confidence in ANSYS' prospects and long-term outlook, and reflects our commitment to creating value for our stockholders. ANSYS' strong balance sheet provides us with the financial flexibility to return capital to stockholders while continuing to invest in our business and maintain our ability to capitalize on growth opportunities. We will continue to be disciplined with respect to the allocation of capital and we are confident that we are taking the right steps to grow the Company and create value for all ANSYS constituencies."

The Company also announced that Peter Smith, Chairman of the ANSYS Board of Directors, has stepped down from his role as Chairman, effective October 27, 2014. Ronald Hovsepian, who has served as a member of the ANSYS Board of Directors since February 2012, will assume the role of interim Non-Executive Chairman. Mr. Smith, who will be taking a medical leave of absence, will remain a Director on the Board. "We thank Peter for his two decades of leadership of the Company as President, Chief Executive Officer, and as Chairman of the Board," said Cashman.

To view an unabridged version of this press release, visit: http://otp.investis.com/clients/us/ansys/usn/usnews-story.aspx?cid=806&newsid=20298

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