ANSYS, Inc. today reported first quarter 2017 GAAP and non-GAAP revenue growth of 13% in constant currency. Recurring revenue, which is comprised of lease license and annual maintenance revenue, totaled 78% of revenue for the first quarter. The Company also reported 16% growth in diluted earnings per share on both a GAAP and non-GAAP basis.
“Innovative companies rely on ANSYS’ industry-leading solutions to tame product complexity and improve time to market. Our strong start to the year demonstrates that customer demand for ANSYS’ product portfolio is stronger than ever,” said Ajei Gopal, ANSYS President and CEO. “I am delighted to see our focus on sales execution has resulted in substantial year-over-year growth in software license revenues, in double-digit revenue growth in both North America and Asia-Pacific, and in continued solid performance from our channel partners, most notably in China, India, and South Korea. While our European business has shown early signs of revitalization, for example with double-digit growth in France, we still have organizational and go-to-market work ahead of us to get Europe delivering on par with our other geographies. We are committed to investing in our business to capture the exciting long-term opportunities we see ahead,” Gopal added.
Maria Shields, ANSYS CFO, stated, “The underlying fundamentals of our business performed above the high end of our expectations as evidenced by our record first quarter revenue, deferred revenue and backlog, and cash flows. Earnings were also very strong for the quarter, growing double digits, and our operating margin was above the high end of our guidance, driven by the over-performance in revenues. We also continued to return capital to our stockholders through the repurchase of one million shares under our recently increased share repurchase plan.”
Financial Results
ANSYS' first quarter 2017 financial results are presented below. The 2017 and 2016 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. The 2017 first quarter non-GAAP results also exclude restructuring charges.
As previously announced on our February earnings call, we implemented a workforce realignment that began in the fourth quarter of 2016 and that is intended to accelerate the shift of investments toward preferred strategic initiatives and higher growth opportunities. These actions resulted in GAAP restructuring charges of $9.3 million ($6.2 million, net of tax) in the first quarter related to one-time severance benefits and other costs related to the realignment. We expect to incur additional charges of $2.0 - $4.0 million, or $1.3 - $2.8 million, net of tax, primarily during the second quarter of 2017.
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