ConceptEV optimizes the development of electric vehicle powertrains for improved driving range and battery charge times/ Key HighlightsAnsys ConceptEV™, a software-as-a-service (SaaS) solution tailor-made for the automotive concept design stage, delivers simultaneous optimization of electric vehicle (EV) powertrain architectures and components including the battery, inverter, motor, and transmissionThe solution complements existing simulation workflows, empowering system and component design engineering tea ...

Ansys to demonstrate 3D multiphysics visualization of electromagnetic and thermal effects in semiconductor packages at Design Automation Conference / Key Highlights Existing Ansys capabilities with NVIDIA Omniverse platform supercharge 3D integrated circuit (3D-IC) design by enabling designers to optimize semiconductor chips within the context of a system-on-a-chip By transforming data into meaningful visual insights, the Ansys multiphysics platform empowers IC designers to interact with models of electroma ...

Ansys (ANSS) announced that its shareholders have voted to approve the proposed acquisition by Synopsys. The terms of the agreement outline that Ansys shareholders will receive $197 in cash along with 0.3450 shares of Synopsys common stock for each Ansys share.Ansys added that about 98.7% of the shareholders voted in favor of the acquisition, which represented approximately 83.8% of the total outstanding shares of the company’s common stock. This deal, valued at approximately $35 billion, reflects an implie ...

Represents Key Milestone Toward Completion of Transaction with Synopsys PITTSBURGH, May 22, 2024 /PRNewswire/ -- ANSYS, Inc. (NASDAQ: ANSS) announced that at the special meeting of stockholders (the "Special Meeting") held earlier today, its stockholders voted to approve the proposed acquisition of Ansys by Synopsys, Inc. (NASDAQ: SNPS). Under the terms of the merger agreement, Ansys stockholders will receive $197.00 in cash and 0.3450 shares of Synopsys common stock for each Ansys share they own, represent ...

Collaboration enables accelerated materials discovery to optimize product development/ Key Highlights Ansys and Schrödinger are collaborating to develop an integrated computational materials engineering (ICME) approach to product development that infuses virtual materials discovery into the early stages of design The predictive accuracy of Ansys multiphysics solutions combined with Schrödinger's materials solutions help engineers identify suitable materials for their designs before manufacturing begins PIT ...

Financial Performance - Total revenue for Q1 2024 was $466.6 million, a decrease of 8.4% compared to $509.4 million in Q1 2023[20] - Net income for Q1 2024 was $34.8 million, a decline of 65.5% from $100.6 million in Q1 2023[20] - Operating income fell to $43.3 million, down 66.0% from $127.7 million year-over-year[20] - Earnings per share (EPS) for Q1 2024 was $0.40, compared to $1.16 in Q1 2023, reflecting a decrease of 65.5%[20] - Comprehensive income for Q1 2024 was $12.8 million, significantly lower than $113.9 million in Q1 2023, primarily due to foreign currency translation adjustments[23] - GAAP operating income decreased by 66.1%, while non-GAAP operating income fell by 26.0% for the same period[108] - GAAP diluted earnings per share dropped by 65.2%, and non-GAAP diluted earnings per share decreased by 24.9% year-over-year[108] Revenue Breakdown - Software licenses revenue decreased to $160.3 million, down 26.8% from $219.2 million in the same period last year[20] - Subscription lease licenses revenue decreased to $94.8 million from $147.9 million, while perpetual licenses revenue decreased to $65.5 million from $71.2 million[42] - Maintenance revenue increased to $289.3 million from $268.6 million, and service revenue decreased to $16.9 million from $21.7 million[42] - The Americas region experienced a revenue decline of 18.8%, while Asia-Pacific saw a growth of 6.0% in the same period[122] - International revenue accounted for 57.1% of total revenue in Q1 2024, up from 51.6% in Q1 2023[138] Cash Flow and Investments - Cash and cash equivalents at the end of Q1 2024 increased to $1.05 billion, up from $507.7 million at the end of Q1 2023[26] - The company reported a net cash provided by operating activities of $282.8 million, an increase from $260.8 million in the prior year[26] - Cash, cash equivalents, and short-term investments increased by $210.2 million (24.4%) from $860.4 million on December 31, 2023, to $1,070.6 million on March 31, 2024[167] - Net cash used in investing activities decreased by $94.0 million (73.2%) from $(128.4) million for the three months ended March 31, 2023, to $(34.4) million for the same period in 2024[172] - Net cash used in financing activities decreased by $186.2 million (77.3%) from $(240.8) million for the three months ended March 31, 2023, to $(54.6) million for the same period in 2024[173] Expenses - Research and development expenses increased to $128.8 million, up from $120.3 million in Q1 2023, indicating a focus on innovation[20] - Selling, general and administrative expenses rose to $219.6 million, representing 47.1% of revenue, compared to 37.0% in Q1 2023[146] - Increased operating expenses in Q1 2024 were primarily due to higher personnel and acquisition costs related to the Merger Agreement with Synopsys[106] Debt and Financing - The carrying value of the term loan as of March 31, 2024, was $754.0 million, with no principal payments due in the next twelve months[175] - The weighted average interest rate for the three months ended March 31, 2024, was 6.32%, compared to 5.56% for the same period in 2023[82] - Outstanding term loan borrowings amounted to $755.0 million as of March 31, 2024[186] Strategic Developments - Ansys entered into a merger agreement with Synopsys, expected to close in the first half of 2025, pending regulatory approvals[34] - A strategic equity investment agreement was entered into on December 5, 2023, with a purchase price of $300 million expected to close in 2024[47] - The company’s strategy focuses on expanding the use of simulation across product lifecycles and increasing accessibility to a broader user base[98] Market Conditions - Future performance may be impacted by macroeconomic conditions, including inflation and geopolitical factors, which could affect business operations and strategic transactions[126] - The engineering simulation software market is experiencing growth driven by trends such as electrification, autonomy, and sustainability[100] Tax and Legal Matters - The effective tax rate for the three months ended March 31, 2024, was 15.1%, down from 16.7% for the same period in 2023[85] - The company is subject to potential tax charges of $7.2 million related to pending service tax audits in India, although a reserve has not been recorded as the charges are not deemed probable[94] - The company is subject to various legal proceedings, but the resolution of these matters is not expected to have a material adverse effect on its financial position[193] Workforce - The company employed 6,200 people as of March 31, 2024, maintaining the same workforce level as of December 31, 2023[97]

[Q1 2024 Financial Highlights](index=1&type=section&id=Q1%202024%20Financial%20Highlights) [Key Q1 2024 Performance Metrics](index=1&type=section&id=Key%20Q1%202024%20Performance%20Metrics) Ansys reported Q1 2024 revenue of **$466.6 million** (8% decrease) and ACV of **$407.4 million** (2% growth), meeting expectations Q1 2024 Key Financial Highlights | Metric | Q1 2024 Value | | :-------------------------------- | :------------ | | Revenue | $466.6 million | | GAAP diluted EPS | $0.40 | | Non-GAAP diluted EPS | $1.39 | | GAAP operating profit margin | 9.3% | | Non-GAAP operating profit margin | 32.2% | | Operating cash flows | $282.8 million | | Unlevered operating cash flows | $292.7 million | | Annual Contract Value (ACV) | $407.4 million | | Deferred revenue and backlog (Mar 31, 2024) | $1,369.5 million | - Revenue decreased by **8%** in reported and constant currency compared to Q1 2023[2](index=2&type=chunk) - ACV grew by **2%** in reported currency and **3%** in constant currency compared to Q1 2023[2](index=2&type=chunk) - Q1 2024 ACV and revenue results met expectations, being the lowest among the 2024 quarters, with **double-digit ACV and revenue growth expected** in remaining quarters and for the full FY 2024[2](index=2&type=chunk) [Synopsys Acquisition Update](index=1&type=section&id=Synopsys%20Acquisition%20Update) Ansys entered a definitive agreement for acquisition by Synopsys, Inc. on January 15, 2024, with an anticipated closing in H1 2025, suspending guidance - Ansys entered a definitive agreement for acquisition by Synopsys, Inc. on January 15, 2024[3](index=3&type=chunk) - The transaction is expected to close in the first half of 2025, subject to Ansys shareholder and regulatory approvals[3](index=3&type=chunk) - Ansys has suspended quarterly earnings conference calls and guidance due to the pending acquisition[3](index=3&type=chunk) [Summary of Financial Results](index=3&type=section&id=Summary%20of%20Financial%20Results) [GAAP Financial Summary](index=3&type=section&id=GAAP%20Financial%20Summary) Ansys' Q1 2024 GAAP results show significant declines in revenue, net income, and diluted EPS, with decreased gross and operating profit margins GAAP Financial Results (Q1 2024 vs Q1 2023, in thousands) | Metric | Q1 2024 | Q1 2023 | % Change | | :-------------------------- | :------ | :------ | :------- | | Revenue | $466,605 | $509,447 | (8.4)% | | Net income | $34,778 | $100,622 | (65.4)% | | Diluted earnings per share | $0.40 | $1.15 | (65.2)% | | Gross margin | 85.3% | 86.7% | - | | Operating profit margin | 9.3% | 25.1% | - | | Effective tax rate | 15.1% | 16.7% | - | [Non-GAAP Financial Summary](index=3&type=section&id=Non-GAAP%20Financial%20Summary) Q1 2024 Non-GAAP results show declines in net income and diluted EPS, with decreased gross and operating profit margins, while tax rate remained constant Non-GAAP Financial Results (Q1 2024 vs Q1 2023, in thousands) | Metric | Q1 2024 | Q1 2023 | % Change | | :-------------------------- | :------ | :------ | :------- | | Net income | $121,996 | $161,763 | (24.6)% | | Diluted earnings per share | $1.39 | $1.85 | (24.9)% | | Gross margin | 90.9% | 91.2% | - | | Operating profit margin | 32.2% | 39.8% | - | | Effective tax rate | 17.5% | 17.5% | - | [Other Key Metrics](index=3&type=section&id=Other%20Key%20Metrics) Q1 2024 saw ACV increase by **2.0%**, with operating and unlevered operating cash flows both growing over **8%** year-over-year Other Key Metrics (Q1 2024 vs Q1 2023, in thousands) | Metric | Q1 2024 | Q1 2023 | % Change | | :------------------------- | :------ | :------ | :------- | | ACV | $407,405 | $399,407 | 2.0% | | Operating cash flows | $282,817 | $260,766 | 8.5% | | Unlevered operating cash flows | $292,667 | $269,516 | 8.6% | [Supplemental Financial Information](index=4&type=section&id=Supplemental%20Financial%20Information) [Annual Contract Value (ACV)](index=4&type=section&id=Annual%20Contract%20Value%20%28ACV%29) Ansys reported Q1 2024 ACV of **$407.4 million**, a **2.0%** increase (2.8% in constant currency) compared to Q1 2023 Annual Contract Value (ACV) Performance (in thousands) | Metric | Q1 2024 | Q1 2024 (Constant Currency) | Q1 2023 | % Change | % Change (Constant Currency) | | :----- | :------ | :-------------------------- | :------ | :------- | :--------------------------- | | ACV | $407,405 | $410,433 | $399,407 | 2.0% | 2.8% | [Revenue Analysis](index=6&type=section&id=Revenue%20Analysis) Q1 2024 total revenue decreased **8.4%** to **$466.6 million**, primarily due to a significant drop in subscription lease revenue, partially offset by maintenance growth Total Revenue Performance (in thousands) | Metric | Q1 2024 | Q1 2024 (Constant Currency) | Q1 2023 | % Change | % Change (Constant Currency) | | :----- | :------ | :-------------------------- | :------ | :------- | :--------------------------- | | Revenue | $466,605 | $470,508 | $509,447 | (8.4)% | (7.6)% | [Revenue by License Type](index=6&type=section&id=Revenue%20by%20License%20Type) Subscription Lease revenue decreased **35.9%**, while Maintenance revenue grew **7.7%** to **62.0%** of total, with Perpetual and Service revenues also declining Revenue by License Type (Q1 2024 vs Q1 2023, in thousands) | License Type | Q1 2024 Revenue | % of Total (Q1 2024) | Q1 2023 Revenue | % of Total (Q1 2023) | % Change | % Change (Constant Currency) | | :----------------- | :-------------- | :------------------- | :-------------- | :------------------- | :------- | :--------------------------- | | Subscription Lease | $94,800 | 20.3% | $147,922 | 29.0% | (35.9)% | (35.5)% | | Perpetual | $65,521 | 14.0% | $71,230 | 14.0% | (8.0)% | (7.7)% | | Maintenance | $289,340 | 62.0% | $268,593 | 52.7% | 7.7% | 8.8% | | Service | $16,944 | 3.6% | $21,702 | 4.3% | (21.9)% | (21.3)% | | **Total** | **$466,605** | | **$509,447** | | **(8.4)%** | **(7.6)%** | [Revenue by Geography](index=6&type=section&id=Revenue%20by%20Geography) Americas revenue declined **18.8%**, EMEA decreased **2.0%**, while Asia-Pacific grew **6.0%** (10.2% in constant currency), driven by 'Other Asia-Pacific' Revenue by Geography (Q1 2024 vs Q1 2023, in thousands) | Geography | Q1 2024 Revenue | % of Total (Q1 2024) | Q1 2023 Revenue | % of Total (Q1 2023) | % Change | % Change (Constant Currency) | | :---------------- | :-------------- | :------------------- | :-------------- | :------------------- | :------- | :--------------------------- | | Americas | $208,697 | 44.7% | $256,915 | 50.4% | (18.8)% | (18.8)% | | Germany | $36,198 | 7.8% | $38,674 | 7.6% | (6.4)% | (7.6)% | | Other EMEA | $82,417 | 17.7% | $82,404 | 16.2% | — % | (1.5)% | | **EMEA Total** | **$118,615** | **25.4%** | **$121,078** | **23.8%** | **(2.0)%** | **(3.4)%** | | Japan | $36,532 | 7.8% | $38,086 | 7.5% | (4.1)% | 7.1% | | Other Asia-Pacific | $102,761 | 22.0% | $93,368 | 18.3% | 10.1% | 11.5% | | **Asia-Pacific Total** | **$139,293** | **29.9%** | **$131,454** | **25.8%** | **6.0%** | **10.2%** | | **Total** | **$466,605** | | **$509,447** | | **(8.4)%** | **(7.6)%** | [Revenue by Channel](index=6&type=section&id=Revenue%20by%20Channel) Direct revenue decreased from **76.3%** to **66.5%** of total, while indirect revenue increased from **23.7%** to **33.5%** in Q1 2024 Revenue by Channel (Q1 2024 vs Q1 2023) | Channel | Q1 2024 | Q1 2023 | | :---------------------------------- | :------ | :------ | | Direct revenue (% of total revenue) | 66.5% | 76.3% | | Indirect revenue (% of total revenue) | 33.5% | 23.7% | [Deferred Revenue and Backlog](index=7&type=section&id=Deferred%20Revenue%20and%20Backlog) Total deferred revenue and backlog increased slightly to **$1,369.5 million** as of March 31, 2024, compared to Q1 2023, but decreased from Q4 2023 Deferred Revenue and Backlog (in thousands) | Category | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Current Deferred Revenue | $433,167 | $457,514 | $396,331 | | Current Backlog | $433,106 | $439,879 | $428,913 | | **Total Current Deferred Revenue and Backlog** | **$866,273** | **$897,393** | **$825,244** | | Long-Term Deferred Revenue | $21,434 | $22,240 | $20,738 | | Long-Term Backlog | $481,746 | $552,951 | $511,502 | | **Total Long-Term Deferred Revenue and Backlog** | **$503,180** | **$575,191** | **$532,240** | | **Total Deferred Revenue and Backlog** | **$1,369,453** | **$1,472,584** | **$1,357,484** | [Currency Impact](index=7&type=section&id=Currency%20Impact) Foreign currency fluctuations, especially against the Euro and Japanese Yen, adversely impacted Q1 2024 revenue, operating income, ACV, and deferred revenue and backlog - Currency fluctuations adversely impacted Q1 2024 revenue, operating income, ACV, and deferred revenue and backlog compared to Q1 2023[17](index=17&type=chunk) Adverse Currency Impact (Q1 2024 in thousands) | Metric | Q1 2024 Currency Impact | | :------------------------- | :---------------------- | | Revenue | $(3,903) | | GAAP operating income | $(3,398) | | Non-GAAP operating income | $(3,178) | | ACV | $(3,028) | | Deferred revenue and backlog | $(19,615) | - The most significant currency impacts are typically from U.S. Dollar exchange rate changes against the Euro and Japanese Yen[18](index=18&type=chunk) [GAAP Financial Statements](index=8&type=section&id=GAAP%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased to **$7.15 billion** from **$7.32 billion** (Dec 31, 2023), with increased cash and decreased receivables and other assets Condensed Consolidated Balance Sheets (in thousands) | Asset/Liability | March 31, 2024 | December 31, 2023 | | :--------------------------------- | :------------- | :---------------- | | Cash & short-term investments | $1,070,609 | $860,390 | | Accounts receivable, net | $650,044 | $864,526 | | Goodwill | $3,797,859 | $3,805,874 | | Other intangibles, net | $806,375 | $835,417 | | Other assets | $825,527 | $956,668 | | **Total assets** | **$7,150,414** | **$7,322,875** | | Current deferred revenue | $433,167 | $457,514 | | Long-term debt | $753,970 | $753,891 | | Other liabilities | $553,634 | $721,106 | | Stockholders' equity | $5,409,643 | $5,390,364 | | **Total liabilities & stockholders' equity** | **$7,150,414** | **$7,322,875** | [Condensed Consolidated Statements of Income](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2024 total revenue decreased to **$466.6 million** from **$509.4 million**, with net income dropping to **$34.8 million** from **$100.6 million**, due to lower revenue and higher operating expenses Condensed Consolidated Statements of Income (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Software licenses revenue | $160,321 | $219,152 | | Maintenance and service revenue | $306,284 | $290,295 | | **Total revenue** | **$466,605** | **$509,447** | | Total cost of sales | $68,667 | $67,652 | | **Gross profit** | **$397,938** | **$441,795** | | Selling, general and administrative | $219,643 | $188,584 | | Research and development | $128,811 | $120,335 | | Amortization (operating expenses) | $6,145 | $5,181 | | **Total operating expenses** | **$354,599** | **$314,100** | | **Operating income** | **$43,339** | **$127,695** | | Interest income | $10,995 | $4,078 | | Interest expense | $(12,369) | $(10,758) | | Other expense, net | $(1,007) | $(177) | | Income before income tax provision | $40,958 | $120,838 | | Income tax provision | $6,180 | $20,216 | | **Net income** | **$34,778** | **$100,622** | | Earnings per share – diluted | $0.40 | $1.15 | | Weighted average shares – diluted | 87,780 | 87,431 | [Glossary of Terms](index=10&type=section&id=Glossary%20of%20Terms) [Key Financial Metrics Definitions](index=10&type=section&id=Key%20Financial%20Metrics%20Definitions) This section defines key financial metrics including Annual Contract Value (ACV), Backlog, and Deferred Revenue, explaining their components and recognition - Annual Contract Value (ACV) is a key performance metric used to assess business strength and trajectory, comprising annualized value of maintenance and subscription lease contracts, perpetual license contracts, and fixed-term services contracts, as well as work performed on fixed-deliverable services contracts[24](index=24&type=chunk) - Backlog refers to deferred revenue from installment billings beyond the current quarterly cycle and committed contracts with start dates past the current period[26](index=26&type=chunk) - Deferred Revenue represents billings made or payments received in advance of revenue recognition[26](index=26&type=chunk) [License Type Definitions](index=10&type=section&id=License%20Type%20Definitions) This section defines Ansys' software license types: Subscription Lease, Perpetual, and Maintenance contracts, detailing their duration and revenue recognition - Subscription Lease or Time-Based License grants software use for a specified period (months or years), including maintenance, with revenue recognized ratably for maintenance and upfront for the license portion[27](index=27&type=chunk) - Perpetual / Paid-Up License grants software use in perpetuity, with revenue recognized upfront[27](index=27&type=chunk) - Maintenance contracts, typically one year, provide access to unspecified version upgrades and technical support for perpetual license owners, with revenue recognized ratably over the contract period[28](index=28&type=chunk) [Reconciliations of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Measures) [Q1 2024 GAAP to Non-GAAP Reconciliation](index=11&type=section&id=Q1%202024%20GAAP%20to%20Non-GAAP%20Reconciliation) Q1 2024 reconciliation shows adjustments for stock-based compensation, acquired intangibles, and business combination expenses, resulting in higher non-GAAP gross profit, operating income, net income, and diluted EPS Q1 2024 GAAP to Non-GAAP Reconciliation (in thousands, except percentages and per share data) | Adjustment Item | Gross Profit | % of Revenue | Operating Income | % of Revenue | Net Income | EPS - Diluted | | :----------------------------------------- | :----------- | :----------- | :--------------- | :----------- | :--------- | :------------ | | Total GAAP | $397,938 | 85.3% | $43,339 | 9.3% | $34,778 | $0.40 | | Stock-based compensation expense | $3,343 | 0.7% | $58,664 | 12.7% | $58,664 | $0.66 | | Excess payroll taxes related to stock-based awards | $378 | 0.1% | $5,362 | 1.1% | $5,362 | $0.06 | | Amortization of intangible assets from acquisitions | $22,484 | 4.8% | $28,629 | 6.1% | $28,629 | $0.33 | | Expenses related to business combinations | — | — % | $14,261 | 3.0% | $14,261 | $0.16 | | Adjustment for income tax effect | — | — % | — | — % | $(19,698) | $(0.22) | | **Total Non-GAAP** | **$424,143** | **90.9%** | **$150,255** | **32.2%** | **$121,996** | **$1.39** | [Q1 2023 GAAP to Non-GAAP Reconciliation](index=11&type=section&id=Q1%202023%20GAAP%20to%20Non-GAAP%20Reconciliation) Q1 2023 reconciliation details adjustments for stock-based compensation, acquired intangibles, and business combination expenses, resulting in higher non-GAAP financial metrics compared to GAAP Q1 2023 GAAP to Non-GAAP Reconciliation (in thousands, except percentages and per share data) | Adjustment Item | Gross Profit | % of Revenue | Operating Income | % of Revenue | Net Income | EPS - Diluted | | :----------------------------------------- | :----------- | :----------- | :--------------- | :----------- | :--------- | :------------ | | Total GAAP | $441,795 | 86.7% | $127,695 | 25.1% | $100,622 | $1.15 | | Stock-based compensation expense | $2,878 | 0.6% | $44,171 | 8.7% | $44,171 | $0.50 | | Excess payroll taxes related to stock-based awards | $284 | 0.1% | $4,076 | 0.8% | $4,076 | $0.05 | | Amortization of intangible assets from acquisitions | $19,618 | 3.8% | $24,799 | 4.8% | $24,799 | $0.28 | | Expenses related to business combinations | — | — % | $2,192 | 0.4% | $2,192 | $0.03 | | Adjustment for income tax effect | — | — % | — | — % | $(14,097) | $(0.16) | | **Total Non-GAAP** | **$464,575** | **91.2%** | **$202,933** | **39.8%** | **$161,763** | **$1.85** | [Unlevered Operating Cash Flows Reconciliation](index=11&type=section&id=Unlevered%20Operating%20Cash%20Flows%20Reconciliation) Unlevered operating cash flows, excluding cash paid for interest (net of tax benefit), increased from **$269.5 million** in Q1 2023 to **$292.7 million** in Q1 2024 Unlevered Operating Cash Flows Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $282,817 | $260,766 | | Cash paid for interest | $11,939 | $10,606 | | Tax benefit | $(2,089) | $(1,856) | | **Unlevered operating cash flows** | **$292,667** | **$269,516** | [Use of Non-GAAP Measures](index=12&type=section&id=Use%20of%20Non-GAAP%20Measures) [Purpose and Rationale](index=12&type=section&id=Purpose%20and%20Rationale) Ansys provides non-GAAP measures to supplement GAAP, aiding in performance evaluation, target setting, resource allocation, and profitability assessment, also used by analysts and investors for comparability - Non-GAAP measures are used to evaluate historical and prospective financial performance, set internal targets, allocate resources, measure operational profitability, and assess financial discipline[33](index=33&type=chunk) - These measures are provided to analysts for accurate reporting and to investors for consistent and comparable information[33](index=33&type=chunk) - Non-GAAP measures are supplemental to GAAP and should not be considered in isolation due to limitations such as varying calculation methods among competitors[34](index=34&type=chunk) [Adjustments Explained](index=12&type=section&id=Adjustments%20Explained) Ansys details the specific adjustments made to GAAP figures to arrive at non-GAAP measures, including amortization of acquired intangible assets, stock-based compensation expense, expenses related to business combinations, and the non-GAAP tax provision [Amortization of Intangible Assets](index=12&type=section&id=Amortization%20of%20Intangible%20Assets) Amortization of acquired intangible assets is excluded from non-GAAP measures as these fixed costs do not reflect ongoing operational performance, aiding in consistent evaluation - Amortization of intangible assets from acquisitions is excluded from non-GAAP measures as these costs are fixed and not influenced by ongoing operations[34](index=34&type=chunk) - Exclusion helps evaluate operational performance and compare financial results consistently[34](index=34&type=chunk) [Stock-based Compensation Expense](index=13&type=section&id=Stock-based%20Compensation%20Expense) Stock-based compensation expense (including excess payroll taxes) is excluded from non-GAAP measures as it is not considered in budgeting, resource allocation, or management performance assessments - Stock-based compensation expense (including excess payroll taxes) is excluded from non-GAAP measures[36](index=36&type=chunk) - This exclusion is based on its non-inclusion in annual budgeting, resource allocation, and management performance evaluations[36](index=36&type=chunk) [Expenses Related to Business Combinations](index=13&type=section&id=Expenses%20Related%20to%20Business%20Combinations) Business combination expenses, such as professional services and restructuring costs, are excluded from non-GAAP measures as they are non-recurring and not part of continuing operational performance - Expenses for professional services and other costs related to business combinations are excluded from non-GAAP measures[37](index=37&type=chunk) - These expenses are generally non-recurring and not considered part of continuing operational performance[37](index=37&type=chunk) [Non-GAAP Tax Provision](index=13&type=section&id=Non-GAAP%20Tax%20Provision) A normalized non-GAAP annual effective tax rate (AETR) is used for consistency across interim periods, removing non-recurring items and aligning with geographic earnings mix - A normalized non-GAAP annual effective tax rate (AETR) is used for non-GAAP measures[38](index=38&type=chunk) - This methodology provides consistency by eliminating non-recurring items and aligning with the expected geographic earnings mix[38](index=38&type=chunk) [Unlevered Operating Cash Flows](index=13&type=section&id=Unlevered%20Operating%20Cash%20Flows) Unlevered operating cash flows, a supplemental non-GAAP measure, exclude cash paid for interest (net of tax benefit) to show cash generated by core operations independent of capital structure - Unlevered operating cash flows exclude cash paid for interest (net of tax benefit) from GAAP operating cash flows[39](index=39&type=chunk) - This measure evaluates core operating business cash generation independent of capital structure[39](index=39&type=chunk) [Constant Currency](index=15&type=section&id=Constant%20Currency) Constant currency results exclude foreign currency fluctuations for period-to-period comparisons, converting 2024 results using 2023 exchange rates to show underlying performance - Constant currency results exclude foreign currency fluctuations to evaluate period-to-period comparisons[40](index=40&type=chunk) - 2024 results are converted using 2023 exchange rates to present this information[40](index=40&type=chunk) [About Ansys](index=15&type=section&id=About%20Ansys) Ansys provides simulation software for over 50 years, enabling innovators across industries to predict performance and push boundaries in fields like sustainable transportation and medical devices - Ansys provides simulation software for over 50 years, enabling innovators to predict performance and push boundaries[41](index=41&type=chunk) - Their software powers innovation across industries, including sustainable transportation, advanced semiconductors, satellite systems, and medical devices[41](index=41&type=chunk) [Forward-Looking Information](index=15&type=section&id=Forward-Looking%20Information) [Disclaimer](index=15&type=section&id=Disclaimer) This document contains forward-looking statements regarding future events and the proposed Synopsys acquisition, subject to risks and uncertainties that could cause actual results to differ materially - The document contains forward-looking statements about future events, market opportunities, and the proposed Synopsys acquisition[42](index=42&type=chunk) - Readers are cautioned against undue reliance on these statements, as actual results may differ materially due to risks and uncertainties[42](index=42&type=chunk) - Ansys undertakes no obligation to update forward-looking statements[42](index=42&type=chunk) [Risk Factors](index=17&type=section&id=Risk%20Factors) Key risks include Synopsys transaction completion, acquisition disruptions, macroeconomic conditions, geopolitical conflicts, talent retention, cybersecurity, revenue volatility, customer declines, regulatory compliance, product quality, and acquisition integration - Risks include the ability to complete the Synopsys transaction, potential disruptions to business and commercial relationships from the acquisition, and uncertainty regarding Synopsys' common stock value[44](index=44&type=chunk) - Adverse macroeconomic conditions (inflation, recession, market volatility), geopolitical uncertainties, and impacts from tariffs, trade sanctions, and export controls pose significant risks[44](index=44&type=chunk) - Other risks include talent recruitment and retention, protection of proprietary technology, cybersecurity threats, revenue volatility from multi-year subscription leases, customer business declines, regulatory compliance, product quality, and successful integration of acquisitions[44](index=44&type=chunk)[45](index=45&type=chunk) [Important Information and Where to Find It](index=18&type=section&id=Important%20Information%20and%20Where%20to%20Find%20It) [SEC Filings](index=18&type=section&id=SEC%20Filings) Information on the proposed Synopsys-Ansys transaction, including Form S-4 and proxy statement/prospectus, is available via SEC filings, which investors are urged to review for important details - Synopsys filed a registration statement on Form S-4 (File No. 333-277912), including a prospectus and Ansys proxy statement, which was declared effective on April 17, 2024[46](index=46&type=chunk) - Investors and security holders are urged to read all relevant documents filed with the SEC for important information about the proposed transaction[46](index=46&type=chunk) - Free copies of SEC filings are available on www.sec.gov, Synopsys' investor website, or Ansys' investor website[47](index=47&type=chunk) [Participants in the Solicitation](index=19&type=section&id=Participants%20in%20the%20Solicitation) Synopsys, Ansys, and their directors and executive officers may be deemed participants in the proxy solicitation for the proposed transaction, with ownership and interest information available in SEC filings - Synopsys, Ansys, and their directors and executive officers may be deemed participants in the proxy solicitation for the proposed transaction[48](index=48&type=chunk) - Information on Ansys' directors and executive officers' stock ownership is in Ansys' 2024 Annual Meeting proxy statement[49](index=49&type=chunk) - Additional information on direct and indirect interests of participants is available in the proxy statement/prospectus filed by Synopsys[49](index=49&type=chunk) [No Offer or Solicitation](index=19&type=section&id=No%20Offer%20or%20Solicitation) This document is for informational purposes only, not an offer to buy or sell securities or a solicitation of votes; any offering will be made via a prospectus meeting U.S. Securities Act requirements - This document is for informational purposes only and is not an offer to buy or sell securities or a solicitation of votes[50](index=50&type=chunk) - Any offering of securities will be made solely by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933[50](index=50&type=chunk)

Core Insights - Ansys has announced the certification of its power integrity platforms for TSMC's latest N2 technology, enhancing speed and power efficiency for advanced semiconductor designs [2][3] - The collaboration between Ansys and TSMC includes the use of AI-enabled analysis optimization flows, which are essential for managing electromagnetic effects in high-speed circuits [3] Group 1: Product Certifications - Ansys RedHawk-SC™ and Ansys Totem™ are certified for TSMC's N2 nanosheet-based process technology, providing significant advantages for high-performance computing and mobile chips [2] - Ansys RaptorX™ is certified for TSMC's N5 process, crucial for on-chip electromagnetic modeling in various applications including 5G and datacenters [2] Group 2: Collaboration and Innovation - The partnership between Ansys and TSMC aims to deliver advanced multiphysics simulations and analyses, enabling the design of innovative semiconductor chips [3] - TSMC's head of design infrastructure management highlighted the importance of accurate multiphysics analysis in meeting customer demands for the new 2nm process technology [3]

ANSYS Inc (ANSS) is scheduled to report first-quarter 2024 results on May 1.The performance is likely to have been driven by continued momentum for the company’s simulation solutions in various verticals like aerospace and defense (A&D), high-tech, automotive and ground transportation sectors.Rapid growth for its high-fidelity simulation solutions, led by ongoing development in artificial intelligence and machine learning, is expected to have acted as another tailwind.Ongoing momentum in the A&D sector, owi ...

Ansys (ANSS) recently announced a collaboration with Taiwan Semiconductor Manufacturing Company (“TSMC”) on the latter’s Compact Universal Photonic Engines (COUPE) platform. The collaboration aims to speed up chip-to-chip and machine-to-machine communication, thereby delivering a high-fidelity multiphysics solution of artificial intelligence (AI), datacenter, cloud, and high-performance computing (HPC) chips.COUPE is a sophisticated Silicon Photonics (SiPh) integration system and Co-Packaged Optics platform ...