Financial Performance - Q1 2025 revenue reached $504.9 million, an increase of 8.2% compared to Q1 2024[3] - GAAP diluted earnings per share were $0.59, up 47.5% from $0.40 in Q1 2024; non-GAAP diluted earnings per share were $1.64, an 18.0% increase from $1.39[7] - Annual contract value (ACV) for Q1 2025 was $410.1 million, reflecting a 0.7% increase compared to Q1 2024[7] - Operating cash flows for Q1 2025 were $398.9 million, a 41.1% increase from $282.8 million in Q1 2024[8] - Total revenue for Q1 2025 reached $504.891 million, a 8.2% increase from $466.605 million in Q1 2024[33] - Gross profit for Q1 2025 was $432.322 million, representing a gross margin of 85.6%, compared to 85.3% in Q1 2024[43] - Operating income increased to $58.893 million, up 36.0% from $43.339 million in the same quarter last year[33] - Net income for Q1 2025 was $51.865 million, a significant increase of 49.2% compared to $34.778 million in Q1 2024[33] - Cash provided by operating activities was $398.935 million, compared to $282.817 million in Q1 2024[43] Deferred Revenue and Backlog - Deferred revenue and backlog totaled $1,627.7 million as of March 31, 2025, compared to $1,369.5 million in Q1 2024[26] - Total current deferred revenue and backlog decreased to $1,001.5 million from $1,029.1 million in the previous quarter[26] Expenses - Research and development expenses for Q1 2025 totaled $137.292 million, an increase from $128.811 million in Q1 2024[33] - Selling, general and administrative expenses rose to $230.415 million, compared to $219.643 million in the prior year[33] - Interest income increased to $16.743 million, while interest expense decreased to $10.177 million, indicating improved financial management[33] - The company incurs expenses related to business combinations, including professional services and restructuring activities, which are excluded from non-GAAP financial measures to evaluate operational performance[50] Future Outlook - The company anticipates double-digit FY 2025 ACV growth[3] - Ansys entered into a definitive agreement with Synopsys for acquisition, with regulatory approvals in progress and expected closure in the first half of 2025[4] - Forward-looking statements include expectations regarding the proposed transaction with Synopsys and potential benefits, subject to risks and uncertainties[58] - Risks include the ability to complete the Synopsys transaction, macroeconomic conditions, and potential disruptions in operations[60] Innovation and Strategy - The company is focused on innovation in simulation software, enabling advancements across various industries[56] - The company emphasizes the importance of developing new products, including the integration of artificial intelligence and machine learning[63] - Future capital spending plans and the impact of research and development costs are critical for the company's growth strategy[63] Financial Metrics and Measures - A normalized non-GAAP annual effective tax rate (AETR) is utilized to provide consistency across reporting periods by eliminating non-recurring items[51] - Unlevered operating cash flows are calculated by excluding cash paid for interest, providing a measure of cash generated through operating activities independent of capital structure[52] - Non-GAAP financial measures are not a substitute for GAAP measures and should be read in conjunction with GAAP financial statements[53] - Constant currency results are used for financial decision-making, adjusting reported amounts to exclude foreign currency fluctuations[55]

Core Viewpoint - ANSYS, Inc. reported a strong performance in Q1 2025, with revenue growth and improved earnings per share, while also progressing towards a significant acquisition by Synopsys, Inc. [2][3] Financial Performance - Q1 2025 revenue reached $504.9 million, marking an 8% increase in reported currency and a 10% increase in constant currency compared to Q1 2024 [2][14] - GAAP diluted earnings per share were $0.59, up 47.5% from $0.40 in Q1 2024, while non-GAAP diluted earnings per share increased to $1.64 from $1.39, a rise of 18% [2][7] - The company reported a net income of $51.9 million, a 49.1% increase from $34.8 million in the same quarter last year [5][26] - Annual Contract Value (ACV) for Q1 2025 was $410.1 million, reflecting a 0.7% increase compared to Q1 2024 [6][8] Revenue Breakdown - Revenue by license type showed that subscription lease revenue was $96.9 million (19.2% of total), maintenance revenue was $324.4 million (64.2%), and service revenue was $20.5 million (4.1%) [15] - Geographically, revenue from the Americas was $230.4 million (45.6% of total), while Asia-Pacific contributed $155.7 million (30.8%) [17] Acquisition Progress - ANSYS has entered into a definitive agreement with Synopsys for acquisition, with regulatory approvals from several jurisdictions, including the U.K. and Turkey [3][6] - The transaction is expected to close in the first half of 2025, pending further regulatory approvals [3] Cash Flow and Deferred Revenue - Operating cash flows for Q1 2025 were $398.9 million, a 41.1% increase from $282.8 million in Q1 2024 [6][39] - Total deferred revenue and backlog as of March 31, 2025, was $1.63 billion, down from $1.72 billion at the end of 2024 [19]

Core Insights - Ansys has announced thermal and multiphysics signoff tool certifications for designs using Intel's 18A process technology, enhancing the reliability of advanced semiconductor systems for AI, GPUs, and HPC applications [2][8] - The collaboration between Ansys and Intel Foundry includes a comprehensive multiphysics signoff analysis flow for Intel's EMIB technology, facilitating the development of multi-die 3D integrated circuit systems [2][4] Group 1: Certification and Tools - Ansys RedHawk-SC and Totem are recognized for their speed, accuracy, and capacity in analyzing power integrity and reliability of Intel's 18A RibbonFET GAA transistors with PowerVia backside power delivery [3][8] - HFSS-IC Pro, a new addition to the HFSS-IC product family, is introduced for scalable electromagnetic analysis, certified for on-chip electromagnetic integrity in various telecommunication applications [3][8] - The qualification process for RedHawk-SC, Totem, and HFSS-IC Pro is ongoing for the Intel 18A high-performance process node, with customers able to request the latest Intel PDK for early design work [5][8] Group 2: Collaboration and Ecosystem - Ansys is joining the Intel Foundry Chiplet Alliance to develop a secure ecosystem for designing and manufacturing interoperable chiplets, enhancing multi-die assembly efficiency [6][7] - The collaboration aims to advance chiplet technology and improve the performance and integration of advanced computing systems through the EMIB-T technology, which will include through-silicon vias [4][7] - Ansys emphasizes the importance of precise tools for ensuring reliability in semiconductor systems, reinforcing its commitment to providing open-source and interoperable technology [7][8]

Core Viewpoint - ANSYS, Inc. is set to report its Q1 2025 earnings on April 30, with an expected EPS of $1.75, reflecting a 25.9% increase year-over-year [1][2] Financial Performance - The Zacks Consensus Estimate for revenues stands at $529.4 million, indicating a 13.5% growth from the previous year [2] - ANSYS has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 12.28% [2] Factors Driving Performance - Increased sales of simulation solutions across key sectors such as aerospace and defense, high tech, automotive, industrial equipment, and energy are expected to contribute to revenue growth [3] - Advanced simulation solutions for 5G, autonomous vehicles, IoT devices, and high-performance chips are likely enhancing customer engagement and deal activity [4] - The integration of NVIDIA Omniverse capabilities into ANSYS products may positively impact performance [4] Revenue Streams - ANSYS is benefiting from rising maintenance and subscription lease revenues, along with growth in perpetual license revenues [5] - Strategic partnerships, particularly the collaboration with Microsoft to enhance product accessibility via Azure, are expected to positively influence performance [5] Recent Developments - On April 24, 2025, ANSYS announced expanded AI-assisted workflows for RF design migration and photonic ICs, enhancing its semiconductor certifications through collaboration with TSMC [7] - ANSYS completed the largest-ever commercial Fluent CFD simulation using AMD GPUs, showcasing its technological capabilities [9] - Certification of ANSYS' Lumerical Photonic Design Tools by GlobalFoundries supports advanced chip development for generative AI and other applications [10] Market Context - ANSYS shares have decreased by 2.4% over the past six months, while the Zacks Computer-Software industry has declined by 8.6% [2] - Geopolitical challenges, unfavorable forex fluctuations, and macroeconomic uncertainties are ongoing concerns for the company [6]

Core Insights - Ansys and TSMC have enhanced AI-assisted workflows for semiconductor design, focusing on RF design migration and photonic integrated circuits, which aim to optimize 3D integrated circuit design for AI and HPC applications [2][9] - The collaboration includes new certifications for Ansys' semiconductor solutions, particularly for TSMC's advanced A16 technology and the newly announced N3C technology [2][3][9] AI-Assisted Workflows - Ansys has introduced AI-assisted photonic design optimization solutions that leverage its optiSLang process integration and design optimization software, enhancing the performance of photonic integrated circuits [6] - The AI-assisted RF design migration flow combines Ansys HFSS-IC Pro with Synopsys tools, automating device placement and routing optimization while maintaining design intent and performance [7] Certification and Technology Advancements - Ansys' RedHawk-SC, RedHawk-SC Electrothermal, and Totem platforms are certified for TSMC's A16 process, ensuring reliable thermal management and electromigration analysis [3][4][9] - The new HFSS-IC product family, certified for TSMC's 5nm and 3nm processes, meets the accuracy requirements for next-generation semiconductor products [5][9] Multiphysics Analysis - A joint multiphysics signoff analysis flow has been established, integrating Ansys and Synopsys tools for comprehensive extraction, timing, power, EM/IR, and thermal analysis [10] - This multiphysics approach supports thermal-aware and voltage-aware timing analysis, facilitating the convergence of large 3D-IC designs [10] Industry Impact - The collaboration between Ansys, TSMC, and Synopsys is driving innovation in 3D-IC design, improving chip reliability and addressing the challenges posed by shrinking chip sizes and increasing energy efficiency demands [11] - AI-driven solutions are significantly enhancing productivity in designing 3D-IC components, providing automation for essential tasks [11]

PITTSBURGH, April 17, 2025 /PRNewswire/ -- ANSYS, Inc. (NASDAQ: ANSS) announced today that the Company expects to release its first quarter earnings on Wednesday, April 30, 2025, after the market closes. As previously announced, in light of the pending transaction with Synopsys, Inc. (Synopsys), Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance. After the market closes on Wednesday, April 30, 2025, you can find the following information on the invest ...

ANSYS, Inc. (ANSS) has achieved a milestone by completing the largest-ever commercial Fluent CFD simulation using AMD Instinct MI250X graphics processing units (GPUs). This groundbreaking achievement was made possible through the use of the Frontier exascale supercomputer, housed at the U.S. Department of Energy's Oak Ridge National Laboratory and powered by AMD EPYC CPUs and Instinct GPUs.In collaboration with energy technology company Baker Hughes, Ansys successfully scaled its Fluent software to 1,024 GP ...

Ansys' accelerated, high-capacity approach to verifying electrical design rules for final validation addresses critical industry need as chips rapidly increase in size/ Key Highlights Ansys PathFinder-SC™ electrostatic discharge (ESD) reliability analysis solution for point-to-point (P2P) and current density (CD) is certified for TSMC's N2 process technology TSMC certified the accuracy of Ansys SeaScape™ cloud-optimized electronic design automation platform solutions including Ansys RedHawk-SC™, PathFinder- ...

Ansys Fluent solvers powered by AMD Instinct GPUs reduce simulation run time by 96%, unlocking transformative possibilities for high-fidelity CFD analysis / Key Highlights PITTSBURGH, April 1, 2025 /PRNewswire/ -- Ansys (NASDAQ: ANSS) today announced groundbreaking results from the largest commercial Fluent CFD simulation ever run on AMD Instinct™ MI250X GPUs. Leveraging the power of the Frontier exascale supercomputer, powered by AMD EPYC™ CPUs and Instinct GPUs, Ansys and energy company Baker Hughes scale ...

Core Insights - Cadence Design Systems, Inc. (CDNS) is enhancing its business through strategic acquisitions, which provide valuable tools, technologies, and market access to accelerate organic growth [1][2] Recent Acquisitions - In January 2025, Cadence signed an agreement to acquire Secure-IC, a provider of embedded security IP platforms, expected to close in the first half of 2025 [3] - The acquisition will enhance Cadence's capabilities in delivering security solutions for complex system-on-chips across various industries, leveraging Secure-IC's expertise and proven portfolio [4] - Cadence's existing portfolio, including AI/machine learning and digital signal processing solutions, will benefit significantly from Secure-IC's offerings [5] - Previous acquisitions include BETA CAE, which enhances Cadence's Intelligent System Design strategy, and Invecas, Inc., a provider of embedded software solutions [6] - Other notable acquisitions include Intrinsix, which expanded Cadence's footprint in advanced nodes and security algorithms, and the purchase of the SerDes and memory interface PHY IP business from Rambus [6][7] Acquisition Strategy Challenges - While acquisitions can be beneficial, they also present challenges such as integration difficulties and impact on the balance sheet, with Cadence's goodwill and intangible assets totaling $2.973 billion, representing 33.1% of total assets as of December 31, 2024 [8] Competitive Landscape - The pending acquisition of ANSYS by Synopsys is expected to increase competition in the electronic design automation (EDA) space, affecting Cadence and other players like Keysight Technologies [9][10] - Synopsys' acquisition of ANSYS, valued at $35 billion, is anticipated to create a synergistic powerhouse in semiconductor design and testing [10][12] - Keysight Technologies is also pursuing inorganic expansion, having acquired Synopsys' Optical Solutions Group, with the deal expected to close in the first half of 2025 [13]