ANSYS(US:ANSS)2021-08-03 16:00Revenue Growth - Ansys reported a revenue increase of 15.8% for the three months ended June 30, 2021, and 17.3% for the six months ended June 30, 2021 compared to the same periods in 2020[97]. - Total revenue for the quarter ended June 30, 2021, increased by 15.8% to $446,654,000 compared to $385,661,000 for the same quarter in 2020[114]. - Total revenue for the six months ended June 30, 2021, increased by 17.3% to $809.88 million compared to $690.65 million for the same period in 2020[136]. - GAAP revenue growth was 15.8% for the three months and 17.3% for the six months ended June 30, 2021, while non-GAAP revenue growth was 16.1% and 18.1%, respectively[97]. - The company expects a favorable impact of $4.2 million on reported revenue for the quarter ending September 30, 2021, due to acquisition accounting treatment of deferred revenue[118]. Annual Contract Value (ACV) - The Annual Contract Value (ACV) for the three months ended June 30, 2021 was $430.5 million, representing a 25.0% increase from $344.4 million in the same period of 2020[102]. - Recurring ACV as a percentage of total ACV decreased to 82.1% in the three months ended June 30, 2021, down from 83.2% in the same period of 2020[102]. Operating Income and Expenses - Operating income for the three months ended June 30, 2021 was 3.5% on a GAAP basis and 12.9% on a non-GAAP basis, reflecting increased personnel costs and expenses related to acquisitions[97]. - Operating expenses for the quarter were $265,723,000, representing a 21.3% increase from $218,994,000 in the same quarter of 2020[125]. - Total operating expenses for the six months ended June 30, 2021, rose to $516,824,000, an increase of 17.5% from $439,790,000 in the same period of 2020[145]. Research and Development - Research and development expenses increased by 17.1% to $100,879,000, reflecting the company's commitment to innovation[125]. - Research and development costs rose by $29.11 million, primarily due to increased salaries and incentive compensation[146]. - Research and development expenses increased by 16.9% to $201,358,000, reflecting continued investment in product capabilities[145]. Cash and Investments - Ansys maintained $958.2 million in cash and short-term investments, with working capital of $1,027.0 million as of June 30, 2021[104]. - Cash and cash equivalents increased to $958,208 thousand as of June 30, 2021, up from $913,151 thousand at December 31, 2020, representing a change of $45,057 thousand[169]. - Net cash provided by operating activities for the six months ended June 30, 2021, was $289,984 thousand, an increase of $10,980 thousand compared to $279,004 thousand for the same period in 2020[173]. Income and Earnings Per Share - Net income for the six months ended June 30, 2021, was $166,114, compared to $142,628 for the same period in 2020, representing a year-over-year increase of 16.4%[151]. - Diluted earnings per share increased to $1.89 for the six months ended June 30, 2021, up from $1.64 in the prior year, reflecting a growth of 15.2%[151]. - The effective tax rate increased to 27.3% for the quarter ended June 30, 2021, compared to 14.2% for the same quarter in 2020[131]. Market and Business Environment - The engineering software simulation market is experiencing strong growth driven by demand for rapid innovation and investments in high-growth solutions like 5G and electrification[92]. - The company anticipates a recovery in the business environment in the second half of the year as vaccine distribution increases[114]. - The company continues to focus on expanding its product offerings and enhancing distribution channels to address competitive pressures[94]. Currency Fluctuations - The U.S. Dollar was approximately 5.4% weaker against primary foreign currencies for the quarter ended June 30, 2021, compared to the same quarter in 2020[186]. - Currency fluctuations resulted in increased operating income of $1.4 million for the three months ended June 30, 2021, compared to the same period in 2020[187]. - The impacts from currency fluctuations resulted in increased operating income of $3.5 million for the six months ended June 30, 2021, compared to the same period in 2020[187]. Future Plans and Investments - The company plans to continue investing in research and development, acquisitions, and digital transformation projects, including CRM and HRIS systems[96]. - The company plans to continue targeted investments in global sales and marketing to support revenue-generating activities[128]. - The company plans capital spending of $30,000 thousand to $40,000 thousand during fiscal year 2021, compared to $35,400 thousand spent in fiscal year 2020[174].