GuidanceДЄNSYS expects non-GAAP earnings in the range of $2.36-$2.67 per share for fourth-quarter 2020. As of Sep 30, 2020, it had 2.8 million shares remaining under the share buyback program. The company did not repurchase shares in the third quarter. The company generated cash from operations of $94.5 million for the third quarter compared with $131.6 million in the prior quarter. Notably, the debt agreement currently requires no principal payments through 2024. Balance Sheet & Cash FlowДЄs of Sep 30, 2020, cash and short-term investments of $845.2 million (the United States comprised 59%) compared with $745 million (the United States comprised 54%) as of Jun 30, 2020.ДЄs of Sep 30, 2020, the company has an unsecured term loan with an outstanding principal balance of $425 million. Non-GAAP operating margin contracted 350 bps on a year-over-year basis to 39.8%. Total operating expenses increased 13.2% year over year to $223.5 million due to higher research and development as well as selling, general and administrative expenses. Non-GAAP gross margin contracted 90 basis points (bps) on a year-over-year basis to 89.2%. Despite this, during the quarter, the company made a seven-figure sale to a notable energy company, which is a testament to the strength in its solutions. Meanwhile, the coronavirus crisis-induced weakness in the oil and gas industry and low oil prices continue to plague the global energy markets, which is overhang for ANSYS. The strength in high-tech and semiconductor sectors with growing clout in the automotive sector led to increases in revenues from the APAC region. The deal wins in aerospace and defense verticals across North America and EMEA boosted growth. Notably, at cc, non-GAAP revenues from Americas improved 6.2% to $162.5 million, while revenues from EMEA and the Asia-Pacific increased 1.9% and 7.4% year over year to $107 million and $99.7 million, respectively. On a geographic basis, non-GAAP revenues from Americas, EMEA (comprising Germany, the UK and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 44%, 29% and 27% to non-GAAP revenues, respectively. ACV improved 5% year over year (up 3.4% at cc) to $305.3 million.

Maintenance revenues (58%) increased 8.3% at cc to $214 million but Service revenues (3.6%) declined 3% year over year, at cc, to $13.4 million.Дirect and indirect channels contributed 74.8% and 25.2%, respectively, to non-GAAP revenues.

Perpetual licenses revenues (17%) fell 6.8% year over year at cc to $62.7 million. Lease licenses revenues (21.4% of non-GAAP revenues) improved 9.7% at cc to $79.1 million. Also, ANSYS Startup Program is now supporting twice the number of startups than it did two years back across multiple sectors in over 44 countries.

Ansys inc revenue