ANSYS just announced that revenue for Q3 was $234 million, smack in the middle of its guidance but still below Wall Street expectations, so expect the share to open down a bit today. Also likely to not help with the share price: Q4 guidance of $243.9 million to $251.9 million, versus expectations of over $260 million. In its Q2 earnings release, the company had seen 2014 total revenue of between $937 million and $954 million; today, it lowered that target to GAAP revenue in the range of $926 million to $934 million. Why? A “softening in the Company’s European business, weakness in sales from the Company’s independent channel partner in China and the strengthening of the U.S. Dollar. The strengthening of the U.S. Dollar accounts for approximately half of the fourth quarter revenue guidance reduction.”
I’m in London at the Bentley Year in Infrastructure conference so will have to do a more detailed writeup later, but here are the quick highlights:
- Total revenue was up 10% year/year to $234 million
- Software revenue was up 8% y/y to $140 million
- Maintenance and service revenue as up 13% to $94 million
- In Q3, ANSYS saw “double-digit [revenue] growth in both North America and GIA [the General International Area], offset by weakness in Europe, most notably in Germany. The key financial metrics of the business … were in line with or better than management’s Q3 2014 outlook and continued to demonstrate solid financial performance with the fundamentals of the business model remaining
More when there’s time to listen to the earnings call replay.