PTC and Ansys DON’T preannounce
What a strange time, when it’s notable that companies just go ahead and schedule their earnings releases as per normal, like PTC did today (for April 29), or craft a special letter to investors that ends with the earnings date, as Ansys just did.
PTC’s news said nothing other than the date of the earnings release but Ansys’ letter talks about uncertainty, empathy to those affected, gratitude to workers on the front line … and includes a couple of nuggets of news:
- All Ansys salaried and hourly employees continue to be paid and the company doesn’t foresee any change at the moment
- Offices in China are open for business
- Ansys sees its prospects as OK; it believes client companies will invest in R&D during whatever downturn comes, to “increase their chances of emerging from the downturn stronger and more competitive”
- The company says most employees are effectively working remotely and that sales and support teams are able to “meet virtually with customers to ensure their needs are being met while working to mitigate disruptions to our sales pipeline”
- Ansys has “created relaxed licenses that allow customers to temporarily access Ansys software [and] have access to burst compute capacity thanks to our native cloud offerings. We have expanded the cloud capabilities we introduced last year on Microsoft Azure, enabling customers to test their product designs remotely”
- Finally, CEO Ajai Gopal tried to reassure investors of Ansys’ financial strength, pointing out that 77% of Ansys’ annual contract value last year was recurring; that its customers span verticals and geographies (40% of revenue from North America with the rest, split roughly evenly between Asia and Europe)
Mr. Gopal ended the letter by saying
These are unpredictable times and the extent of the economic impact of the pandemic is still uncertain. But with the precautions we are taking for our employees’ health and safety, our investments in infrastructure and collaboration technologies, special accommodations for our customers and our continued fiscal discipline, I believe Ansys is well-positioned to help our customers during this critical time – and well into the future. When this crisis has abated, I believe that we will emerge in an even better leadership position to make simulation pervasive across the product lifecycle.
Interesting, no? DS comes out with a revenue shortfall, PTC says (basically) “nothing to see here right now” and Ansys writes a letter. Many companies still to be heard from … so say tuned.
Ansys releases earnings in early May; no date given.