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Ansys' CEO Discusses Q1 2012 Results - Earnings Call Transcript

In addition, just hitting some highlights here, we achieved double-digit revenue growth in all 3 major geographies as well as double-digit growth in our software license and our maintenance and service businesses. The Apache financial results were slightly ahead of our projections, and we made good progress in our integration efforts, but of course, there's a lot more work ahead of us. Our recurring revenue went to 72%, our operating margins remained strong at 50%, our deferred revenue grew to an all-time high of $299 million. We generated $83.6 million in operating cash flows. And on the hiring front, as we have mentioned on previous calls, we added a net 40-plus new employees for the quarter, and there's more plan in Q2 in the second half of 2012.

So with that, there are many positive aspects in the quarter. In addition to that, including strong revenue performance in Germany and North America, most notably. And then as always, there were some isolated sales execution issues that impacted the quarter and have been the top priority for us in Q2 and the remainder of 2012.

Our industry composition continues to be diverse while exhibiting particular strengths in a few sectors like automotive, aerospace, energy, industrial equipment and electronics. We added new customers and also continued to see new sales and strong renewals at our existing account base, where we're virtually all of the top 100 industrial companies in the world. Most importantly, this was accomplished while we maintained the core tenets of our long-term vision, and it was supported by the environment where our customers that just can't afford to compromise on the depth, breadth or quality of the simulation solutions that they're using in the process to solve their own complex design challenges.

So the result of this is as we look forward to the remainder of 2012, we're slightly raising and tightening our range. This consist of maintaining the upper end of our range while absorbing some minor additional currency impacts. We're also raising the floor of our previous guidance. And so netting all this out, we will remain committed to our full year outlook on GAAP earnings and the revenue for 2012, with revenues in the range of $810 million to $830 million in revenue, and earnings in the range of $2.78 to $2.87. And for Q2, we're targeting non-GAAP revenues in the range of $192 million to $199 million, and EPS in the range of $0.66 to $0.69.

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