So with that, I'll introduce my cohort here, Maria Shields, our CFO, who will go through our Safe Harbor Statement. So Maria?Maria T. Shields Okay. Thanks, Jim. Good morning, everyone. I'd just like to remind you that in addition to any risks and uncertainties that we highlight during the course of this call, important factors that may affect our future results are discussed at length in our public filings with the SEC, all of which are also available via our website. Additionally, the company's reported results should not be considered an indication of future performance as there are risks and uncertainties that could impact our business in the future. These statements are based upon our view of the business as of today and ANSYS undertakes no obligation to update any such information, unless we do so in a public forum. During the course of this call and in the prepared remarks, we'll be making reference to non-GAAP financial measures. A discussion of the various items that are excluded and a full reconciliation of GAAP to comparable non-GAAP financial measures are included in this morning's earnings release materials and the related Form 8-K. So Jim, I'll turn it back over to you. James E. Cashman Okay, great. Thanks. So before we get started with the Q&A, I'd like to briefly underscore a few important highlights regarding our Q1 results and the continued commitment to delivering our 2012 outlook. So let me begin by saying Q1 was a solid quarter on many fronts. I guess from my perspective the most important aspect of the performance for Q1 was that despite some challenges, we continued an important multiyear trend for us to the company and the management team, and we delivered on those key commitments. So both revenue and earnings were in line with the range that we have guided on coming into the quarter.
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. Read the rest of this transcript for free on seekingalpha.com