Company Initiates Q2 2018 Outlook and Increases FY 2018 Outlook for Revenue and EPS Company Completes Acquisition of OPTIS

ASC 606 - First Quarter 2018

• GAAP revenue of $282.9 million and non-GAAP revenue of $283.3 million
• GAAP diluted earnings per share of $0.98 and non-GAAP diluted earnings per share of $1.20
• GAAP operating profit margin of 33.6% and non-GAAP operating profit margin of 45.0%
• Deferred revenue and backlog of $595.0 million at March 31, 2018

ASC 605 - First Quarter 2018 (as if previous revenue recognition guidance was in effect)

• GAAP revenue of $284.6 million and non-GAAP revenue of $285.2 million
• GAAP diluted earnings per share of $1.00 and non-GAAP diluted earnings per share of $1.22
• GAAP operating profit margin of 34.0% and non-GAAP operating profit margin of 45.3%
• Deferred revenue and backlog of $841.7 million at March 31, 2018, an increase of 29% over Q1 2017

Other Highlights

• 10% constant currency increase in Q1 2018 ACV
• Operating cash flows of $132.4 million
• Repurchased 0.8 million shares in the first quarter at an average price of $157.11

Note: We adopted ASC 606 on January 1, 2018, which impacted our financial results, including the categorization and geographic allocation of revenue. For comparability purposes and unless otherwise specified, the amounts included in the commentary below refer to results under ASC 605 as if previous revenue recognition guidance was in effect.

PITTSBURGH, May 02, 2018 (GLOBE NEWSWIRE) -- ANSYS, Inc. (NASDAQ:ANSS), today reported first quarter 2018 GAAP and non-GAAP revenue growth of 12%, or 7% in constant currency. Recurring revenue, which comprises lease license and annual maintenance revenue, totaled 78% of revenue for the first quarter on both a GAAP and non-GAAP basis. For the first quarter, the Company reported growth in diluted earnings per share of 37% on both a GAAP and non-GAAP basis.

Ajei Gopal, ANSYS President and CEO, commented, “The ANSYS Pervasive Simulation strategy and the strength of our portfolio continue to drive strong demand for our products and solutions. Our focus on execution is also paying off, and we are off to a strong start in 2018, delivering record revenue and earnings per share, both of which were above the high end of our guidance. During Q1, we had 30 customers each with combined orders over $1 million, including the signing of the largest deal in the Company’s history, a $50 million three-year contract.  We continued to see improvement within our European operations, which grew 9% in constant currency, including double-digit revenue growth in Germany, France and the United Kingdom. We also announced the acquisition of OPTIS, a leader in optical simulation. The transaction will add another physics to our multi-physics portfolio, and enhance our product offerings for autonomous vehicles."

Maria Shields, ANSYS CFO, stated, “The investments we are making in the business are yielding measurable results, with our deferred revenue and backlog reaching a record level of $841.7 million, a 29% increase over Q1 2017. Our annual contract value (ACV) grew 10% in constant currency in Q1 2018 as compared to Q1 2017 and we reported record cash flows from operations of $132.4 million for the quarter. Both of these metrics are indicative of the current and longer-term health of the business. We also continued to return capital to stockholders in the form of share repurchases during Q1, purchasing 0.8 million shares.”

Financial Results

ANSYS' first quarter 2018 and 2017 financial results are presented below. The 2018 and 2017 non-GAAP results exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, acquisition-related transaction costs, restructuring charges and the measurement-period adjustment related to the 2017 Tax Cuts and Jobs Act.

GAAP and non-GAAP results under ASC 606:

	GAAP				Non-GAAP
(in millions, except percentages and per share data)	Q1 2018				Q1 2018
Revenue	$	282.9			$	283.3
Net income	$	84.3			$	103.1
Earnings per share	$	0.98			$	1.20
Operating profit margin	33.6		%		45.0		%

GAAP and non-GAAP results under ASC 605:

	GAAP											Non-GAAP
(in millions, except percentages and per share data)	Q1 2018				Q1 2017				% Change			Q1 2018				Q1 2017				% Change
Revenue	$	284.6			$	253.4			12	%		$	285.2			$	253.5			12	%
Net income	$	85.8			$	63.3			35	%		$	104.7			$	77.5			35	%
Earnings per share	$	1.00			$	0.73			37	%		$	1.22			$	0.89			37	%
Operating profit margin	34.0		%		33.7		%					45.3		%		46.4		%

The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2018 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures, for the three months ended March 31, 2018 and 2017, and for the 2018 financial outlook, are included in the condensed financial information included in this release.

Other Financial Metrics

(in millions, except percentages)	Q1 2018				Q1 2017				% Change			% Change in Constant Currency
Annual contract value (ACV)	$	293.9			$	248.9			18	%		10	%
Operating cash flows	$	132.4			$	125.9			5	%

ACV is comprised of the following:

• the annualized value of maintenance and lease contracts with start dates or anniversary dates during the period, plus
• the value of perpetual license contracts with start dates during the period, plus
• the value of fixed-term services contracts completed during the period with an expected duration of 12 months or less, plus
• the value of work performed during the period on fixed-deliverable services contracts.

Management's 2018 Financial Outlook

The Company's second quarter and fiscal year 2018 revenue and earnings per share guidance is provided below. The revenue and earnings per share guidance is provided on both a GAAP and a non-GAAP basis, and in accordance with both ASC 606 and ASC 605. Non-GAAP financial measures exclude the income statement effects of acquisition adjustments to deferred revenue, stock-based compensation, amortization of acquired intangible assets, acquisition-related transaction costs and measurement-period adjustments related to the Tax Cuts and Jobs Act.

The financial guidance below includes the impact of the Company's acquisition of OPTIS, which closed in May 2018. Refer to the Prepared Remarks document for additional details related to the impact of the OPTIS acquisition on the Company's financial guidance.

Second Quarter 2018 Guidance

The Company currently expects the following for the quarter ending June 30, 2018:

(in millions, except per share data)	GAAP		non-GAAP
Revenue under ASC 606	$269.5 - $289.5		$272.0 - $292.0
Diluted earnings per share under ASC 606	$0.54 - $0.76		$0.94 - $1.09
Revenue under ASC 605	$289.5 - $299.5		$294.0 - $304.0
Diluted earnings per share under ASC 605	$0.72 - $0.85		$1.13 - $1.19

Fiscal Year 2018 Guidance

The Company currently expects the following for the fiscal year ending December 31, 2018:

(in millions, except per share data)	GAAP		non-GAAP
Revenue under ASC 606	$1,189.3 - $1,254.3		$1,197.0 - $1,262.0
Diluted earnings per share under ASC 606	$3.29 - $3.94		$4.60 - $5.08
Revenue under ASC 605	$1,214.0 - $1,244.0		$1,228.0 - $1,258.0
Diluted earnings per share under ASC 605	$3.49 - $3.85		$4.85 - $5.04

(in millions)	Other Financial Metrics
ACV	$1,262.0 - $1,302.0
Operating cash flows	$435.0 - $475.0

Conference Call Information

ANSYS will hold a conference call at 8:30 a.m. Eastern Time on May 3, 2018 to discuss first quarter results. The Company will provide its prepared remarks on the Company’s investor relations homepage and as an exhibit in its Form 8-K in advance of the call to provide shareholders and analysts with additional time and detail for analyzing its results in preparation for the conference call. The prepared remarks will not be read on the call and only brief remarks will be made prior to the Q&A session.

To participate in the live conference call, dial 855-239-2942 (US) or 412-542-4124 (Canada & Int’l). The call will be recorded and a replay will be available within two hours after the call. The replay will be available by dialing (877) 344-7529 (US), (855) 669-9658 (Canada) or (412) 317-0088 (Int’l) and entering the passcode 10119158. The archived webcast can be accessed, along with other financial information, on ANSYS' website at http://investors.ansys.com/events-and-presentations/events.aspx.

ANSYS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
	ASC 606				ASC 605				ASC 605
(in thousands)	March 31, 2018				March 31, 2018				December 31, 2017
ASSETS:
Cash & short-term investments	$	889,768			$	889,768			$	881,787
Accounts receivable, net	256,560				113,585				124,659
Goodwill	1,379,458				1,379,458				1,378,553
Other intangibles, net	146,396				146,396				157,625
Other assets	286,984				398,353				398,999
Total assets	$	2,959,166			$	2,927,560			$	2,941,623
LIABILITIES & STOCKHOLDERS' EQUITY:
Current deferred revenue	$	311,718			$	471,676			$	440,491
Other liabilities	240,088				234,235				255,301
Stockholders' equity	2,407,360				2,221,649				2,245,831
Total liabilities & stockholders' equity	$	2,959,166			$	2,927,560			$	2,941,623

ANSYS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
	Three Months Ended
	ASC 606				ASC 605				ASC 605
(in thousands, except per share data)	March 31, 2018				March 31, 2018				March 31, 2017
Revenue:
Software licenses	$	110,046			$	154,857			$	141,908
Maintenance and service	172,827				129,712				111,497
Total revenue	282,873				284,569				253,405
Cost of sales:
Software licenses	3,911				8,146				9,277
Amortization	8,786				8,786				8,936
Maintenance and service	26,341				22,106				18,818
Total cost of sales	39,038				39,038				37,031
Gross profit	243,835				245,531				216,374
Operating expenses:
Selling, general and administrative	87,809				87,809				73,417
Research and development	57,530				57,530				54,378
Amortization	3,435				3,435				3,107
Total operating expenses	148,774				148,774				130,902
Operating income	95,061				96,757				85,472
Interest income	2,285				2,285				1,249
Other expense, net	(308		)		(308		)		(1,154		)
Income before income tax provision	97,038				98,734				85,567
Income tax provision	12,758				12,981				22,261
Net income	$	84,280			$	85,753			$	63,306
Earnings per share – basic:
Earnings per share	$	1.00			$	1.02			$	0.74
Weighted average shares	83,931				83,931				85,456
Earnings per share – diluted:
Earnings per share	$	0.98			$	1.00			$	0.73
Weighted average shares	86,152				86,152				87,224

ANSYS, INC. AND SUBSIDIARIES
ASC 606 Reconciliation of Non-GAAP Measures
(Unaudited)
	Three Months Ended
	March 31, 2018
(in thousands, except percentages and per share data)	GAAP Results				Adjustments					Non-GAAP Results
Total revenue	$	282,873			$	401		(1	)	$	283,274
Operating income	95,061				32,351			(2	)	127,412
Operating profit margin	33.6		%							45.0		%
Net income	$	84,280			$	18,784		(3	)	$	103,064
Earnings per share – diluted:
Earnings per share	$	0.98								$	1.20
Weighted average shares	86,152									86,152

(1) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with the accounting for deferred revenue in business combinations.

(2) Amount represents $15.3 million of stock-based compensation expense, $3.1 million of excess payroll taxes related to stock-based awards, $12.2 million of amortization expense associated with intangible assets acquired in business combinations, $1.4 million of transaction expenses related to business combinations and the $0.4 million adjustment to revenue as reflected in (1) above.

(3) Amount represents the impact of the adjustments to operating income referred to in (2) above, decreased for the related income tax impact of $15.0 million and increased for a measurement-period adjustment related to the Tax Cuts and Jobs Act of $1.4 million.

ANSYS, INC. AND SUBSIDIARIES
ASC 605 Reconciliation of Non-GAAP Measures
(Unaudited)
	Three Months Ended
	March 31, 2018													March 31, 2017
(in thousands, except percentages and per share data)	GAAP Results				Adjustments					Non-GAAP Results				GAAP Results				Adjustments					Non-GAAP Results
Total revenue	$	284,569			$	604		(1	)	$	285,173			$	253,405			$	143		(4	)	$	253,548
Operating income	96,757				32,554			(2	)	129,311				85,472				32,111			(5	)	117,583
Operating profit margin	34.0		%							45.3		%		33.7		%							46.4		%
Net income	$	85,753			$	18,936		(3	)	$	104,689			$	63,306			$	14,183		(6	)	$	77,489
Earnings per share – diluted:
Earnings per share	$	1.00								$	1.22			$	0.73								$	0.89
Weighted average shares	86,152									86,152				87,224									87,224

(1) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with the accounting for deferred revenue in business combinations.

(2) Amount represents $15.3 million of stock-based compensation expense, $3.1 million of excess payroll taxes related to stock-based awards, $12.2 million of amortization expense associated with intangible assets acquired in business combinations, $1.4 million of transaction expenses related to business combinations and the $0.6 million adjustment to revenue as reflected in (1) above.

(3) Amount represents the impact of the adjustments to operating income referred to in (2) above, decreased for the related income tax impact of $15.1 million and increased for a measurement-period adjustment related to the Tax Cuts and Jobs Act of $1.4 million.

(4) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with the accounting for deferred revenue in business combinations.

(5) Amount represents $12.0 million of amortization expense associated with intangible assets acquired in business combinations, $10.5 million of stock-based compensation expense, $9.3 million of restructuring charges, $0.1 million of transaction expenses related to business combinations and the $0.1 million adjustment to revenue as reflected in (4) above.

(6) Amount represents the impact of the adjustments to operating income referred to in (5) above, adjusted for the related income tax impact of $17.9 million.

ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Forward-Looking Guidance
Quarter Ending June 30, 2018
	ASC 606			ASC 605
	Earnings Per Share Range - Diluted			Earnings Per Share Range - Diluted
U.S. GAAP expectation	$0.54 - $0.76			$0.72 - $0.85
Adjustment to exclude acquisition adjustments to deferred revenue	$0.02 - $0.04			$0.03 - $0.05
Adjustment to exclude acquisition-related amortization	$0.13 - $0.16			$0.13 - $0.16
Adjustment to exclude stock-based compensation	$0.17 - $0.19			$0.17 - $0.19
Adjustment to exclude acquisition-related transaction expenses	$0.01			$0.01
Non-GAAP expectation	$0.94 - $1.09			$1.13 - $1.19

ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Forward-Looking Guidance
Year Ending December 31, 2018
	ASC 606		ASC 605
	Earnings Per Share Range - Diluted		Earnings Per Share Range - Diluted
U.S. GAAP expectation	$3.29 - $3.94		$3.49 - $3.85
Adjustment to exclude acquisition adjustments to deferred revenue	$0.05 - $0.09		$0.10 - $0.14
Adjustment to exclude acquisition-related amortization	$0.48 - $0.53		$0.48 - $0.53
Adjustment to exclude stock-based compensation	$0.58 - $0.64		$0.58 - $0.64
Adjustment to exclude acquisition-related transaction expenses	$0.02 - $0.03		$0.02 - $0.03
Exclusion of measurement-period adjustments related to the Tax Cuts and Jobs Act	$0.01 - $0.02		$0.01 - $0.02
Non-GAAP expectation	$4.60 - $5.08		$4.85 - $5.04

Use of Non-GAAP Measures

The Company provides non-GAAP revenue, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share as supplemental measures to GAAP regarding the Company's operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to such financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure.

Management uses non-GAAP financial measures (a) to evaluate the Company's historical and prospective financial performance as well as its performance relative to its competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and its employees. In addition, many financial analysts that follow the Company focus on and publish both historical results and future projections based on non-GAAP financial measures. The Company believes that it is in the best interest of its investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested and the Company has historically reported these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results. 

While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all of the Company's competitors and may not be directly comparable to similarly titled measures of the Company's competitors due to potential differences in the exact method of calculation. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures. 

The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below: 

Acquisition accounting for deferred revenue and its related tax impact. Historically, the Company has consummated acquisitions in order to support its strategic and other business objectives. In accordance with the fair value provisions applicable to the accounting for business combinations, acquired deferred revenue is often recorded on the opening balance sheet at an amount that is lower than the historical carrying value. Although this acquisition accounting requirement has no impact on the Company's business or cash flow, it adversely impacts the Company's reported GAAP revenue in the reporting periods following an acquisition. In order to provide investors with financial information that facilitates comparison of both historical and future results, the Company provides non-GAAP financial measures which exclude the impact of the acquisition accounting adjustment. The Company believes that this non-GAAP financial adjustment is useful to investors because it allows investors to (a) evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making, and (b) compare past and future reports of financial results of the Company as the revenue reduction related to acquired deferred revenue will not recur when related annual lease licenses and software maintenance contracts are renewed in future periods. 

Amortization of intangible assets from acquisitions and its related tax impact. The Company incurs amortization of intangible assets, included in its GAAP presentation of amortization expense, related to various acquisitions it has made. Management excludes these expenses and their related tax impact for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by management after the acquisition. Accordingly, management does not consider these expenses for purposes of evaluating the performance of the Company during the applicable time period after the acquisition, and it excludes such expenses when making decisions to allocate resources. The Company believes that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making, and (b) compare past reports of financial results of the Company as the Company has historically reported these non-GAAP financial measures.  

Stock-based compensation expense and its related tax impact. The Company incurs expense related to stock-based compensation included in its GAAP presentation of cost of software licenses; cost of maintenance and service; research and development expense; and selling, general and administrative expense. This non-GAAP adjustment also includes excess payroll tax expense related to stock-based compensation. Stock-based compensation expense (benefit) incurred in connection with the Company's deferred compensation plan held in a rabbi trust includes an offsetting benefit (charge) recorded in other income (expense). Although stock-based compensation is an expense of the Company and viewed as a form of compensation, management excludes these expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company. Management similarly excludes income (expense) related to assets held in a rabbi trust in connection with the Company's deferred compensation plan. Specifically, the Company excludes stock-based compensation and income (expense) related to assets held in the deferred compensation plan rabbi trust during its annual budgeting process and its quarterly and annual assessments of the Company's and management's performance. The annual budgeting process is the primary mechanism whereby the Company allocates resources to various initiatives and operational requirements. Additionally, the annual review by the board of directors during which it compares the Company's historical business model and profitability to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, the Company records stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, management is able to review, on a period-to-period basis, each manager's performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. The Company believes that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the Company's operating results and the effectiveness of the methodology used by management to review the Company's operating results, and (b) review historical comparability in the Company's financial reporting as well as comparability with competitors' operating results. 

Restructuring charges and the related tax impact. The Company occasionally incurs expenses for restructuring its workforce included in its GAAP presentation of cost of software licenses; cost of maintenance and service; research and development expense; and selling, general and administrative expense. Management excludes these expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company, as it generally does not incur these expenses as a part of its operations. The Company believes that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the Company's operating results and the effectiveness of the methodology used by management to review the Company's operating results, and (b) review historical comparability in the Company's financial reporting as well as comparability with competitors' operating results. 

Transaction costs related to business combinations. The Company incurs expenses for professional services rendered in connection with business combinations, which are included in its GAAP presentation of research and development expense and selling, general and administrative expense. These expenses are generally not tax-deductible. Management excludes these acquisition-related transaction expenses, derived from announced acquisitions, for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company, as it generally would not have otherwise incurred these expenses in the periods presented as a part of its operations. The Company believes that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the Company's operating results and the effectiveness of the methodology used by management to review the Company's operating results, and (b) review historical comparability in the Company's financial reporting as well as comparability with competitors' operating results. 

Tax Cuts and Jobs Act. The Company recorded charges in its income tax provision related to the enactment of the Tax Cuts and Jobs Act, specifically for the transition tax related to unrepatriated cash. Management excludes these charges for the purpose of calculating non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company, as (i) the charges are not expected to recur as part of its normal operations and (ii) the charges resulted from the extremely infrequent event of major U.S. tax reform, the last such reform having occurred in 1986. The Company believes that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the Company's operating results and the effectiveness of the methodology used by management to review the Company's operating results, and (b) review historical comparability in the Company's financial reporting. 

Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. 

The Company has provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below: 

GAAP Reporting Measure	Non-GAAP Reporting Measure
Revenue	Non-GAAP Revenue
Operating Income	Non-GAAP Operating Income
Operating Profit Margin	Non-GAAP Operating Profit Margin
Net Income	Non-GAAP Net Income
Diluted Earnings Per Share	Non-GAAP Diluted Earnings Per Share

About ANSYS, Inc.

If you’ve ever seen a rocket launch, flown on an airplane, driven a car, used a computer, touched a mobile device, crossed a bridge, or put on wearable technology, chances are you've used a product where ANSYS software played a critical role in its creation. ANSYS is the global leader in Pervasive Engineering Simulation. We help the world's most innovative companies deliver radically better products to their customers. By offering the best and broadest portfolio of engineering simulation software, we help them solve the most complex design challenges and create products limited only by imagination. Founded in 1970, ANSYS employs thousands of professionals, many of whom are expert M.S. and Ph.D.-level engineers in finite element analysis, computational fluid dynamics, electronics, semiconductors, embedded software and design optimization. Headquartered south of Pittsburgh, Pennsylvania, U.S.A., ANSYS has more than 75 strategic sales locations throughout the world with a network of channel partners in 40+ countries. Visit www.ansys.com for more information.

Forward-Looking Information

Certain statements contained in this press release regarding matters that are not historical facts, including, but not limited to, statements regarding our projections for the second quarter of 2018 and fiscal year 2018 (both GAAP and non-GAAP to exclude acquisition accounting adjustments to deferred revenue, acquisition-related amortization, stock-based compensation expense and acquisition-related transaction costs with related tax impacts); statements regarding management's use of non-GAAP financial measures; statements regarding investing in the business; statements regarding the strength of customer demand for our products; statements related to our intent to move forward with investments in our core products, high-growth adjacent markets and our business infrastructure; and statements regarding the Tax Cuts and Jobs Act are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements in this press release are subject to risks and uncertainties, including, but not limited to, the risk that adverse conditions in the global and domestic markets will significantly affect ANSYS’ customers’ ability to purchase products from the Company at the same level as prior periods or to pay for the Company’s products and services; the risk that declines in ANSYS’ customers’ business may lengthen customer sales cycles; the risk of declines in the economy of one or more of ANSYS’ primary geographic regions; the risk that ANSYS’ revenues and operating results will be adversely affected by changes in currency exchange rates or economic declines in any of the countries in which ANSYS conducts transactions; the risk that the assumptions underlying ANSYS' anticipated revenues and expenditures will change or prove inaccurate; the risk that ANSYS has overestimated its ability to maintain growth and profitability, and control costs; uncertainties regarding the demand for ANSYS' products and services in future periods; uncertainties regarding customer acceptance of new products; the risk of ANSYS’ products' future compliance with industry quality standards and its potential impact on the Company’s financial results; the risk that the Company may need to change its pricing models due to competition and its potential impact on the Company’s financial results; the risk that ANSYS' operating results will be adversely affected by possible delays in developing, completing or shipping new or enhanced products; the risk that enhancements to the Company's products or products acquired in acquisitions may not produce anticipated sales; the risk that the Company may not be able to recruit and retain key executives and technical personnel; the risk that third parties may misappropriate the Company’s proprietary technology or develop similar technology independently; the risk of unauthorized access to and distribution of the Company’s source code; the risk of the Company’s implementation of its new IT systems; the risk of difficulties in the relationship with ANSYS’ independent regional channel partners; the risk of ANSYS’ reliance on perpetual licenses and the result that any change in customer licensing behavior may have on the Company’s financial results; the risk that ANSYS may not achieve the anticipated benefits of its acquisitions or that the integration of the acquired technologies or products with the Company’s existing product lines may not be successful; the risk of periodic reorganizations and changes within ANSYS’ sales organization; the risk of industry consolidation and the impact it may have on customer purchasing decisions; and other factors that are detailed from time to time in reports filed by ANSYS, Inc. with the Securities and Exchange Commission, including ANSYS, Inc.'s 2017 Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether changes occur as a result of new information or future events, after the date they were made.

ANSYS and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

Visit www.ansys.com for more information. The ANSYS IR App is now available for download on iTunes and Google Play. ANSYS also has a strong presence on the major social channels. To join the simulation conversation, please visit www.ansys.com/Social@ANSYS.

Beginning end-of-day June 15, 2018, ANSYS will observe a Quiet Period during which the business outlook as provided in this press release and the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q no longer constitutes the Company's current expectations. During the Quiet Period, the business outlook in these documents should be considered historical, speaking as of prior to the Quiet Period only and not subject to any update by the Company. During the Quiet Period, ANSYS' representatives will not comment on ANSYS' business outlook, financial results or expectations. The Quiet Period will extend until the day when ANSYS' second quarter 2018 earnings release is published, which is currently scheduled for August 6, 2018.

Contact:
Investors:			Annette Arribas, CTP
			724.820.3700
			annette.arribas@ansys.com
Media:			Amy Pietzak
			724.820.4367
			amy.pietzak@ansys.com