ANSYS, Inc.

Gentlemen, thank you for standing by and welcome to ANSYS' first quarter 2019 earnings conference call. With us today are Ajay Gopal, Chief Executive Officer, Maria Shields, SVP and Chief Financial Officer, and Annette Arribas, Senior Director, Global Investor Relations. At this time, I would like to turn the call over to Ms. Arribas for some opening remarks.

Good morning, everyone. Our earnings release and the related prepared remarks document have been posted on the homepage of our investor relations website this morning. They contain all of the key financial information and supporting data relative to our first quarter financial results and business update, as well as our Q2 2019 outlook and the key underlying assumptions. I would like to remind everyone 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 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 this call and in the prepared remarks, we'll be referring to non-GAAP financial measures unless otherwise stated. A discussion of the various items that are excluded and a full reconciliation of GAAP to comparable non-GAAP financial measures under ASC 606 is included in this morning's earnings release materials and related Form 8K. As we previously communicated, now that we are beyond the first year of adoption of revenue recognition under ASC 606, we will only be providing financial results and outlook under ASC 606. I want to highlight that any comments made relative to revenue growth rates will be comparing 2019 to 2018 results under 606. In closing, I would like to announce that our 2019 Investor Day will be held on Thursday, September 12th in Pittsburgh with a reception and technology showcase event the evening before. Further details around the location, logistics, and the agenda can be found on our IR website. I would now like to turn the call over to our CEO, Ajay Kopal, for his opening remarks. Ajay?

Thank you, Annette, and good morning, everyone. Q1 has given ANSYS an excellent start to the year with strong results across our key performance metrics. We exceeded the high end of our revenue guidance by delivering constant currency revenue growth of 16%. Our operating cash flow was robust, increasing 14% year over year, and we reported record first quarter EPS of $1.29. To reflect the momentum across our business, I'm pleased to announce that we are raising our full year guidance. Maria will provide further details. Our financial success is propelled by a unique multi-physics portfolio and our drive to make simulation pervasive throughout the product lifecycle, a distinct combination that helps our customers solve their most complex product problems. In Q1, we enjoyed success across most of our industry verticals with particular strength in the high-tech sector. Given the unique challenges that high-tech companies face and with our growing momentum in that sector, I would like to highlight ANSYS's value proposition to those companies and some of our successes in the vertical. The high-tech industry stands at a crossroads thanks to megatrends like 5G, AI, autonomy, electrification, and data centers. Those trends, coupled with intense competition across the vertical, are spurring customer innovation, thus driving even higher demand for multi-physics simulation. And that's why hundreds of high-tech leaders, including the vast majority of the top companies in semiconductors, smart devices, telecommunications, and data centers, are using Ansys to address many of their product challenges. For example, customers are increasingly relying on Ansys' unique solution set to make 5G a reality. 5G networks require an unprecedented number of base stations, creating more complex connectivity, energy efficiency, and thermal management challenges. Our solutions help users examine the performance of a base station in large-scale environments to ensure connectivity is maintained while base station placement is optimized. Combined with our chip package system workflow, we can help customers tackle the critical power and thermal management issues on a single platform. In Q1, we closed a deal with an Asian telecommunications company to design and analyze the 5G networks they're building. The company is using ANSYS solutions to increase the performance of antennas in their base stations to accommodate the higher frequencies inherent in 5G communications. After a head-to-head comparison, this telecom customer chose ANSYS because of our complete multi-physics simulation platform. Solutions that help our customers grapple with the complexities of megatrends like 5G are based on our market-leading portfolio, including gold standards such as ANSYS HFSS and ANSYS RedHawk SC. ANSYS HFSS enables users to design and simulate high-frequency electronic products such as antennas, microwave components, high-speed interconnects, IC packages, and PCBs. With its unmatched accuracy, the modern architecture of HFSS empowers users to solve complex electromagnetic and electromechanical problems across hundreds of cores and enables customers like Samsung, NVIDIA, and Ericsson to develop amazing products. We continue to extend our leadership with HFSS through our recent releases as well as through strategic acquisitions. In Q1, we released our EMI scanner, which is new functionality in HFSS to quickly identify areas of potential electromagnetic interference on PCB designs prior to simulation. This helps customers to eliminate errors while speeding time to market. And as we discussed on our last call, we further expanded our leadership in the electronics industry in Q1 with the acquisition of HELIC, the industry-leading provider of electromagnetic crosstalk solutions for systems on a chip. The acquisition of HELIC, combined with ANSYS's flagship electromagnetic and semiconductor solvers, provides a comprehensive solution for on-chip 3D integrated circuit and chip packet system electromagnetics and noise analysis. Reaction has been overwhelmingly positive, with industry leaders praising us for combining the best technology for off-chip electromagnetics in HFSS with the most innovative on-chip electromagnetics technology in HELIC. DFR Solutions, our latest acquisition which closed this week, is helping customers address their product challenges by ensuring the reliability of their electronics. DFR Solutions is the leading provider of automated design analysis software and comprehensive services for electronic component and material supply chains. DFR bolsters our electronics reliability capabilities with an automated designer-level solution to quickly and easily analyze the potential for electronics failures. And I'm excited to welcome the DFR team into the Ansys family. Moving to our semiconductor solutions, Ansys RedHawk SC is the world's first purpose-built big data system for the semiconductor industry. And I'm proud to say that 100% of our seven nanometer base is using RedHawk SC which is undefeated in all head-to-head technical benchmarks. Our customers and foundry partners recognize that Ansys is accelerating its leadership in chip packet system multiphysics with innovative new products like RedHawk SC, with integrated workflows using our flagship solvers such as HFSS, and with our targeted technology acquisitions. TSMC the world's largest semiconductor foundry, has recognized Ansys with Partner of the Year awards in each of the last three years. And in Q1, they certified our semiconductor solutions for SOIC advanced 3D chip stacking technology. Our work on developing solutions for the high-tech industry is paying off. In Q1, Seagate Technology, a world leader in precision-engineered data storage and management solutions, entered into a multi-year enterprise agreement expanding the use of Ansys simulation software worldwide. Demands on Seagate's development teams are increasing. Reaching capacity, performance, and environmental goals on schedule increasingly requires more simulation across all engineering disciplines. Ansys' solutions deliver technical and business value, helping Seagate maximize data's potential. Similarly, LG Electronics also inked a new enterprise agreement with Ansys to help support the company's continued commitment to delivering highly innovative mobile devices, home entertainment, and appliance applications to customers worldwide. LG expects this expanded access to our multi-physics suite to drive innovation, shortened product development cycles, and accelerated product design. Moving away from high technology, we have seen considerable traction with another recent acquisition, Granta Design, the premier provider of materials information technology. In early Q2, Ansys closed the largest deal in Granta history at a leading aerospace company to enable materials intelligence and materials data management across their organization. This deal was made possible by the combination of Granta's mission-critical technology the long-standing relationship the customer has had with Ansys, and their confidence in Ansys' ability to successfully integrate Granta. We're also enjoying success with our key partnerships. For example, our award-winning Discovery Live solution, which brings real-time simulation capabilities to design engineers, is reaching new audiences thanks to our partnership with PTC. During Q1, PTC released Creo Simulation Live, embedded with Ansys Discovery Life technology. During its earnings call last week, PTC reported that it had already booked deals with 70 customers. As previously discussed, we expect the near-term financial impact to be immaterial, but we see upside in the longer term. Similarly, SAP showcased its predictive engineering insights enabled by Ansys solution at the Hannover Messe Industrial Fair in Germany. Their designed-to-operate demo featured an automated fluid handling system designed by packaging and bottling machine manufacturer PRONES, which showcased digital twin capabilities enabled by ANSYS. And just recently, SAP and ANSYS highlighted joint success with a leading air compressor company. Using the SAP ANSYS solution, the company is able to streamline its customer delivery time from months to hours by eliminating the need for engineering teams to perform detailed technical customization and analysis work. Predictive engineering insights empowers field-based sales teams to save critical time and engineering resources. With our strong Q1 financial results, our continued momentum in high-growth industry verticals such as high-tech, our investment in leading technology, and our focus on expanding the value from our partnerships and our acquisitions, we remain confident that we will achieve our goals and objectives. Like our customers, we're focused on innovation, on solving the toughest problems, and on delivering results. We believe this is a winning combination and our performance speaks for itself. And with that, I'd like to turn the call over to Maria. Maria?