Ansys Inc's Business Segments

ANSYS, a Delaware corporation formed in 1994, develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia, including aerospace and defense, automotive, electronics, semiconductors, energy, materials and chemical processing, turbomachinery, consumer products, healthcare, and sports. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for fast, efficient and cost-conscious product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS® suite of simulation technologies through a global network of independent resellers and distributors (collectively, channel partners) and direct sales offices in strategic, global locations. It is the Companys intention to continue to maintain this hybrid sales and distribution model.

The registrant's revenue primarily comes from licensing computer software products and related maintenance contracts. These contracts may include combinations of products, maintenance, and services, which are accounted for as separate performance obligations with different revenue recognition methods. Revenue from perpetual licenses is recognized upfront upon delivery of the licensed product or the utility enabling customer access to authorization keys, provided an enforceable contract exists. Perpetual licenses are generally sold with post-contract support (PCS), which includes unspecified technical enhancements and customer support. The value of bundled perpetual licenses and PCS arrangements is allocated based on the standalone selling prices of the products and services.