ANSYS ISSUES LETTER TO INVESTORS - Seite 2
Thanks to our recent investments in collaboration technologies and updated infrastructure, our employees are able to work remotely in an effective manner. Our direct and indirect sales and support teams are using this technology to access both Ansys’ data centers and the public cloud, and to meet virtually with customers to ensure their needs are being met while working to mitigate disruptions to our sales pipeline.
Similarly, the vast majority of our customers are also being forced to work from home – and Ansys is well positioned to support them in their virtual offices. We have created relaxed licenses that allow customers to temporarily access Ansys software without having to rely on bottlenecked virtual private networks. Customers can also remotely access their corporate data centers – and have access to burst compute capacity thanks to our native cloud offerings. We have expanded the cloud capabilities we introduced last year on Microsoft Azure, enabling customers to test their product designs remotely.
With the recent expansion of many shelter-in-place regulations, we have also recently extended the time period for these offers to enable our customers to continue to use Ansys software remotely. This expansion is helping customers to continue to take advantage of Ansys simulation benefits, such as enhanced productivity as well as faster time to market with reduced development costs.
Thanks to our fiscal discipline, we have a strong balance sheet, great liquidity as well as access to credit, when and if we need it. Also, as a reminder, 77% of Ansys’ annual contract value last year was of a recurring nature, meaning customers continued to pay for access to our simulation technology and ongoing enhancements. It is also important to remember that our business is highly diversified, both from a vertical and a geographical perspective. Our strength across multiple industries, including high-technology, aerospace and defense, automotive, industrial equipment and energy helps to insulate us against a downturn in specific markets. Similarly, about 40% of our revenue comes from North America with the rest split roughly evenly between Asia and Europe.