The “transformational advantage” of simulation propels strong sales despite recession, as ANSYS bucks the trend in technical software with a big 2009.
ANSYS (NASDAQ: ANSS) completely bucked the trend in technical software with full year 2009 results that showed continued growth instead of retraction. For fiscal year 2009 (ending December 31, 2009) ANSYS revenue was $516.9 million, up 8% as compared to $478.3 million in 2008. For the fourth quarter of 2009, revenue was $150.4 million, up 11% compared to $135.3 million in 2008.
ANSYS net income for 2009 was $116.4 million, up 4% compared to $111.7 million in 2008. In the fourth quarter net income was $37.6 million, up 17%
compared to $31.9 million a year earlier.
ANSYS reported an operating profit margin of 40.1% for the fourth quarter (up from 33.8% year-over-year) and an operating profit margin of 35.5% for all of 2009, identical to its full-year margin in 2008. Operating cash flow in the fourth quarter was $44.9 million; for the full year it was $173.7 million.
Software license revenue in the fourth quarter was $95.6 million, up from $90.4 million year-over-year. Maintenance and service revenue in 4Q09 was $54.7 million, up from $44.9 million in 4Q08. For the full year software license revenue was $315.6 million, down slightly from $318.1 million in 2008. Maintenance and service revenue for all of 2009 was $201.3 million, up from $160.2 million in 2008.
Cash per share on December 31, 2009 was $3.87.
The Final Analysis
ANSYS CEO James Cashman says the company’s “core thesis was validated and amplified” in 2009, and we can’t argue. “Simulation not only provided transformational advantage to our customers in difficult times, but also aided in the survival of companies during increasingly competitive times.” Not only ANSYS but all its competitors in CAE are winning new business as manufacturers find new reasons to dive more deeply into simulation and analysis, and to do so earlier in the design/engineering workflow. As we have written before, the current generation of workstation technology turns what used to be hours of simulation into minutes.
ANSYS was a serial acquirer until 2009, and was using the acquisitions to keep 20%+ growth running through the good years. Now that the revenue is all organic (Ansoft, the last acquisition, has been inside ANSYS more than a year), the growth has slowed?but in this economic environment any
growth is better than none. §
Five charts follow.