Growth in the first quarter of 2010 was spread across all regions and all product lines. Maintenance revenue is back at pre-recession levels.
Breaking down revenue, software license revenue was $81.6 million, up 15.7% from $70.5 million a year ago. Maintenance and service revenue in 1Q10 was $54.5 million, up 18.9% from $45.8 million in 1Q09.
ANSYS is again issuing guidance. For the second quarter of 2010 (ending June 30, 2010) the company expects revenue in the range of $135 million to $140 million. For the full year, ANSYS estimates total revenue will be in the range of $560 million to $580 million.
Growth in the quarter was spread across all major geographic regions. Sales in North America were up 17%, in Europe sales were up 13.5%, and in the rest of the world sales were up 20%. Excerpts from the larger regions shows there were some hot spots, and one cool one. Sales in Japan were up 20.1%, the UK was up 12.9%, but sales in Europe without the UK were down 1.1%.
Net income was $32.4 million, up 53% from $21.1 million a year earlier. Operating income was $49.6 million, up 42.5% from $34.8 million in 1Q09. Earnings per share in the first quarter were $0.35, up from $0.23 a year earlier.
Cash per share on March 31, 2010 was $4.34. ANSYS has $2 on hand for every $1 in debt.
The Final Analysis
Repeat customers galore. A set of highly regarded products in the best-selling segment of PLM. A smoothly digested Ansoft acquisition from 2008. Favorable currency differences. ANSYS continues to lead a charmed life. §
Four charts accompany this report.
Contributing Analyst L. Stephen Wolfe, P.E. Contributed research for this report.