Ansys net income rises 35% in fourth quarter

Unlike its CAD/PLM colleagues, Ansys continues to set revenue records every quarter.

By Randall S. Newton

Ansys today reported fourth quarter and full year 2013 revenue, showing once again that simulation and analysis continues to outperform CAD/PLM in design automation. Fourth quarter revenue was $236 million, up 6.9% from 4Q12. Full year 2013 revenue was $861.3 million, up 7.9%.

Net income for the fourth quarter was $75.9 million, up 35%. Net income for all of 2013 was $245.3 million, up 20%.

Fourth quarter details

Revenue breakdown:

Revenue from software licenses: $147.7 million, up 24% from 4Q12
Revenue from maintenance and service: $88.2 million, up 12% from 4Q12
North America revenue: $81.8 million, up 16% from 4Q12
Europe revenue: $83.7 million, up 24% from 4Q12
Rest of world revenue: $70.4 million, up 17% from 4Q12.

Percentage of revenue by type:

Lease: 33%
Paid-up license fees: 30%
Annual software maintenance: 34%
Services: 3%.

During the fourth quarter, Ansys recorded 33 orders in excess of $1 million, comparing to 22 such orders a year earlier. Direct sales accounted for 75% of revenue in the quarter, while indirect sales (VAR accounts) contributed 25%.

Despite the continued downturn, Japan still contributes more than 10% of Ansys revenue.

Full year details

Revenue breakdown:

Revenue from software licenses: $528.9 million, up 5% from FY12
Revenue from maintenance and service: $332.3 million, up 12% from FY12
North America revenue: $306 million, up 10% from FY12
Europe revenue: $295.1 million, up 13% from FY12
Rest of world revenue: $259.6 million, down 0.5% from FY12.

Percentage of revenue by type:

Lease: 35%
Paid-up license fees: 27%
Annual software maintenance: 36%
Services: 3%.

Without breaking it out as a percentage of revenue, Ansys says it continues to see “robust interest” in its high-performance computing (HPC) products and services. “HPC adds tremendous value to engineering simulation by enabling the creation of large, high-fidelity models that yield accurate and detailed insight into the performance of a proposed design,” notes the company’s prepared remarks.

Regional issues

Despite 10% growth in North American in 2013, Ansys says the region is cautious in certain markets. There was very little “budget flush”—large year-end spending—from its major North American customers. Germany recorded double-digit revenue growth in both the fourth quarter and all of 2013. The “rest of world” market (which Ansys calls its General International Area) was weak by comparison with Europe and North America in 2013. Korea was strong, but Japan, China, India, and Brazil were “relatively weak.”

L. Stephen Wolfe, P.E., a contributing analyst for Jon Peddie Research, provided research for this report.

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