Unexpected tax in Japan causes Ansys earnings to slip in fourth quarter

Revenue growth was in line with Ansys’ usual strong showing. The company is projecting total revenue in 2012 of over $800 million.

ANSYS (NASDAQ: ANSS) today reported fourth quarter and fiscal year 2010 results in line with their recent history of strong growth. Net profit for the quarter slipped due to a new and unexpected tax on earnings in Japan, assessed in November 2011. Ansys shares were down 4% to 63.08 on the news as the charge caused Ansys earnings to come in lower than Wall Street expected.

For the fourth quarter (ended December 31, 2011), total revenue was $198.2 million, up 19% from $166.6 million in 4Q10. This is a single-quarter record for Ansys revenue. The recently acquired Apache Software contributed $14 million in the quarter; without the Apache boost revenue would have grown about 6% year-over-year. For the year, Apache’s contribution boosted growth from 15% to 19%.

Software revenue in the fourth quarter was $128.1 million, up 21% from $105 million in 4Q10. Maintenance and service revenue in 4Q11 was $70.1 million, up 14% from $61 million in 4Q10.

Net income for 4Q11 was $47.5 million, down from $49.1 million a year earlier. Ansys took an unexpected charge of $4.8 million against net income due to the new tax in Japan.

Revenue for all of 2011 was $691.4 million, up 19% from $580.2 million in 2010. Of that, software revenue in 2011 was $425.8 million, up 21% from $351 million in 2010; maintenance and service revenue for all of 2011 was $265.6 million, up 15.8% from $229.2 million in 2010.

Net income in 2011 was $180.6 million, up 20% from $153.1 million in 2010.

For the first quarter of 2012, Ansys is expecting revenue to be in the range of $182 million to $189 million. For all of 2012 Ansys is estimating revenue to be in the range of $804 million to $826 million.

Cash per share on December 31, 2011 was $5.11, up from $4.41 three months ago. Ansys is still rebuilding its cash hoard following the Apache acquisition.

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