ANSYS held an unusually-long Q3 conference call, as a lot of Wall Street types who were
unfamiliar with the company tuned in for the first time since ANSYS joined several new
indices. The company took questions for close to an hour, following the typical presentation
by CEO Jim Cashman and CFO Maria Shields. Additional details:
– Total Q3 revenue was up 37% from last year, as organic revenue grew 19% and Ansoft
contributed $17.1 million in the two months since the acquisition closed. That’s good —
Ansoft reported revenue of $23 million for the quarter ending October 31, 2007, so $17.1
would be even to or slightly ahead of last year’s run-rate. Clearly, Ansoft customers have
confidence in the ANSYS/Ansoft merged entity.
– Paid-up license revenue was up 61% from last year, up 25% organically — most of Ansoft’s
license revenue fell into this category.
– The lease business grew more slowly, at 17% for the quarter, but Cashman expects this to
pick up a bit as economic concerns among its customers make this option more attractive.
– On a geo basis, Europe remains ANSYS’ strength, with revenue up 31% led by Germany,
up over 40%. Growth in Europe was largely organic. The General International Area (GIA)
was up 65% in total, with the rest of the region growing more quickly than Japan’s 55%
growth rate. Organic revenue was up 31% — recall that most of Ansoft’s business was in
Asia. North American revenue was up 25%.