July 19, 2010
ANSYS turns 40!
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In the last three calendar years alone, ANSYS has registered revenues of $385 million in 2007, $478 million in 2008 and $516 million in 2009. Its GAAP net income in these three years was $82.4 million, $111.7 million, and $116.4 million, respectively.
Financial success has continued into the current year. On May 06, 2010
ANSYS announced excellent financial results for the first quarter ending March 31, 2010.
Total revenue was $136.1 million, with net income of $32.4 million.
Assuming the worldwide economic recovery is not too damaged by the tragedy of the Deepwater Horizon oil spill, ANSYS expects the following for the full year ending December 31, 2010: revenue of $560 to $580 million and net income in the neighborhood of $136.1 million.
Such results would mean a compound growth rate (CGR) of ~14.5% on revenue and a CGR of ~18% on net income over the four year period.
ANSYS has been a public company since June 21, 1996. Adjusting for dividends & splits, its stock closed at $3.00 per share on the day of the IPO, and the NASDAQ Composite closed at 1244.42. Exactly fourteen years later, ANSYS stock (ANSS) closed at $43.83 and the NASDAQ at 2309.80.
Over the 14 years, ANSS has enjoyed a stock price growth factor of 43.83/3.00, or 14.61; the NASDAQ growth factor over the same period was 2309.80/1244.42, or 1.86.
ANSYS has also
achieved excellent balance in its recent revenue generation, with 34% coming from North America, 35% from Europe and 31 % from the rest of the world:
Moreover, ANSYS revenue is also well balanced across industries:
ANSYS also enjoys excellent market penetration today. ANSYS has well over 34,000 total customers, and it counts as customers some 97 of the top 100 industrial companies on the FORTUNE Global 500 list. See for example Footnote  about the Volkswagen Group.
And the future bodes well: Fewer than 10% of the world's ~13 million engineers have licenses to use simulation solvers from ANSYS and all competitors combined! And each year another several hundred thousand engineers are graduating worldwide.
VII EFFECTIVE ACQUISITION STRATEGY:
Over the last decade, ANSYS has carried out its acquisitions very effectively, thanks to the discipline of a strict strategy that has been relentlessly pursued. It involves the following minimum criteria for an acquisition candidate:
– Must be able to integrate into ANSYS Workbench™ platform
– Must possess proven technology
Meeting these ANSYS criteria have been the following entities since the year 2000 began (Table 2):
The 2008 acquisition by ANSYS OF
Ansoft was the most recent and one of the larger ANSYS transactions in the decade just ended. A detailed explanation of the purpose of the deal, and all the particulars are posted on the ANSYS web site at:
As one might expect, ANSYS constantly monitors it competition, especially when it comes to providing multi-physics (MP) attributes. On the one hand, it's reassuring to ANSYS management to observe that demand for the marketplace is driving many ANSYS competitors to seek ways to offer some form of MP capacity. On the other hand, ANSYS must focus fresh resources every day to ensure that its MP tools continue to provide best-in-class, most comprehensive and fully-integrated MP capabilities, a position ANSYS believes it is in today.
Currently ANSYS lists about a dozen outside “niche” vendors or “full-service”
vendors that offer some level of MP features, against a double-digit list of key MP
domains, assessing whether each element in the matrix may be classified as “no capability at all, limited, medium, good or high-level general purpose” in nature. The lists are growing along both axes - vendors and domains. The writer has discussed the current matrix with the ANSYS technical marketing team, and he believes that ANSYS' claim to lead the parade at the present time is indeed credible. While it would be impolitic to identify the outside vendors by name, the current list of domains includes Computational Fluid Dynamics (CFD), Electromagnetics, Explicit Dynamics, Structural Mechanics, Mechatronics, MultiBody Dynamics, Knowledge Management, and more.
As previously mentioned, ANSYS firmly believes that any critical MP domain that it offers must be “high level general purpose”. If such a new domain cannot be organically developed in house, ANSYS believes that the outside entity providing the new domain should be acquired and smoothly folded into the ANSYS organization and software if at all possible. A bare-bones minimum requirement is that a partnership be structured to ensure tight integration of the domain, if the supplier chooses to remain independent.
ANSYS employs a similar approach in evaluating itself against competition in all critical areas of software features, functions and user benefits.
IX ONE FINAL EXCELLENT MEASUREMENT OF SUCCESS:
The performance of ANSYS equity over the last decade is shown in the following chart. It speaks for itself:
As of June 19-20, 2010, ANSYS' Market Capitalization was $3.97 billion.
X PERFORMANCE RECOGNIZED:
Both ANSYS, Inc. as a company and Jim Cashman as CEO have received massive business and industry recognition and accolades over the years.
Some of these are listed in Footnotes  RECOGNITION AND ACCOLADES and  ANSYS RECENT PRESS RELEASES.
XI ANSYS CEO'S:
Despite its relatively long history, ANSYS has had only three CEO's. As mentioned, Jim Cashman has been the president and CEO from the year 2000 up to the present time. Jim was preceded by Peter J. Smith, who was CEO till 2000; Peter still serves as Chairman of the Board. Before that, Founder John Swanson held sway until he became the firm's Chief Technologist, and he retired in that capacity in 1999.
Please see Footnote  for more background on both John Swanson and Peter J. Smith. Jim Cashman's profile is provided directly below this paragraph.
XII PROFILE OF JAMES E. CASHMAN III:
James E. Cashman III
James E. Cashman III was born in
Hamilton OH in August 1953, the only child of James Cashman, Jr. and Marjorie Cashman. (Hamilton is in Southwestern Ohio, only 25 miles due north of the writer's initial Cincinnati home, where he was 12 years old and in the 7th grade in 1953).
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