International business continues to be solid despite the news background. The United Kingdom is the only European country that is seriously readjusting its economy at this point, downsizing government involvement. That change promises to establish a firmer footing over the long haul. Short term, though, the austerity measures have had a moderately negative effect on Ansys. If that process spreads to the rest of Europe further temporary pressures could arise. Nonetheless, the impact on the company is likely to be modest, since 70%-75% of sales are recurring and demand for engineering productivity tools is likely to keep rising. Acquisitions could pick up some of the slack, moreover. Ansys is the industry leader by a wide margin but there are attractive niche participants who could round out the company's product line or expand its customer base.
( Click on Table to Enlarge )