Tuesday, July 10, 2012

Ansys ( Nasdaq - ANSS ) -- Macroeconomic Headwinds

Ansys (ANSS $58.00) appears on track to report excellent on target Q2 results.  The company is the leading provider of engineering simulation software used in a wide range applications.  Sales are geographically diversified.  About 75% of revenues are recurring, as well.  New orders have been expanding at a 10%-15%, with an incremental boost provided by a recent acquisition.  Margins are being sustained at exceptional levels, providing plenty of ammunition for further transactions.  Organic growth may moderate slightly in upcoming periods due to slowing economic growth in the United States and Europe.  Asian demand remains robust, though.  And even in the more mature regions demand remains solid because companies require the expertise to stay competitive.  Above average gains are likely to be maintained in 2013 even if the economic slowdown lingers.  Our estimates are unchanged.

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