Profit margins are exceptional, in the 50% pretax area. Approximately 70% of sales are recurring in nature. So cash flow is abundant, enabling the company to pay what it needs to in order to make key acquisitions. Organic growth has slowed due to the worldwide recession. It now is 5%-10% compared to a more customary 15%. But acquisitions are reinforcing the uptrend, while making Ansys increasingly protected from competition. Most end markets remain in early stages of development. New inventions are likely as time goes by, buttressing the long term outlook. Emerging markets offer great opportunity, as well. Above average growth could be sustained well into the decade.
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