MCAD Industry View — A March 2006 Update

Table 1 also reveals that all the vendors covered here showed year-over-year quarterly revenue growth. In descending order Autodesk, Dassault Systèmes, UGS, PTC and ANSYS enjoyed significant year-over-year revenue growth in the range of 12% to 17%. On a sequential basis, PTC and ESI-Group had about a 1.5% decline in revenue. Dassault, with its usual strong fourth quarter, led the group with 39% sequential growth. UGS, Moldflow, ANSYS and Autodesk had low double digit growth relative to the just prior third quarter.

Figure 1 below provides a bar graph showing the revenue trend for each of the covered vendors, for the periods mentioned in Table 1.

Figure 1 - Quarterly Revenues of the G7 MCAD Vendors
(US $ Millions)

Figure 2 - Relative Sizes by "Q4" Reported Revenue
(Excludes MSC.Software)

For the last quarter, Autodesk was the clear revenue leader with 31% of the total for the group. Dassault and UGS were neck and neck with 26% and 24%, respectively. (Figure 2)

(As always, it needs to be pointed out that unlike the other vendors in this report, Autodesk earns an important percentage of its revenue outside of the MCAD space. Autodesk does not break out its mechanical contribution. Also, both Autodesk and Dassault Systèmes sell mostly through third parties, while UGS sells mostly direct).

Company Last
ANSYS 13 11 2 12 1.0
Autodesk 83 94.5 (11.5) 65.8 17.2
Dassault (€) 69 37.8 31.2 60.1 8.9
Dassault ($) 82.1 46.1 36.0 78.1 4.0
ESI Group (€) N/A N/A      
ESI Group ($) N/A N/A   N/A  
Moldflow (0.1) 0.0 (0.1) 1.6 (1.7)
PTC 7.5 17.3 (9.8) 19.2 (11.6)
UGS PLM 12.9 (4.8) 17.7 8.4 4.5
Total 198.7 164.3 34.4 185.3 13.3
Table 2 - Quarterly earnings of G7 MCAD Vendors (US$ Millions)

See Table 2 for the earnings report. As a group, the MCAD vendors had earnings of $199 million, a modest 7% increase over the combined $185 million in earnings for the fourth quarter of 2004, and a 21% increase relative to $164 million in the sequential third quarter. All the vendors save Moldflow were profitable in the last quarter. Autodesk sported the largest year-over-year earnings percentage increase at 26%. ANSYS and Dassault were far behind at 8% and 5% earnings growth, respectively. PTC and Moldflow suffered declining earnings relative to the same quarter a year ago. On a sequential basis, all but Autodesk and PTC had improved earnings. Moldflow earnings were essentially flat.

Details on Individual Vendors' Q4 2005 Performances

On February 16, 2006 ANSYS, Inc. announced its financial results for the fourth quarter and the year, the periods ending December 31, 2005. Total revenue for the quarter was $43.7 million, an increase of 12% from the $38.9 million in the fourth quarter of 2004 and a 12% rise from the $39 million in the third quarter. The $43.7 million revenue for Q4 was above the guidance given in the prior quarter. Software license revenue at $24 million, accounting for 56% of total revenue, was up 11% year-over-year and 16% sequentially. Maintenance and service revenue at $19 million, accounting for 44% of total revenue, was up nearly 15% year-over-year and 7% sequentially. Repeatable revenue accounted for 60% of total revenue. The high end Multiphysics product line led revenue growth and was up 25% for the quarter and for the year.

All US offices except Houston had 20% year-over-year quarterly growth. Europe was up 14% year-over-year in real quarterly terms and up 20% for the year. When currency conversion is considered, the growth was 20% for both the quarter and the year. The percentage growth for year was 20% before and after currency effects. GIA grew 30% in the quarter and 23% in the year. Japan grew 26% in the quarter and 17% in the year. China had very strong growth. India had over 45% growth in both the quarter and in the year.

As reported above in News Highlights, on February 16, 2006 ANSYS announced a definitive agreement to acquire Fluent, Inc., a global provider of computer-aided engineering simulation software, in a stock and cash transaction valued at approximately $565 million. Under the terms of the agreement, ANSYS will issue six million shares of its common stock and pay approximately $300 million of net cash to acquire Fluent, subject to certain adjustments at closing.

On October 2005 the firm acquired substantially all of the assets of Harvard Thermal, Inc., a leader in thermal analysis software tools.

Jim Cashman, ANSYS President and CEO, said, "This past year was a period of significant growth for ANSYS in terms of continued advancement and expansion of technologies, as well as very solid financial performance. We completed fiscal 2005 with record results and continued strong momentum as ANSYS' value proposition gained further acceptance with our diverse, global customer base. The Company's overall performance in 2005 provides further validation that our business is operationally sound, financially strong and strategically on track."

On February 28, 2006 Autodesk, Inc. announced financial results for its fourth fiscal quarter ended January 31, 2006. For the fourth quarter, Autodesk reported record net revenues of $417 million, a 17% increase over $356 million reported in the fourth quarter of the prior year and 10% increase over the $377 million reported in the third quarter. On a constant currency basis, revenues increased 23% year-over-year. The $417 million was above the guidance given last quarter.

License revenue in the quarter was $336 million, accounting for 81% of total revenue. This was an 11% increase both year-over-year and quarter-over-quarter. Maintenance revenue in the quarter was $80 million, accounting 19% of total revenue. This was a 53% increase over the $304 million in the same quarter a year ago and a 9% sequential increase over the $377 million in Q3 2005.

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Review Article
  • October 09, 2008
    Reviewed by 'Brian'
    I really feel the liberal Political points of views are unnecessary for this type of new letter. I have commented on this before to the editor and he said there was several comments of the same concern and that something would be done about it. It seemed to calm down for a while and now it’s back. This seems to be from the very liberal side (Which seem to thrive in big cities i.e.:S.F. and our educational institutions) which in fact is the minority of this country by far. It’s just that they take polls that always seem to back up there view and flash them all over and then when it comes time for elections the polls are blown out of the water . Bottom line there is no place for this one sided view in this type of publication. Again I will see if things are rectified and if not I will campaign to all the people in this type of work to boycott this otherwise great CAD News tool. It's easy to grap liberal ammo from our large liberal media.


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  • October 09, 2008
    Reviewed by 'Kurt'
    An informative article until the Geopolitical & Economic Factors heading. I agree with the two posters above- this is an entirely different topic that belongs elsewhere.

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  • October 09, 2008
    Reviewed by 'Jay'
    I fail to understand why the authors feel so compelled to include their clearly biased and subjective rants against the Bush administration at the end of what otherwise appears to be an informative well-researched article. By injecting that into the article one has to wonder whether they harbor other biases that effect their reporting. More importantly, there is no relevance to their “Geopolitical & Economic Factors” to a report on the MCAD industry. No doubt, they would argue these topics must be reported on to offer a well-rounded review of the industry within the context of the economy in which it operates. However, this is not reporting, it is nothing more than a string of adjectives incorporated into one-sided rant that clearly exposes the author’s biases.

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