Details on Individual Vendors' Q1 2006 Performances
On April 27, 2006 ANSYS, Inc. announced the results of the first quarter the period ended March 31, 2006. Total revenue for the quarter was $46.0 million, a 22% increase for the $37.6 million in the same quarter a year earlier, and a 5.2% increase from the previous quarter. The $46 million was above the high end of the guidance given a quarter earlier. License revenue of $26.7 million, accounting for 58% of total revenue, was a 31% increase year-over-year, and a 9.5% increase sequentially. Maintenance and service revenue was $19.2 million, accounting for 42% of total revenue. Leases accounted for 19% of total revenue, and paid up licenses for 40%, including $3 million in major account sales.
In the quarter, there were two significant seven-figure deals that closed earlier than expected. During the quarter, recurring revenue accounted for 57% of total revenue. Deferred revenue climbed to $57.7 million, an all-time high.
North American revenue was up more than 40%. European revenue experienced low double digit growth. Revenue from Japan was flat, while revenue from the rest of General International grew by more than 20%, led by India and China. Net income for the quarter was $12.9 million, a 33% increase from the $9.6 million a year earlier, although a slight drop of 3% sequentially. The results for the quarter reflect the recent adoption of SFAS No. 123R, "Accounting for Stock-Based Compensation."
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. Closing was completed on May 1, 2006. With over 40 direct sales offices and 17 development centers, on three continents, the combined company will employ approximately 1,350 people.
On April 27, 2006 ANSYS President and CEO Jim Cashman stated, "ANSYS is off to a strong start in 2006, as evidenced by our record first quarter financial performance. We believe that our first quarter results are further validation that we are headed in the right strategic direction and that we must continue to focus on execution and delivery of our commitments for continued success in the future. Our first quarter results include the further expansion of a long-term customer relationship that contributed significant incremental software revenues for the first quarter. I am very proud that the ANSYS team was able to stay focused on delivering a solid quarter, while at the same time engaging in planning and finalizing logistics related to the upcoming closing of the Fluent acquisition, which is anticipated to occur on May 1, 2006."
On May 18, 2006 Autodesk, Inc. reported the results for the first quarter of its fiscal 2007, the period ended April 30, 2006. Total revenue for the quarter was $436 million, an increase of 23% from the $355 million in the same quarter a year ago and an increase of 4.6% from the $416 million in the just previous quarter. The $436 million was at the high end of guidance given a quarter ago. License revenue of $349 million, accounting for 80% of total revenue, was an increase of 18% year- over-year and an increase of 3.8% sequentially. Maintenance revenue of $87 million, accounting for 18% of total revenue, was an increase of 47% year-over-year and an increase of almost 8% sequentially.
Combined subscription and upgrade revenue in Q1 2006 increased 36% over last year comparable quarter to $162 million. Record subscription attach and renewal rates drove a 47% increase in subscription revenue compared to the first quarter of last year, to $87 million. Deferred subscription revenue increased $39 million sequentially, the highest quarterly increase ever. Upgrade revenue increased 25% over last year to $75 million. Combined revenues from subscription and upgrades continue to represent approximately one-third of total revenues.
Revenue from new seats increased 19%. Revenue from 3D solutions (Inventor, Revit and Civil 3D), constituting 20% of total revenue, was up 53%. More than 31,000 commercial seats of 3D were shipped in the quarter. Revenue from Inventor family of products was up 17%, as the firm shipped more than 10,000 commercial seats in the quarter. Autodesk estimates that only 10% of its customers have moved from 2D to 3D, implying a reservoir of future opportunity.
The Platform segment, which accounts for nearly 50% of revenue, includes AutoCAD and AutoCAD LT products that service multiple markets. Other segments are Building, Infrastructure and Media/Entertainment (previously named Discreet). The Manufacturing segment (which includes the Inventor product lines) grew 32% year- over-year but was down 2% from the prior quarter. A "guesstimate" of "pure MCAD revenue" would be about $140 million for the recent quarter.
The Americas accounted for 39% of total revenue, Europe 37% and Asia Pacific 23%. All geographies had year-over-year and sequential growth. The Americas, with 30% growth relative to the same quarter a year earlier, was particularly strong, although it dipped 4% sequentially.
Net income for the quarter was $48.5 million, down 36% from $76 million in the first quarter a year ago and down 42% from the $83 million in the prior quarter. The quarter's net earnings included $17 million in legal expenses related to a patent infringement suit which the company intended to appeal.