Ansys Inc. has a market cap of $4.58 billion; its shares were traded at around $49.94 with a P/E ratio of 23.8 and P/S ratio of 7.9. Ansys Inc. had an annual average earning growth of 24.6% over the past 10 years. GuruFocus rated Ansys Inc. the business predictability rank of 5-star.
Highlight of Business Operations:During the six months ended June 30, 2011, the Company repurchased approximately 247,000 shares of treasury stock for $12.7 million at an average price of $51.34 per share. The Companys financial position includes $630.3 million in cash and short-term investments, and working capital of $506.8 million as of June 30, 2011. The Company has outstanding borrowings under its term loan of $148.8 million.
Amortization: The decrease in amortization expense was primarily a result of an $800,000 decrease in amortization of acquired software, partially offset by a $100,000 increase in amortization of an acquired trademark.
Research and Development: The increase in research and development costs was primarily a result of increased salary and headcount-related costs, including incentive compensation, of $2.3 million, increased stock-based compensation expense of $500,000 and increased consulting costs and depreciation each of $200,000.
Interest Income: Interest income for the quarter ended June 30, 2011 was $712,000 as compared to $422,000 during the quarter ended June 30, 2010. Interest income primarily increased as a result of an increase in invested cash balances.
Income Tax Provision: The Company recorded income tax expense of $19.2 million and had income before income taxes of $64.6 million for the quarter ended June 30, 2011. This represents an effective tax rate of 29.7% in the second quarter of 2011. During the quarter ended June 30, 2010, the Company recorded income tax expense of $16.2 million and had income before income taxes of $51.7 million. The Companys effective tax rate was 31.3% in the second quarter of 2010.
Net Income: The Companys net income in the second quarter of 2011 was $45.4 million as compared to net income of $35.5 million in the second quarter of 2010. Diluted earnings per share was $0.48 in the second quarter of 2011 and $0.38 in the second quarter of 2010. The weighted average shares used in computing diluted earnings per share were 94.2 million in the second quarter of 2011 and 93.1 million in the second quarter of 2010.
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