But the key and what’s been at the heart of something for not only the last 5 to 10 years, but actually for 40 years is basically what is ANSYS do and we focus exclusively on a field of engineering and it’s related to engineering simulation. And over the course of this, we have actually achieved a position as the leading software provider of this with most of our customer base, which is now close to 40,000 logoed companies trusting us to do stimulation now. In particular, what this says is some of you might be familiar with related fields such CAD/CAM and computer-aided design and PLM.Really, what we focus on is actually being able to make a model of customer’s product, complete product subsystem or whatever and actually put that in the computer doing it early on in the design cycle, where we actually can allow people to put it to its virtual paces, actually seeing how we’ll predict in the real world, how we’ll perform, go through a number of different things, what if the loading environment is 10 times worse than we thought. We actually see on the screen, a nuclear power facility and in that particular case one that recently happened in Japan actually it was subjected to an earthquake, I think roughly a 100 times greater than the design that was characterized toward. But really by being able to subject complicated deigns early on it allows us, if you will to get all the failures out of the way and do it in the virtual world. Really the key is again focusing on that were going to allow customers probably a couple of key things is this technology the equations are been around for 100s of years, in some cases the software is been around for 40 years, although its gone through its many generations as you might expect, very similar to the computers have gone through many generations, but the software has also gone through generation. The key thing is for this technology to work it had to be able to predict with confidence, so in another words the quality of solution was really the key aspect. And as the increases in computing power allowed us to continue to drive the quality of the software, we were able to get to a very predictive aspect.
Many years ago this was good for indicating where potential problems might be, now it’s started to evolving to being able to predict what would happen in the real world. So, that’s really the key, and the driving aspect of this is now being able to allow companies to do predictive studies that allow them to innovate new products not just refine something that they have already been aware of in the real world. And what that does is that opens up new avenues, it opens software automotive companies we’re comfortable with internal combustion design when they need to work toward new generations of cars that hit CAFE standards of 45 miles per gallon.When it gets to hyper drive type of vehicles, when it’s using composite materials instead of or even nano or biological materials, when it’s utilizing things where it doesn’t have a lot of experience we can utilize the computer to allow them to predict. And in reality being able to change with one parameter what might be the impact of using a different kind of material where in the real world, you might have to spend many weeks or months building an actual prototype that would test, so, going through those cycles is key. The key aspects of this and I’d like to go into what our strategy is, what the pressures are to create that market for the next few years and then go through some of the financial performance. Read the rest of this transcript for free on seekingalpha.com