The EDA & MCAD/MCAE Almanac – Nominal Q2 2012

  •  Turning to Earnings in Table 2, we observe the leadership in total $ profit and “general” profitability of the G4 MCAD/MCAE vendors listed  over their EDA brethren, the result of both larger total revenues and a larger % Return on Sales (ROS). HOWEVER, the EDA return on sales % is not too far below that of their MCAD/MCAE brethren, especially so in the most recent quarter Q2 2012, where the EDA ROS % came in only 1% less than the MCAD/MCAE %, 13% TO 14%, RESPECTIVELY.


    Table 1 - Revenues


    1 Notice that these Table 1 columns calculate the percentage of one quarter over the other, as labeled, whereas in Table 2 below, the relevant columns provide the numerical dollar differences in earnings between two different quarters as labeled.


    Table 2 -­ Earnings


    3 Notice that these Table 2 columns calculate the numerical dollar differences in earnings between two different quarters as labeled, whereas in Table 1, the relevant columns provide the percentage of one quarter over the other, as labeled.



    This is where the typical EDA and MCAD Commentary ends, followed by a few concluding  paragraphs about the writer.

    However, for the record, I promised some background:


    Basic Contents

    The minimum level of contents of these “Almanac” Commentaries consists of reports on the financial results on a quarterly basis of a number of publicly-held EDA and/or MCAD/MCAE vendors selected by the writer.

    Where feasible, certain vendor companies have been consistently included for reports posted every three months since the inception of these commentaries in 2003. Examples of this category are Cadence, Mentor Graphics, and Synopsys on the EDA side; and ANSYS, Autodesk, Dassault Systemes and PTC on the MCAD/MCAE side.

    The EDA & MCAD/MCAE series is complemented by similar but separate quarterly reports that cover selected vendors in the important EDA subset of Electronics Intellectual Property (IP) Industry vendors, such as ARM Holdings plc and Rambus.


    Beginning in 2003, each of the three categories ( EDA, MCAD/MCAE, and IP ) initially included vendor reports of other companies as well, but each category has since been gradually reduced in terms of the number of vendors covered over the last 10 years, mostly by virtue of a very active acquisition culture peculiar to this general industrial category.

    Indeed, nine [9] vendors were chosen in early 2003 to represent the MCAD/MCAE market space. The entities initially covered were (1) ANSYS, (2) Autodesk, (3) Dassault Systèmes, (4) UGS PLM, (5) ESI Group, (6) Moldflow, (7) MSC.Software, (8) PTC and (9) Tecnomatix. 

    Likewise, in 2003 the junior circuit consisted nine [9] EDA software companies for ongoing coverage. Alphabetically they were (1) Altium, (2) Ansoft, (3) Cadence, (4) Magma, (5) Mentor Graphics, (6) Nassda, (7) Synopsys, (8) Synplicity and (9) Verisity. 

    Today the MCAD/MCAE space for reporting purposes consists of only (1) ANSYS, (2) Autodesk, (3) Dassault Syst èmes, (5) ESI Group, and (8) PTC , often referred to as the “MCAD/MCAE Group of 5” or simply as the ”MCAD/MCAE G5.”

    Likewise, today the EDA space for reporting purposes consists of only (1) Altium, (3) Cadence, (5) Mentor Graphics, (*) SpringSoft and (7) Synopsys, occasionally referred to as the “EDA Group of 5” or simply as the “EDA G5.”


    All the vendor names in each original G9 list that have permanently disappeared over the years since 2003, have been acquired and absorbed. For example, previously-independent EDA vendors Magma, Nassda, Synplicity and Verisity have since been acquired by Cadence, Mentor Graphics or Synopsys; Ansoft was acquired by ANSYS; and still independent Altium was temporarily eliminated from the reports by the writer before earning back an EDA reportage position after a year’s absence. During Altium’s absence from the list, the writer chose to add and report on SpringSoft,* but the latter will likely be removed soon from the quarterly reports as well as it is slated to be absorbed by Synopsys.

    The MCAD/MCAE space has likewise been diminished. As a result of the acquisition of Tecnomatix by UGS that closed April 1, 2005, Tecnomatix was eliminated from coverage thereafter as a separate entity. Then on May 7, 2007 UGS itself announced the close of its acquisition by Siemens AG effective May 4, 2007. Thereafter, the business went to market as UGS PLM Software (and later as Siemens PLM Software), a global division of the Siemens Automation and Drives (A&D) Group. Over the years UGS itself had bounced back and forth between being a public company and a private company under different ownerships. Regrettably, we have been able to gain very little separate insight into UGS' financial performance from public Siemens' corporate reports after the Siemens acquisition. Occasionally we will include isolated Siemens PLM Software news items that bear on the industry as a whole. Then, on June 25, 2008, Autodesk completed its acquisition of Moldflow Corporation, so thereafter Moldflow was eliminated from separate coverage.

    Finally, on July 07, 2009 MSC.Software announced that it had entered into a definitive agreement with affiliates of Symphony Technology Group (STG) under which a company controlled by STG would acquire all of MSC's outstanding shares in a one-step cash merger transaction . This acquisition of MSC.Software by STG was finally consummated on October 14, 2009. No financial results for MSC.Software were published for Q3 2009, and none since. Unless and until such data are subsequently made available, MSC.Software has been dropped from financial reporting coverage herein, although occasionally
    MSC.Software news items that bear on the industry as a whole will be mentioned. Readers may be interested to see for example, the MCAD/MCAE Commentary about a late August 2011 interview with STG-selected CEO Dominic Gallello of MSC.Software at this URL: 

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