May 15, 2006
PLM and cPDm Update
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Jack Horgan - Contributing Editor

by Jack Horgan - Contributing Editor
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Enterprise 2001 2002 2003 2004 2005
License     58 60 71
Maintenance     35 47 56
Sub Tot SW 127 94 92 107 127
Services 90 84 81 72 90
Total 217 177 174 179 218
YoY Delta 23.5% -18.5% -2.0% 3.3% 21.4%
% Tot Rev 23.2% 23.9% 25.8% 27.2% 30.2%
Total Rev 938 742 672 660 721
Table PTC cPDm 5 Year Financials

PTC reports cumulative seat sales of Windchill at 386,900 versus 339,800 sales of Pro/Engineer.

UGS PLM Solutions

UGS PLM Solutions, formerly EDS PLM Solutions, is the result of EDS's acquisition of Unigraphics from McDonnell Douglas in 1991 and ten years later, its acquisition of SDRC (Structural Dynamics Research Corporation) in August 2001. The latest acquisition and the subsequent purchase of outstanding public shares of Unigraphics cost EDS approximately $1 billion.

In the last quarter before its acquisition SDRC reported total revenue of $121 million and Metaphase PDM related revenue of $47 million, a rise of 22% year-over-year. Metaphase accounted for 38% of total SDRC revenue. At that time there were 400,000 seats of Metaphase, growing at about 40,000 per quarter. Metaphase had originally been a joint venture between SDRC and CDC. SDRC bought out CDC and in early 2000 acquired Sherpa Systems, the early PDM industry leader with an installed base of around 90,000.

EDS re-branded the product lines of the two companies. SDRC's Metaphase became Teamcenter Enterprise and UGS's iMAN became Teamcenter Engineer. EDS embarked on a program to provide interoperability between the product suites for the two companies. EDS garnered substantial service revenue from this relationship.

On March 14, 2004 a private equity group of Bain Capital, Silver Lake Partners and Warburg Pincus announced it had reached a definitive agreement with EDS to purchase UGS PLM Solutions, EDS' product lifecycle management subsidiary, for $2.05 billion in cash. The transaction, in which each private equity firm is an equal investor, represents the largest private equity investment ever made in a technology company.

Since UGS is not publicly traded they do not published detailed financial reports such as 10Q and 10K. From company presentations they have made, we know that UGS had revenue of $1.15 billion in 2005 up 18% year-over-year over from the $1.019 in 2004. cPDm revenue was up 58% including acquisitions and up 37% without acquisitions. In 2004 cPDm revenue grew 35%. cPDm software revenue grew 25% in 2004.

UGS claims 46,000 customers and nearly 4 million licensed seats. They employ 6,800 people.

Community & Collaboration Manufacturing Process Management
Compliance Management Program & Product Management
Engineering Process Management Systems Engineering
Enterprise Knowledge Management Sourcing Management
MRO Lifecycle Visualization
Table UGS cPDm Modules

On May 3, 2006 Microsoft and UGS announced a multiyear, global strategic alliance to "change the game" of how companies create innovative products by delivering the full suite of UGS software solutions on the Microsoft platform.


Agile Software was founded in March 1995. Agile netted $67 million in its IPO in August 1999 and another $275 million in a secondary offering in December 1999. At the height of the boom, Ariba offered to acquire Agile for $2.55 billion. The deal was called off when Ariba's stock plummeted and the value of the offer was reduced to $414 million.

On August 11, 2003 Agile completed the acquisition of Eigner for ~$20 million ($2.85 million in cash). Back in November 2001 venture capitalists had invested $17 million in Eigner & Partner, a German PDM firm. The company's name was changed to Eigner and its HQ relocated to Massachusetts. A new management team was recruited with the then-likely intention to take the company public in the US market. Eigner had ~250 customers (800 deployments and 250,000 seats) to complement Agile's 850 customers. Agile said the combined annual revenues of the two companies would be approximately $100 million.

$M F01 F02 F03 F04 F05
Total Rev 87,059 77,771 70,509 96,305 116,987
% Delta   -11.9% -10.3% 26.8% 17.7%
NI (125,336) (34,543) (36,131) (24,095) (125,336)
Table Agile 5 Year Financial Performance

Note: F2001 included a one time $55 million impairment charge and $36 million in goodwill amortization.

In the last reported quarter Agile had $33 million in total revenue. Of this figure $13.4 was from license revenue and $19.4 million from service and maintenance. Maintenance accounts for over 60% of the last number.

On January 23, 2006 Agile announced that Jay B. Fulcher, Agile's president and chief operating officer, has been appointed chief executive officer effective May 1, 2006. Mr. Fulcher has also been named a member of Agile's board of directors. Agile's current CEO, Bryan D. Stolle, will remain as chairman of the board. Mr. Fulcher has been Agile's president and COO since October 2002.

In its most recent quarter Agile reported 69% of revenue from North America compared to 31% in Europe and Asia. Revenue from high tech was 52% compared to 58% for all others. The company has 736 employees.

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-- Jack Horgan, Contributing Editor.


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