May 15, 2006
PLM and cPDm Update
Please note that contributed articles, blog entries, and comments posted on EDACafe.com are the views and opinion of the author and do not necessarily represent the views and opinions of the management and staff of Internet Business Systems and its subsidiary web-sites.
In February 2005 Agile announced it has acquired Cimmetry Systems, Incorporated of Montreal, Canada for approximately $41.5 million in cash. Founded in 1988, Cimmetry Systems is a provider of collaborative visualization solutions including AutoVue, with well over 9,500 customers worldwide across several industries including manufacturing, electronics, AEC and industrial markets. Cimmetry solutions support over 450 native formats
Agile markets and sells primarily through a direct sales force. They have local sales offices in the United States and in Austria, Canada, China, Germany, Japan, Taiwan, Switzerland and the United Kingdom.
Agile claims over 10,000 customers including Arthrocare, Ball Aerospace, Bally Gaming, B/E Aerospace, Conexant, CooperVision, Digirad, Draeger Medical, Eastman Kodak, Foxlink, GN Resound, W.L. Gore, Grandstream Networks, Harman, Herbalife, Hewlett Packard, Intier, Logitech, Metaldyne, NEC Computers, NACCO, nVIDIA, Overland Storage, Phoenix, Plexus, Powerwave, Siemens, Spirent, Synthon, Synthes,
Texas Instruments and V-ZUG.
Agile offers products for:
Table Agile Product Offerings
It will be interesting to see how Agile performs as the last remaining major independent cPDm vendor.
In 1983 MatrixOne began as Adra Systems, a mechanical CAD/CAM firm offering a workstation clone of CADAM, a popular mainframe system being sold by IBM. Adra subsequently acquired PDM technology developed internally by a large end user. When introduced by Adra to the general market, this PDM technology sported a novel user interface well ahead of then-available commercial PDM products like Sherpa and Metaphase. The first commercial version of Adra's business collaboration software shipped in November 1993.
Adra management renamed the company MatrixOne in October 1997 and in May 1998 sold off its legacy CAD business. In June 1999 MatrixOne introduced the eMatrix product line. In March 2000 the company completed a successful initial public offering with net proceeds of $132 million.
Over the last five years MatrixOne has lost a cumulative total of $89 million. The firm had a dramatic climb but stalled in 2002 and has only recently recovered.
Table MatrixOne 5 Year Financial Performance
Software license revenue for the last three fiscal years has averaged about 36% of total revenue while service (maintenance, professional services and training) accounted for the remaining 64%. Maintenance and professional services each accounted for accounted for about 49% of total services revenue.
In F2005 North America accounted for about 55% of total revenue, Europe 33% and AP 12%. In terms of industry segments aerospace/defense accounted for 12% of total revenue, automotive 23%, consumer products 6%, high Technology 49% and industrial 10%. The firm has 488 employees, 54 active partners and 850 customers.
Business Process Applications with specific industry language and terminology, data models and schema, pre- defined work processes and reports, and role-based user interfaces to speed deployment and ease user adoption.
MatrixOne heavily leverages partnerships with System Integrators such as Accenture, CGEY, Bearing Point, and Fujitsu. IBM Global Services is also a partner. On October 22, 2003 MatrixOne announced an OEM agreement with Cadence, a leading EDA vendor. Under this exclusive agreement, Cadence will embed MatrixOne technology into advanced PLM solutions that will be marketed and supported directly by Cadence.
and maintenance/service. The user base was around 25,000 seats. The purchase price was 1.5 times revenue but less than the cumulative outside investment.
I previous interviewed Dennis Harmon, now CEO of Zenasis Technologies, who had been CEO of Synchronicity. The following is an excerpt from that interview.
Would you give us a more expanded view of what Synchronicity was up to?
hours a day on chip design. Our technology basically underlayed the EDA environment and provided a means for EDA data to be shared in an effective and efficient manner.
Who was Synchronicity's competition?
base and Synopsys data base. We natively handled very complex data bases. There were some other small companies that did parts of what we did but not in the way we did it.
I am sure you know that the three major high end mechanical CAD vendors (Dassault Systemes with Catia, Unigraphics and PTC with Pro/E) generate significant revenue from PDM (Product Data Management) products and services. There are also MatrixOne and Agile who are focused on PDM and have revenues in excess of $100 million. How come there is no parallel in the EDA industry?
You can find the full EDACafe event calendar here.
To read more news, click here.
-- Jack Horgan, EDACafe.com Contributing Editor.
Be the first to review this article