MCAD Industry View — A March 2006 Update

Calendar Full Year 2005 MCAD Vendor Performances

Note that the MCAD vendors have different fiscal years. The section below compares the last four reported quarters, nominally the calendar year 2005.

The combined revenues of the "G7" vendors in "calendar" 2005 were $4.89 billion, an impressive 18% rise from the $4.13 billion in calendar 2004. All members of the group had revenue growth relative to calendar 2004. Autodesk had the largest percentage growth at 23%. Dassault and UGS were just over 18%. Autodesk was the 2005 revenue leader at $1.5 billion. See Table 9.

Rev $Millions 2005 2004 Delta
ANSYS 158 135 17.5%
Autodesk 1,521 1,234 23.5%
Dassault (€) 944 797 18.5%
Dassault ($) 1,170 988 18.5%
ESI Group (€) 59 55 6.9%
ESI Group ($) 75 68 10.2%
Moldflow 66 59 12.9%
PTC 744 672.4 10.6%
UGS PLM 1,155 978 18.1%
Total 4,892 4,133 18.3%
Table 9 - Calendar 2005 Performance of MCAD Vendors

Figure 4 - Relative Market Share for Year 2005

Autodesk had the largest share, 31%, of the combined revenues. Dassault nosed out UGS with 23.9% versus 23.4%. See Figure 4. The big three accounted for 79% of the total.

Earnings $ Millions 2005 2004 Delta
ANSYS 43.9 34.6 9.3
Autodesk 328.9 221.5 107.4
Dassault (€) 175.5 156.4 19.1
Dassault ($) 217.6 193.9 23.7
ESI Group (€) NA NA  
ESI Group ($) NA NA  
Moldflow 3.3 5.0 -1.6
PTC 80.5 72.0 8.5
UGS PLM (22.1) (18.7) (3.3)
Total 652 508 144
Table 10 - Calendar 2005 Earnings

The combined earnings for the G7 group were $652 million, a significant increase of 28% from the $508 million in 2004. Autodesk landed the largest earnings at $328 million and provided the greatest year-over-year increase at 48%. ANSYS was a strong second in terms of percentage earnings growth at 27%. PTC and Dassault had low double digit growth. See Table 10.

MCAD versus EDA

The three top mechanical CAD companies (Autodesk, Dassault Systèmes and UGS) sported revenues of $3.8 billion in 2005, 26% more than the $3 billion in revenue for the top three EDA companies (Cadence, Synopsys and Mentor Graphics). The MCAD vendors also generated over 9 times the amount of earnings. MCAD earnings were 13.6% of revenues compared to 1.9% for the EDA vendors. See below.

2005 Rev Earnings
MCAD    
Autodesk 1,523 329
Dassault 1,170 218
UGS 1,155 (22.1)
MCAD Total 3,848 524.9
EDA    
Cadence 1,329 49.3
Synopsys 1,010 2.9
Mentor 705 4.3
EDA Total 3,044 56.5
Comparison of Top Three MCAD and EDA Firms for Calendar 2005 ($ mill)

Again, readers should keep in mind that Autodesk sells its products predominantly through valued added resellers and distributors. Dassault Systèmes sells predominantly through IBM and its Business Partners and in some instances, notably SolidWorks, through VARs. Thus, if one were to count actual end user purchases of the latter MCAD products, the combined MCAD revenue total would raise the Big 3 MCAD dollar total substantially. On the other hand, Autodesk has not-insignificant revenue outside MCAD in AEC, GIS and Media/Entertainment.

The comparison of earnings across the two industries is also difficult general due to a plethora of one-time charges associated with acquisitions. The earnings comparison for UGS is further complicated by purchase accounting adjustments related to its Venture Capital buyout from EDS.

Still, taken together, the hefty differences in revenues and earnings performances between the Top 3 MCAD and Top 3 EDA vendors largely overcome all the aforementioned caveats.

Individual MCAD Vendor Performances for the Calendar 2005 Year

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  • October 09, 2008
    Reviewed by 'Brian'
    I really feel the liberal Political points of views are unnecessary for this type of new letter. I have commented on this before to the editor and he said there was several comments of the same concern and that something would be done about it. It seemed to calm down for a while and now it’s back. This seems to be from the very liberal side (Which seem to thrive in big cities i.e.:S.F. and our educational institutions) which in fact is the minority of this country by far. It’s just that they take polls that always seem to back up there view and flash them all over and then when it comes time for elections the polls are blown out of the water . Bottom line there is no place for this one sided view in this type of publication. Again I will see if things are rectified and if not I will campaign to all the people in this type of work to boycott this otherwise great CAD News tool. It's easy to grap liberal ammo from our large liberal media.

    Sincerely,
    Brian

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  • October 09, 2008
    Reviewed by 'Kurt'
    An informative article until the Geopolitical & Economic Factors heading. I agree with the two posters above- this is an entirely different topic that belongs elsewhere.


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  • October 09, 2008
    Reviewed by 'Jay'
    I fail to understand why the authors feel so compelled to include their clearly biased and subjective rants against the Bush administration at the end of what otherwise appears to be an informative well-researched article. By injecting that into the article one has to wonder whether they harbor other biases that effect their reporting. More importantly, there is no relevance to their “Geopolitical & Economic Factors” to a report on the MCAD industry. No doubt, they would argue these topics must be reported on to offer a well-rounded review of the industry within the context of the economy in which it operates. However, this is not reporting, it is nothing more than a string of adjectives incorporated into one-sided rant that clearly exposes the author’s biases.

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