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 $1.5 billion. See Table 9.
|ESI Group (€)||59||55||6.9%|
|ESI Group ($)||75||68||10.2%|
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|
|ESI Group (€)||NA||NA|
|ESI Group ($)||NA||NA|
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.
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