commentary: Tecnomatix Looks Ahead to ?Step-Function? Growth

by Ira Breskin

Tecnomatix Technologies Ltd., a leading maker of factory simulation and planning software, has put down a solid foundation to underlay what it expects will be a big growth period.

The company is anticipating “step function growth in the next 24 months,” Harel Beit-On, company Chairman and CEO Harel Beit-On, said during a recent interview. “Our footprint is larger and more strategic.”

Twenty-year-old Tecnomatix, based in Herzliya, Israel, originally provided robot simulation software.

Beit-On’s confidence is based on the Tecnomatix’s recent success in building a strong customer base for its MPM, or manufacturing process management, software. Customers include Airbus Industries, BMW, contact manufacturer Celestica and General Motors Corp.

MPM allows manufacturers, along with their Internet-connected trading partners, to simulate and optimize how a product will be built. The goal: to more quickly and cheaply bring a product to market.

Essentially, Tecnomatix provides “a master model of the manufacturing process,” Beit-On said.

Should Tecnomatix succeed in convincing its premier customers, as well as new ones, to settle on MPM as a corporate standard and employ the software employ enterprise-wide, $10 million to $20 million in orders will result, Beit-On said.

“The major obstacle, which we are overcoming, is wining acceptance of our product. The sell is more strategic and longer. (However,) the multiplier (attached to winning an enterprise-wide contract) is enormous,” he added.

Now, Tecnomatix, like all enterprise software vendors, must muddle through a soft market that’s reflected in the company’s first quarter results that it released last week. During the 2003 period, Tecnomatix lost $1.4 million, or 13 cents a share, on sales of $20.6 million. That compares with a net loss of $500,000 or 5 cents, on sales of $20.4 million in the 2002 first quarter. While 2003 results include $1.5 million in special charges for restructuring expenses, 2002 first quarter results reflect $800,000 in charges for amortization of acquired intangible assets.

Also EDS delivered its first bundled Tenomatix product during Q1 2003, shortly after it began formally selling it. The alliance between the two companies dates back to August 2002.

For additional information about Tecnomatix, see

Comments? Feedback? Tell us what you think about this topic or if you have additional information you'd like to share on this subject! Submit your comments to: Email Contact.

Ira Breskin, a freelance editor/writer specializing in business and technology issues, is a frequent contributor to Business Week, Newsday, and the New York Times. He holds a B.A. from Columbia University and a Knight-Bagehot Fellowship in Economics and Business Journalism, Columbia University Business School. He may be reached at Email Contact.

Review Article Be the first to review this article
Featured Video
Mid-Level Mechanical Engineer for Kiewit at lenexa, Kansas
System Designer/Engineer for Bluewater at Southfield, Michigan
Director of Process Engineering. for Tekni-Plex at Toledo, Ohio
Mechanical Engineer for Allen & Shariff Corporation at Pittsburgh, Pennsylvania
Director, Business Development for Kongsberg Geospatial at remote from home, Any State in the USA
Director, Business Development for Kongsberg Geospatial at Ottawa, Canada
Upcoming Events
Montréal Manufacturing Technology Show (MMTS) 2018 at Place Bonaventure Montréal Canada - May 14 - 16, 2018
ESPRIT World 2018 at Indianapolis Marriott Downtown 350 West Maryland Street Indianapolis IN - Jun 11 - 15, 2018
HxGN LIVE 2018 at The Venetian Las Vegas NV - Jun 12 - 15, 2018
IMTS2018 International Manufacturing Tech Show at McCormick Place Chicago IL - Sep 10 - 15, 2018

Internet Business Systems © 2018 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise