February 13, 2006
2005 A Good Year For PLM Giants
Please note that contributed articles, blog entries, and comments posted on MCADcafe.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.
Jeff Rowe - Managing Editor

by Jeff Rowe - Contributing Editor
Each MCAD Weekly Review delivers to its readers news concerning the latest developments in the MCAD industry, MCAD product and company news, featured downloads, customer wins, and coming events, along with a selection of other articles that we feel you might find interesting. Brought to you by MCADCafe.com. If we miss a story or subject that you feel deserves to be included, or you just want to suggest a future topic, please contact us! Questions? Feedback? Click here. Thank you!

DS benefited from strong growth across its PLM software applications in 2005 as well as the inclusion of ABAQUS for one quarter. Non-GAAP PLM (Process-centric) revenue totaled EUR 761.8 million in 2005, increasing 17% and 18% in constant currencies in comparison to 2004 where PLM (process-centric) revenue totaled EUR 650.7 million. The recent acquisition of ABAQUS accounted for approximately 3 percentage points of growth in revenue for 2005 before the deferred revenue write-down. In 2005 PDM revenue on a stand-alone basis totaled EUR 121.9 million, increasing 20% as reported and in constant currencies. CATIA licenses increased 6% to 34,798 in 2005, compared to 32,695 in 2004.

In 2005, SolidWorks revenue increased 25% as reported and in constant currencies to EUR 181.8 million and increased 25% in U.S. dollars, the reporting currency of its peer group. SolidWorks seats licensed increased 25% to 37,280 seats in 2005 on strong demand across all major geographic markets. SolidWorks accounted for 19% of Non-GAAP total revenue in 2005.

From a regional perspective, the Americas delivered the strongest growth in 2005, increasing 24% in constant currencies, with Europe growing 19% and Asia posting an increase of 13% in constant currencies. As a percentage of Non-GAAP total revenue, Europe accounted for 47%, followed by the Americas at 30% and Asia at 23%.

UGS Reports Full Year Revenue Of US$1.15 Billion

UGS Corp., announced full year 2005 and fourth quarter 2005 results. Financial highlights from the full year 2005 include:
  • Total revenue increased to US$1.15 billion, or 18 percent growth over the same period a year earlier, as the company saw an increase in total revenue in each geographic region compared to the combined revenues of Jan. 1, 2004 to May 26, 2004 (Predecessor) and May 27, 2004 to Dec. 31, 2004 (Successor).
  • Software revenue growth, which includes license and maintenance revenues, increased 21 percent over the same period a year earlier.
  • Collaborative Product Development Management (cPDM) revenue increased 58 percent including acquisitions, or 37 percent without acquisitions, over the same period a year earlier.
  • Operating income increased to US$83.5 million, or a 166 percent increase over the same period a year earlier, and includes the impact of acquisition-related intangible amortization costs of US$150.8 million.
  • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was US$241.5 million, or a 37 percent increase over the same period a year earlier.
  • The acquisition of Tecnomatix Technologies Ltd. closed on April 1, 2005 and added US$68.4 million in overall revenue and US$52.2 million in software revenue (including license and maintenance revenues).
  • In the amounts presented above, the company has not made adjustments for the impact of deferred revenues written off in connection with the acquisition of the company and acquisitions by the company. These write-offs had the effect of reducing full year 2005 revenues by US$11.3 million and 2004 revenues by US$40.9 million.
  • Fourth Quarter Financial Highlights
  • Total revenue increased to US$326.7 million, or 15 percent growth over the same period a year earlier. The company's fourth quarter revenue included US$248.8 million in software revenue (including license and maintenance revenues), or a 20 increase as compared to the fourth quarter 2004. The company saw an increase in total revenue in each geographic region compared to the same period in 2004.
  • Operating income was US$47.1 million, a 93 percent increase as compared to the fourth quarter 2004, and includes the impact of acquisition related intangible amortization costs of US$39.2 million.
  • EBITDA was US$92.6 million, or 22 percent growth over the same period a year earlier.
  • cPDM revenue increased 47 percent including acquisitions, or 23 percent without acquisitions, over the same period a year earlier.
  • In the amounts presented above, the company has not made adjustments for the impact of deferred revenues written off in connection with the acquisition of the company and acquisitions by the company. These write-offs had the effect of reducing fourth quarter 2005 revenues by US$1.1 million and 2004 revenues by US$14.0 million.
  • "Today we celebrate our continued momentum and our first full calendar year as an independent company," said Tony Affuso, chairman, CEO and president of UGS. "In 2005, we claimed the number one spot in digital manufacturing and solidified our cPDM leadership. With our victory at Nissan, a hotly contested multi-year battle, we underscored our superior CAx technology and relentless focus on customer satisfaction. In 2005, we also highlighted the mission-critical nature of Global Innovation Networks through our new corporate vision, and launched our game-changing initiative bringing PLM to the mid- market."

    The Week's Top 5

    At MCADCafé we track many things, including the stories that have attracted the most interest from our subscribers. Below are the five news items that were the most viewed during last week.

    CoCreate Software, Inc. announced availability of the OneSpace 2006 product suite geared for customers whose priorities are speed, flexibility and responsiveness to change. With CoCreate's subscription pricing, it is available for as little as $75 per week per user. According to the company, the release features the following significant enhancements:
  • Full digital mockup (DMU)
  • 64-bit processing
  • Lightweight models -- quick-to-load graphical representations of models
  • 3D Configurations for managing multiple views of an assembly within one file
  • Both the Drawing Manager and Model Manager repositories now support Microsoft SQL Server 2005
  • Designer Modeling's Annotation module includes a wizard for quickly creating drawings and detailing of 2D plans from 3D models
  • CoCreate's OneSpace.net product further automates the exchange of data between enterprise (ERP) systems and Model Manager so companies can now close the loop between their ERP system (system of record) and Model Manager (work in progress).

  • ICAM Technologies Corp. (ICAM) has been awarded a contract from Boeing Winnipeg to develop NC post-processing and machine tool simulation solutions for new CNC equipment installations under the 787 program initiatives. A new Zimmerman 5-Axis mill, trim & drill machine will be equipped with an M-Torres Universal Holding Fixture (UHF), more commonly known as an actuator or pod system. ICAM's NC post-processing and machine tool simulator, CAM-POST and Virtual Machine, respectively, will be used to manage the complex synchronization requirements of the Zimmermann machine and the UHF. Boeing will use ICAM's software to perform analysis to ensure that no collisions exist between the cutting tool
    and the UHF during the machining process. The post-processor will then output the appropriate commands to the M-Torres machine to set the initial height and vacuum conditions for each individual holding fixture. As a result of this NC manufacturing methodology, CATIA V5 design & engineering changes, as well as changes to the part location, become irrelevant to the manufacturing programming process for the Zimmerman / M-Torres UHF.

    The Boeing Co. and New Delhi-based SpiceJet celebrated the delivery of the airline's first Next-Generation 737-800 with Blended Winglets, the first of 10 737-800s ordered. SpiceJet will use a single-class seating configuration for 189 passengers on its short and medium-haul flights within in India. The airline will receive three additional 737-800s in 2006, with the remaining six to be delivered in 2007. The digitally designed 737-800 is the most technologically advanced airplane in the single-aisle market. With a new wing and more powerful engines, the 737 can fly higher, faster, and farther than previous models and its competitor. The advanced-technology Blended Winglets allow airlines
    to save on fuel, extend range, carry more payload, and reduce engine maintenance costs. Unlike traditional winglets that attach at abrupt angles to the wing, Blended Winglets gently curve out and up from the wingtip, reducing aerodynamic drag and increasing performance. The 8-foot (2.4 meters) high winglets add about 5 feet (1.5 meters) to the airplane's total wingspan.

    In an in-depth analysis of America's largest automaker, General Motors, FORTUNE magazine comes to some troubling conclusions. "Bankruptcy isn't going to occur next week," says editor-at-large Carol Loomis. "But down the road--say, past 2006--its probability is high." Many doubt that GM can turn around its reeling North American auto operations, now reduced to an embarrassing market share of 26%. In that percentage, reports Loomis, lies a harrowing, and maybe intractable, revenue problem. Says a GM executive: "There's no fix for us unless we get revenues stabilized." The story, "The Tragedy of General Motors," appears in the February 20 issue of FORTUNE and at www.fortune.com. General Motors CEO Rick Wagoner and his crew must deal with the full range of GM's problems which add up to a Hummer-sized load. The company lost $8.6 billion last year; it's product mix in the U.S.-- heavily weighted towards trucks, pickups, and SUVs--is on the wrong side of gas prices; a majority interest in its finance subsidiary, GMAC, must be sold to keep that company healthy; and it is inextricably entangled in the bankruptcy of its biggest supplier, Delphi. "The company is even under investigation by the SEC for accounting sins, as yet unrevealed,"
    says Loomis. Troubles loom so large that one Wall Streeter deeply familiar with the company recently stated the challenge starkly: "I would say that turning GM around is a harder logistical and managerial task than the invasion of Iraq."

    You can find the full MCADCafe event calendar here.

    To read more news, click here.

    -- Jeff Rowe, MCADCafe.com Contributing Editor.


    Review Article Be the first to review this article

    SolidCAM - Break The Chains

    Featured Video
    Mid-Level Mechanical Engineer for Kiewit at lenexa, Kansas
    System Designer/Engineer for Bluewater at Southfield, Michigan
    Mechanical Engineer for Allen & Shariff Corporation at Pittsburgh, Pennsylvania
    GIS Data Analyst for CostQuest Associates, Inc. at Cincinnati, Ohio
    Product Manager for CHA Consulting, Inc. at Boston, Massachusetts
    Geospatial Analyst/Programmer for LANDIQ at Sacramento, California
    Upcoming Events
    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
    4th International Conference on Sensors and Electronic Instrumentation Advances (SEIA' 2018) at Movenpick Hotel Amsterdam City Centre Amsterdam Netherlands - Sep 19 - 21, 2018
    Kenesto: 30 day trial

    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