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upFront.eZine Publishing

Issue #462   :  :  February 21, 2006


C o n t e n t s

Pain vs Logic

 

Financial Conference Calls
       - Dassault Systemes FY05
       - UGS FY05
       - IMSI 2Q06

 

Below the Radar, and other regular columns.


Write the Editor.

Donate to upFront.eZine through Paypal.

Access nearly-daily CAD commentary at our blog: WorldCAD Access.


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Pain vs. Logic

At SolidWorks World, a veep asked me, "What does it take for 2D users to switch to 3D?" Pain, was my answer.

Over lunch at Milestones, during CoCreate's visit here, Todd Black remarked on the answer. Let's back up a few moments in time. His sidekick, Dave [sorry, I forget his last name] mentioned how a beer hanged its label, from something forgettable to "Red Lion." Sales took off, not because the beer was better, but because the label was better. Drinkers felt good holding a bottle of Red Lion.

Later on, Mr Black asked, "Why don't 2D users see the logic in switching to 3D? They gain the benefits of rendering, FEA [finite element analysis], accurate BOMs [bills of material], and so on."

Because emotion trumps logic. I reminded him of the beer label  switching to Red Lion. Can we make 2D users feel better about 3D? Possibly not. The leaves the opposite emotion: pain of competition and the other reasons I noted in upFront.eZine #460


Financial Conference Calls

DS FY05

Dassault Systems reports FY05 revenues of e934.5 million, and Q4 revenues of e304.2 million -- up 27% from a year earlier. The company plans to introduce numerous new software packages and services during 2006. Their partnership with IBM was described as "long lasting," which analysts listening to the call questioned, as follows:

Q: How much of the channel is direct, instead of through IBM?
A:
About 50% of revenue.

Q: Will more territories be added to the channel [sales by Dassault instead of IBM]?
A
: We look at each country's situation to see how performance can be improved, together with IBM.

Q: There have been a number of changes over the last 18 months in your relationship with IBM. Why do you think that IBM has chose to partially sponsor Windchill [from competitor PTC] for emerging markets, such as China?
A:
That was not an IBM announcement but from Parameter [sic] Technologies. I don't think it has any effect on our business. I think the comments made by this company [PTC] are not exactly in line with what the [IBM] field operations will be. So stay tuned.

Q: What is the future of PDM (Enovia)?
A:
One is to provide a seamless flow between the manufacturing and engineering parts; two is to scale up the capacity of SmartTeam. These will be part of the 2006 product rollout.

Q: What will be your headcount by the end of 2006?
A:
We are planning to increase the headcount to full fill our strategy.

Q: Are the SolidWorks margins above 30%, and do you use some of that disproportionate profit in the rest of the company?
A:
Yes, the margin is that high. The margins on our other products are lower because of acquisitions and depreciation.

Q: Do you expect SolidWorks pricing to have a flat year?
A:
For 2006, we are expecting stable pricing; we are not expecting that there will be an erosion.

Q: Did you say that all German auto manufacturers and suppliers will standardize on Catia V5 as of the summer of 2006?
A:
Yup, that is what I said.

 

UGS FY05

UGS is a privately-held company, but releases its finances as if it were public. The company reported FY05 revenue of US$1.15 billion, and Q4 revenue of $326.7 million -- up 15% over a year earlier. Software revenue up; service revenue down. Net debt increased from $996 million to $1,150 million due to acquisition costs.

The company plans to launch a new advertising campaign around the theme of "Signs of Innovation:" street signs announce Move Faster, Be Compliant, Get Optimized, Go Global, and Innovate More.

Q: What is the impact of the [lower priced] Velocity Series on CAx [CAD/CAM/CAE] revenues?
A:
It's a smaller part of business ... we see growth in that area.

Q: What are your non-traditional markets.
A:
These are the new markets, like pharmaceutical, consumer package goods, retail and apparel. We see a mild, steady increase in these non-traditional markets. But still our mainstream markets will be automotive, aero, high-tech, machinery. We're looking for new situations.

Q: CAD revenue grew by 7%. What do you see for '06? What you did for '05 was not meaningfully different from what Dassault did for Catia. You are growing more slowly than some of the mid-range vendors. What's the case you can make for more rapid share gain? And can you comment on NX 4 adoption?
A:
With the Nissan win, we expect to see the supply chain take up more and more on NX. We expect to make more than $10 million a quarter from Nissan, starting at the end of this year. On the Velocity side, we see pickup in our Solid Edge program.

Q: Do you get incremental revenue from data migration or converting customers from the predecessor to TeamCenter?
A:
There is some, but not like some of our competitors have done. As long as our customers pay maintenance, there is no other charge. If they want special services above and beyond, then of course there would be a charge.

Q: You now have 20 resellers for Velocity; how many more do you think you can add? To what extent are you getting resellers to convert from other primary vendors, such as SolidWorks and PTC?
A:
We hope to sign 100 before the year is over. We're seeing some conversions; we don't require the reseller to be totally 100% our technology, unlike some of our competitors.

Q: IBM's role in the PLM market has been much in the news over the last few weeks [for adding PTC to its Dassault PLM offerings]. Could you comment on what relationship you might have with IBM?
A:
I think the really big news is that IBM has left Dassault. Just what the future for Dassault will be, I don't know. We always considered IBM to be Dassault's strongest asset, and for the IBM team to look objectively at other suppliers in the PLM industry is an interesting move in the market, and one that we need to watch.

Q: Had you hoped to be part of that relationship, like PTC?
A:
We've always had a good relationship with IBM around hardware. We'll continue to talk with them as we move forward.

 

IMSI 2Q06

IMSI reports sales up 7% but a huge loss for Q2. Net revenues were US$3.7 million but the operating loss was -$1.15 million. After adjustments to the bottom line, such as the profit from selling off divisions, the net income was $0.12 million.

"Precision design" is the company's term for its CAD software, and now has a new description: it's "our legacy business." Release 12 of TurboCAD ships in late March.

IMIS's online houseplan business (houseplan.com) has its biggest sales in March and April. They see no softness in the house building market, having their largest single day of sales last week.

 


Below the Radar

A summary of CAD industry news you may not have read elsewhere, or that I found interesting:

DotSoft's 4th release of their Excel-to-CAD application has additional tools for automating AutoCAD and Excel connectivity. Sales of XL2CAD have reached 5,000 seats. www.dotsoft.com

SAMTECH launches release 11.1 of their general-purpose finite element analysis software suite: SAMCEF can be used for linear and non-linear thermo-mechanical analysis. www.samcef.com

UGS announces Teamcenter for Simulation software. The press release is sparse on what the software does, other than "a unique visual environment for lifecycle simulation." www.ugs.com/go/nxsimulation

Nemetschek North America upgrades VectorWorks to v12.0.1. www.nemetschek.net/upgrade/index.php

UGS implements Kineo CAM's Automatic Path Planning technology for its software that uses collision-free simulations and removal paths. kineocam.com

Archibus has a new release of ARCHIBUS/FM Web Central 15 with more languages and lower cost. [A press release about a Web site that doesn't include a URL?]

QuadriSpace updates its Document3D publishing software to support interactive 3D PDF files that work with Adobe Reader 7.0.7. The software also creates Web pages, .EXE files, CDs, and more. Demo from www.document3d.com

Geomagic gets a patent for "automatically generating untrimmed NURBS surfaces from polygon models while detecting and preserving topology and highly curved features." www.geomagic.com

 - - -

These news items were posted during the last week at the WorldCAD Access blog <worldcadaccess.typepad.com>:

  • Battle of the CEO Interviews
  • PTC Gets $600K Subsidy
  • PTC Press Day
  • Autodesk Adds Another Blog
  • The Journey Begins With a Thousand Posts
  • Dances with Wolves: Dassault, PTC, UGS -- and IBM
  • PLM Game
  • Four Hundred -- Not
  • Avatech: Getting Stronger
  • Moldflow: Revenue Way Up
  • IMSI Q2: Sales Up, Operating Losses Way Up

And at the Gizmos Grabowski < worldcadaccess.typepad.com/gizmos > Weblog:

  • Cassettes -> MP3s
  • Why Mainstream Journalism is Failing
  • 12 = 2007
  • Ain't Technology Wonderful
  • HP1320 Laser Printer
  • iPod Blues

  


Seminars & Conferences

Hard Dollar Corporation 2006 User Conference is in Scottsdale AZ USA during March 1-3. www.harddollar.com

47th Annual ADDA Technical Conference is May 1-4 in Nashville TN USA. adda.org/displaycommon.cfm?an=1&subarticlenbr=37

12th International Conference on Virtual Systems & Multimedia is October 18-20 in Xi'an China. www.vsmm.org/2006

 


People/Companies on the Move

think3 hires Tom Davis to manage its international VAR [valued-added reseller] network. Mr Davis was formerly with PTC.

Quantm appoints Tom Clemons as vp of business development for North America. Most recently, Mr Clemons was civil west region sales manager at Bentley Systems.

Dassault Systemes has a new partner program for its SIMULIA simulation software, and LMS is the first to join up. www.simulia.com

 


Brand New CAD Books/eBooks

"Mastering Piranesi Version 4"
by Bonnie Roskes and Susan Sorger
Published by F1 Books and Informatix Software International
368 pages; paper US$89.95; PDF US$59.95
www.f1help.biz/ccp51

 

"Tailoring AutoCAD 2006"
by Ralph Grabowski
Published by upFront.eZine Publishing
372 pages; PDF US$37.20
www.upfrontezine.com/ta6

 


WorthWhile Web

www.theinquirer.net/?article=29687
"Google is not about doing good at all"
Commentary by Charlie Demerjian

 


Letters to the Editor

Re: CoCreate Media Tour

"I had to laugh about your comment on us lugging around the [desktop computer] box. It was only 70 pounds with the 3D model we showed you; imagine how heavy the box would have been if we had the 200,000-part assembly loaded on it. <g>"
        - Todd Black, CoCreate

- - -

Re: There's More to Life Than CAD

"I loved the article. How true, thanks for sharing your experience and wisdom. It sounds like your kids have grown up since I stayed in your home 15 years ago."
        - Charles Evans, Intergraph

The editor replies: "I recall Charles apologizing as he set up the huge Toshiba laptop -- not notebook! -- computer with its bright orange plasma screen."

 

NOTE: I've anonomized the following letters due to sensitive content.

"Relationships are tricky but so important. It took years for me to really hear that my wife was going to stay with me, and that her demands and criticisms weren't deal-breakers."
        - GA

 

"There are enough issues to this that you could start another weekly ezine on this topic. But I'm sure your family relations would suffer if you did <g>."
        - JR

 

"I worry about my son trying to balance his family against his high-pressure job.

"You gave me tremendous help when I was starting up in AutoCAD. I suggest this addresses the question in Genesis (no, I'm not religious): 'Am I my brother's keeper?'"
        - EH

The editor replies: "The answer, of course, is 'Yes'."

 

"Nice diversion from the usual CAD stuff. I can sympathize on several angles. I have been married almost 20 years now, with four children, three girls and a boy (youngest). My oldest is 15.

"What a difference each presents. I loved your description of how they come at you with questions. Stay well and keep pushing forward!"
        - DS

 

"It takes a real man to express those sentiments. Thanks for having the b*lls to say so."
        - SH

 

"Thanks for saying 'There is a crisis in Western society; men don't get the support they need from other men.' It's important. And no, I'm not going to leave you either: I love the eZine."
        - MO

 

"Well, I never write to you, but I couldn't let that one slip by.

"I think there's a certain personality type that is more prevalent in the CAD software industry. We strive for perfection and excellence in what we do at work, and in some ways it's achievable. Sure, there's normally time and budget constraints, but often our work has to be perfect to be deliverable. The program can't have bugs, the design has to work, etc.  

"When that same drive for perfection is applied at home we fall short -- everyone does. The complex and dynamic nature of relationships means that we can't just apply some principle, policy, or formula to get by. And we fail. Failing is actually just as much a part of life as success. I think the important thing is what do we do with our failures.

"My response to failure is to retreat or not engage, and I gravitate to areas where I feel I can achieve and excel. But it's not the way to grow yourself.

"One thing that I've found helpful is a mentoring relationship with a friend. We get together and talk about life, our work, our marriages, our families, everything. It's a little bit more than a friendship as we've agreed to be accountable to each other for the hard stuff. I find this a great way to work through some of these issues."
        - MM

 

"I couldn't agree with you more and not at a better time as today is my 11th wedding anniversary (I didn't want to forget that my wife wanted to get married in a red dress).

"There were many times early on that I put my job before my family. That ended quickly after a 6-month separation. Since then it's been gravy.

"Relationships really don't change until the pitter-patter of little feet enter the room. Then you are responsible for more than your own hide. It's great to be proud of what you do in your career, but I think the accomplishments of your children can run circles around anything a career might have produced."
        - SO

The editor replies: "There seem to be two reasons for working too hard: (1) you like your job more than your family; or (2) you worry about providing your family with enough money, and so forget about providing them with enough time."

 

"I've been a subscriber to you eZine for a few years now and was pleased to see you touch on the subject. No doubt that a father who provides for the spiritual, emotional, and material needs of his family is fulfilling one of his most important responsibilities."
        - AS

[More letters on this subject next week.]

 


Spin Doctor of the Moment

"I support the right to freedom of speech, BUT..."
        - Phrase read and heard too often over the last several weeks.

 


Notable Quotable

"I think it’s more likely that Intel took for granted that its customers would acquiesce to the safety of mediocrity.... I call it the 'Tin Standard' -- which people may be willing to accept, but only if they don’t know silver or gold exist."
        - Tom Yager, InfoWorld


 


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