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Glenn - Please pick up on the aatt web site when you can. There is a series of slides (the video commentary version is still being worked on) which deal with Fluent, proforma financial results, and our strategy for same. Remember, this information should only be considered in the context of Aavid's SEC filings and disclosures (there is a link to edgar on our home page). Some of the information contains forward looking statements that involve risks and uncertainties included, but not limited to, economic conditions, product demand and industry capacity, competitive products, etc.,etc.
Financially, a review of Fluent PRO-FORMA financials going back to 1994, which includes the operations of all acquisitions throughout the period and excludes one time charges for the write-off of undeveloped software associated with our acquisitions of both Fluent and FDI, shows results characterized by:
- High margins
- Consistent year over year growth in revenues and operating income
- "Annuity like" annual licensing revenue streams
- Seasonality with strong 1st and 4th quarters and weak 2nd and 3rd quarters
- Annual revenue run rate based on the 1st half of 1996 is about $30 million vs. $23 million in 1995 and $19 million in 1994.
- Likewise, annualized operating income run rate through the 1st half of 1996 is about $5.3 million vs. $3.6 million for 1995 and $1.7 million for 1996.
- PRO-FORMA 2Q96 vs. REPORTED 2Q95 is 67% growth in revenues, only 1/3 of which related to Fluent's acquisition of FDI.
Fluent is at the leading edge of our technology and is a design analysis CAE software company. Fluent is the world technology leader in simulation software which enables industrial and electronic customers, worldwide, to analyze the effects of heat and mass transfer, fluids flows, chemical reactions and other related phenomena in the design and development of both new products and manufacturing processes -- analysis which is in detail, faster than physical prototyping and testing, at an earlier stage in the design cycle, for less money, and with lower risk than traditional product design & development practices involving iterative design prototype & test cycles. Fluent's customers benefit from better performing designs, shorter design cycles, and cost savings.
One of the dynamite things about Fluent is its President and CEO, Bharatan Patel. Bart started Fluent from scratch over 10 years ago. He is an outstanding leader of people and a market driven technologist (rare) in addition to being one of the few people I can truly call a real gentlemen. Bart is now the 2nd largest individual shareholder in AATT besides myself.
For additional info, tap the AATT website and the 8/1/96 Robertson Stephens presentation (slides only for now) at www.aatt.com/aatt/index.html; the Fluent website is www.fluent.com; the aavid electronic cooling business website is www.aavid.com.
Fluent's business drives itself off of a global trend for better design analysis tools to enable better designs, and shorter and less expensive product and process development cycles. In short, Fluent has nothing whatsoever to do with Semiconductor industry cycles.
Thanks for the question.
Alan F. Beane
CEO, Aavid Thermal Technologies |
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