JEdward,FYI, article about SDRC.
siliconinvestor.com
Todd Wulfson of Fraser Management Associates, 802-658-0322, provides the following stock idea on Structural Dynamics (SDRC 13). Below is the write-up.
Structural Dynamics (SDRC) is one of the world's leading providers of enterprise product-development solutions with its suite of mechanical-design automation and product data-management software. Company products, along with engineering and consulting services, optimize development early in the design process, thereby reducing cost and cycle time while improving quality and time to market.
Last October, the shares of SDRC were trading in the $16 range and then suddenly traded down into the $9 area. Todd Wulfson of Fraser Management explains that SDRC restructured its sales force into a Strategic Partnership for Competitive Excellence (S.P.A.C.E.) model that eliminates geographic barriers to sales teams. That conversion caused a "temporary snag" in sales efforts, resulting in a slowdown in revenues. He adds that last year's Y2K worries may have also affected sales, as corporations postponed software purchases until early 2000.
He sees earnings of $1 in fiscal 2000
SDRC's newest product line is called Metaphase. This product allows more collaboration among engineers through a Web centric infrastructure. It enables an organization to understand the cost, quality and scheduling implications of product variations, and accelerate take-to-market processes. Metaphase is a high-end product and targets Fortune 500 companies. Wulfson expects SDRC to announce another product similar to Metaphase, called Team Metaphase, sometime this year. This new product will be targeted toward smaller companies. "This could expand their potential markets significantly," he says.
Todd notes that SDRC has "won several quality contracts" since the beginning of January. "That indicates good progress and the list of high-quality clients, or partners as SDRC's S.P.A.C.E. initiative now calls them, continues to grow. On Feb. 7 an existing client, Siemens AG, announced that it was standardizing on SDRC Solutions at eight of its nine divisions. For SDRC, keeping old clients is as important as getting new ones; over 50 percent of revenue comes from maintenance and service fees." He sees earnings of $1 in fiscal 2000, with earnings growing at a 15-percent rate over the next several years. Todd believes the shares of SDRC could double within the next two years.
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