Looks like Lehman and CS First Boston have a little feud going over CDN and SNPS
You can access Lehman's report (2 parts) at:
lehman.com
and you'll want to get there quickly because they usually don't leave them posted for more than 5-10 days You need Acrobat Reader which is free if you don't have.
The CSFB report is posted on Schwab. For those of you with an account the report is free. Just do a search under Analysts Reports and type in the symbol. After it searches you have to click on Analysts Reports again for a list of reports available.
Sorry I can't post here but it may be proprietary and I don't want the Net Policia after my sorry butt.
Exerpts from CSFS dated 1/6/99: "Synopsys is increasingly better positioned to deliver key technologies, is enjoying a resurgence in top-line growth, and continues to deliver on operating margin expansion."
Further down: "We continue to struggle with how Cadence can grow its design services revs. above 50% in CY99, when the inherent services market appears to be growing at 25%-40%"
Further down: "Logic design surged to 13% growth (for SNPS)... SNPS dominates the logic design market and is the obvious beneficiary."
From Lehman Bros. 1/6/99 (CDN rated 1 buy - price target $39): "With its recent acquisition of Ambit Design Systems, Cadence now offers leading-edge products at every step of the design flow, giving the company the most highly integrated tool set in the EDA industry." "This acquisition (Ambit) is strategic for a number of reasons. First, it makes Cadence the only EDA vendor with products that address every major step in the design flow. This makes it possible for a customer to design a circuit entirely within the Cadence design environment. Second, with tools in every major step of the design process, Cadence can now integrate these tools very tightly, resulting in higher efficiency and quality in the design process. Finally, a broad product portfolio provides a larger number of entry points for Cadence's consulting services business. In short, by adding this last piece of the puzzle, CDN has enveloped the customer and giving him no reason to look elsewhere for EDA products or services."
Additionally: "We believe that Cadence will continue ot out grow the market and its competitors in the near term because of its dominant position in physical design software and consulting services."
"Cadence is re-defining the EDA industry by creating a large consulting services business. We estimate that the market for services is at least twice the size of the EDA market. Multiples awarded services companies are approx. 20% higher than the valuation multiples of EDA companies."
Interesting point: "Cadence is gradually moving customers away from purchasing perpetual (99-year) software licenses to software leasing periods that are typically 1-3 years." "For Cadence, it prevents the qtr-end discounting phenomena that is quite common across the software industry." "For customers, leasing offers the benefit of expensing software costs into ongoing project expenses instead of capitalizing and amortizing."
Any thoughts or comments would be appreciated. I'm in CDN and have followed the company for a few years but didn't take the plunge until recently. |
