Wednesday, January 25, 2006

Telelogic Q4 Results

Highlights (VDC comments in parentheses):

  • Revenue $51 Million (converted using Q4 average exchange rate)
  • Tau (UML tool) 18% of Revenues or $9.2 Million ($7.2M in Q4 2004)
  • Tau G2 sales increased by 17%, G1 sales declined (to be expected)
  • DOORS 44%, Synergy 23%
  • System Architect 11% (acquired through Popkin acquisition cost $45M)
  • Focal Point 4% (decision making application for product development)
  • Earnings per share up 12%

VDC's View: This is a very solid quarter for Telelogic. We focus most of our efforts on Tau and the company's design automation tools, which are showing strength here - up $2M compared to Q4 2004. Most interesting in this announcement is the number of customers mentioned who are licensing multiple Telelogic products in multi-year agreements. Not only does this give a strong indication of future growth, but also shows the success of the company's acquisition strategy around DOORS and Synergy, although DOORS is the more successful product by far.

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