TransEDA, the EDA verification company listed on the Alternative Investment Market, is set to continue its role in consolidation of the market segment, according to its CEO.
On the back of a dramatic jump in sales and a period which saw the company moving into the black, Ellis Smith, president and CEO, said acquisitions were key to the company's performance and will continue to be so in the year to come.
TransEDA acquired New Hampshire-based DualSoft and San Jose-based iMODL in December 2000 and March 2001 respectively and during the year their rule checking and testbench automation products have been incorporated into TransEDA's Verification Navigator design environment. iMODL had developed a range of Intel and MIPS processor core models and bus interface models.
"In just four months iMODL made a fairly substantial addition to our sales," said Smith. "We did more in the first three months [of iMODL as part of TransEDA] than it did the previous year. The mix of its technology and our customer base exceeded expectations."
TransEDA's like-for-like sales are up about 20% compared to the previous year.
Smith says the growth is despite TransEDA migrating from a perpetual licensing model for its software to a time-based licence. Time-based licensing over a few years diminishes the sales value recognised by an EDA company in the first year of the licence but enhances the value achieved in succeeding years.
TransEDA has cash from its AIM listing in September 2000 and has generated cash through the financial year, Smith said. He added that he intends for TransEDA to continue to grow by acquisition. "It's a very good time to buy companies. There will be more consolidation in EDA."
Peter Clarke is European correspondent for US sister newspaper EETimes.