Tom
10-14-2003, 09:23 AM
!!! "It's not a BUG, jcooley@TheWorld.com
/o o\ / it's a FEATURE!" (508) 429-4357
( > )
\ - / INDUSTRY GADFLY: "Penny's Reign Of Terror"
_] [_
by John Cooley, EE Times Columnist
Holliston Poor Farm, P.O. Box 6222, Holliston, MA 01746-6222
Along with everyone else in EDA, I howled with laughter when I read the September 15th EE Times story by Mike Santarini titled "Cadence Struggles To Regain Rhythm" at the http://www.eedesign.com/news/OEG20030915S0037 link.
What everyone was abuzz about was the quote: "The company has 134 VPs worldwide out of 5,000 employees. But what stings many employees is how many managers from tiny Simplex Solutions, a company acquired in June 2002, have taken over top Cadence management slots."
"We call this 'Penny's reign of terror,'" said the Cadence employee.
Laughing aside, I hate to say it, but if I were wearing Penny's shoes, Mike probably would be running quotes about "John's reign of terror" instead.
Poof! You're now Penny Herscher. You now personally own 215,000 shares of Cadence stock -- 2.7 times the 80,000 shares Ray Bingham, the CEO of Cadence owns. These shares have hovered around $13 for the past 18 months.
When you joined Cadence in Q2 of 2002, Cadence had 5,761 employees with revenues of $345 million -- taking in an annualized $240,000 per employee.
A year later in Q2 of 2003, that's dropped to 5,178 employees making a lower $213,000 per employee. In dangerous contrast, your biggest rival, Synopsys, earned $275,000 in revenue per employee in Q2 of 2003.
After your legal department's best efforts, the Federal Trade Commision let the No. 2 and No. 4 EDA players (Synopsys & Avanti) merge. Suddenly now Synopsys is the No. 1 and Cadence is the No. 2 player in EDA. Not good.
In short, you've dropped behind your competition and they're leaving you behind. Just to keep up financially, either Cadence revenues have to go up 29 percent (which ain't happening) or you'll have to trim your head count by 22 percent just to match that Synopsys $275,000 in revenue per employee.
It's not Penny's reign of terror we're talking here. It's business.
-----
John Cooley runs the E-mail Synopsys Users Group (ESNUG), is a contract ASIC designer, and loves hearing from engineers at "jcooley@TheWorld.com" or (508) 429-4357.
/o o\ / it's a FEATURE!" (508) 429-4357
( > )
\ - / INDUSTRY GADFLY: "Penny's Reign Of Terror"
_] [_
by John Cooley, EE Times Columnist
Holliston Poor Farm, P.O. Box 6222, Holliston, MA 01746-6222
Along with everyone else in EDA, I howled with laughter when I read the September 15th EE Times story by Mike Santarini titled "Cadence Struggles To Regain Rhythm" at the http://www.eedesign.com/news/OEG20030915S0037 link.
What everyone was abuzz about was the quote: "The company has 134 VPs worldwide out of 5,000 employees. But what stings many employees is how many managers from tiny Simplex Solutions, a company acquired in June 2002, have taken over top Cadence management slots."
"We call this 'Penny's reign of terror,'" said the Cadence employee.
Laughing aside, I hate to say it, but if I were wearing Penny's shoes, Mike probably would be running quotes about "John's reign of terror" instead.
Poof! You're now Penny Herscher. You now personally own 215,000 shares of Cadence stock -- 2.7 times the 80,000 shares Ray Bingham, the CEO of Cadence owns. These shares have hovered around $13 for the past 18 months.
When you joined Cadence in Q2 of 2002, Cadence had 5,761 employees with revenues of $345 million -- taking in an annualized $240,000 per employee.
A year later in Q2 of 2003, that's dropped to 5,178 employees making a lower $213,000 per employee. In dangerous contrast, your biggest rival, Synopsys, earned $275,000 in revenue per employee in Q2 of 2003.
After your legal department's best efforts, the Federal Trade Commision let the No. 2 and No. 4 EDA players (Synopsys & Avanti) merge. Suddenly now Synopsys is the No. 1 and Cadence is the No. 2 player in EDA. Not good.
In short, you've dropped behind your competition and they're leaving you behind. Just to keep up financially, either Cadence revenues have to go up 29 percent (which ain't happening) or you'll have to trim your head count by 22 percent just to match that Synopsys $275,000 in revenue per employee.
It's not Penny's reign of terror we're talking here. It's business.
-----
John Cooley runs the E-mail Synopsys Users Group (ESNUG), is a contract ASIC designer, and loves hearing from engineers at "jcooley@TheWorld.com" or (508) 429-4357.