SGI in Talks to Sell Alias Software Business 2004-02-11 - By Jaco
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people imagine the 3D market to be some cashmilkable cow or something
like that, but net margins like those are not that bad at all.
3D is a small market that is most def excessively overcrowded and is now
selling products way under what their pricetag should really be.
it also requires investments in R&D and support that are much larger
then almost every other kind of software at front of just a few
thousands licenses sold.
it's not like hundreds of thousands of licenses are sold all the time
you know :)
Discreet claims an installed base of 400k licenses for max, and this
includes old non updated licenses, evaluation licenses, freebies,
educationals and a bit of overexageration.
take away the company expenses, marketing, R&D, acquisition of smaller
companies, patents, purchases of technologies, shipping and handling and
everything else...
and you could notice that the most diffused mainstream app in this
industry could have maybe made a net margin way under 100 millions in
over 7 years.
I seriously doubt SI's margins are anywhere beyond doubling Alias', and
SI is in quite good health at the moment.
btw anybody noticed how these SGI news totally eclipsed the news about
discreet laying off A LOT of people all over ? lucky SODs :)
-- --Original Message-- --
From: owner-xsi@(protected) [mailto:owner-xsi@(protected)] On Behalf
Of key
Sent: Thursday, 12 February, 2004 1:33 AM
To: XSI@(protected)
Subject: Re: SGI in Talks to Sell Alias Software Business
One item I found very interesting was the profitability of Alias:
"Alias generated approximately $18.4 million and $34.2 million in
revenues and an operating profit of approximately $2.7 million and $3.1
million, respectively,"
Usually Alias numbers are hidden behind SGI's, much the same way
Softimage is under Avid. What struck me was how slim the profit margins
are!
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