TransEDA posts interim profit

TransEDA posts interim profit
By Peter Clarke, EE Times
February 16, 2001 (5:35 a.m. EST)
URL: http://www.eetimes.com/story/OEG20010215S0054

LONDON — TransEDA plc, the verification EDA company newly listed in London, has announced continued sales growth along with major customer contracts with BAE Systems, IBM and Imagination Technologies plc.

However, the company is not yet ready to commit to a higher-level language form of design entry or testbench automation such as C, C++ or Superlog, preferring to work with VHDL and Verilog.

TransEDA's revenue for the six months ending 31 December 2000 was about $3.5 million, an increase of 36 percent over the same period last year. The company also achieved a profit of about $90,000 before tax in the six-month period, compared with a loss of about $350,000 for the same period in the previous year.

"Historically the company's second half has always been stronger than its first. The third quarter has started well and we are looking toward a successful conclusion to our first year as a quoted public company," said Ellis Smith, chief exec utive officer. Smith said that as a result of the initial public offering, the company had cash reserves of about $3.3 million.

Smith said TransEDA has a merger and acquisitions team that is working hard to line up deals for the company.

"We're in an area of the market that's growing, and with Verification Navigator, we're making in-roads. There will be consolidation in verification this year.

As to technical progress by the company toward higher levels of abstraction, Smith said, "It will really be market-driven and customer-driven. This market hasn't taken off yet." Smith said TransEDA is in discussion with all the significant players in C, C++ and Superlog communities.