The comment about organic growth vs. acquiring companies is a good one. Regardless of how Carbon got there it is good to see the business being built up. In ESL there is going to be consolidation.

Another clarification that should be asked to all of these companies that are reporting revenue numbers / increases (including the public companies) is what their revenue recognition model is. Many companies do not follow the “equally or fully ratable” model where they equally divide the total revenue over the length of the term quite often because it puts a large amount into deferred revenue where it isn’t counted right away.

If they do not follow the fully ratable model the revenue tends to be skewed to the beginning of a term (which looks better for investors / etc.). Since few companies sell perpetual licenses any more there is no reason to take all of the revenue up front in my opinion.

In the interest of full disclosure, Forte follows the fully ratable model.

Brett Cline
Forte Design Systems

What a lead! You had me hooked from the first sentence.

We need to discount SNPS’ growth, because they are mainly recognizing time based revenue that they had previously booked. It is great to hear the smaller companies growing. I suppose that you saw the numbers since they are privately held. It’s hard to confirm the figures sometimes.

Good, uplifting story. Thank you.

Mo Casas
In Region Inc.