Autodesk Inc. (
recently announced that it has completed the acquisition of
privately-held Firehole Technologies (DBA Firehole Composites)
for an undisclosed sum. Laramie, Wyo.-based Firehole Technologies
develops software that is used to design and analyze performance
of composite materials.
Composite material is made by combining two or more materials,
the most common example being fibreglass. The biggest advantage
of composite material is that it is light yet strong, which makes
it a manufacturer's favorite.
However, the rising use of composite material in construction,
design and engineering industry has made it imperative for
manufacturers to evaluate its performance. Firehole software
products Helius:MCT and Helius:CompositePro are primarily used by
manufacturers for this purpose.
Autodesk believes that the acquisition of Firehole will help
it to penetrate composite materials software market going
forward. Autodesk said that it will continue to sell, support and
expand the Firehole Composites product line going forward.
Autodesk expects the acquisition to have no impact on the
guidance issued on Feb 25, 2013. Currently, Autodesk expects
revenues to be in the range of $570 to $600 million and non-GAAP
earnings in the range of 41 cents to 46 cents for the first
quarter of 2014. Autodesk provided fiscal 2014 guidance, which
reflects 6% growth in revenues. Autodesk expects operating
margins to expand 125-150 basis points compared with fiscal
Acquisitions have played a pivotal part in developing
Autodesk's business over the last three years. Autodesk acquired
more than 23 companies over the last three years for a total of
$259.0 million. Autodesk continues to expand its product
portfolio through the acquisition of small start-ups that are
easy to integrate within its own business line. Acquisitions have
also helped Autodesk to expand its cloud-based product offerings
in the recent times.
Autodesk is also increasing its penetration in the mobile
market by developing software for
Android platform, which will further drive market share going
forward. However, sluggish macro-economic environment, and
weakness in emerging markets, customer concentration and
increasing competition from
Adobe Systems Inc. (
are the major concerns in the near term.
Currently, Autodesk has a Zacks Rank #3 (Hold).
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