United Technologies to License Machining Technology to CGTech - Analyst Blog

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United Technologies Corp. ( UTX ) signed a licensing agreement with CGTech to integrate its PromptFM machining process optimization technology into the latter's VERICUT cutting process software. The combination is expected to enhance productivity for machining equipment operators, with applications in a wide spectrum of industries. The financial details of the agreement were kept under wraps.

CGTech specializes in computer numerical control (CNC) simulation software for manufacturing. Its flagship product, VERICUT software, has become the industry standard for simulating CNC machining. It identifies error, impending collisions, and areas of inefficiency, and is used throughout the CNC machining industry.

United Technologies' PromptFM, designed specifically to ensure compatibility with VERICUT, is a physics- and mathematics-based modeling software that optimizes machining rates for machined parts. The software seeks to determine the optimum speeds for a cutting process, considering the type of material being cut, and thus enables the CNC machine to cut efficiently and quickly. The conglomerate has seen productivity improvements of over 50% after implementing PromptFM in its own internal machining processes.


The newly integrated software will facilitate considerable improvements in productivity, as it will lead to lesser development time, shorter cycle times and less process variation. These benefits will translate to extended machine life and improved part quality.

The technology has significant implications in industry verticals such as industrial, aerospace, automotive and others that utilize automated machining. Extensive adoption and integration of this software has the potential to drive efficiency throughout the machining industry.

United Technologies presently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the diversified operations industry include Federal Signal Corp. ( FSS ), ITT Corporation ( ITT ) and Macquarie Infrastructure Company LLC ( MIC ), each carrying a Zacks Rank #2 (Buy).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Stocks

Referenced Stocks: CNC , ITT , UTX , FSS , MIC

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