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Cadence to sell Simplex extraction tool

Posted: 21 Jan 2002 ?? ?Print Version ?Bookmark and Share

Keywords:cadence design systems? hyperextract? design tool?

Shelving its own Hyperextract gate-level extraction tool, Cadence Design Systems Inc. has secured exclusive distribution rights to Fire&Ice QX, the gate-level parasitic extraction tool of Simplex Solutions Inc. The deal will let Simplex refocus its marketing efforts on its suite of analysis tools.

Simplex recently pre-announced that its fourth-quarter 2001 and first-quarter 2002 revenues would fall below expectations, with the company not expecting to return to break-even status until 2003. But the Cadence deal is some good news that gives Simplex a stronger marketing channel, said Penny Herscher, Simplex president and CEO.

"We think customers win by us providing them with world-class extraction, and the Cadence channel is the best way to do that," said Herscher. "We broaden our market reach substantially, and it allows us to focus on selling our analysis technology."

Herscher noted that the exclusive deal is for stand-alone extraction only. While Simplex will stop selling Fire&Ice QX, it will continue to sell analysis tools such as VoltageStorm, ElectronStorm and SubstrateStorm, which incorporate extraction. Also, Herscher noted, Simplex retains rights to "X-architecture" versions of future extraction products.

Cadence will integrate Fire&Ice QX into its suite of deep submicron design tools, said Mitch Heins, Cadence's vice president of business development. "We now have access to a highly competitive, mature, and well-known technology in this [extraction] area," he said. "Simplex's Fire&Ice enjoys a reputation of having the best blend of accuracy, capacity and performance. It has very strong foundry support, which we can leverage into the COT [customer-owned tooling] market."

Although Simplex currently derives 15 percent to 30 percent of its revenues from standalone extraction, Herscher said the Cadence deal will not result in any reduction of revenues. "The structure of the deal is that we get a percentage of Cadence extraction revenues, with guaranteed minimums for about a year," she said.

The deal is effective immediately, but Simplex will fulfill all existing Fire&Ice QX customer obligations, Herscher said. Support will be transitioned over to Cadence as maintenance agreements come up for renewal, she said.

Meanwhile, Cadence will continue to sell its Diva and Assura Parasitic Extractor products for full-custom IC design.

Richard Goering

EE Times

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