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Archived news announcement

Intergraph Process, Power & Offshore Maintains Plant Creation Market Leadership

Growth in Key Software Revenue Supports Continued Market Dominance


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HUNTSVILLE, Ala., Feb. 21, 2002 -The Process, Power & Offshore division of Intergraph Corporation <NASDAQ:INGR> continues to lead the global process and power plant creation market with a revenue share of 31 percent, according to the latest Daratech Inc. analysis for 2001. The 2001 Daratech analysis marks the ninth consecutive year of revenue leadership for Process, Power & Offshore. The Intergraph revenue share leadership is more than one-and-one half times that of the closest competitor for 2001, Bentley Systems Inc. and more than two-and-one half times of the number-three ranked competitor, Cadcentre Ltd. The estimated $418.5 million (U. S.) plant creation market for 2001 increased by 4.5 percent over 2000, Daratech reported.

Market revenue share is based on total revenues reported by software vendors and analyzed by Daratech Inc., the technology assessment and market research firm, based in Cambridge, Mass. The overall plant creation market analysis includes conceptual plant design (intelligent P&ID, PFD and other rules-based plant layout tools) and physical plant design (2D and 3D CAD). Daratech Inc. announced the 2001 market survey results at the DaratechPLANT 2002 conference held in Houston, Tex., Jan. 28 through 30.

"Maintaining global leadership in the plant creation segment for 2001 is based on the continuing market confidence in our expanding portfolio of solutions, the stability and longevity of our business and the impressive successes of our customers," said Gerhard Sallinger, president, Intergraph Process, Power & Offshore.

Key Software Growth Supports Leadership

The division's Plant Design System (PDS(tm)), INtools(tm) and MARIAN(tm) software comprised key growth areas for 2001. Total PDS, INtools and MARIAN revenues increased in 2001 more than 25 percent over 2000. Intergraph also reported divisional year-end 2001 results for Process, Power & Offshore that included profit of $6.8 million on revenues of $116.5 million.

Revenue growth in PDS, INtools and MARIAN sales during 2001 partially offset revenue shortfalls associated with the sale of Intergraph's raster, plotting and civil engineering products to Bentley Systems Inc., significantly reduced hardware and associated maintenance revenue, restructuring of Intergraph distributorships in the Middle East and negative global economic conditions affecting sales to industrial markets.

PDS, INtools Lease License Activity Increases

PDS and INtools lease license activity reached all-time highs during 2001, increasing by more than 25 percent and 195 percent, respectively, over license levels in 2000. PDS is the division's flagship product and is the world's most-used plant design software. Intergraph acquired the INtools line of instrumentation engineering software in 1999 and since has increased sales volume of the product, particularly among global process plant owner/operators. Most of the division's software is available for lease by customers. The company pioneered software leasing in the 1990s and its lease model continues to contribute significantly to revenues.

MARIAN Sales Grow

The MARIAN materials and procurement management system in 2001 showed vigorous growth especially in Europe. New, major customers included Technip-Coflexip, Saipem, Rhoditech, BP (Germany), Mitsubishi Heavy Industries and Lilama. MARIAN continues to gain new customers and recognition as an effective, integrated solution in Europe as well as the Americas and Asia Pacific. In 2001, the division released new versions of MARIAN, including the Web-enabled eMARIAN, to answer demand for increased functionality. The materials management market is dominated by in-house, non-commercial systems that are often difficult and expensive to maintain. Intergraph acquired the MARIAN software along with existing contracts from debis Systemhaus Industry GmbH in early 2001.

Daratech Inc. Cites Factors

"The fact that Intergraph Process, Power & Offshore sustained its leadership in 2001 and grew software revenue in key areas is no small achievement given the state of the world economy last year. The company's software lease model continues to attract customers and strengthen Intergraph's business," said Charles Foundyller, president and founder of Daratech Inc., the Cambridge, Mass.-based market research and technology assessment firm. "Engineering, procurement and construction firms as well as owner/operators select Intergraph's INtools software for instrumentation engineering because of its open instrument database and datasheet and loop management capabilities -making it one of Intergraph's top performing products in 2001. Demand for COTS solutions like MARIAN should also continue to rise as engineering firms and owner/operators seek to better control material, decrease material waste and sharpen their procurement processes."

About Daratech Inc.

Daratech Inc. is a market research and technology assessment firm that specializes in process plant design/plant management automation, CAD/CAM/CAE, EDM/PDM, CIM, GIS, shipbuilding and computer graphics. The firm's analyses, projections and statistics are accepted worldwide and regularly cited by a variety of international, national and regional business and trade publications. Daratech Inc. provides a range of research and technology assessment services as well as publications. The organization hosts conferences, such as the DaratechPLANT event for the process and power industries, held yearly in Houston, Tex., since 1993. Founded in 1979, Daratech Inc. (www.daratech.com)is headquartered in Cambridge, Mass.

About Intergraph Process, Power & Offshore

With more than 23 years' industry experience, Intergraph Process, Power & Offshore enables customers to create, capture and manage plant information as a strategic asset by providing integrated life cycle solutions for the engineering, design, construction and operation of process and power plants as well as offshore oil and gas facilities. Flagship brands include the SmartPlant(r) and PDS(tm) (Plant Design System) suites and the SmartPlant Foundation lifecycle engineering information management solutions. Intergraph Process, Power & Offshore (www.intergraph.com/process) is the acknowledged global leader in the plant creation market (Source: Daratech Inc.). A division of Intergraph Corporation, Process, Power & Offshore is headquartered in Huntsville, Ala. USA, employs more than 800 people and does business in more than 60 countries.

Intergraph Corporation common stock trades on The Nasdaq Stock Market under the symbol: INGR.

Intergraph and the Intergraph logo are registered trademarks and PDS, INtools, MARIAN and eMARIAN are trademarks of Intergraph Corporation. Other brands and product names may be trademarks of their respective owners. (c) 2002 by Intergraph Corporation.

Software prices, availability, functions, features and specifications subject to change without notice. Any prices or currency totals quoted are in United States dollars and subject to applicable taxes and international currency exchange rates. This news release contains forward-looking statements regarding future events that are subject to risks and uncertainties. Certain risks and uncertainties of Intergraph Corporation are discussed in the company's Form 10K filed with the Securities and Exchange Commission. Copies are available without charge upon written request to Shareholder Relations, Intergraph Corporation, Huntsville, Ala. 35894.

 

 

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