SDRC
| Company type | Private |
|---|---|
| Industry | Software, Mechanical Computer Aided Engineering (MCAE), Product Lifecycle Management (PLM) |
| Founded | 1967 |
| Founder | Dr. Jason R. Lemon and group of engineers from University of Cincinnati |
| Fate | Acquired by EDS in 2001 and merged with UGS Corp. |
| Headquarters | Cincinnati , United States |
| Products | I-DEAS, Metaphase |
SDRC (Structural Dynamics Research Corporation) was a prominent firm specializing in MCAE (Mechanical Computer Aided Engineering) and PLM (Product Lifecycle Management) software solutions.
History
Established in 1967 by a group of engineers led by Dr. Jason R. Lemon from the University of Cincinnati, SDRC initially operated as a consultancy concentrating on structural dynamics, specifically the analysis of mechanical component vibrations. The company's early capital and significant business originated from US Steel, which later transferred its ownership stake to General Electric during the early 1980s.
To enhance its consulting services, SDRC created software designed to simulate and forecast vibration behavior, which eventually led to commercial software offerings. Throughout the 1970s, SDRC earned a reputation in Finite Element Analysis and modeling, progressing through the 1980s and 1990s to become a leader in solid modeling and simulation technologies. Notably, the term "MCAE" was coined by SDRC under Dr. Lemon's leadership during the 1970s. Dr. Lemon left the company in 1982 to establish International TechneGroup Incorporated, focusing on early-phase CAE applications in product development through CP/PD (Concurrent Product and Process Development).
SDRC was also at the forefront of Product Lifecycle Management (PLM) innovation, collaborating with Control Data to develop the Metaphase software, which later became fully owned by SDRC.
Financial scandal
In 1994, SDRC disclosed it would restate earnings after uncovering $68 million in revenue overstatements spanning three years, attributed to irregularities within its Far East reseller network. Additionally, an inventory of $30 million worth of unused SDRC software was discovered in a warehouse near Cincinnati airport.
By 1997, former chairman Ron Friedsam along with four other executives settled SEC allegations concerning inflated earnings reported between 1992 and 1994, collectively paying $1.5 million. Furthermore, a class-action lawsuit filed by shareholders resulted in SDRC agreeing to $37.5 million in settlement payments.
The SEC also imposed sanctions on KPMG audit partners Philip Present and William Scanlon for neglecting to address critical audit issues that accounted for 22% of SDRC’s declared net income in 1993. These sanctions restricted their ability to perform audits and represent public companies.
Acquisition
In 2001, SDRC was purchased by EDS for about $950 million and merged with EDS's subsidiary UGS Corp.. This combined organization operated under the name EDS PLM Solutions until 2004, when EDS divested its CAD/PLM software division to private equity investors. The resulting entity, UGS Corp., became an independent private company before being acquired by Siemens AG in 2007.
Products
I-DEAS served as SDRC’s primary computer-aided design application. Following the acquisition in 2001, both Unigraphics and I-DEAS were integrated into the NX platform. I-DEAS remains available through Siemens Digital Industries Software (formerly UGS Corp).
Metaphase represented SDRC’s solution for product lifecycle management, specifically tailored for handling CAD data management. Today, it is marketed under Siemens Digital Industries Software’s Teamcenter Enterprise portfolio.