EarningsI am off to the Siemens PLM analyst conference, so this has to be quick — but these are important, so pay attention.

SofTech just announced that it is going to sell its CADRA product set to Mentor Graphics for $3.2 million plus potential earn-out payments of 10% of Mentor’s CADRA sales over the next three years, up to a maximum of $750,000.

You may remember that CADRA is one of the old-time 2D-ish CAD systems, developed by Adra Systems. Adra was at one time a division of MatrixOne –this genealogy gets confusing!– but was sold to SofTech in 1998, well before Dassault Systemes bought MatrixOne. Back in 1997, Adra said it had 25,000 seats of 2D CAD installed at roughly 1,500 customers worldwide. In recent years, though, SofTech stopped promoting CADRA and put the product into maintenance mode. Not surprisingly, CADRA revenue kept declining and was just $2.9 million and $3.2 million in fiscal 2013 and 2012 (year ended May 31).

This is an asset sale — Mentor bought CADRA, not SofTech — that SofTech’s shareholders have to approve. In the announcement, CEO Joe Mullaney said that this is part of the management team’s plans to revitalize the company: “Over the last two and a half years we have repositioned SofTech by significantly improving its financial position, investing in new products, and entering into technology partnerships with disruptive technology companies to offer compelling solutions in the PLM market. This transaction will allow us to focus our attention and resources on those strategic initiatives, certain of which we have experienced demonstrated market activity, while also significantly enhancing our financial position.”

Mr. Mullaney and his team have been rebuilding SofTech. Revenue was still down about 1% in fiscal 2013 to $6.4 million, but Q4 revenue showed the first year/year increase since 2007 as revenue was up 3% y/y to $1.6 million. Of course, CADRA accounted for almost half of total revenue, so it will be interesting to see how the company invests the proceeds from the asset sale to Mentor to get back on a more predictable growth curve.

I’ve reached out to Mentor to get their side of the deal –why do they want CADRA?– and will update if I learn anything interesting. The transaction is expected to close by November 30, 2013.

In other news, PTC  just filed a statement with the US Securities and Exchange Commission that says:

On September 3, 2013, in furtherance of PTC’s previously announced fiscal year 2014 margin expansion targets and in support of continued evolution of PTC’s business model, PTC committed to a plan to restructure its workforce.  The restructuring is expected to result in a restructuring charge of approximately $20 million, of which approximately $19 million is attributable to termination benefits and the remainder of which is attributable to facility consolidations.  PTC expects that the majority of the restructuring charge will be recorded in the fourth fiscal quarter ending September 30, 2013.  The restructuring will result in cash expenditures of approximately $20 million, which will primarily be paid in the first quarter of fiscal year 2014.  PTC expects that the impact of the expense reductions will begin to be realized in the first quarter of fiscal 2014 with the full impact realized in the second quarter of fiscal 2014.

Don’t panic –this isn’t enormous, it’s exactly the same as the charge taken in FQ2 2012– but it’s unclear what functions are being restructured or how many people are affected. Stay tuned as we learn more.

Finally, if you’re a Twitter type, follow the hashtag #SPLM13 for updates from Siemens’ PLM analyst event. I’ll be tweeting (from @monica_schnitge) and am pretty sure others will too. Follow along without leaving your desk!