Discreet in trouble?

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  08 August 2002
Discreet in trouble?

I found these two messages on the Yahoo finance message boards. If even half of this is true, it doesn't sound too good for Discreet.

Quote: So far, no one has directly addressed any of my questions. what was so stupid about my Qs? is this a stock chat group or a FLAME board? i'll try again: what's with the DISCREET division? the best i can figure, first ADSK way overpaid for it, then they compounded the mistake by buying part of Media100.

DISCREET has some legs in the very high-end (SGI) market, but that's not as attractive as it used to be. the action is in the high-end PC market, and i think in the PC (new media) software space ADSK's products are still trying to catch-up to more nimble competitors.

why do the employees feel so loyal to ADSK? does ADSK have an especially generous stock option plan? do ADSK employees not have to work?

is it true that ADSK meetings usually contain 20 people, with another 15 on the phone? do decisions take years?


A partial answer is better than none. With respect to Discreet, their sales are off over 40%, and the "new media" space to which you refer has by-and-large been abandoned, with the exception of the 3D market. They have missed their revenue targets (by often extremely large amounts) for at least the last six quarters.

Their mid-level editing solution is no longer being sold and the R&D team now works for Sony. Their mid-level compositing/effects solution was "relocated" to Montreal and the R&D team now works for Apple.

With respect to their "future" developments which were shown for the first time during this past NAB (called something like Stratta and Mezzo), word on the street is that they've been cancelled and the R&D person responsible for the project(s) has been sacked.

The Media100 streaming media acquisition has been an unmitigated disaster as they are trying to sell tools that the major players like RealNetworks, Apple, and the big daddy of them all, Microsoft, give away for free.

The SGI-based stuff which still generates the lion's share of the revenue is tanking, not so much because they are SGI-based, but rather because facility owners are less and less willing to sign up to the huge lease payments that come with such purchases. When factoring in the reality that lower cost options are actually available now (anyone see Lord Of The Rings???), the SGI-based systems will shortly be relegated to the upgrade-only classification.

Add to all this the fact that morale could not possibly be lower, and that management's response to all this has been to send around outside consultants to ask the people inside the company "what's wrong with the company?" (rather than poking their heads out of their offices on occasion), and well, maybe you're right that the purchase price that ADSK paid was a tad high, all things considered.

"Somebody's gonna have to go back to town and get a s**t load of dimes!" = Blazing Saddles
  08 August 2002

This doesn't sound good at all.
Hope things work out for them with their new products coming out.
  08 August 2002
Given the current economic situation, everyone is in trouble, so I wouldn't just single out Discreet.

In fact, I think things are picking up for Discreet as there has been a sudden release of products across the board: 3ds max 5, plasma, new Inferno, Flame and Flint systems.

  01 January 2006
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