Event Brief of Q2 2004 MatrixOne Inc. Earnings Conference Call - Part 2.

(From Fair Disclosure Wire)

A. (Mark O'Connell) Well, I would put the entire overachievement number compared to our guidance and the estimates completely to sales execution. I think the team has done a great job on a global basis. We talked about our European team really doing a very, very strong job. But I think the discipline and the teamwork focused on helping the company execute on sales as a team really delivered those results. When we look at already this quarter, what we typically don't do is talk about bookings and give a lot of guidance in terms of what has actually happened. But I'm going to share with you the perspective that already this quarter in the first three weeks, we have already closed new customers and very important deals for us already this quarter. So because of that, we're, you know, we see that the sales execution and the interest in the marketplace is providing some lift. And we expect that we're going to be able to continue to see that throughout this quarter. Q15. (Brad Whitt, Southwest Securities) OK, and can you talk a little about the Cadence relationship? How will you recognize revenue from that? Will Cadence be taking inventory of Matrix or will it be a [indiscernible] user model, and when will we expect to see that hit the income statement?

A. (Maurice Castonguay) Well, as you know, Cadence's model is that much of their revenue comes on a subscription basis. So the relationship with Cadence is right on track. We're making a lot of progress with them. But the reality is that two phenomenons, the impact of most of their revenue coming from subscriptions will have the impact on us that we will see revenue very gradually increasing over time, building into what we hope is a very nice annuity. There's also the effect that we have one-quarter delay in terms of when they report to us. So they will recognize something in one quarter that we won't recognize until the following quarter. So that's the direct importance of their relationship. However, there's also an indirect relationship and that seems to be…