Los Angeles-based MSC.Software Corp., a designer of simulation software for Boeing Co., Airbus Industrie and others, plans to move its headquarters in March to a new building in the South Coast Metro area of Santa Ana.
The company is scheduled to move into 155,663 square feet of space at 2 MacArthur Place, which is being built by Santa Ana-based Nexus Development Corp. The 10-year lease is valued over $40 million.
“We chose the Santa Ana location for our new worldwide headquarters because it provides the operational efficiencies we sought,” said Frank Perna, chairman and chief executive of MSC.
The software maker’s $149.2 million in revenue for 1999 would have placed it at No. 51 on the Orange County Business Journal’s list of publicly traded companies ranked by revenue. As of last week, MSC had a market capitalization of $111 million.
The company plans to close its existing office in Costa Mesa, where it has 300 employees, and will reduce its Los Angeles employee count from 50 to 25. The new office will house 325 employees.
“We can consolidate our resources for simulation software research, development and marketing in the Orange County high-tech corridor,” Perna said. “Having this consolidated facility allows MSC to broaden our leadership in the worldwide simulation markets.”
Another advantage is that the building is in Santa Ana’s Empowerment Zone, meaning the company can qualify for state and federal tax breaks.
“It’s definitely saving us money,” said Joanne M. Keates, MSC’s head of investor relations.
She said the company plans to sublet some of its space and then lease it back as it grows.
The new building is part of the 410,640-square-foot Twin Towers at MacArthur Place, near the junction of the Costa Mesa (55) and San Diego (405) freeways.
Both buildings will be nine stories tall, with MSC occupying the first seven floors of its building.
MSC is “a visionary company and the place they have is high profile,” said Jeffrey Bitetti, director of marketing for Nexus. “We’re thrilled to have them.”
Bitetti said Nexus is in negotiations with other potential tenants that it expects to announce in a few months.
MSC designs simulation software for many companies in the aerospace industry, including Airbus and Boeing, as well as big manufacturers such as Ford Motor Co., DuPont, Eastman-Kodak Co. and Motorola Inc. The company’s software is used to automate product design and manufacturing.
Rivals include France’s Dassault Systemes SA, Waltham, Mass.-based Parametric Technology Corp. and Unigraphics Solutions Inc. of Maryland Heights, Mo.
The company reported revenue of $43.4 million for the quarter ended June 30, a 30% increase compared with the same quarter of 1999. Net income for the quarter fell nearly 40%, to $2 million. The company’s shares were trading at around 8 last week, down from a recent high of 14 in March. Third-quarter results are due out Nov. 1. n
