In case you haven't heard, Structural Dynamics Research Corp (SDRC) is a company that's seen a lot of action recently, both on Wall Street and in the hallowed Virtual Halls of Fooldom. It's a stock that quite a few Fools believe has a real chance to shoot to the stratosphere, much like the Lockheed missiles the company helps design. So who is this relatively unknown and little-understood corporation? What do they do and why should you care?

Two words: CAD and PDM. (Ok, ok, acronyms.)

SDRC is a leading, world-wide supplier of state-of-the-art Computer Aided Design (CAD) software, and specialty engineering services. Manufacturers use SDRC's automation tools to design, test, analyze, optimize and create mechanical products, such as automobile or aircraft components. SDRC also specializes in Product Data Management (PDM) software that helps control the complete product planning and manufacturing process. PDM organizes information that's sometimes spread out from plant to plant, designer to designer, or in offices in different parts of the world. The bottom line is that SDRC products can help cut manufacturing costs and development time, sometimes by a huge amount.

Sound great? Sure, but there's a catch. There's a skeleton in SDRC's closet that's spooking Wall Street, even though the ghost has been thoroughly exorcised. It's a long story involving an unscrupulous VP in SDRC's Asian division, a fellow who reported some funny-looking numbers that quickly cast a pall over the company, and sent its stock price into the tank. The Bad Apple was eventually diced, and a new CEO---Albert Peter, a man with a reputation for integrity---came to head the company. What's more, SDRC recently introduced a complete new line of CAD and PDM technologies that have earned the admiration of some of the world's top mechanical engineers.

So what are SDRC's prospects?

The company is now in the final stages of becoming the single source Engineering Process Automation Provider for Ford Motor Company. Read that again: *the single source Engineering Process Automation Provider for Ford Motor Company.* This is a deal that some analysts speculate is worth hundreds of millions in new revenue to SDRC in the years ahead. On top of that, Boeing has recently added $14 million dollars worth of SDRC's PDM software, and it's possible they'll eventually follow Ford's lead and ask SDRC to be their single source provider as well. SDRC's corporate goal is to become the premier supplier of engineering process automation software and services in the Automotive and Aerospace industries.

There are many indications that manufacturers, in an effort to reduce costs, are now going with the single Engineering Process Automation Provider concept, rather than with the traditional CAD/CAM tools supplier relationships. This new direction and market advantage is leading SDRC to major contracts with existing clients, and with new clients who look to them to provide the whole enchilada. Their customer base is broad and diverse, including heavy-weights such as Boeing, Lockheed, Thiokol, Ford, Honda, Toyota, Xerox, Honeywell, Canon, Fujitsu, Nokei, BF Goodrich, Iomega and dozens of other world class manufacturers. Boeing has provided them with their largest single order up until now, and currently has over 65,000 seats running SDRC's "Metaphase" PDM software.

For a company that has never done over 183 million in annual sales, the Ford deal alone promises to re-define the fair value of SDRC. The company is focusing on increasing margins, and is posting continuous, visible revenue and earnings growth. Plus, they're launching an all out advertising and promotion campaign to gain market recognition.

SDRC today has no long-term debt, and CEO Al Peter has stated that he has no intentions to go into hock. The company is concentrating on increasing shareholder profitability through aggressive growth and providing record earnings, and they continue to increase hiring at a rapid pace to support their growth and expansion. SDRC currently employs over 1,100 engineers and support staff in over 60 offices world-wide.

In this Fool's opinion, the prospects for SDRC's future look extremely healthy. A Foolish investment for you? Only you can decide. Check out the Structural Dynamics Research Corp folder on the Fool's Stock Board to get a fuller picture of this highly specialized and fast-changing company.

[Editor's Note: CARDRX is a registered pharmacist and managed care consultant. He is the Director of Pharmaceutical Programs for National Medical Claims Analysts Corp., (NMCA), which specializes in unique cost containment programs for the health insurance industry.]