By Benjamin Pimentel 
   A DOW JONES COLUMN

As the technology sector struggles to navigate the economic downturn, one investor is focusing on companies with a chance to do well even in tough times.

Paul Wick, head of the technology group at J.& W. Seligman & Co. and its Seligman Communications & Information Fund (SLMCX), pays close attention to key segments of the tech industry, such as chip design and software for operating and maintaining corporate information technology networks.

Most tech companies are reeling from weaker demand as consumers pull back on spending and companies slash their budgets for information technology. But, Wick said, "The companies we're investing in have been more resilient than most technology companies."

Among them is Synopsys Inc. (SNPS), a Mountain View, Calif.-based maker of software for designing semiconductors. The company plays an important role for manufacturers who make a range of products, from cell phones to data networking equipment, Wick said.

Synopsys' subscription-based licensing system makes the company "a very low risk story," Wick added. He also noted how it has "among the most conservative revenue recognition practices in all of technology.

"It's one reason Synopsys has prospered in this economic malaise," he added.

Synopsys also has won praise for a steady business model that some analysts say has cushioned it from the economic downturn's most severe blows. It also benefited from internal problems at rival Cadence Design Systems (CDN).

One downside to owning shares of Synopsys, Wick said, is that some investors may "feel that it's too much of a defensive name and in a recovery, it would lag because there wouldn't be that much leverage in terms of earnings and revenue rebounding."

Still, Wick said Synopsys has managed to expand its profit margins and "has been very disciplined with its cash."

On Monday, shares of Synopsys rose 2% to $19.86.

Wick also favors BMC Software Inc. (BMC), a Houston, Tex.-based company that makes software used by businesses to run their data centers and information technology networks.

The company is expected to be well-positioned for growth in the push toward virtualization and cloud computing, in which companies access computing power through a network, instead of in-house data centers, he said.

"We have this convergence in the data centers right now," Wick said, citing major changes in the corporate technology market, including Cisco Systems' decision to enter the blade server arena and Oracle Corp.'s bid to acquire server maker Sun Microsystems.

In trading Monday, shares of BMC Software added 1.7%, to $34.69.

Security also has become an increasing concern for corporate IT networks as well as consumers. That's why Wick is also interested in Check Point Software Technologies Ltd. (CHKP), a network security company based in Redwood, Calif. and Tel Aviv, Israel.

The company is considered a pioneer in the fields of firewall software and private network security, areas that Wick said are crucial to the business world.

"Overall, the security space has remained an area that companies just have to spend money on," he said. "It's very mission-critical. That's why security software vendors have held up dramatically better."

Shares of Check Point Software rose 0.9% to $23.55 on Monday.

-Benjamin Pimentel; 415-439-6400; AskNewswires@dowjones.com