With the (Variable X) branding, Mentor introduced a subscription‑style numbering scheme and a cloud‑connected component portal.

Originally created by Gene Marsh, PADS launched in 1985 as a DOS-based software priced at $495 per seat.

During this era, Mentor Graphics standardized the GUI and improved intra-tool integration.

The first version of PADS, version 1.0, was released in the early 1980s by PADS, a company founded by three engineers in the United States. The software was initially designed for MS-DOS and provided basic PCB design capabilities, including schematic capture, component placement, and routing. Over the next few years, PADS released several updates, including version 2.0, which introduced support for hierarchical designs and version 3.0, which added capabilities for high-speed design and simulation.

The era of the "PowerPCB" transition to the modern name.