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Services dip brings down quarterly revenue

Posted: 01 Sep 2002 ?? ?Print Version ?Bookmark and Share

Keywords:eda revenues? eda industry? design automation consortium? wally rhines? ic layout tools?

EDA revenue declined in Q1, marking the industry's first year-to-year quarterly decline in two years, according to the Electronic Design Automation Consortium's latest Market Statistics Survey.

Total revenue for EDA products and services decreased by 3 percent in the Q1 to $962 million, compared with 9 percent and 1 percent increases, respectively, in last year's Q3 and Q4, according to the EDAC survey.

EDAC chairman Wally Rhines, the chairman and CEO of Mentor Graphics Corp., said revenue growth in EDA products, maintenance, and semiconductor IP was not enough to overcome a decrease of more than 40 percent in services revenue.

"The quarter reflected some of the weakness in the overall customer base, but considering how the rest of the electronics industry has been doing, it is pretty good," said Rhines. "Product and maintenance revenue year over year was up 4 percent. Unfortunately, consulting and services was down 40 percent, so the net was off about 3 percent."

The EDAC survey reports Q1 EDA services revenue of $82 million, or 43 percent less than in the year-ago quarter.

Computer-aided engineering revenue, which accounts for half of all EDA revenue, decreased 1 percent from the year-ago quarter, the report said. Revenue for PCB and multichip-module layout tools totaled $88 million in Q1, down 13 percent from the same period last year.

Rhines pointed out that revenue for IC layout tools increased to $290 million, up 22 percent from last year's Q1, maintaining a string of 20 percent quarterly growth since last year's Q1.

Analysis tools led CAE application growth, increasing by 29 percent over the year-ago quarter to $72 million, EDAC said.

Simulation up

Other CAE applications also recorded positive growth: Revenue for event-driven simulators increased 8 percent to $91 million, analog and mixed-signal simulators rose 7 percent to $52 million, synthesis was up 3 percent to $77 million and formal and functional verification increased 2 percent to $36 million.

Revenue in design-for-test and test automation grew 6 percent, to $23 million, EDAC said.

On a regional basis, revenue from the North American market declined less than 1 percent in Q1. Revenue from Japan increased from last year's Q4 but was down 10 percent from the year-ago quarter, while revenue in Western Europe was down 3 percent from a year ago. Regional revenue increased 1 percent in the rest of the world, which now accounts for 7 percent of global EDA revenue.

Employment in the industry was 19,300 worldwide, up 7 percent from the year-ago quarter.

- Michael Santarini

EE Times

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