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Report: EDA revenues slid 11% in Q3

Posted: 15 Jan 2009 ?? ?Print Version ?Bookmark and Share

Keywords:EDA? Q3 revenue? design verification?

The EDA Consortium (EDAC) reported that EDA revenue in Q3 08 reached $1.26 billion, down 10.9 percent from $1.41 billion in Q3 07.

Walden Rhines, EDAC chair and Mentor Graphics Corp. chairman and CEO, described Q3 08 as "unusual," with relatively weak product revenue and strong service revenue. He noted that at least one EDA company, Magma Design Automation Inc., changed its revenue recognition model and that there were changes in participating companies.

EDA's largest product category, computer aided engineering, generated revenue of $465.4 million in the quarter, down 17.6 percent from the same period in 2007, EDAC said. IC physical design and verification revenue declined 22.3 percent year-to-year to $298.7 million, EDAC said.

Printed circuit board and multi-chip module revenue increased 2.5 percent over Q3 07 to $130.9 million, EDAC said. Semiconductor intellectual property revenue totaled $267.8 million in the third quarter, a 1.8 percent increase over the third quarter of 2007, EDAC said.

Rhines said only two product areas showed growth in the third quarter of 2008, design-for-manufacturing and electronic system level. "This is interesting because these are new emerging areas of EDA that have been emerging for a long time and now appear to be gaining importance," Rhines said.

Asked if Q3 data was still relevant given the tumultuous changes that occurred in the economy and the semiconductor market during the fourth quarter, Rhines said, "It's relevant in that it's the third of four data points for the year."

Rhines acknowledged the volatility of Q4, but said EDA revenue would likely get a seasonal boost.

EDA revenue decreased in every region. North America, EDA's largest region, purchased 555.5 million of EDA products and services in the third quarter of 2008, down 11 percent from the third quarter of 2007, EDAC said. Revenue in Western Europe declined 12.9 percent, EDAC said, while Japan and the rest-of-the-world region experienced declines of 15.3 and 1 percent, respectively, EDAC said.

Companies that were tracked employed 28,176 professionals in Q3 2008, up 3.4 percent from the 27,254 employed in the third quarter of 2007, and 6 percent over the 28,004 employed in Q2 08, EDAC said.

Rhines said he was a little surprised by the strength of the employment data.

- Dylan McGrath
EE Times

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