EDA revenue drops 3.7pc in Q2-08

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EDA revenue drops 3.7pc in Q2-08

Solid YoY growth in PCB/MCM and services segments offset by declines in CAE, IC physical design and verification, and semiconductor IP

Saturday, October 11, 2008

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SAN JOSE, USA: The EDA Consortium (EDAC) Market Statistics Service (MSS) announced that the electronic design automation (EDA) industry revenue for Q2 2008 declined 3.7 percent to $1357.4 million compared to $1408.8 million in Q2 2007.

"Solid year over year growth in the PCB/MCM and services segments were offset by declines in CAE, IC Physical Design & Verification, and Semiconductor IP, resulting in an overall decline for Q2, 2008," said Walden C. Rhines, EDAC chair and Mentor Graphics' CEO and chairman.
"Geographically, Western Europe and Japan showed growth in Q2, but this growth was offset by declines in North America and the rest of the world."

Companies that were tracked employed 28,004 professionals in Q2 2008, up 7 percent from the 26,164 employed in Q2 2007.

Revenue by Product Category
EDA's largest category, Computer Aided Engineering (CAE), generated revenue of $524.7 million in Q2 2008, representing a 2.6 percent decrease over the same period in 2007. The four quarter moving average CAE growth rate was positive at 6.8 percent.

For IC Physical Design & Verification, the next largest category, revenue decreased to $317.1 million in Q2 2008, a 20.2 percent decrease compared to Q2 2007. The four quarter moving average growth rate declined 2.6 percent for IC Physical Design & Verification.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue increased 19.3 percent over Q2 2007 to $141.6 million. The four quarter moving average growth rate for PCB & MCM showed a 1 percent decrease.

Semiconductor Intellectual Property (SIP) revenue totaled $264.9 million in Q2 2008, a 1.6 percent decrease over Q2 2007. The four quarter moving average growth rate for SIP was slightly down at 0.8 percent.

Services revenue was $109 million in Q2 2008, up 28.5 percent from Q2 2007. The four quarter moving average growth rate for services was up 10.7 percent.

Revenue by Consuming Region
North America, EDA's largest region, purchased $585 million of EDA products and services in Q2 2008, which represents a 13.3 percent decrease compared to Q2 2007. The four quarter moving average growth rate was down 6.9 percent for North America.

Western Europe revenue was up 10.5 percent in Q2 2008 compared to Q2 2007, with revenues of $273.4 million. The four quarter moving average growth for Western Europe was up 11.6 percent. Q2 2008 revenue from Japan increased 13.7 percent to $281.8 million compared to Q2 2007. The four quarter moving average increase was 13.1 percent for Japan.

Rest-of-World (ROW) decreased to $217.1 million in Q2 2008, a 9 percent decrease compared to the same quarter in 2007. The four quarter moving average growth was positive at 6.7 percent.

©CIOL Bureau

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