EDA Consortium Reports Industry Revenue Down in Fourth Quarter 2008

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Tue Apr 7, 2009 9:00am EDT

SAN JOSE, Calif.--(Business Wire)--
The EDA Consortium (EDAC) Market Statistics Service (MSS) today announced that
the electronic design automation (EDA) industry revenue for Q4 2008 declined
17.7 percent to $1318.7 million, compared to $1602.7 million in Q4 2007. The
four-quarter moving average declined 9.4 percent. Note that revenue numbers
which include Q1 and Q2 2008 reflect a restatement of those numbers. 

"Declines in CAE, IC Physical Design and Verification, and PCB/MCM resulted in
an overall decline for Q4 2008," said Walden C. Rhines, EDA Consortium chair and
Mentor Graphics CEO and chairman. "For Q4, the double-digit drop occurred in all
regions except Western Europe, which showed an 8.4 percent decline." 

Companies that were tracked employed 27,311 professionals in Q4 2008, down 0.9
percent from the 27,562 employed in Q4 2007, and down 3.1 percent from the
28,176 employed in Q3 2008. 

Revenue by Product Category

Computer Aided Engineering (CAE), EDA`s largest category, generated revenue of
$501.8 million in Q4 2008. This represents a 24.4 percent decrease over the same
period in 2007. The four-quarter moving average for CAE declined 12.3 percent,
including the impact of the Q1 and Q2 2008 restatement. 

In the next largest category, IC Physical Design and Verification, revenue
decreased to $296.5 million in Q4 2008, a 32.7 percent decrease compared to Q4
2007. The four-quarter moving average declined 22.5 percent for IC Physical
Design and Verification. 

Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue decreased 11.6
percent compared to Q4 2007, to $135.9 million. The four-quarter moving average
for PCB and MCM increased 0.4 percent. 

Semiconductor Intellectual Property (SIP) revenue totaled $285.5 million in Q4
2008, a 7.6 percent increase over Q4 2007. The four-quarter moving average for
SIP increased 2.3 percent. 

Services revenue was $98.9 million in Q4 2008, up 24.5 percent from Q4 2007. The
four-quarter moving average for services was up 19 percent. 

Revenue by Consuming Region

North America, EDA`s largest region, purchased $569.1 million of EDA products
and services in Q4 2008, which represents a 22.7 percent decrease compared to Q4
2007. The four-quarter moving average was down 14.8 percent for North America. 

Western Europe revenue was down 8.4 percent in Q4 2008 compared to Q4 2007, with
revenues of $290.3 million. The four-quarter moving average for Western Europe
was down 1.2 percent. 

Q4 2008 revenue from Japan decreased 17.3 percent to $261.3 million compared to
Q4 2007. The four-quarter moving average for Japan decreased 5.8 percent. 

Rest-of-World (ROW) decreased to $197.9 million in Q4 2008, a 15.4 percent
decrease compared to the same quarter in 2007. The four-quarter moving average
declined 7.9 percent. 

About the MSS Report

The EDA Consortium Market Statistics Service reports EDA industry revenue data
quarterly and is available by annual subscription. Both public and private
companies contribute data to the report. Each quarterly report is published
approximately three months after quarter close. MSS report data is segmented as
follows: revenue type (product licenses and maintenance, services, and SIP),
application (CAE, PCB/MCM Layout, and IC Physical Design and Verification), and
region (North America, Western Europe, Japan, and Rest of World), with many
subcategories of detail provided. The report also tracks total employment of the
reporting companies. 

About the EDA Consortium

The EDA Consortium is the international association of companies that provide
design tools and services that enable engineers to create the world`s electronic
products used for communications, computer, space technology, medical,
automotive, industrial equipment, and consumer electronics markets among others.
For more information about the EDA Consortium, visit www.edac.org, or to
subscribe to the Market Statistics Service, call (408) 287-3322 or email
mss08@edac.org. 

The information supplied by the EDA Consortium is believed to be accurate and
reliable, but the EDA Consortium assumes no responsibility for any errors that
may appear in this document. All trademarks and registered trademarks are the
property of their respective owners



Press:
EDA Consortium
Paul Cohen, 408-287-3322
or
Mentor Graphics
Suzanne Graham, 503-685-7789 

Copyright Business Wire 2009

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