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EDA INDUSTRY REPORTS RECORD REVENUES OF $947 MILLION IN Q2.



The EDA (1) (Electronic Design Automation) Using the computer to design, lay out, verify and simulate the performance of electronic circuits on a chip or printed circuit board.  Consortium's Market Statistics Service (MSS), San Jose San Jose, city, United States
San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850.
, has announced that electronic design automation (EDA) industry revenues for the second quarter of 2000 were $947 million, a 14-percent increase over Q2 1999. Through six months, revenues in 2000 were $1.79 billion, a 5-percent increase over the first half of 1999. Q2 2000 is $100M over Q1 2000. This is the highest quarter-to-quarter growth ever for the industry.

"We were very pleased to see growth rebounding in the second quarter, especially in Japan and Europe," noted Ray Bingham, EDA Consortium chairman, and president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  of Cadence Design Systems (company) Cadence Design Systems - A company that sells electronic design automation software and services.

http://cadence.com/.

See also Verilog.
, Inc. "As the industry grows out of its licensing model transition, we expect to see growth rates Growth Rates

The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.

Notes:
Remember, historically high growth rates don't always mean a high rate of growth looking into the future.
 continue through the remainder of the year. In fact, with the semiconductor industry re-tooling cycle beginning to gain momentum, demand for EDA technology and services will further accelerate," Bingham added.

The MSS report is the EDA industry's timeliest barometer of revenue data. Reported revenue of $947 million represents only the third time that the industry has generated over $900 million in a single quarter (since when and when were the other two 900+ postings...I don't think this sounds so positive the way it is stated), and it easily surpassed Q4 1999 for a new revenue record. The report also showed that the EDA industry has garnered over $800 million for the eight consecutive quarters.

MSS Second-Quarter 2000 Highlights

Revenue by Category

For the sixth quarter in a row, Printed Circuit Board (PCB PCB: see polychlorinated biphenyl.
PCB
 in full polychlorinated biphenyl

Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound.
) and Multi-Chip Module A Multi-Chip Module or MCM is a specialized electronic package where multiple integrated circuits (ICs), semiconductor dies or other modules are packaged in such a way as to facilitate their use as a single IC.  (MCM (MultiChip Module or MicroChip Module) A chip package that contains several bare chips mounted close together on a substrate (base) of some kind. ) Layout was the fastest-growing EDA tool category. Total first-quarter 2000 revenues for PCB and MCM layout tools posted a 30-percent increase over the prior-year quarter to reach a record $100 million, the first triple-digit revenue quarter for the category. Year to date PCB and MCM Layout revenue totaled $191 million, 23 percent higher than the first half of 1999.

Computer-Aided Engineering See CAE.
Computer-aided engineering

Any use of computer software to solve engineering problems. With the improvement of graphics displays, engineering workstations, and graphics standards, computer-aided engineering (CAE) has come to mean the computer
 (CAE (1) (Computer-Aided Engineering) Software that analyzes designs which have been created in the computer or that have been created elsewhere and entered into the computer. ) posted its first $500 million revenue quarter, a new record. CAE revenue totaled $500 million in Q2 2000, a new record, and 14 percent higher than Q2 1999. Through six months, CAE revenue was $928 million, a 6-percent increase over the same period last year.

For the second quarter in a row, Formal and Functional Verification Functional verification, in electronic design automation, is the task of verifying that the logic design conforms to specification. In everyday terms, functional verification attempts to answer the question "Does this proposed design do what is intended?" This is a complex task,  led all CAE sub-categories with 56-percent growth, and revenue hit $16 million, a new record. Analysis Tools surged by 45 percent to top $40 million for the first time. Synthesis returned to positive growth in the quarter, climbing 31 percent over Q2 1999 to reach $65 million and claim the title of largest CAE sub-segment, beating out Event-Driven Simulators, which posted $64 million on 15 percent growth.

IC Layout returned to positive revenue growth for the first time in five quarters in Q2 2000. Revenues were $167 million, a 12-percent increase over in Q2 1999. First half revenues were $325 million, 7 percent lower than the first six months of 1999.

Semiconductor Intellectual Property (SIP) revenue totaled $35 million in Q2 2000, 1 percent higher than the same period of 1999. Through six months of 2000, SIP revenues were $68 million, 5 percent lower than the first half of 1999.

Consulting Services revenue increased by 14 percent in Q2 2000 to reach $119 million, the sixth consecutive $100-million quarter, and a new record for the category. Consulting Services revenue has increased in each reporting period (vs. the prior-year quarter) since the MSS began tracking the category in 1996. First-half year 2000 revenues for the category were $232 million, 11 percent higher than the same period last year.

Revenue by Region

North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere.  generated $533 million in Q2 revenues, 8 percent higher than Q2 1999, and a new high mark for Q2. Year-to-date revenue has surpassed $1 billion for the first time, and at $1.01 billion revenue is 9 percent higher than the first half of 1999. After declining in Q1, revenues from Japan grew by 31% in Q2 (vs. Q2 1999) to reach $178 million - the highest growth of any region - and Japan regained the "number two region" title from Western Europe Western Europe

The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO).
. Revenues in Western Europe also returned to positive growth in Q2, increasing by 20 percent over Q2 1999 to reach $176 million. Year-to-date revenues in both Japan and Western Europe have pulled nearly even with last year's totals for the same period. Rest-of-World (ROW) has posted seven consecutive quarters of double-digit growth, generating $60 million in Q2, a 14-percent increase over the prior-year quarter. Through six months, ROW revenue stands at $111 million, 15 percent more than the first half of 1999.

Revenue by Operating System operating system (OS)

Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs.
 

Revenue for software that runs on DOS and Windows platforms continues to grow faster than revenue for UNIX UNIX

Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics).
 platform-compatible software. Q2 2000 DOS/Windows revenue grew by 37 percent (vs. Q2 1999) to reach $81 million. But software for UNIX platforms continued to dominate the EDA marketplace with 85-percent market share in the quarter. Revenues for EDA software that runs on UNIX platforms grew by 16 percent (compared with the prior-year quarter) to reach $443 million. Through six months, UNIX platform revenues totaled $823 million, or 84-percent market share, while DOS/Windows revenues totaled $154 million, or 16-percent market share.

About the MSS Report: The EDA Consortium's Market Statistics Service reports EDA industry revenue data quarterly and is available by annual subscription. Each quarterly report is published approximately three months after quarter close. MSS report data is segmented as follows: revenue type (new license revenue, consulting and design services revenue, maintenance, and other service revenue), application (CAE, PCB/MCM Layout, IC Layout, SIP), operating system (UNIX vs. DOS/Windows) and region (North America, Western Europe, Japan and Rest of World).

About EDA Consortium:

Where Electronics Begins(TM) best describes the Electronics Design Automation Industry. The EDA Consortium represents this vital industry on a worldwide scale. It is the international association of companies developing design tools and services that enable engineers to create the world's electronic products. The EDA Industry provides the critical technology to design electronics that enable the Information Age, including: communications, computers, space technology, medical and industrial equipment and consumer electronics. As stated recently by the Nobel Prize Nobel Prize, award given for outstanding achievement in physics, chemistry, physiology or medicine, peace, or literature. The awards were established by the will of Alfred Nobel, who left a fund to provide annual prizes in the five areas listed above.  Committee, "The integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for  is the basis for all modern technology."

For more information, or to subscribe to the Market Statistics Service, interested parties may contact EDA Consortium, 111 West Saint John Street, Suite 220, San Jose, Calif. 95113, USA, office 408-287-3322, fax: 408-283-5283, information@edac.org.
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Title Annotation:Company Financial Information
Comment:EDA INDUSTRY REPORTS RECORD REVENUES OF $947 MILLION IN Q2.(Company Financial Information)
Publication:CAD/CAM Update
Geographic Code:1USA
Date:Dec 1, 2000
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