Date: 16/07/2009

EDA industry revenues down in 1Q09 in all areas except Asia-Pacific

Weak semiconductor market is forcing VLSI design companies to cut EDA-tool shopping budget with only exception of Asia-Pacific (Japan not included). The recent report from EDA Consortium (EDAC) says EDA industry revenue for 1st quarter 2009 declined 10.7% to $1192.1 million, compared to $1334.2 million in1st quarter of 2008. The four-quarter moving average declined by 11.3%.

"The business environment remained difficult for EDA as for other industries, with Q1 EDA revenues declining in all regions except Asia Pacific," said Walden C. Rhines, EDA Consortium chair and Mentor Graphics CEO and chairman. "Nevertheless, for Q1, the overall decline was less than for the previous quarter."

The staff strength of EDA companies has also dropped by 2.8% to 26,561 employees in 1st Quarter 09 from 27,329 in 1st Quarter 08 and down by 2.7% from 27,311 in 4th Quarter 2008.

Segment-wise figures:

Computer Aided Engineering (CAE): Dropped by 18.8% to $427.9 million in 1st Q 2009 comparison to the same period in 2008. The four-quarter moving average for CAE declined 16.8 %.

IC Physical Design & Verification: Down by 5.4% to $302.2 million in 1st Q 2009 in comparison to 1st Q 2008. The four-quarter moving average declined 21.6 % for IC Physical Design & Verification.

Printed Circuit Board and Multi-Chip Module (PCB & MCM): Down by 7.1% to $119.9 million in 1st Q 2009 when compared to 1st Q 2008. The four-quarter moving average for PCB & MCM decreased 0.6 %.

Semiconductor Intellectual Property (SIP): Down by 12.8% to $236.3 million in 1st Q 2009 compared to 1st Q 2008. The four-quarter moving average for SIP decreased 1.4 %.

Services registered revenue of $105.7 million in 1st Q 2009, an increase of 20.4 % compared to 1st Q 2008. The four-quarter moving average for services was up 24.6 %.

Area wise figures:

Americas' EDA revenues dropped by 11.6% to $494 million in 1st Q 2009 compared to 1st Q 2008. The four-quarter moving average was down 15.4 % for the region.

Europe, the Middle East, and Africa (EMEA) revenue dropped by 15.9 % to reach $223.2 million in 1st Q 2009 when compared to 1st Q 2008. The four-quarter moving average for Western Europe was down by 7.5 %.

1st Q 2009 revenue from Japan dropped by 17.7 % to $265.5 million compared to 1st Q 2008. The four-quarter moving average for Japan decreased 10.8 %.

The Asia/Pacific (APAC) EDA revenues grown by 11.5% to reach $209.4 million in 1st Q 2009 compared to the same quarter in 2008. The four-quarter moving average declined 4.7 %.