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EDA revenue hits Rs.5,962.60 crore in Q3 10

Posted: 12 Jan 2011     Print Version  Bookmark and Share

Keywords:EDA  market report  Walden Rhines 

The EDA Consortium (EDAC) Market Statistics Service (MSS) reports that global revenue for EDA totalled Rs.5,994.71 crore ($1,307 million) in Q3 10. Also, revenue was up 6.9 per cent sequentially, and up 11.9 per cent over Q3 09. The four-quarters moving average also increased by 4.9 per cent.

Walden Rhines, EDAC chair and chairman and CEO of Mentor Graphics Corp. noted, "There has, indeed, been quite an improvement in Q3 10 EDA revenue versus last year." He added, "Traditionally, EDA revenue recoveries have lagged behind the semiconductor industry recoveries by about one year. While EDAC only reports data and takes no position on its meaning, individual companies, such as Mentor Graphics, have expressed optimism in their Q3 earnings reports and have suggested that the timing of the improvement in EDA is similar to previous recoveries."

Rhines enumerated the categories with the most notable sequential increases in Q3 10 were CAE, IC physical design and verification, and semiconductor IP.

CAE was up 13.9 per cent over the same period in 2009, at a revenue of Rs.2,352.02 crore (512.8 million) in Q3 10 and IC physical design and verification was up 11.8 per cent year-to year increase at a revenue of Rs.1,337.46 crore ($291.6 million). While semiconductor IP revenue was Rs.1,369.11 crore ($298.5 million) in Q3 10, up 24 per cent compared to Q3 09.

PCB and multi-chip module revenue, however, decreased by 5.4 per cent to Rs.576.54 crore ($125.7 million), and services revenue dropped by 6 per cent to Rs.360.05 crore ($78.5 million) compared to the same period last year.

According to the EDAC report, revenue increased y-on-y in every consuming region.

Ranking first, the Americas purchased Rs.2,647.40 crore ($577.2 million) of EDA products and services in Q3 10, up 12.9 per cent compared to Q3 09.

Revenue in EMEA climbed by 9.9 per cent y-on-y while Q3 10 revenue from Japan decreased 7.1 per cent to Rs.1,060.43 crore ($231.2 million) compared to Q3 09.

For the second consecutive quarter, the Asia-Pacific region has overtaken Europe and Japan as a consumer of EDA software and services and has benefited the most from sales in Q3 10.

Revenue for Asia Pacific represented Rs.1,258.11 crore ($274.3 million) in Q3 10, a 34.6 per cent increase compared to Q3 09. The four-quarters moving average increased 28.9 per cent.

"EDAC data shows that almost all of the net growth of EDA licence and maintenance revenue of the last decade was generated by the Asia-Pacific region," noted Rhines . "While EDAC doesn't provide a forecast, most of our member companies have indicated that they continue to see good growth from the Asia-Pacific region and expect it to continue in the future. Most of this growth has been driven by the Asia-Pacific design activities of multinational companies but regional companies are growing their use of EDA."

2011 guidance
EDAC does not forecast the future. Rhines, however, accepted to speak as the CEO of Mentor Graphics and reiterated the guidance he provided during the company's Q3 investor call, notably for a strong y-on-y growth in Q4 10 and for the total year of calendar 2010.

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