EDA industry moves in right direction

EDA industry revenues for the first quarter of 2003 were $908 million, 6% less than $962 million in Q1 2002 but a significant sequential improvement on the recent Q4 year over year.

EDA industry revenues for the first quarter of 2003 were $908 million, 6% less than $962 million in Q1 2002 but a significant sequential improvement on the recent Q4 year over year, which showed a 13% decline, according to an EDA Consortium market statistics report.

Japan, continuing its usual pattern of strong first quarter results, was the top performer with 37% growth at $235 million compared with $172 million a year ago.

"The sequential improvement in quarter over quarter numbers indicates the industry is moving in the right direction", said Walden C Rhines, Consortium Chair and Chairman and CEO of Mentor Graphics Corp.

"Another encouraging sign is that reported Q1 2003 EDA revenue was higher than Q4 2002 - an unusual result for the first quarter, which is usually seasonally lower than the preceding Q4".

The report shows that EDA product and maintenance revenue (excluding consulting and other services) totalled $849 million in the first quarter of 2003, 4% less than $880 million a year ago.

Product and maintenance revenue comprised 93% of the industry's total revenue in the quarter.

EDA's largest tool category, computer-aided engineering (CAE), generated revenues totalling $443 million in Q1 2003, 6% less than $473 million in the same period in 2002.

IC physical design and verification revenue totalled $288 million in Q1 2003, nearly matching the $290 million in revenue from Q1 last year.

Revenue for printed circuit board (PCB) and multichip module (MCM) layout totalled $80 million in Q1 2003, down 9% from $88 million in the same period last year.

The EDA industry's semiconductor intellectual property (SIP) led in revenue growth in Q1 2003, posting positive revenue growth for the fifth consecutive quarter.

Revenue increased 36% to $38 million compared with $28 million a year ago.

EDA services revenue was $58 million in Q1 2003, 29% less than $82 million in Q1 2002.

Revenue from Japan comprised 26% of the worldwide total in Q1 2003 - up from 16% just last quarter.

The rest of the world (ROW) continued its string of revenue growth by increasing 21% to $79 million in Q1 2003 - up from $65 million a year ago.

Revenue in Western Europe was $170 million in Q1 2003, slightly more than the same period last year.

The North America region, EDA's largest customer base, purchased $425 million of EDA products and services in Q1 2003, 24% less than $556 million in Q1 2002.

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