Analysis: Will Synopsys take over the world?

Dylan McGrath,EE Times
(02/20/2009 4:52 PM EST)
 
SAN FRANCISCO— EDA and IP vendor Synopsys Inc. has momentum, and its major competitors in EDA have been reporting losses for several consecutive quarters. Synopsys says its relative strength will buttress trends that have been working in the company's favor, driving even more marketshare its way.

But does the semiconductor industry want an EDA market increasingly dominated by one player?

"Customers want to make sure there are at least two viable EDA vendors," said Rich Valera, an analyst with Needham & Co.

Synopsys earlier this week surprised analysts and just about everyone who has been paying attention to the electronics ecosystem by posting better-than-expected revenue and profit for the quarter ended Jan. 31. Synopsys posted a net income, based on generally accepted accounting principles (GAAP), of $52.4 million on revenue of $339.8 million. And the company expects to maintain revenue for the current quarter, even in the face of an ugly downturn, projecting sales of between $332 million and $340 million.

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