EDA Consortium Reports Decrease for 2009 but Sequential Fourth Quarter Gains

SAN JOSE, CA -- April 1, 2010 -  The EDA Consortium (EDAC) Market Statistics Service (MSS) today announced that the Electronic Design Automation (EDA) industry revenue for Q4 2009 was $1262.7 million, an 8.1 percent sequential increase from Q3. On a Q4/Q4 basis, EDA industry revenue declined 4.2 percent, compared to $1318.7 million in Q4 2008. The four-quarter moving average declined 9.5 percent.

"Despite the year-to-year decrease, the EDAC revenue numbers continue to show a sequential increase over the previous quarter," said Wally Rhines, EDAC chair and chairman and CEO of Mentor Graphics. "Most notable sequential increases were in the categories of CAE, IC Physical Design, and semiconductor IP. In addition, the Pacific Rim region showed year-to-year growth both for Q4 and for the year as a whole."

Companies that were tracked employed 25,995 professionals in Q4 2009, down 4.8 percent from the 27,311 employed in Q4 2008, but up 0.2 percent from the 25,942 employed in Q3 2009.

Revenue by Product Category

Computer Aided Engineering (CAE), EDA's largest category, generated revenue of $482.3 million in Q4 2009. This represents a 3.9 percent decrease over the same period in 2008. The four-quarter moving average for CAE declined 9.8 percent.

In the next largest category, IC Physical Design & Verification, revenue decreased to $293.6 million in Q4 2009, a 1.0 percent decrease compared to Q4 2008. The four-quarter moving average declined 7.3 percent for IC Physical Design & Verification.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue decreased 3.4 percent compared to Q4 2008, to $131.4 million. The four-quarter moving average for PCB & MCM decreased 8.5 percent.

Semiconductor Intellectual Property (SIP) revenue totaled $272.7 million in Q4 2009, a 4.5 percent decrease compared to Q4 2008. The four-quarter moving average for SIP decreased 10.8 percent.

Services revenue was $82.7 million in Q4 2009, a decrease of 16.4 percent compared to Q4 2008. The four-quarter moving average for services decreased 12.7 percent.

Revenue by Consuming Region

The Americas, EDA's largest region, purchased $560.8 million of EDA products and services in Q4 2009, representing a 1.4 percent decrease compared to Q4 2008. The four-quarter moving average was down 8.1 percent for the region.

Revenue in Europe, the Middle East, and Africa (EMEA) was down 12.1 percent in Q4 2009 compared to Q4 2008 on revenues of $255.2 million. The four-quarter moving average for EMEA was down 16.6 percent.

Fourth quarter 2009 revenue from Japan decreased 9.6 percent to $236.3 million compared to Q4 2008. The four-quarter moving average for Japan decreased 13.2 percent.

The Asia/Pacific (APAC) region increased to $210.3 million in Q4 2009, a 6.3 percent increase compared to the same quarter in 2008. The four-quarter moving average increased 1.2 percent.

About the MSS Report

The EDA Consortium Market Statistics Service reports EDA industry revenue data quarterly and is available by annual subscription. Both public and private companies contribute data to the report. Each quarterly report is published approximately three months after quarter close. MSS report data is segmented as follows: revenue type (product licenses and maintenance, services, and SIP), application (CAE, PCB/MCM Layout, and IC Physical Design and Verification), and region (the Americas, Europe Middle East and Africa, Japan, and Asia Pacific), with many subcategories of detail provided. The report also tracks total employment of the reporting companies.

About the EDA Consortium

The EDA Consortium is the international association of companies that provide design tools and services that enable engineers to create the world's electronic products used for communications, computer, space technology, medical, automotive, industrial equipment, and consumer electronics markets among others. For more information about the EDA Consortium, visit www.edac.org, or to subscribe to the Market Statistics Service, call (408) 287-3322 or email mss09@edac.org.