EDA industry revenue up 10% in Q1

By Suzanne Deffree, News Editor -- Electronic News, 7/31/2007

The electronic design automation (EDA) industry started the year off with healthy growth, according to the latest data from the EDA Consortium’s Market Statistics Service (MSS).

The group today announced that EDA industry revenue for Q1 grew 10 percent to $1.345 billion, versus $1.223 billion in Q1 2006. The four-quarter average growth rate, which compares the most recent four quarters to the same four quarters in the prior year, was 15 percent.

“The same forces that we previously cited as drivers for EDA’s continued growth apply to this quarter’s figures,” said Aart de Geus, chairman of the EDA Consortium and chairman and CEO of Synopsys Inc.  “Consumer electronics and the continued move toward deeper sub-micron processes are fueling the need for advanced EDA tools in all segments of the industry.”

Employment in the EDA industry is also up, the group noted, reporting that companies that were tracked employed 25,820 professionals in Q1, up 11 percent from the 23,324 employed in Q1 2006.

Revenue by product category

Among the tool categories noted by the EDA Consortium, printed circuit board and multi-chip module revenue saw the greatest year-over-year growth, with the group’s MSS data reporting a 59 percent jump in Q1 revenue of $133 million. The four quarter moving average growth rate for this category was also high at 30 percent.

Also showing double-digit year-over-year revenue growth was IC physical design and verification revenue, which increased 14 percent to $357 million in Q1 and saw a four quarter moving average growth rate of 16 percent. Services revenue was $89 million in Q1 2007, up 11 percent from Q1 2006 and showing a four quarter moving average growth rate of 11 percent.

Meanwhile, semiconductor intellectual property revenue totaled $245 million in Q1, a 5 percent increase over Q1 2006 and showing a four quarter moving average growth rate of 18 percent. Computer-aided engineering (CAE), EDA’s largest tool category, generated revenue of $521 million in Q1, a lesser 2 percent year-over-year gain. The four quarter moving average CAE growth rate was 11 percent, the group’s MSS data showed.

Revenue by consuming region

North America, EDA’s largest region, purchased $619 million of EDA products and services in Q1, an 8 percent increase over Q1 2006. The four quarter moving average growth rate was 19 percent for North America.

Japan also saw 8 percent year-over-year growth, according to the reported data, with revenues of $314 million. Japan had a four quarter moving average growth rate of 4 percent.

Western Europe revenue was up 6 percent in Q1 with revenues of $232 million. The four quarter moving average growth for Western Europe was 11 percent.

In terms of growth, the EDA Consortium reported that its Rest-of-World segment continued to extend previous years of revenue growth by increasing 31 percent to $181 million in Q1, nearly four-times the growth rate of North America. The four quarter moving average growth was also strong at 25 percent.