PARIS For the second consecutive quarter, EDA revenue improved on a sequential basis in the fourth quarter of 2009, according to the EDA Consortium (EDAC) trade group.
For the fourth quarter of 2009, EDA revenue totaled $1.26 billion, up 8.1 percent on a sequential basis and down 4.2 percent year-over-year. The four-quarter moving average also declined by 9.5 percent, according to a report issued Thursday (April 1) by EDAC's market statistics service.
"Despite the year-to-year decrease, the EDAC revenue numbers continue to show a sequential increase over the previous quarter," stated Walden Rhines, EDAC chair and chairman and CEO of Mentor Graphics Corp.
In a discussion with EE Times, Rhines highlighted the sequential improvement and said that, while EDAC does not provide forecasts, "we certainly see that the sequential trend is positive."
EDA revenues indeed improved sequentially in the third and the fourth quarters, ending a long string of successive declines from the first quarter of 2008 through the second quarter of 2009.
Asked whether it is possible to get back to where we were early 2008, Rhines explained that the EDA industry has been on a long term growth trend throughout its history. He declared: "The amount of software required to solve design problems, the number of designers, the complexity of design and the number of new design applications all continue to increase over the long term. While there may be periods of slow, or even negative, growth, EDA is a long term growth industry."
In the fourth quarter of 2009, Rhines indicated that the most notable sequential increases were in the categories of CAE, IC Physical Design and semiconductor IP.
Questioned about the probability that these categories will continue to improve in the first quarter of 2010, Rhines outlined that these sequential increases are notable because two of them are among the largest segments of the EDA industry, namely CAE and IC Physical Design. "That suggests that the sequential improvement is broad based rather than focused upon specialty design areas."
The top five largest categories remain the same but, he noted, there are some smaller categories that showed strong sequential and annual growth. These included Design For Test, ESL Design, PCB Analysis, Yield Enhancement, Physical Libraries and Verification IP. "In general, these are newer area of EDA design and therefore would be expected to be growing faster than the larger, more traditional categories," Rhines commented.