SAN JOSE - Electronic design automation (EDA) industry revenue declined a fraction of a percent in the fourth quarter of 1999, but increased 5% for the year to $3.4 billion, the EDA Consortium said here today.
EDA industry revenue for the fourth quarter, ended Dec. 31, 1999, totaled $901 million, compared to $908 million in the fourth quarter of 1998. The EDA industry's yearly revenue has risen each year for the past six years, the consortium said.
"The great news is that a major retooling is in sight, which will turn up the growth rate for the industry in the second half of 2000," said Aart de Geus, chairman of the EDA Consortium, as well as chairman and CEO of Synopsys, Inc. "The engineering shortage, combined with the increased chip complexities at 0.18-micron and the challenges of Internet-driven time-to-market are all screaming for massive designer productivity improvements. The new products being rolled out hold the promise to address the issue and herald healthy years ahead for the EDA industry."
During the fourth quarter of 1999, all major tool and service categories showed positive revenue growth, with the only exception being the IC layout category, which declined 30%.
Revenue growth by tool type varied widely by category. For the fourth quarter in a row, printed circuit board (PCB) and multi-chip module (MCM) layout was the fastest-growing EDA tool category, with a 20% increase over the fourth quarter of 1998 and reaching $91 million. This represents the fifth consecutive quarter of record revenues for the category. Compared with1998, annual PCB & MCM layout revenues increased 29% for 1999.
Fourth quarter computer-aided engineering (CAE) revenues grew 4% compared to the prior year quarter, totaling 10% for the year. Explosive growth in application-specific hardware once again led the CAE category. Revenues for the fourth quarter reached $50 million, a 49% increase over the same period in 1998. At $478 million, CAE continues to be the largest EDA tool category.
Consulting services revenue increased by 8% over the fourth quarter of 1998 to reach $106 million. IC layout revenues declined 30% during the quarter compared to the same period in the
prior year, totaling $158 million. Semiconductor intellectual property (SIP)
revenue surged ahead by 29% to $43 million--a new quarterly high for this category.
Revenue growth by region was mixed. North America rose 2.8%, Western Europe increased
7.8%, Japan rose 5.6%, and the rest of the world increased 15.5%. However, in the fourth quarter, North America was down 6.6% Western Europe rose 11.8%, Japan slipped 1.8%, and the rest of world rose 20.2%.