SAN JOSE, Calif. -- After three consecutive quarters of relatively flat revenues, the EDA industry finished 2003 on a high note, reporting industry revenue of $1,021 million, a 13 percent increase over the fourth quarter of 2002, according to statistics released last week by the EDA Consortium.
The fourth quarter is traditionally the EDA industry's strongest.
For the full year, the industry posted revenues of $3,825 million, 3 percent higher than in 2002, according to EDAC's Market Statistics Service. But the 2003 total includes revenues from four companies that did not report data to EDAC in 2002, so the actual growth for the year was around 1 to 2 percent, said Walden Rhines, chairman and CEO of Mentor Graphics Corp., and current chairman of EDAC.
EDA product and maintenance revenue increased consecutively in each quarter of 2003, and comprised 94 percent of the industry's total revenue in Q4. Revenues for the quarter totaled $957 million, a 13 percent increase over Q4 in 2002.
Services revenue for the reported quarter was $64 million, up 6 percent from a year ago. But services revenue for the full year was 9 percent less than in 2002, according to the EDAC report.
The fourth quarter's and full year's revenue growth was due in large part to a 33 percent increase in revenues for IC physical design and verification tools in Q4, Rhines said. This category of tools led all others in terms of growth for the quarter.
Meanwhile, the industry's largest tool category, for computer-aided engineering (CAE) tools, generated revenue of $480 million in Q4, 8 percent more than the same period in 2002. CAE revenue for 2003 totaled $1,833 million, a 1 percent increase over 2002, EDAC reported.
Revenues for pc-board and multichip module layout tools were down in the fourth quarter and down slightly for the year. The category posted revenues of $83 million last quarter, 9 percent less than a year ago. Revenues for this category of tools totaled $331 million for the year, 2 percent less than in 2002.
Revenue from semiconductor intellectual property totaled $47 million last quarter, 4 percent less than the year-ago quarter. For the full year, semiconductor IP revenue increased to $195 million, up from $135 million in 2002, due in part to new companies' participation in the EDAC report.
EDAC reported revenue growth for the fourth quarter in each of the geographic regions it tracks. Western Europe led all other regions with growth of 20 percent over the previous year's quarter, reaching $197 million. For the full year, Western Europe's revenue was $716 million, a 4 percent increase over 2002 and 19 percent of world total.
Customers in North America, which accounted for 52 percent of worldwide revenues last quarter, purchased $568 million of EDA products and services in the quarter, a 12 percent increase over 2002. Regional revenue was $1,999 million for the calendar year, or 6 percent less than in 2002.
Revenues from Japan grew 9 percent in the fourth quarter to $158 million. EDAC reported that Japan experienced the highest growth level of all geographic regions in 2003, increasing 28 percent over 2002's levels to reach $749 million last year. Japan is the second-largest regional market for EDA products and services, EDAC reported.
The Rest-of-World continued its unbroken track record of revenue growth, increasing 7 percent last quarter to $99 million. Revenue from ROW for all of 2003 was $362 million, an increase of 15 percent over 2002, accounting for 9 percent of worldwide revenue.
Rhines noted that the EDA industry also increased employment worldwide last year. EDA companies employed 18,900 professionals in the fourth quarter of 2003, 4 percent more than in the year-earlier quarter.
"We continue to grow employment," said Rhines. "For the full year in 2003, we grew almost as much as we shrank in 2002"and 2001 was a hefty growth year for employment. We are doing our share of employing the world's people."