EDA revenue fall accelerated in Q2, group reports

LONDON — The EDA Consortium (EDAC) Market Statistics Service (MSS) announced Friday (Oct. 10) that the electronic design automation (EDA) industry revenue for Q2 2008 declined 3.7 percent to $1357.4 million, compared to $1408.8 million in Q2 2007. Sales were slightly down on $1350.7 billion recorded in Q1 2008, which themselves had been down 1.2 percent on Q1 2007.

"Solid year over year growth in the PCB/MCM and services segments was offset by declines in CAE, IC Physical Design & Verification, and Semiconductor IP, resulting in an overall decline for Q2, 2008," said Walden C. Rhines, EDAC chair and Mentor Graphics' CEO and chairman. "Geographically, Western Europe and Japan showed growth in Q2, but this growth was offset by declines in North America and the rest of the world."

Companies that were tracked employed 28,004 professionals in Q2 2008, up 7 percent from the 26,164 employed in Q2 2007.

Revenue by Product Category

EDA's largest category, Computer Aided Engineering (CAE), generated revenue of $524.7 million in Q2 2008, representing a 2.6 percent decrease over the same period in 2007. The four quarter moving average CAE growth rate was positive at 6.8 percent.

For IC Physical Design & Verification, the next largest category, revenue decreased to $317.1 million in Q2 2008, a 20.2 percent decrease compared to Q2 2007. The four quarter moving average growth rate declined 2.6 percent for IC Physical Design & Verification.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue increased 19.3 percent over Q2 2007 to $141.6 million. The four quarter moving average growth rate for PCB & MCM showed a 1 percent decrease.