EVE preps defense against Mentor
1/9/2011 4:38 PM EST
Burgun said EVE is now playing the defense card. "Although the company
is in good shape, profitable and with cash, we don't particularly want
to experience what Quickturn and Mentor did in the 1990s."
He continued: "Several people in the EDA industry may remember very well
that Mentor spent close to $60 million on legal battles against
Quickturn from 1996 to 2002 (according to their filings with the
Security Exchange Commission) – not to mention the cost of the hostile
attempt to take over Quickturn in 1998 – when at that time Quickturn
accused Mentor of abusive litigation tactics."
Concerning Mentor's recent patent allegations, Burgun said EVE reckons
that, in legal terms, it is safe. The strategy is to avoid war on
multiple fronts and to wear themselves out dealing with legal issues
while the company's preoccupation today is to enlarge the business and
continue to meet its customers' needs, he added.
Asked if he was trying, through his message, to make Mentor see sense,
he replied affirmatively. "There is a past experience. Mentor has
already played that game, and it lost a lot of money and its reputation
Burgun also called for the EDA community as a whole to bring Mentor back
to reason. "Such behavior is not good for our industry. It's
At this point, the company's intention is to be defensive on the legal
front, outlined Burgun. However, he continued: "We are not here to
worsen the matter. We simply intend to explain the world that we have
not done anything wrong and that Mentor should start thinking rationally
again. They probably thought that we are not in great shape and that
they can put pressure on us. But, this is wrong. We are doing very well
in terms of growth and profitability. We simply have no intention to
spend $10 million in lawyers' fees. We'd rather spend that money to come
up with great products."
For the year 2010, EVE indeed reported a 50 percent revenue growth
compared to 2009 and realized 10 percent profitability. It also managed
to sign contracts with 15 customers for ZeBu-Server, its
sixth-generation scalable emulation system capable of handling up to
one-billion application specific integrated circuit (ASIC) gates.
In fiscal year 2010, EVE said it added multiple new customers in leading
industries, including LG Electronics, Konica-Minolta, Fujitsu
Microelectronics Solutions, Nokia-Siemens Networks among others. EVE
expanded its installed base through several repeat orders from previous
EVE has a strong presence in the United States and Asia. Japan
represents one fourth of its business with 5 of the 6 biggest semiconductor companies in Japan.