EDA Industry Revenue Growth Tops 20% in Q1 1998
[PR Newswire 08/10]
Profile Name: IC
Total Quarterly Revenues Hit New Record - $743
SAN JOSE, Calif., Aug. 10 /PRNewswire/ -- The
Electronic Design Automation Consortium (EDA Consortium)
announced today that its Market Statistics Service (MSS)
reported record new license and services revenues for Q1
1998. The EDA industry grew by 22% overall in the
quarter (compared to the same period last year) to reach
$743 million. This marks the 13th consecutive quarter
of double-digit growth.
Consortium's MSS report is the EDA industry's most timely
barometer of revenue data. Revenue data is reported to
subscribers for each quarter.
Aart de Geus, chairman
and CEO of Synopsys, Inc., and the EDA Consortium's
chairman, noted, "The reported Q1 1998 EDA revenue marks
the third quarter in a row that the EDA industry has
reported more than $700 million in new license and service
revenues. Our industry's continuing revenue growth reflects
the growing importance of EDA to the electronics
industry, especially in the evolution of system-on-a-chip
Q1 1998 MSS Highlights vs. Q1 1997:
Reported quarterly revenues showed that the new EDA
licenses and Semiconductor Intellectual Property (SIP)
products and tools grew by 20% (over the same period in
1997), to reach $447 million.
Services revenue increased by 49% to reach $79 million, a
new quarterly high.
All regions posted
positive revenue growth figures, despite the publicized
economic difficulties in Japan and Asia. North America led
revenue growth last quarter, increasing 35% to reach $423
million in total revenues. This marked the first time any
region has generated more than $400 million in a single
quarter, a new record for the industry.
was the fastest growing EDA tools category for the
fifth straight quarter, and eight out of the last nine
quarters. New license revenues for IC Layout tools posted a
45% increase over Q1 1997, to reach $131 million.
Growth was fueled by substantial increases in Automatic
Place and Route tools (81% over Q1 1997) and
Full-custom Layout tools (79% growth vs. Q1 '97). IC Layout
license revenues have increased by at least 33% in each
quarter of 1997 and 1998 (thus far).
growth accelerated in Q1 1998, led by 30-plus percentage
growth in Design Entry, VHDL and Verilog Simulation,
Cycle-based Simulation and Analysis Tools.
Semiconductor IP products and tools revenue more than doubled
from Q1 1997 to Q1 1998, to reach $34 million.
Your comments regarding executive stock purchases
is right on the money; however, for those of you who
owned Cadence back in 1993, Joe Costello stepped up and
bought 200,000 shares at $9 each right near the bottom
of this past cycle (i.e. $2 to $39 since mid 1993
thru mid 1998). I would like to see other executives
at Cadence have the guts to step up and buy the
stock if they think it so cheap. Joe did it. And your
right. He did have hundreds of thousands of options of
Cadence at the time. One final note. Joe never sold a
share of Cadence while he was CEO. These new guys can't
seem to sell the stock fast enough. Just look at the
CDA Insider Trading Activity Chart for the past year.
Even the CFO sold at $38.51--within 1/2 point of the
all time high.
On the surface , it would be easy to assume that
demand in Asia
has completely collapsed. If you do a
little research, however,
you find that the Japanese,
in particular, are not about to let up on R&D. For
example, both Sanyo and Matsushita plan to double the
number of engineers they employ by the year 2000. This
is typical of large asian electronics co's. They
realize that they must continue to increase R&D despite
the current gloom.
If you like Cisco, Dell,
Compaq,IBM etc. (all Cadence customers).... and you believe
that high tech is the future-- then you must believe
that over the long term, Cadence is in the right place
at the right time
Options are FREE!! Put your money where your
mouth is. Cash is king. Risk your own capital not just
the shareholders. Also, major shareholders have known
for awhile that business in Asia isn't quite as good
as mgt states. Why else do start a "financing"
program? Looking for the acquisition writeoffs in the
Congratulations to all of you geniuses! Your
hindsight is perfect... It's amazing that CDN has done so
poorly given how well the rest of the market has been
doing. Clearly CDN must have really screwed
Get real - CDN tanked along with the rest of the
market, for reasons that had very little to do with CDN
performance. And oh by the way, why should the insider execs
buy stock, when they are granted several thousand
options? Why tie up their own cash, when all they need to
do is exercise options at the right time? If you're
waiting for the execs to buy, you're going to be waiting
a long time.
what can I say? It seems that every
Cadence insider was bailing out the stock by May. Hell,
even the CFO sold his last batch of stock at $38.51 a
share (May 20). Better timing than I ever had. I keep
waiting for someone on the inside to step up and buy the
stock; however, I haven't noticed any insider buying
yet. These guys were smart since most software firms
sell for 3-5 times revenue. Cadence, at the top, sold
for a price-to-sales ratio of 8 to 9. Even if Cadence
can grow the company at 24% per year, they won't hit
the $2 Billion run rate till the end of December,
2000. Maybe then, the company will be worth $30 to $50
a share. One can always hope.
I believe that CDN found its bottom today at
$20/s (possible downside to $18/s if Janus blows it
out). Looking for a trade back to $33-35/s. (Sox, SNPS,
MU, INTC...). CDN is a semiconductor stock. IMOO.