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Cadence Design Systems Inc. Message Board

  • verdad2 verdad2 Aug 11, 1998 10:29 AM Flag

    EDA Industry Revenues UP

    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.

    The EDA
    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.

    IC Layout
    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).

    CAE revenue
    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.

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    • Hi friends,
      Who are CDN's chief competitors?
      Ken E.

    • 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.



    • Don't be short w/MU and INTC headed higher. Get short again at higher levels. IMOO.

    • 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
      future. IMOO.

    • 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.

    • CDN,
      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.


    • Yea...the blade got slapped, but not the one between the legs :-<

    • 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.

    • and CDN is not at 30, and is closer to 20; maybe you've been slapping your blade too much;

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