It's a paradox. Ok, CDN has the greatest force of design services. They thought their Tality will do so well that they even planned to get it IPO.
Unfortunately, it's not a good time for IPOs and plus Tality is experiencing slowdown. If people really got fired, so what? That's how a lot of high-tech companies is now restructuring.
Even with the lower-than-expected number put out by Tality, CDN still beat street's estimate. That just proves how well positioned CDN is in the EDA market. And more, when semi industry picks up, CDN will post even better numbers from the contribution of Tality.
CDN is going to miss its numbers at today's 4:00 report. Instead of discussing CDN internal problems, CDN is going to blame it on an overall decline in the EDA market. This talk of decline is what's bringing every EDA stock down.
If you look at CDN over these few quarters, the sales consistently grow 20% and EPS growth is even more astonishing. SNPS has -20% sales decline and more than -50% EPS trend. It's easy to see who's the leader in EDA market.
EDA will never die as semi will never either. EDA market can even go stronger as semi consolidates..