Positive Growth Around Corner
Design automation revenues slip 4% at start of 2000, says EDA Consortium
Semiconductor Business News
(08/03/00, 12:18:14 PM EDT)
SAN JOSE -- Revenues for electronics design automation slipped 4% to $846 million in the first three months of 2000, compared to $878 million in the first quarter of 1999, primarily because of a transition in software licensing agreements than lowered the amount, said the EDA Consortium here today.
EDA revenues also fell by double-digit percentages in Europe and Japan, while design automation revenues were up 9% in North America during the first quarter of 2000 compared to same period last year, said the group's market statistics service. The new report said EDA revenues grew by 17% in the "rest-of-the-world" category, which includes the Asia-Pacific region (excluding Japan).
"North America has traditionally been a leading indicator for our industry," said Ray Bingham, who is chairman of the EDA Consortium chairman as well as president and CEO of Cadence Design Systems Inc. Changes in Cadence's design automation licensing agreements have shift chip houses to subscriptions that spread out revenues vs. previous practices that recognized payments up front. This shift played a factor in lowering Cadence's revenues slightly to $257 million in the first quarter compared to $268 million in the period last year (see April 18 story).
"After slower growth throughout much of last year, our largest region [for the entire EDA industry] has rebounded with healthy revenue increases," said Bingham, referring to the North American market. "With the rest-of-world region continuing its double-digit growth for the sixth consecutive quarter, a return to positive growth on a global scale seems right around the corner," he said while announcing the EDA |
