Back to the Future

Mentor Graphics PCB Design Investment Strategy & Execution Results in 50% Worldwide Market Share

Wilsonville, Ore, April 11, 2011 - Mentor Graphics Corporation (NASDAQ: MENT) today announced that, according to the Electronic Design Automation (EDA) Consortium Market Statistics Service Report for 2010, the company has achieved a 50% worldwide market share in PCB design solutions. For over 12 years, Mentor Graphics® has been consistently executing on a vision and investment strategy to bring the most advanced design capabilities to the industry. Today, Mentor is supplying industry-unique capabilities that extend beyond the design of the PCB and integrate the multiple engineering disciplines necessary for complete product development and delivery.

“Our continued R&D and strategic investments in advanced systems design technologies, far exceeding that of other suppliers, has resulted in a gradual increase in our revenues and market share,” stated Henry Potts, vice president and general manager of Mentor’s Systems Design Division. “The electronics industry requires these advanced technologies to support their PCB product development and manufacturing processes and Mentor is the only supplier seriously investing. This positive cycle continues, as the more revenues and market share we obtain, the more we can continue to invest in future design solutions to the benefit of our customers.”

R&D and strategic investments in systems design have been a major focus for Mentor Graphics. The result has been industry-unique technologies that address users’ most advanced design and manufacturing needs including:

- Mechanical analysis supporting thermal analysis of electronic products including the IC package, the PCB, and the complete system

- The expansion of Mentor’s capabilities to support the complete design-through-manufacturing process including design for manufacturability, new product introduction (NPI) to manufacturing, and PCB manufacturing process execution optimization

- The HyperLynx® PI (power integrity) for AC and DC analysis of complex power distribution networks on high-end products

- Major enhancements to the Expedition® Enterprise platform in support of advanced technology product design by mid-sized to large and global enterprises

- Best-in-class desktop PCB technologies with PADS® software, tailored to meet the design needs of individual users

“In 2010 we conducted and published a research project entitled Why Printed Circuit Board Design Matters to the Executive,” stated Michelle Boucher, research analyst for Aberdeen Group. “This study highlighted several PCB design best practices that enabled electronics companies to achieve best-in-class status by meeting their aggressive business goals. The design capabilities offered by Mentor Graphics support these best practices.”

Of particular note in the EDA Consortium report is Mentor’s market share in North America, Europe, and Asia/Pacific with 60%, 57% and 50% respectively. Japan was the only market where Mentor did not show the largest PCB design market share but did grow their market share by more than 75% from 2009 to 2010. The impressive growth in Japan is due to Mentor’s emphasis on this important market with increased dedicated sales and support targeted at major enterprise companies.

About the EDA Consortium
The EDA Consortium is the international association of companies that provide design tools and services that enable engineers to create the world’s electronic products used for communications, computer, space technology, medical, automotive, industrial equipment, and consumer electronics markets among others. For more information about the EDA Consortium and the Market Statistics Service Report, visit www.edac.org.

About Mentor Graphics
Mentor Graphics Corporation (NASDAQ: MENT) is a world leader in electronic hardware and software design solutions, providing products, consulting services and award-winning support for the world’s most successful electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of about $915 million. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/. (Mentor Graphics, Mentor, HyperLynx, Expedition, and PADS are registered trademarks of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.)

For more information, please contact:
Larry Toda Suzanne Graham
Mentor Graphics Mentor Graphics
503.685.1664 503.685.7789

Genesis

Among the “Big 3” vendors that dominate the overall EDA landscape today, Mentor Graphics Corporation is, as mentioned, the oldest, having been founded in April 1981 after the exodus from Tektronix of Messrs. Tom Bruggere, Gerry Langeler and Dave Moffenbeier.


Bruggere Langeler Moffenbeier

All three founders were to remain with MGC for 13 or 14 years before departing.

Of course, everyone also knows that since then, Mentor Graphics Corporation perennially ranks third in revenues to Synopsys and Cadence, the other two members of today’s “Big 3.” Neither of those latter two companies existed in 1981, although today all of the Big 3 vendors contain sizeable elements of their predecessors through acquisitions and routine hiring & cross-hiring.

Synopsys as we know it today originated in 1986 and Cadence was formed in 1988. [1]

In the beginning, MGC did not participate in the emerging printed circuit board market, as in 1981 the MGC founders chose instead to focus on ASIC and custom IC design software for three years or so.

Indeed, during the first part of the 1980’s, electronics board designers in industry contented themselves with either in-house developed tools, or adapted for board design the early MCAD products of Applicon, ComputerVision, Calma, Gerber and others.

Still, the fledgling MGC had fellow travelers even in the early 80’s, such as Daisy Systems and Valid Logic, all initially focused on the front end of the EDA process (schematic capture, logic simulation, etc.). These three entities back then were referred to collectively as, “The DMV”.

While both the D and the V of the DMV were destined to eventually be subsumed, both D and V added board software to their repertoire, but did so a little later than did M.

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