The EDA and the Electronics IP Almanac:
Q3 2010 - Schedule B
Please note that contributed articles, blog entries, and comments posted on EDACafe.com are the views and opinion of the author and do not necessarily represent the views and opinions of the management and staff of Internet Business Systems and its subsidiary web-sites.
|by Russ Henke – Contributing Editor
Every four-week period the EDA Weekly delivers to its readers information concerning the latest developments in the EDA industry, vendors, products, and finances. Frequently, feature articles on selected public or private EDA companies are presented. Brought to you by EDACafe.com. If we miss a story or subject that you feel deserves to be included, or you just want to suggest a future topic, please contact us! Questions? Feedback? Click here. Thank-you!
HELLO AGAIN, LOYAL READERS !! You have successfully navigated to the second part of the January 2011 EDA WEEKLY called “Schedule B”, which carries the full title of:
The EDA and the Electronics IP Almanac:
Q3 2010 - Schedule B
As the title above implies, this current “Schedule B” EDA WEEKLY entry is intended to follow closely on the heels of the first EDA WEEKLY posted January 10, 2011, which was entitled:
The EDA and the Electronics IP Almanac:
Q3 2010 - Schedule A
The contents below are best understood if you have already read Schedule A. You will find Schedule A elsewhere on the front page of EDACafe.com until February 7, 2011, or simply click on this URL:
The New Year Greetings of Schedule A
So much for the Happy New Year euphoria that characterized the opening paragraphs of Schedule A of this two-part edition of the EDA WEEKLY. In the augenblick between press time and the January 10, 2011 public posting time for Schedule A, the January 8th tragedy in Tucson Arizona reminded all of us how fragile and over-pressurized the political situation between right and left has become in the USA.
It's not surprising that New York Times columnist Paul Krugman may have published the most succinct description on January 9, 2011:
And to express the feelings of the whole country, President Barack Obama went to Arizona on January 12 to do what he does best, using his rare abilities to unite and bind up wounds, bringing right and left together in a moving speech for the Memorial Service for the Victims of the January Shooting in Tucson, Arizona. While the words are reproduced here in Footnote , readers may wish to view video replays widely available from multiple news sources.
Back to late 2010 we have been and must go again
To complete the bifurcated January 2011 edition of the EDA WEEKLY (a.k.a. “Poor Russell's Almanack”), collectively aimed at measuring the financial performances of ten (10) key vendors in the worlds of Electronic Design Automation (EDA) and Electronics Intellectual Property (IP), we must again return in Schedule B to late 2010 (where Schedule A previously took us to discuss the nominal Q3 2010 results for each of the selected G5 EDA Vendors).
But before we dive into the new details herein about the Q3 2010 results delivered by the G5 Electronics Intellectual Property (IP) Vendors, we will first review key topics concerning both the 'Total EDA Market' and the 'Semiconductor Market.' Both items were unavailable at press time for Schedule A.
The “Total” EDA Market
On January 5, 2011 The EDA Consortium (EDAC) Market Statistics Service (MSS) announced its quarterly report for Q3 2010 regarding data gleaned from its membership and beyond. The EDAC MSS estimates that the “total” overall Electronic Design Automation (EDA) industry revenue for Q3 2010 was $1307.0 million, an 11.9% increase compared to a YOY “total” of $1167.9 million in Q3 2009. Sequential EDA “total” revenue for Q3 2010 increased 6.9% over Q2 2010.
(By comparison, the data from Table 1 in the EDA WEEKLY Schedule A article of January 10, 2011, showed $896 million in revenue for just the covered subset Group of 5 (G5) EDA vendors for nominal Q3 2010, with a YOY increase of 14% and sequential increase of 12%).
The EDAC numbers for the “total” EDA industry also showed that the four-quarters moving average, which compares the most recent four quarters through Q3 2010 to the prior four quarters, increased by only 4.9%.
"Overall third quarter 2010 results represent a significant increase compared to Q3 2009, with double digit increases in CAE, IC Physical Design & Verification, and SIP," said Dr. Walden Rhines, EDAC chair and chairman and CEO of Mentor Graphics. "Geographically, the Americas, Europe/Middle East/Africa, and Asia/Pacific regions all had double digit increases relative to Q3 2009. The Americas, Japan, and the Asia/Pacific region also increased sequentially."
Companies that were tracked by EDAC employed 26,474 professionals in Q3 2010, an increase of 1.9% compared to Q2 2010, and up 2.1% from the 25,942 employed in Q3 2009.
The complete MSS report, containing detailed revenue information broken out by both categories and geographic regions, is of course available via subscription from the EDA Consortium.
EDA “Industry Revenue” Graph, Courtesy of EDA Consortium MSS
EDAC MSS Revenue by Product Category
Computer Aided Engineering (CAE), EDA's largest category, generated revenue of $512.8 million in Q3 2010. This represents a 13.9% increase over the same period in 2009. The four-quarters moving average for CAE increased 4.5%.
IC Physical Design & Verification revenue increased to $291.6 million in Q3 2010, an 11.8% increase compared to Q3 2009. The four-quarters moving average increased 0.1%.
Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue of $125.7 million decreased 5.4% compared to Q3 2009. The four-quarters moving average for PCB & MCM decreased 1.8%.
Semiconductor Intellectual Property (SIP) revenue totaled $298.5 million in Q3 2010, a 24.0% increase compared to Q3 2009. The four-quarters moving average increased 21.1%. This is the category that would include the Electronics IP G5 subset reported on in Schedule B.
Services revenue was $78.5 million in Q3 2010, a decrease of 6.0% compared to Q3 2009. The four-quarters moving average decreased 12.8%.
Revenue by Geographic Region
The Americas, EDA's largest region, purchased $577.2 million of EDA products and services in Q3 2010, an increase of 12.9% compared to Q3 2009. The four-quarters moving average for the Americas increased 3.1%.
Revenue in Europe, the Middle East, and Africa (EMEA) was up 9.9% in Q3 2010 compared to Q3 2009 on revenues of $224.3 million. The EMEA four-quarters moving average was flat.
Third quarter 2010 revenue from Japan decreased 7.1% to $231.2 million compared to Q3 2009. The four-quarters moving average for Japan decreased 6.0%.
The Asia/Pacific (APAC) region revenue increased to $274.3 million in Q3 2010, a 34.6% increase compared to the same quarter in 2009. The four-quarters moving average increased 28.9%.
MSS Report self description
The EDA Consortium Market Statistics Service reports EDA industry revenue data quarterly and is available by annual subscription. Both public and private companies contribute data to the report. Each quarterly report is published approximately three months after quarter close. MSS report data is segmented as follows: revenue type (product licenses and maintenance, services, and SIP), application (CAE, PCB/MCM Layout, and IC Physical Design and Verification), and region (the Americas, Europe Middle East and Africa, Japan, and Asia Pacific), with many subcategories of detail provided. The report also tracks total employment of the reporting companies.
EDA Consortium self description
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, visit www.edac.org, or to subscribe to the Market Statistics Service, call 408-287-3322 or email Email Contact. The information supplied by the EDA Consortium is believed to be accurate and reliable, but the EDA Consortium assumes no responsibility for any errors that may appear in this document. All trademarks and registered trademarks are the property of their respective owners.
In a separate meeting hosted by the EDAC on January 5, 2011, IBSystems' own Graham Bell sat in and filed this report in his January 6, 2011 Blog:
Whither EDA in 2011?
January 6th, 2011 by Graham Bell
Dan Nenni, blogger, hosted the EDA Consortium CEO Annual CEO Forecast and Industry Vision Panel last night at the Double Tree Hotel in San Jose. Aart de Geus from Synopsys and Charlie Huang (filling in for Lip-Bu Tan) from Cadence and Ravi Subramanian from Berkeley talked about various trends, drivers and impacts. It was Wally Rhines from Mentor that named two possible growth numbers for 2011. One was based on a calculation what the financial analysts say for the coming year and came in at 8%.
The second figure was based on a favorite formula that says the previous year's R&D spend is strongly correlated to the following year's EDA growth. This formula delivered an exuberant 14%.
I like these numbers and I think we can expect hiring to pick up. As one exec over at a leading company mentioned to me, even marketing managers are finding jobs.
What do you think? Do you see 8% or 14%, and will hiring pick-up?
One more thing….the Jan. 4 issue of EDA Weekly covered The Best of 2010 EDA Weekly Magazine, Press Postings, and Careers Corner . Check it out
SIA Reports November 2010 Chip Sales
On January 3, 2011 The Semiconductor Industry Association (SIA) reported that worldwide semiconductor sales in November (the last month for which data are available) were $26.0 billion, a decrease of 0.9% from the prior month when sales were $26.2 billion. Sales increased by 14.4% from November 2009 when sales were $22.7 billion. Year-to date sales through November were $271.8 billion, up 34.0% from the like period of 2009 when sales were $202.8 billion. All monthly sales numbers represent a three-month moving average.
"Despite continuing macroeconomic uncertainty, the worldwide semiconductor industry is slated to close the year at record sales levels with year-over-year growth rates not experienced in nearly a decade," said SIA President Brian Toohey. "The application of advanced technologies continues to further the proliferation of semiconductor content into a wider range of end products including media tablets, smart phones, e-Readers, and automobiles, resulting in impressive semiconductor sales in 2010," Toohey noted. "We expect continued moderation in sales growth, in line with our November* forecast," Toohey concluded.
*The following was the SIA November 4, 2010 forecast:
The Semiconductor Industry Association (SIA) released its annual forecast of global semiconductor sales for 2010 through 2012, projecting record sales of $300.5 billion in 2010, an increase of 32.8%. The forecast calls for sales to grow by 6.0% in 2011, to $318.7 billion, followed by an increase of 3.4% to $329.7 billion in 2012. The projected compound annual growth rate is estimated to be 13.4% for the period 2009 through 2012.
“We experienced record sales this year due to strong global demand across a broad range of end markets,” said SIA President Brian Toohey. “We expect more moderate growth through 2012 as the economy recovers and consumer confidence restores,” Toohey concluded.
About the SIA Global Sales Report
The SIA Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, an independent, non-profit organization established by the global semiconductor industry to compile industry statistics. The moving average is a mathematical smoothing technique that mitigates variations due to differences in companies' financial calendars.
SIA self description
The SIA is the voice of the U.S. semiconductor industry, America's number-one export industry over the past five years. SIA seeks to continue U.S. leadership in this critical sector that employs 185,000 people in the U.S. and provides the enabling technology for America's $1.1 trillion high-tech industries with a U.S. workforce of nearly 6 million people. More information about the SIA can be found at www.sia-online.org.
Electronics IP Vendors covered here in Schedule B
Starting in 2003, in each of the previous quarterly issues of the Electronics IP Industry Commentaries, Henke Associates examined the then-recent financial histories and future outlooks of the remarkable phenomenon of Electronics Intellectual Property (IP) providers, a niche that had emerged in its own right by 2003 to claim a substantial amount of revenue in the world of Electronics Design Automation.
Henke Associates had arbitrarily selected eight (8) publicly-traded companies originally (called the "Group-of-8" or "G8"), as representative of the then-current financial state of the Electronics IP industry. At the end of 2004, ARM completed its acquisition of Artisan Components, Inc., thereby reducing the "G8" to "G7". In August 2009 Mentor Graphics completed its acquisition of LogicVision, thereby reducing the “G7” to “G6”. Then on June 10, 2010 Synopsys and Virage Logic announced that Synopsys would acquire Virage Logic. This transaction was completed on September 2, 2010. Thus the G6 became the G5.
Here in Schedule B the financial performances of the remaining "G5" public Electronics IP vendors for the third quarter of 2010 will be considered:
We begin our review of the Q3 2010 Electronics IP G5 performances by looking at the lP summary revenue list (Table 1) below.
It appears that the Total G5 IP Revenue for Q3 2010 was a virtual tie with sequential quarter Q2 2010, at ~$227 million. However, the total G5 IP revenue for Q3 2010 did score a formidable ~70% year over year increase compared to Q3 2009.
To achieve the tie between Q3 2010 and sequential Q2 2010, ARM improved over 5% in revenue and CEVA improved less than 1%, but MIPS decreased 3%, MoSys dropped nearly 12%, and Rambus sank over 18%.
The more delightful Q3 2010 total G5 revenue increase of 70% over last year's Q3, was fueled by double-digit percentage revenue gains by all five vendors, led by MIPS' 51% YOY gain, and by ARM's YOY 28.5% increase on seven times the sales volume.
To the extent that the G5 IP revenue numbers and the EDAC Semiconductor and IP (SIP) revenue numbers are compatible, the G5 IP vendors represented ~76% of the EDAC SIP total revenue in Q3 2010, but only ~65% of the EDAC SIP total revenue in Q3 2009. (Exploring these details further would require access to the source data for the EDAC SIP numbers). [Note: For more details on ROS %'s and Market Caps for nine of the ten vendors covered in both Schedules A and B, please see Table 3 in the sequel (far below)].
Turning now to the earnings of the G5 IP vendors in Q3 2010 (Table 2 below), we see more of a mixed bag than Table 1 revealed.
Indeed, the earnings for the G5 in Q3 2010 fell to only 31% of the earnings achieved in sequential Q2 2010 ($7.189 million vs. $22.960 million), as Q3 2010 losses by MOSY and RMBS almost obliterated the combined profits of ARMH, CEVA and MIPS.
Still, the meager $7.189 million total G5 black ink in Q3 2010 was more than enough to erase the $18.807 million of red ink amassed by the G5 a year ago in Q3 2009.
While all but MOSY did better in earnings year over year, only CEVA and MIPS managed to deliver more sequential profit in Q3 2010 than in Q2 2010.
Return on Sales (ROS) percentages still vary widely among the G5 IP vendors. For Q3 2010, for example, MIPS' ROS was nearly 34%, CEVA delivered nearly 28%, while ARM's was just over 14%. MOSY's net loss was 164% of its revenue figure for Q3 2010, and RMBS... well...one wonders whether ROS is even relevant for Rambus. [In Q3 2010, Rambus' net loss was - 64.9% of its revenue, but as recent as Q1 2010 Rambus' net ROS was over +93% ($150.4 million net income on $161.9 million in revenue), a result of being heavily in the technology licensing business].
G5 IP earnings comparisons to EDAC figures are not possible here, because EDAC does not release earnings data to non-members.
G5 IP Vendor by Vendor Details for Q3 2010
On October 26. 2010 ARM Holdings plc announced its unaudited financial results for the third quarter and for the nine months ended September 30, 2010. Continuing adoption of ARM technology by leading semiconductor companies in a broad range of end-markets continued delivering strong revenues, profits and cash.
Financial Review (IFRS unless otherwise stated)
Total revenues in Q3 2010 were $158.1 million, up 28.5% versus Q3 2009 revenues of $123 million, and up 5.5% vs. sequential Q2 2010 revenues of $149.9 million.
Three quarters year-to-date dollar revenues amounted to $451.7 million, up 29% on 2009.
Total dollar license revenues in Q3 2010 increased by 33% year-on-year to $52.7 million, representing 33% of group revenues. License revenues comprised $42.2 million from PD (PD = Processor Division = the original ARM) and $10.5 million from PIPD (PIPD = Physical IP Division = originally the Artisan company).
Total dollar royalty revenues in Q3 2010 increased year-on-year by 31% to $81.7 million, representing 52% of group revenues. Royalty revenues comprised $70.4 million from PD and $11.3 million from PIPD.
Royalties are recognized one quarter in arrears, with royalties in Q3 generated from semiconductor unit shipments in Q2.
PD royalty revenues in Q3 2010 increased 33% year-on-year. This compares with industry revenues increasing by about 25% in the shipment period (i.e. Q2 2010 compared to Q2 2009), demonstrating ARM's continuing market share gains over the last 12 months.
Total PIPD royalties of $11.3 million included $0.6 million of catch-up royalties. Underlying royalty revenues increased by 16% year-on-year.
Development Systems and Service Revenues
Sales of development systems in Q3 2010 were $15.6 million, an increase of 11% year-on-year and representing 10% of group revenues. Three large software tools deals were signed during the quarter and, given that deals of this type are infrequent, development system revenues in Q4 2010 are expected to be closer to Q2 2010 revenues of $13.4 million.
Service revenues in Q3 2010 were $8.1 million, an increase of 15% year-on-year and representing 5% of group revenues.
Earnings under IFRS in Q3 2010 were $23,379,000 vs. $11,301,000 in Q3 2009. Sequential Q2 2010 earnings were $32,844,000.
Net cash at 30 September 2010 was £251.9 million ($398 million) compared to £202.3 million ($331.8 million) at 30 June 2010. Normalized free cash flow in Q3 2010 was £65.0 million ($102.7 million).
Progress on Key Growth Drivers
Growth in mobile applications - ARM opportunity increasing with mobile phones, smart phones and now mobile computers growing strongly
o 900 million ARM®-processor based chips were shipped in mobile devices
o 4 processor licenses signed for mobile phone and computing applications
Growth beyond mobile - Increased share in target markets such as consumer electronics and embedded products
o 600 million ARM-processor based chips shipped in everything from toys to televisions, cameras to cars
o 18 processor licenses signed for a broad range of applications including advanced processors for use in new markets such as network infrastructure and sensors
Growth in new technology outsourcing
o 3 licenses for royalty-bearing platforms of physical IP at advanced nodes and mature nodes including TSMCm, as previously reported
o 2 licenses for Mali™, ARM's advanced graphics processor
Warren East, Chief Executive Officer, said, “Q3 was a good quarter for ARM. Not only are we benefiting from growth in applications where we are the established market leader, including in smart phones and mobile computers, but we are gaining share in markets like digital TV and microcontrollers. Our partners are also starting to develop chips in new markets for ARM, such as servers and laptops, creating longer-term opportunities. In addition, both physical IP and Mali graphics performed well with important license wins and increasing royalty revenues. Given the broadening growth opportunities that are available to us, we have accelerated investment in R&D in the first nine months of the year whilst also increasing both profits and cash generation."
“We enter the final quarter of 2010 with positive momentum and we expect sequential group dollar revenue growth in the fourth quarter.
Looking further ahead, despite an uncertain macro-economic environment, ARM remains well positioned for growth with leading semiconductor companies increasingly adopting ARM technology for a broadening range of end-markets.”
As of September 30, 2010, ARM had 1,861 full-time employees, a net increase of 151 since the start of the year, mainly engineers going into ARM's processor R&D team. At the end of Q3, the group had 773 employees based in the UK, 496 in the USA, 219 in Continental Europe, 272 in India and 101 in the Asia Pacific region. Given the broad range of opportunities, ARM is investing in its R&D programs and operations, and expects some further recruitment in Q4 2010.
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Group that could affect the results for the first nine months of 2010 and beyond are noted within the Annual Report on Form 20-F for the fiscal year ended 31 December 2009. There have been no changes to these risks that would materially impact the Group in the foreseeable future. These include but are not limited to: ARM's quarterly results may fluctuate significantly and be unpredictable which could adversely affect the market price of ARM ordinary shares; general economic conditions may reduce ARM's revenues and harm its business; and ARM
competes in the intensely competitive semiconductor market.
According to Wikipedia
The acronym ARM originally stood for Acorn RISC Machine. The company name ARM stands for Advanced RISC Machines. This name was changed, around the time of the company's IPO, to "ARM Holdings", since it was felt the term RISC, which indicates a type of CPU design, being phonetically identical to "risk," would deter people unfamiliar with computers.
Warren East was appointed Chief Executive Officer of ARM Holdings in October 2001. For this role he is paid an annual salary of £415,000 and an annual bonus of £286,501. Hence his total annual remuneration is £701,500, or more than $1.1 million. No date for which this info was valid, was given.
ARM self description
ARM designs the technology that lies at the heart of advanced digital products, from wireless, networking and consumer entertainment solutions to imaging, automotive, security and storage devices. ARM's comprehensive product offering includes 32-bit RISC microprocessors, graphics processors, video engines, enabling software, cell libraries, embedded memories, high-speed connectivity products, peripherals and development tools. Combined with comprehensive design services, training, support and maintenance, and the company's broad Partner community, they provide a total system solution that offers a fast, reliable path to market for leading electronics companies. More information on ARM is available at http://www.arm.com/.
Chart courtesy Yahoo Finance
ARM News Item
Broadcom Readying Chip for Low-cost Android Smart Phones
Broadcom is working on a dual-core processor that will allow smart phone makers to build Android-based handsets with integrated Wi-Fi hotspots, the company said...
By Mikael Ricknäs PC World
December 14, 2010
Broadcom is working on a dual-core processor that will allow smart phone makers to build Android-based handsets with integrated Wi-Fi hotspots, the company said. It's billing the chip as aimed at mass-market phones with a low price point.
The Broadcom BCM2157, which is based on a dual-core ARM processor running at 500MHz, is now shipping to "early access customers", according to the chip maker. The first smart phones using the processor are expected to be launched next quarter, likely to coincide with the Mobile World Congress conference in Barcelona in February 2011. Broadcom said in a statement that smart phones based on the new processor will be affordable, but it did not offer details on its component pricing.
Besides integrated Wi-Fi hotspots, smart phones based on the processor can be equipped with multi-touch screens, 5-megapixel cameras and HSDPA (High-Speed Downlink Packet Access) at 7.2M bps (bits per second). Smart phones based on the processor will also be able to use two SIM (subscriber identity module) cards, which combined with a lower price will help convince phone buyers in developing countries to pick up smart phones. Using two SIM cards is also growing in popularity in some parts of Europe, according to Francisco Jeronimo, research manager at IDC.
The availability of lower-cost smart phones has already helped increase Android's popularity, according to Jeronimo. In general, the trend towards even cheaper smart phones will continue in 2011, and Android-based products will play an important role in helping bring down prices even further, Jeronimo said.
On October 26. 2010 CEVA, Inc. (NASDAQ: CEVA); (LSE: CVA) announced its financial results for the third quarter ended September 30, 2010.
Total revenue for the third quarter of 2010 was a record $10.7 million, an increase of 11% compared to $9.7 million reported for the third quarter of 2009, and an increase of slightly less than 1% over the just prior second quarter of 2010.
Third quarter of 2010 licensing revenue was $4.5 million, a decrease of 15% compared to $5.2 million reported for the third quarter of 2009. Royalty revenue for the third quarter of 2010 was $5.2 million, an increase of 42% over $3.7 million reported for the third quarter of 2009. Revenue from services for the third quarter of 2010 was $1 million, an increase of 35% from $0.7 million reported for the third quarter of 2009.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated: "We are pleased with our solid performance in the third quarter, including a strategic agreement for the CEVA-XC DSP with a leading semiconductor company, a new powerhouse in the wireless space. Our royalty revenue continues to grow, and we reached a new record high market share of 33% for the worldwide handset cellular baseband market."
"Furthermore, due to projections for stronger than expected shipments of products incorporating our technologies by a few of our customers in the third quarter, we currently anticipate significant sequential increase our fourth quarter royalty revenue," continued Mr. Wertheizer.
U.S. GAAP net income for the third quarter of 2010 was $3.0 million, an increase of 71% compared to $1.8 million reported for the same period in 2009, and up almost 41% sequentially. U.S. GAAP diluted earnings per share for the third quarter of 2010 was $0.13, an increase of 44% compared to $0.09 reported for the third quarter of 2009.
During the quarter, the Company concluded six new licensing agreements. Five agreements were for CEVA DSP cores, platforms and software, and one agreement was for CEVA Bluetooth technology. Target applications for customer deployment are 3G/4G handset and mobile broadband processors, smart metering systems, and Android-based application processors for smart phones, tablets and e-readers. Geographically, two of the agreements signed were in the U.S., three were in Asia and one was in Europe.
Yaniv Arieli, Chief Financial Officer of CEVA, stated: "Our third quarter financial performance demonstrated continued progress towards our long term profitability milestones. We reached a new record high royalty revenue for the fourth consecutive quarter and also recorded all-time highs for GAAP operating margins, which was driven by solid top line growth aligned with on-going expense management. In addition, we continued to generate significant positive cash flow during the quarter which further enhances our already strong balance sheet. As of September 30, 2010, CEVA's cash balance, marketable securities and bank deposits were $117.2 million, an increase of 8% from the second quarter of 2010."
CEVA, Inc. self description
CEVA is the world's leading licensor of silicon intellectual property (SIP) DSP cores and platform solutions for the mobile handsets, portable and consumer electronics markets. CEVA's IP portfolio includes comprehensive technologies for cellular baseband (2G / 3G / 4G), multimedia, HD video and audio, voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2009, CEVA's IP was shipped in over 330 million devices, powering handsets from 7 out of the top 8 handset OEMs, including LG, Motorola, Nokia, Samsung, Sony Ericsson and ZTE. Today, one in every three handsets shipped worldwide is powered by a CEVA DSP core. For more information, visit www.ceva-dsp.com.
Chart courtesy Yahoo Finance
CEVA News Item
CEVA Announces Licensing Agreement with PMC-Sierra for Voice-Over-IP Platform to Enable VoIP in Fiber-to-the-Home SoC Solutions
Powered by CEVA-TeakLite-II DSP core, CEVA-VoP™ brings lowest cost per channel VoIP capabilities to PMC-Sierra's GPON products
On December 14, 2010 CEVA, Inc. (NASDAQ: CEVA); (LSE: CVA), announced that PMC-Sierra (NASDAQ: PMCS), the premier Internet infrastructure semiconductor solution provider, had licensed its CEVA-VoP™ voice-over-IP platform for use in PMC-Sierra's next generation system-on-chip (SoC) devices for Fiber-To-The-Home applications.
CEVA-VoP is a complete hardware and software VoIP solution based on the CEVA-TeakLite-II DSP, designed to be deployed in integrated networking and VoP SoCs.
The CEVA-VoP platform is built on top of the widely adopted, fully programmable CEVA-TeakLite-II low-cost DSP engine, and the Xpert-TeakLite-II integrated subsystem - with cached memory, peripherals, and system interfaces - capable of handling multiple, simultaneous voice channels on a single core. The solution includes a fully integrated VoIP software suite, including speech compression and decompression, echo cancellation, telephony functions, and signaling/networking. The incorporated software is open, allowing design licensees to add proprietary algorithms and broaden the use of the design to other markets or applications.
"We required a complete hardware plus software VoIP solution that can be efficiently integrated within our SoC architecture and provide the necessary performance, power and cost efficiencies required in the competitive EPON and GPON markets," said Ofer Bar-Or, PMC-Sierra's vice president and co-general manager, FTTH division. "CEVA's proven VoIP platform provides our EPON and GPON products with the required technology to enable multiple simultaneous voice channels and signal processing functions in our VoIP-enabled SoCs."
"We are pleased that PMC-Sierra has adopted our DSP-based platform to provide VoIP functionality," said Gideon Wertheizer, CEO of CEVA. "The flexibility of the CEVA solution is well suited to support PMC-Sierra's evolving needs as it continues to enhance its product lines with additional VoIP functionality."
About PMC-Sierra, Inc.
PMC-Sierra®, the premier Internet infrastructure semiconductor solution provider, offers its customers technical and sales support worldwide through a network of offices in North America, Europe, Israel and Asia. PMC-Sierra provides semiconductor solutions for Enterprise and Channel Storage, Wide Area Network Infrastructure, Fiber-To-The-Home, and Laser Printer/Enterprise market segments. The Company is publicly traded on the NASDAQ Stock Market under the PMCS symbol. For more information, visit www.pmc-sierra.com.
On October 25, 2010 MIPS Technologies, Inc. (NASDAQ: MIPS), reported consolidated financial results for Q3 2010, its first fiscal quarter, ended September 30, 2010. All financial results are reported in U.S. GAAP unless otherwise noted.
Summary Q3 2010 Financial Highlights
Revenue was $22.589 million, a year-to-year increase of 50.79% over $14.980 million in Q3 2009, but down almost 3% from the just prior Q2 2010.
Licensee royalty units grew to 157 million units from 106 million units in Q3 2009.
Q3 2010 GAAP net income was $7.616 million or $0.16 per share; up $7.021 million year-to-year over $0.595 million in Q3 2009 or $0.01 per share, and up $1.696 million over sequential Q2 2010.
Cash and investment balances ended the quarter at $65.2 million, a year-to-year increase of $21.7 million.
Revenue from royalties was $13.6 million, an increase of 40% from the third quarter a year ago. License revenue was $8.9 million, an increase of 71% from the $5.2 million reported in the 3rd quarter a year ago.
"Our financial performance in the first quarter continues to demonstrate our momentum across all of our target markets. This momentum includes the addition of new licensees in the quarter that are developing chips for mobile solutions. Both our royalty revenue and our license revenue exceeded our expectations during the quarter," said Sandeep Vij, MIPS Technologies chief executive officer.
MIPS Technologies, Inc. self description
MIPS Technologies, Inc. (NASDAQ: MIPS) is a leading provider of industry-standard processor architectures and cores that power some of the world's most popular products for the home entertainment, communications, networking and portable multimedia markets. These include broadband devices from Linksys, DTVs and digital consumer devices from Sony, DVD recordable devices from Pioneer, digital set-top boxes from Motorola, network routers from Cisco, 32-bit microcontrollers from Microchip Technology and laser printers from Hewlett-Packard. Founded in 1998, MIPS Technologies is headquartered in Sunnyvale, California, with offices worldwide. For more information, contact (408) 530-5000 or visit www.mips.com.
Chart courtesy Yahoo Finance
MIPS News Item
MIPS Wins OCP-IP Contributor of the Year Award
On November 30, 2010 the Open Core Protocol International Partnership (OCP-IP) announced MIPS Technologies (NASDAQ: MIPS) wa the recipient of the annual Outstanding Contributor of the Year Award for 2010. The OCP-IP Governing Steering Committee grants this award each year to a member that makes key contributions to the further advancement of the OCP specification or supporting infrastructure.
The committee acknowledged MIPS Technologies for its leadership, commitment and contribution to OCP-IP's Specification Working Group. The Company played a key role in completing development of the cache coherence extensions included in OCP 3.0. OCP 3.0 coherence extensions enable hardware-based coherence among the wide variety of heterogeneous CPUs, DSPs, accelerators and streaming input/output devices that characterize advanced SoCs.
The OCP extensions differ from traditional coherence approaches by cleanly separating the primitive operations associated with maintaining coherence from the specific system-level approach for implementing the communication and storage aspects of a coherent system. This extends a key advantage of OCP - the ability to develop IP cores independently from the system in which they will be used - into the domain of cache coherent systems. In particular, the OCP coherence extensions have been validated against both invalidate-based snoopy and directory-based coherence schemes. A detailed technical article on cache coherence is available here.
MIPS Technologies leveraged the new Cache Coherence feature in its multithreaded, multiprocessing MIPS32® 1004KTM Coherent Processing System (CPS) and its new superscalar MIPS32 1074KTM CPS-multicore processors that provide two paths to performance, depending on the application.
"We are pleased to be named Contributor of the Year by the OCP-IP," said Art Swift, vice president of marketing and business development, MIPS Technologies. "Working with other leading companies in the OCP-IP community, we are creating standard interfaces that are critical for the next generation of multiprocessor products."
Work on OCP 3.0 was executed by members of the OCP-IP Specification Working Group including: MIPS Technologies, Nokia, Sonics Inc., Texas Instruments, Toshiba and other industry-leading companies.
"OCP 3.0 and the cache coherence extensions are an excellent example of the productive cooperation we routinely achieve between member companies. We are grateful for the tremendous effort and contributions provided by MIPS Technologies, and we thank them for their efforts," said Ian Mackintosh, president OCP-IP. "We are pleased to present them with the Outstanding Contributor Award and look forward to continued partnership in the future."
OCP-IP self description
Formed in 2001, OCP-IP is a non-profit corporation promoting, supporting and delivering the only openly licensed, core-centric protocol comprehensively fulfilling integration requirements of heterogeneous multicore systems. The Open Core Protocol (OCP) facilitates IP core reusability and reduces design time, risk, and manufacturing costs for all SoC and electronic designs by providing a comprehensive supporting infrastructure. For additional background and membership information, visit www.OCPIP.org.
NOTE: MIPS, MIPS32, 1074K and 1004K are trademarks or registered trademarks in the United States and other countries of MIPS Technologies, Inc. All other trademarks and service marks are the property of their respective owners.
On October 28, 2010 MoSys, Inc. (NASDAQ: MOSY) reported financial results for the third quarter ended September 30, 2010.
Third Quarter and Recent Highlights
- Reported total revenue of $3.78 million, an increase of 12.1% over the third quarter of 2009 revenue of $3.37 million, but down 11.6% from the just prior quarter revenue of $4.3 million;
- Ended the third quarter with total cash and investments of $22.3 million;
- Taped out the first Bandwidth Engine(TM) integrated circuit (IC) (BE-1) in mid-July 2010 and received packaged BE-1 units;
- Made solid progress on characterizing, testing and preparing BE-1 for sampling late fourth quarter 2010; and
- Announced the GigaChip(TM) Alliance, an ecosystem of semiconductor device suppliers supporting the GigaChip Interface.
"During the third quarter, revenue increased 12% over the third quarter of 2009, driven by revenue from our 1T-SRAM and high-speed interface SerDes and DDR3 IP," commented Len Perham, President and Chief Executive Officer of MoSys.
"Royalty revenue reflects continuing demand for our 1T-SRAM embedded memory solutions from licensees in the gaming and networking markets. We remain fully committed to our IP business. It will be our primary revenue generator in 2011, a key component of our long term growth plan, and it is, in fact, very synergistic with our Bandwidth Engine ICs.”
"As announced in late July, we completed the design and verification of BE-1, the first in a family of system derived memories aimed at next generation switching and routing platforms. Packaged BE-1 units were received in mid-October, and we are gratified with the progress we are making testing and characterizing this exciting new system solution. At this point, we continue to believe we will be sampling BE-1 late in the fourth quarter of 2010. Customer interest in BE-1 remains very strong. During the quarter, we continued to make progress on the formation of the GigaChip Alliance, an ecosystem of semiconductor device suppliers committed to supporting our GigaChip interface, and, over the coming months, we expect additional companies to join our efforts in further advancing serial high-speed chip-to-chip communications at the board level."
Mr. Perham concluded, "We continue to leverage our highly differentiated memory and high-speed interface IP to drive near- and long-term growth, while advancing the development of our Bandwidth Engine IC business. We are also focused on managing costs as we expand our business model to include fabless IC product offerings and bring an ever growing family of Bandwidth engine products to market."
Third Quarter Results
Total net revenue for the third quarter of 2010 was $3.8 million, compared with $4.3 million reported in the second quarter of 2010 and $3.4 million in the third quarter of 2009.
Third quarter 2010 total revenue included licensing revenue of $1.5 million, compared with $2.0 million for the previous quarter and $1.3 million for the third quarter of 2009. Third quarter 2010 royalty revenue was $2.3 million, compared with $2.3 million in the previous quarter and $2.0 million for the third quarter of 2009.
Gross margin for the third quarter of 2010 was 81%, compared with 87% for the second quarter of 2010 and 80% for the third quarter of 2009. The sequential decrease in gross margin was primarily related to additional customization costs incurred on certain licensing projects.
Total operating expenses on a GAAP basis for the third quarter of 2010 were $9.2 million, which total was consistent with the previous quarter and compared with $7.8 million for the third quarter of 2009. Third quarter 2010 operating expenses included $0.7 million of amortization of intangible assets and $0.8 million of stock-based compensation expense.
GAAP net loss for the third quarter of 2010 was $6.198 million, or ($0.19) per share, compared with a net loss of $5.427 million, or ($0.17) per share, for the previous quarter and a net loss of $4.956 million, or ($0.16) per share, for the third quarter of 2009.
Cash and investments totaled $22.3 million as of September 30, 2010, compared with $31.2 million as of June 30, 2010. The decrease in cash and investments includes payment in the third quarter of a $6.5 million earn-out related to the Prism acquisition.
MoSys, Inc. self description
MoSys, Inc. (NASDAQ: MOSY) is a leading provider of serial chip-to-chip communications solutions that deliver unparalleled bandwidth performance for next generation networking systems and advanced system-on-chip (SoC) designs. MoSys' Bandwidth Engine(TM) family of ICs combines the company's patented 1T-SRAM ® high-density memory technology with its high-speed 10 Gigabits per second (Gbps) SerDes interface (I/O) technology. A key element of Bandwidth Engine technology is the GigaChip(TM) Interface, an open, CEI-11 compatible interface developed to enable highly efficient serial chip-to-chip communications. MoSys' IP portfolio includes SerDes IP and DDR3 PHYs that support data rates from 1 - 11 Gbps across a variety of standards. In addition, MoSys offers its flagship, patented 1T-SRAM and 1T-Flash ® memory cores, which provide a combination of high-density, low power consumption, high-speed and low cost advantages for high-performance networking, computing, storage and consumer/graphics applications. MoSys IP is production-proven and has shipped in more than 325 million devices. MoSys is headquartered in Santa Clara, California. More information is available on MoSys' website at http://www.mosys.com.
MoSys, 1T-SRAM and 1T-Flash are registered trademarks of MoSys, Inc. The MoSys logo, Bandwidth Engine and GigaChip are trademarks of MoSys, Inc. All other marks mentioned herein are the intellectual property of their respective owners.
Chart courtesy Yahoo Finance
Mosys News Item
On Tuesday December 7, 2010 the Associated Press (AP) said that MoSys Inc. planned to raise nearly $20 million through the direct sale of nearly five million shares of its common stock.
The company said "a small number of investors" had agreed to buy nearly 4.5 million shares at $4 each. That marked a 9% discount to the stock's December 6th closing price of $4.38.
In addition, CEO Leonard Perham was planning to purchase 275,000 shares and a company director, Carl Berg, was planning to buy 230,000 shares, both at the market price of $4.38.
MoSys said the deals would generate net proceeds of $19.9 million after deducting the costs of the offering. The funding will be used for general corporate purposes, the company said.
The offering was expected to close Friday December 10, 2010.
MoSys shares rose 42 cents, or 9.6%, to close at $4.80 on December 7th, on volume more than twice normal daily trade.
End of AP December 7, 2010 story.
Note: MOSY closed January 7, 2011 at $5.81 per share.
On October 21, 2010 Rambus Inc. (NASDAQ:RMBS) reported financial results for the third quarter of 2010.
Revenue for the third quarter of 2010 was $31.743 million, down 18% sequentially from the second quarter of 2010 primarily due to lower patent royalty revenue. As compared to the revenue of $27.874 million third quarter of 2009, Q3 2010 revenue was up 13.88% primarily due to the revenue recognized from the agreements signed with Samsung during the first quarter of 2010.
Revenue for the nine months ended September 30, 2010 was $232.5 million, up 183% over the same period of last year which was also due to the agreements signed with Samsung during the first quarter of 2010.
“Revenue for the quarter was down sequentially as anticipated patent license renewals did not complete by quarter end; however, those negotiations are active and proceeding well,” said Harold Hughes, president and chief executive officer at Rambus. “During the quarter, we did sign a patent license agreement with Nvidia for certain memory controller patents on a going forward basis and expect to receive the first payment in November.”
Total operating costs and expenses for the third quarter of 2010 were $43.2 million, which included a $10.3 million gain related to the Samsung settlement, $7.5 million of stock-based compensation expenses and $1.2 million for previous stock-based compensation restatement and related legal expenses. This is compared to total operating costs and expenses for the second quarter of 2010 of $45.5 million, which included a $10.3 million gain related to the Samsung settlement, $7.9 million of stock-based compensation expenses and $1.6 million for previous stock-based compensation restatement and related legal expenses. General litigation expenses for the third quarter were $4.6 million, a decrease of $0.6 million from the second quarter of 2010.
Total operating costs and expenses in the third quarter of last year were $48.5 million, which included $7.7 million of stock-based compensation expenses and $0.1 million for previous stock-based compensation restatement and related legal expenses. General litigation expenses in the third quarter of 2010 decreased $7.3 million from the third quarter of 2009.
Total operating costs and expenses for the nine months ended September 30, 2010 were $48.5 million, which included a $116.5 million gain related to the Samsung settlement, $23.2 million of stock-based compensation expenses and $3.4 million for previous stock-based compensation restatement and related legal expenses. This is compared to total operating costs and expenses of $141.4 million for the same period of 2009, which included $24.0 million of stock-based compensation expenses and a net recovery of $14.0 million of previous stock-based compensation restatement and related legal expenses. General litigation expenses for the nine months ended September 30, 2010 were $16.9 million, a decrease of $28.1 million from the same period in 2009.
Interest and other expense, net, for the third quarter of 2010 was $4.6 million as compared to $3.4 million in the second quarter of 2010 and $6.8 million in the third quarter of 2009. Interest and other expense, net, for the nine months ended September 30, 2010 was $13.7 million as compared to $9.6 million for the same period of 2009.
During the quarter ended September 30, 2010, the Company paid withholding taxes of $4.1 million. The Company recorded a provision for income taxes of $4.4 million for the third quarter of 2010, which is primarily comprised of the withholding taxes. As the Company continues to maintain a valuation allowance against its U.S. deferred tax assets, the Company's tax provision is based on its anticipated cash tax payments related to the quarter. By comparison, the Company recorded a provision for income taxes of $2.4 million for the quarter ended June 30, 2010 and a provision for income taxes of $0.1 million for the quarter ended September 30, 2009.
During the nine months ended September 30, 2010, the Company paid withholding taxes of $50.9 million. The Company recorded a provision for income taxes of $52.5 million for the nine months ended September 30, 2010, which is primarily comprised of the withholding taxes. By comparison, the Company recorded a provision for income taxes of $0.1 million for the nine months ended September 30, 2009.
Net loss for the third quarter of 2010 was $20.6 million as compared to a net loss of $12.5 million in the second quarter of 2010 and a net loss of $27.5 million in the third quarter of 2009. Diluted net loss per share for the third quarter of 2010 was $0.18 as compared to a net loss per share of $0.11 in the second quarter of 2010 and a net loss per share of $0.26 for the third quarter of 2009.
Net income for the nine months ended September 30, 2010 was $117.8 million as compared to a net loss of $68.9 million for the same period of 2009. Diluted net income per share for the nine months ended September 30, 2010 was $1.01 as compared to a net loss per share of $0.66 for the same period of 2009.
Cash, cash equivalents, and marketable securities as of September 30, 2010 were $484.9 million, a decrease of approximately $112.7 million from June 30, 2010. During the third quarter of 2010, the Company entered into an Accelerated Share Repurchase agreement (“ASR”) to repurchase $90 million of the Company's common stock, with the Company paying such $90 million at the time of commencement of the ASR. Prior to the commencement of the ASR, the Company repurchased shares of its common stock having an aggregate value of $9.8 million. In addition, the Company used $3.3 million in the acquisition of intellectual property.
Rambus Inc. self descripton
Rambus is one of the world's premier technology licensing companies. Founded in 1990, the Company specializes in the invention and design of architectures focused on enhancing the end-user experience of computing, communications and consumer electronics applications. Additional information is available at www.rambus.com.
Chart courtesy Yahoo Finance
Rambus News Item
Rambus Updates Fourth Quarter Revenue Guidance
On December 6, 2010 Rambus Inc. (NASDAQ:RMBS) updated its guidance for the quarter ending December 31, 2010. As a result of the patent license agreement with Elpida announced earlier on this day, the Company revised its revenue guidance for the quarter to be between $85 million and $93 million. Rambus initially provided revenue guidance for the quarter in the range of $40 million and $50 million.
“The Elpida agreement is estimated to result in royalty payments of $180 million to Rambus over the next five years, including $47 million to be paid in the current quarter,” said Harold Hughes, president and chief executive officer of Rambus. “With this agreement, we now have more than half of the DRAM market licensed, providing system manufacturers more choices of supply for licensed DRAM products.”
TTM EDA and Electronics IP Margins & Market Caps
Table 1 in the EDA WEEKLY Schedule A posting of January 10, 2010 provided revenue numbers for Q3 2010 and the three prior quarters, listing each of the G5 EDA vendor's revenue results for each of those quarters. Table 2 in the EDA WEEKLY Schedule A posting of January 10, 2010 provided earnings numbers for Q3 2010 and the three prior quarters, listing each of the G4 EDA vendor's earnings results for each of those quarters, for the four EDA vendors reporting Q3 2010 earnings.
Likewise, Table 1 in the present EDA WEEKLY Schedule B posting provides revenue numbers for Q3 2010 and the three prior quarters, listing each of the G5 Electronics IP vendor's revenue results for each of those quarters. Table 2 in the current EDA WEEKLY Schedule B posting provides earnings numbers for Q3 2010 and the three prior quarters, listing each of the G5 IP vendor's earnings results for each of those quarters.
To gain a side by side comparison of all nine vendors, in a format which combines the twelve trailing months (ttm) up to and including Q3 2010, along with the perspective offered by current Market Capitalizations, we present below Table 3:
The most disconcerting data point (to this writer) in Table 3, is that ARMH, whose revenue is only 17% of the combined revenues of Cadence, Magma, Mentor Graphics and Synopsys ... that ARMH is valued by the stock market as being worth 1.24 times the combined market caps of Cadence, Magma, Mentor Graphics and Synopsys!
Parting News about Employment in the United States
Employment Numbers for December 2010
Released on January 7, 2011 by US Labor Department
Footnote : Remarks of President Barack Obama of January 12, 2011 - as prepared for delivery and released by the White House for the Memorial Service for the Victims of the January 8th Shooting in Tucson, Arizona.
When giving the actual speech, the president updated the section on visiting the congresswoman in the hospital, after "she opened her eyes for the first time":
To the families of those we've lost; to all who called them friends; to the students of this university, the public servants gathered tonight, and the people of Tucson and Arizona: I have come here tonight as an American who, like all Americans, kneels to pray with you today, and will stand by you tomorrow.
There is nothing I can say that will fill the sudden hole torn in your hearts. But know this: the hopes of a nation are here tonight. We mourn with you for the fallen. We join you in your grief. And we add our faith to yours that Representative Gabrielle Giffords and the other living victims of this tragedy pull through.
As Scripture tells us:
There is a river whose streams make glad the city of God,
the holy place where the Most High dwells.
God is within her, she will not fall;
God will help her at break of day.
On Saturday morning, Gabby, her staff, and many of her constituents gathered outside a supermarket to exercise their right to peaceful assembly and free speech. They were fulfilling a central tenet of the democracy envisioned by our founders - representatives of the people answering to their constituents, so as to carry their concerns to our nation's capital. Gabby called it "Congress on Your Corner" - just an updated version of government of and by and for the people.
That is the quintessentially American scene that was shattered by a gunman's bullets. And the six people who lost their lives on Saturday - they too represented what is best in America.
Judge John Roll served our legal system for nearly 40 years. A graduate of this university and its law school, Judge Roll was recommended for the federal bench by John McCain twenty years ago, appointed by President George H.W. Bush, and rose to become Arizona's chief federal judge. His colleagues described him as the hardest-working judge within the Ninth Circuit. He was on his way back from attending Mass, as he did every day, when he decided to stop by and say hi to his Representative. John is survived by his loving wife, Maureen, his three sons, and his five grandchildren.
George and Dorothy Morris - "Dot" to her friends - were high school sweethearts who got married and had two daughters. They did everything together, traveling the open road in their RV, enjoying what their friends called a 50-year honeymoon. Saturday morning, they went by the Safeway to hear what their Congresswoman had to say. When gunfire rang out, George, a former Marine, instinctively tried to shield his wife. Both were shot. Dot passed away.
A New Jersey native, Phyllis Schneck retired to Tucson to beat the snow. But in the summer, she would return East, where her world revolved around her 3 children, 7 grandchildren, and 2 year-old great-granddaughter. A gifted quilter, she'd often work under her favorite tree, or sometimes sew aprons with the logos of the Jets and the Giants to give out at the church where she volunteered. A Republican, she took a liking to Gabby, and wanted to get to know her better.
Dorwan and Mavy Stoddard grew up in Tucson together - about seventy years ago. They moved apart and started their own respective families, but after both were widowed they found their way back here, to, as one of Mavy's daughters put it, "be boyfriend and girlfriend again." When they weren't out on the road in their motor home, you could find them just up the road, helping folks in need at the Mountain Avenue Church of Christ. A retired construction worker, Dorwan spent his spare time fixing up the church along with their dog, Tux. His final act of selflessness was to dive on top of his wife, sacrificing his life for hers.
Everything Gabe Zimmerman did, he did with passion - but his true passion was people. As Gabby's outreach director, he made the cares of thousands of her constituents his own, seeing to it that seniors got the Medicare benefits they had earned, that veterans got the medals and care they deserved, that government was working for ordinary folks. He died doing what he loved - talking with people and seeing how he could help. Gabe is survived by his parents, Ross and Emily, his brother, Ben, and his fiancée, Kelly, who he planned to marry next year.
And then there is nine year-old Christina Taylor Green. Christina was an A student, a dancer, a gymnast, and a swimmer. She often proclaimed that she wanted to be the first woman to play in the major leagues, and as the only girl on her Little League team, no one put it past her. She showed an appreciation for life uncommon for a girl her age, and would remind her mother, "We are so blessed. We have the best life." And she'd pay those blessings back by participating in a charity that helped children who were less fortunate.
Our hearts are broken by their sudden passing. Our hearts are broken - and yet, our hearts also have reason for fullness.
Our hearts are full of hope and thanks for the 13 Americans who survived the shooting, including the congresswoman many of them went to see on Saturday. I have just come from the University Medical Center, just a mile from here, where our friend Gabby courageously fights to recover even as we speak. And I can tell you this - she knows we're here and she knows we love her and she knows that we will be rooting for her throughout what will be a difficult journey.
And our hearts are full of gratitude for those who saved others. We are grateful for Daniel Hernandez, a volunteer in Gabby's office who ran through the chaos to minister to his boss, tending to her wounds to keep her alive. We are grateful for the men who tackled the gunman as he stopped to reload. We are grateful for a petite 61-year-old, Patricia Maisch, who wrestled away the killer's ammunition, undoubtedly saving some lives. And we are grateful for the doctors and nurses and emergency medics who worked wonders to heal those who'd been hurt.
These men and women remind us that heroism is found not only on the fields of battle. They remind us that heroism does not require special training or physical strength. Heroism is here, all around us, in the hearts of so many of our fellow citizens, just waiting to be summoned - as it was on Saturday morning.
Their actions, their selflessness, also pose a challenge to each of us. It raises the question of what, beyond the prayers and expressions of concern, is required of us going forward. How can we honor the fallen? How can we be true to their memory?
You see, when a tragedy like this strikes, it is part of our nature to demand explanations - to try to impose some order on the chaos, and make sense out of that which seems senseless. Already we've seen a national conversation commence, not only about the motivations behind these killings, but about everything from the merits of gun safety laws to the adequacy of our mental health systems. Much of this process, of debating what might be done to prevent such tragedies in the future, is an essential ingredient in our exercise of self-government.
But at a time when our discourse has become so sharply polarized - at a time when we are far too eager to lay the blame for all that ails the world at the feet of those who think differently than we do - it's important for us to pause for a moment and make sure that we are talking with each other in a way that heals, not a way that wounds.
Scripture tells us that there is evil in the world, and that terrible things happen for reasons that defy human understanding. In the words of Job, "when I looked for light, then came darkness." Bad things happen, and we must guard against simple explanations in the aftermath.
For the truth is that none of us can know exactly what triggered this vicious attack. None of us can know with any certainty what might have stopped those shots from being fired, or what thoughts lurked in the inner recesses of a violent man's mind.
So yes, we must examine all the facts behind this tragedy. We cannot and will not be passive in the face of such violence. We should be willing to challenge old assumptions in order to lessen the prospects of violence in the future.
But what we can't do is use this tragedy as one more occasion to turn on one another. As we discuss these issues, let each of us do so with a good dose of humility. Rather than pointing fingers or assigning blame, let us use this occasion to expand our moral imaginations, to listen to each other more carefully, to sharpen our instincts for empathy, and remind ourselves of all the ways our hopes and dreams are bound together.
After all, that's what most of us do when we lose someone in our family - especially if the loss is unexpected. We're shaken from our routines, and forced to look inward. We reflect on the past. Did we spend enough time with an aging parent, we wonder. Did we express our gratitude for all the sacrifices they made for us? Did we tell a spouse just how desperately we loved them, not just once in awhile but every single day?
So sudden loss causes us to look backward - but it also forces us to look forward, to reflect on the present and the future, on the manner in which we live our lives and nurture our relationships with those who are still with us. We may ask ourselves if we've shown enough kindness and generosity and compassion to the people in our lives. Perhaps we question whether we are doing right by our children, or our community, and whether our priorities are in order. We recognize our own mortality, and are reminded that in the fleeting time we have on this earth, what matters is not wealth, or status, or power, or fame - but rather, how well we have loved, and what small part we have played in bettering the lives of others.
That process of reflection, of making sure we align our values with our actions - that, I believe, is what a tragedy like this requires. For those who were harmed, those who were killed - they are part of our family, an American family 300 million strong. We may not have known them personally, but we surely see ourselves in them. In George and Dot, in Dorwan and Mavy, we sense the abiding love we have for our own husbands, our own wives, our own life partners. Phyllis - she's our mom or grandma; Gabe our brother or son. In Judge Roll, we recognize not only a man who prized his family and doing his job well, but also a man who embodied America's fidelity to the law. In Gabby, we see a reflection of our public spiritedness, that desire to participate in that sometimes frustrating, sometimes contentious, but always necessary and never-ending process to form a more perfect union.
And in Christina...in Christina we see all of our children. So curious, so trusting, so energetic and full of magic.
So deserving of our love.
And so deserving of our good example. If this tragedy prompts reflection and debate, as it should, let's make sure it's worthy of those we have lost. Let's make sure it's not on the usual plane of politics and point scoring and pettiness that drifts away with the next news cycle.
The loss of these wonderful people should make every one of us strive to be better in our private lives - to be better friends and neighbors, co-workers and parents. And if, as has been discussed in recent days, their deaths help usher in more civility in our public discourse, let's remember that it is not because a simple lack of civility caused this tragedy, but rather because only a more civil and honest public discourse can help us face up to our challenges as a nation, in a way that would make them proud. It should be because we want to live up to the example of public servants like John Roll and Gabby Giffords, who knew first and foremost that we are all Americans, and that we can question each other's ideas without questioning each other's love of country, and that our task, working together, is to constantly widen the circle of our concern so that we bequeath the American dream to future generations.
I believe we can be better. Those who died here, those who saved lives here - they help me believe. We may not be able to stop all evil in the world, but I know that how we treat one another is entirely up to us. I believe that for all our imperfections, we are full of decency and goodness, and that the forces that divide us are not as strong as those that unite us.
That's what I believe, in part because that's what a child like Christina Taylor Green believed. Imagine: here was a young girl who was just becoming aware of our democracy; just beginning to understand the obligations of citizenship; just starting to glimpse the fact that someday she too might play a part in shaping her nation's future. She had been elected to her student council; she saw public service as something exciting, something hopeful. She was off to meet her congresswoman, someone she was sure was good and important and might be a role model. She saw all this through the eyes of a child, undimmed by the cynicism or vitriol that we adults all too often just take for granted.
I want us to live up to her expectations. I want our democracy to be as good as she imagined it. All of us - we should do everything we can to make sure this country lives up to our children's expectations.
Christina was given to us on September 11th , 2001, one of 50 babies born that day to be pictured in a book called "Faces of Hope." On either side of her photo in that book were simple wishes for a child's life. "I hope you help those in need," read one. "I hope you know all of the words to the National Anthem and sing it with your hand over your heart. I hope you jump in rain puddles."
If there are rain puddles in heaven, Christina is jumping in them today. And here on Earth, we place our hands over our hearts, and commit ourselves as Americans to forging a country that is forever worthy of her gentle, happy spirit.
May God bless and keep those we've lost in restful and eternal peace. May He love and watch over the survivors. And may He bless the United States of America.
End of Footnote 
About the Writer of this edition of the EDA WEEKLY:
Since 1996, Dr. Russ Henke has been and remains active as president of HENKE ASSOCIATES, a San Francisco Bay Area high-tech business & management consulting firm. The number of client companies for Henke Associates now numbers more than forty. During his corporate career, Henke operated sequentially on "both sides" of MCAE/MCAD and EDA, as a user and as a vendor. He's a veteran corporate executive from Cincinnati Milacron, SDRC, Schlumberger Applicon, Gould Electronics, ATP, and Mentor Graphics. Henke is a Fellow of the Society of Manufacturing Engineers (SME) and served on the SME International Board of Directors. Henke was also a board member of SDRC, PDA, ATP, and the MacNeal Schwendler Corporation, and he currently serves on the board of Stottler Henke Associates, Inc. Henke is also a member of the IEEE and a Life Fellow of ASME International. In April 2006, Dr. Henke received the 2006 Lifetime Achievement Award from the CAD Society, presented by CAD Society president Jeff Rowe at COFES2006 in Scottsdale, AZ. In February 2007, Henke became affiliated with Cyon Research's select group of experts on business and technology issues as a Senior Analyst. This Cyon Research connection aids and supplements Henke's ongoing, independent consulting practice (HENKE ASSOCIATES). Dr. Henke is also a contributing editor of the EDACafé EDA WEEKLY, and he has published EDA WEEKLY articles every four weeks since November 2009; URL's available.
Since May 2003 HENKE ASSOCIATES has also published a total of ninety-three (93) independent COMMENTARY articles on MCAD, PLM, EDA and Electronics IP on IBSystems' MCADCafé and EDACafé. Further information on HENKE ASSOCIATES, and URL's for past Commentaries, are available at http://www.henkeassociates.net. March 31, 2011 will mark the 15th Anniversary of the founding of HENKE ASSOCIATES.
If you have not done so already, you are invited to read the first part of the January 10, 2011 EDA WEEKLY:
The EDA and the Electronics IP Almanac:
Q3 2010 - Schedule A http://www10.edacafe.com/nbc/articles/view_weekly.php?articleid=905477