In January 2011 the EDA WEEKLY began a new tradition that replaced the previous 2003 through 2010 practice of posting separate Electronics Design Automation (EDA) Commentaries and Electronics Intellectual Property (IP) Industry Commentaries on EDACafe.com. Starting in 2011, the EDA WEEKLY would publish a consolidated report each quarter that combines the two segments of EDA and IP into one posting.
In January 2011, the new tradition began with breaking the new tradition, because two separate articles were needed to cover the two segments: January 10, 2011 Schedule A, which covered the Group of 5 (G5) EDA vendors’ Q3 2010 financial results, followed on January 17, 2011 by Schedule B, which discussed the Q3 2010 financials of the G5 Electronics IP players.
Readers can see Schedule A from this URL:
and get to Schedule B from Schedule A.
The current article covering the results of Q4 2010 is cleverly entitled, “The EDA and the Electronics IP Almanac: Q4 2010.”
The Vendors to be discussed in this issue are:
The vendors named in this group of ten evolved from a longer list of companies originally selected for coverage. For the quarterly EDA Industry Commentaries published in EDAcafe.com starting in May 2003, Henke Associates chose nine (9) publicly-traded entities: Altium, Ansoft, Cadence, Magma, Mentor Graphics, Nassda, Synopsys, Synplicity and Verisity.
Subsequently, Verisity and Nassda were acquired by EDA vendors Cadence and Synopsys, respectively, and hence were dropped from the quarterly EDA Commentaries. More recently, EDA vendor Synplicity was acquired by Synopsys, and EDA vendor Ansoft was acquired by MCAE vendor ANSYS. Consequently, both Synplicity and Ansoft no longer independently appeared in the EDA Industry reports.
On the Electronics IP side, Henke Associates had selected eight (8) publicly-traded companies originally (called the "Group-of-8" or "G8"), as representative of the financial state of the Electronics IP industry circa 2003. 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.
Structure of the following presentation
The two Groups of Five vendors each in EDA and Electronics IP will be reported separately. Each G5 will begin with summary charts of revenues and earnings, followed by individual financial summaries on each vendor in turn. Recent stock performance will also be included. Finally, some comparisons among all ten vendors will be presented.
The EDA G5 Results for Nominal Q4 2010
As always, we begin our EDA review by looking at the summary Revenue List of the latest quarter for which results are available. For this issue, this means the results for the nominal Q4 2010 EDA G5 performances (Table 1) below.
Once again, the latest quarter’s total revenue for the G5 ($968+ million) is higher than the total for any other quarter in the Table. When nominal Q3 2010’s $896 million was the latest total reported several months ago, Q3 also beat the revenue total of the just prior quarter by 12%. But Q4 2010 does Q3 one better; it overwhelms its 2009 shadow by almost 17% rather than just 14%.
Unlike in Q3 2010, however, the revenue hero in Q4 2010 was, surprisingly, Mentor Graphics!
While all of the G5 save Synopsys delivered Q4 sequential revenue increases over Q3 2010, Mentor Graphics blew the doors off in Q4 with a plus 29% effort, entering for its first visit the rarified “Top Hat Club” of $300 million quarters, where Synopsys has held court forever (it seems).
Indeed, Mentor celebrated its 30th birthday (April 2, 2011) by delivering a revenue sum for the last three quarters of nominal 2010 that exceeded the sum Cadence delivered over the same period. With over $307 million in revenue in Q4 2010, Mentor also glided to an easy victory in the race to eclipse its Q4 2009 revenue figure, posting a 30% improvement while its rivals were huddled between plus 10% and plus 20%.
But just as the ink is drying on the reports of Q4 2010’s feat, one asks, “Can Mentor repeat in Q1 2011?” Doubtful; the nominal Q4 2010 stretch run probably exhausted the team and its revenue backlog.
Before fans start wondering about future repeats, however, Mentor gets to celebrate one other nominal Q4 2010 financial feat. For in the Q4 2010 earnings column, Mentor managed to nose out the perennial victor Synopsys for the best net income in the EDA G4 league, as Table 2 below reveals. While its absolute margin of victory was less than a million dollars in net income, Mentor won by delivering a phenomenal Q4 2010 earnings return on sales (ROS) of 16 percent vs. Synopsys’ excellent 13+ percent.
Meanwhile, “Q3’s earnings winner-with-an-asterisk” Cadence  slipped back into red ink in Q4 2010 to the tune of minus $37 million, a giant fall of over $163 million from its tax-benefitted plus $127 million earnings summit in sequential Q3 2010.
So despite the Q4 2010 heroics of Mentor and Synopsys, the EDA G4 at $61 million turned in its second-worst total net income of the year.
G5 EDA Vendor by Vendor Details for Q4 2010
Altium announces audited financial results for the half-year to December 2010
On February 23, 2011 Altium Limited (ASX:ALU) released its statement for the half-year ending December 31, 2010.
The half-year summary is as follows:
• Sales of US$22.1 million, an increase of 9% compared to the previous corresponding period
• Revenue of US$22.0 million, an increase of 1% compared to the previous corresponding period
• Deferred revenue balance of $13.0 million, an increase of 32% compared to the previous corresponding period
• Cash balance of US$4.1 million as of December 31, 2010, down from US$4.8 million as of June 30, 2010
• The total number of subscriptions sold in this period increased 125%, and the number of subscriptions renewed in this period increased 64%, compared to the previous corresponding period
Readers of the quarterly EDA Commentary published by Henke Associates have occasionally wondered why Altium Limited has been consistently included in the list of far-larger EDA vendors covered since 2003. The writer must admit that he always had a soft spot in his heart for Altium Limited, as the Company was almost totally focused on Printed Circuit Board (PCB) design, the EDA segment that the writer spent over four years managing at Mentor Graphics in the 90’s. EDA Commentary readers have witnessed for the past 8 years Altium’s constant struggle for worldwide growth and profitability, operating from its perch in Australia.
But the times are a-changin’ for Altium! While the relatively flat revenue performance by Altium could be blamed at least partially on the knowledge within its customer base that a new Altium software system was in the cards for release in Q1 2011, it turns out that this new release actually possesses the scope and power of enormous magnitude, one that has the potential of moving Altium into the “big time.”
EDA WEEKLY readers were treated to a small preview of the new product release of Altium Designer 10 in the ONE YEAR LATER section of the March 7, 2011 EDA WEEKLY posting (go to this URL and scroll down to near the end of the "Print" version of the entire article):
Altium recently provided more details. In addition to the release of Altium Designer 10, the Company also announced Altium Vaults and AltiumLive.
Altium Vaults is the heart of Altium Designer 10's new design data management functionality, whereas AltiumLive is described as an online ecosystem for electronics design professionals that will connect designers with collaborators, suppliers, manufacturers and in the future, customers; sort of the “back-end” of Altium Designer’s “front-end” user applications.
Altium CEO Nick Martin commented, "We chose to build a new platform to solve the intractable challenges of keeping design data under control without killing innovation, to deliver great design functionality for today, and provide a bridge to that future.”
"The solution was to develop and release a design tool, an ecosystem and new technology to manage data and deliver new design content, all at once,” Martin concluded.
As Altium spokespeople put it, “The diverse participants (who must cooperate) in making electronics (products and systems) that change the world (usually) create data sets that do not inherently work well together. Component data mix with other IP (intellectual property), which in turn tangle with manufacturing data, leading to all types of knotty problems. Component availability, prices, and versions change with a rapidity that makes life difficult for busy designers trying to manage the ‘who did what, when and how.’ And all the time, competitors (to these EDA customers) are circling. With Altium Designer 10, these customers can relieve their anxieties around design process complexity, business system integration, supply chain integration, external manufacturing, and increasing competitive pressure. They can free themselves to innovate.”
For more information about Altium’s latest release, go to:
See also the response in the media in just the last few months:
Altium self description
Altium Limited (ASX:ALU) creates electronics design software based on the belief that anyone who wants to create electronic products that make a difference should be able to do so. Altium’s unified electronics design environment links all aspects of electronics product design in a single application that is priced to be as affordable as possible. This helps electronics designers break down barriers to innovation, harness the latest devices and technologies, manage their projects across broad design ‘ecosystems’, and create connected, intelligent designs. Founded in 1985, Altium has headquarters in Sydney, and operates worldwide. For more information, visit live.altium.com. Altium, Altium Designer and LiveDesign, and their respective logos, are trademarks or registered trademarks of Altium Limited, or its subsidiaries. All other registered or unregistered trademarks mentioned in this release are the property of their respective owners, and no trademark rights to the same are claimed.
On February 2, 2011 Cadence Design Systems, Inc. (NASDAQ: CDNS) announced updated results for its 2010 fourth quarter and fiscal year 2010.
Cadence reported fourth quarter 2010 revenue of $249.02 million, up 13.05% compared to revenue of $220.28 million reported in Q4 2009, but up only 4.66 % over the $237.93 million reported in sequential Q3 2010. The Q4 2010 revenue was some $9 million above the top of the $230 million to $240 million guidance range provided by Cadence just 3 months ago.
On a GAAP basis, Cadence suffered a net loss of $37.04 million in the fourth quarter of 2010, or $(0.14) per diluted share, compared to a slightly positive net income of $1.79 million in Q4 2009, and of course vastly inferior to the whopping $126.75 million (tax-benefit-inflated) black ink reported in the just prior Q3 2010. The Q4 2010 earnings guidance provided just three months ago had suggested the GAAP net loss per diluted share for Q4 2010 would be far smaller than $(0.14), i.e. between $(0.06) and $(0.04).
Revenue for entire year 2010 totaled $935.95 million, up 9.77% compared to revenue of $852.63 million in 2009. Net income for 2010 was $126.54 million, or $0.48 per share on a diluted basis, compared to a net loss of $149.87 million or $(0.58) per share on a diluted basis for 2009. The guidance for the full year provided just three months ago called for total revenue 2010 in the range of $917 million to $927 million. On a GAAP basis, net income per diluted share for 2010 was expected three months ago to be in the range of $0.55 to $0.57.
Lest we forget, the actual GAAP net income for fiscal year 2010 included $148 million income tax benefits related to the settlement of an Internal Revenue Service examination of Cadence’s federal income tax returns for the tax years 2000 through 2002 and to a $67 million acquisition-related income tax benefit. Without these two tax benefits, Cadence GAAP profit for 2010 year of some $127 million would instead have been a GAAP loss of some $88 million or ~$(0.33). For the record, way back on February 3, 2010, for the full year 2010, the company expected total 2010 revenue in the range of $865 million to $900 million. On a GAAP basis, net loss per diluted share for 2010 was expected 12 months ago to be in the range of $(0.29) to $(0.19).
Looking back on 2010, Cadence CEO Lip-Bu Tan chose to focus on the positives. “The Cadence team delivered a strong performance in the fourth quarter. Revenue, operating margin and cash flow all improved in the period and fiscal year 2010. Throughout the year, we strengthened key customer and partner relationships by demonstrating our technology leadership and delivering superior solutions to their complex challenges.”
“We remain laser-focused on executing our strategy and achieving our long-term objectives. We are entering 2011 with good customer momentum, and a strong pipeline of technology across System, SoC, and Silicon Realization that deliver on our EDA360 vision.”
“Cadence capped a successful 2010 with a strong fourth quarter. We made significant improvements in all of our key operating metrics in 2010,” added Geoff Ribar, now senior vice president and chief financial officer.
(NOTE: On September 27, 2010, Cadence had announced that Mr. Ribar, who was previously chief financial officer of Telegent Systems, Inc., would be appointed senior vice president and chief financial officer of Cadence effective on or about November 1, 2010. Kevin Palatnik was planning on leaving the company to pursue other interests. Mr. Palatnik planned to remain with the company as an advisor to ensure a smooth transition of duties to Mr. Ribar, leaving Cadence by the end of Q1 2011).
“As you can see from our outlook, we expect further growth in business levels and improvement in profitability in 2011.”
The following statements are based on current Cadence expectations. These statements are forward-looking, and actual results may differ materially.
For the first quarter of 2011, the company expects total revenue in the range of $255 million to $265 million. First quarter GAAP net per diluted share is expected to be in the range of $(0.02) to $0.00.
For the full year 2011, the company expects total revenue in the range of $1,030 million to $1,070 million. On a GAAP basis, net income per diluted share for fiscal year 2011 is expected to be in the range of $0.00 to $0.10.
Cadence self description
Cadence enables global electronic design innovation and plays an essential role in the creation of today's integrated circuits and electronics. Customers use Cadence software and hardware, methodologies, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. The company is headquartered in San Jose, Calif., with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company and its products and services is available at www.cadence.com
On February 24, 2011 Magma® Design Automation Inc. (NASDAQ:LAVA) reported revenue of $34.76 million for its fiscal 2011 third quarter ended January 30, 2011 (hereinafter called nominal Q4 2010 for our purposes). The nominal Q4 2010 revenue of $34.76 million was up 12.27% from the $30.96 million in revenue reported in nominal Q4 2009, and up 2.45% from the $33.93 million in revenue from the just prior nominal Q3 2010. The $34.76 million achieved in nominal Q4 2010 exceeded the Magma guidance given 3 months ago of a revenue expectation between $34.0 million and $34.5 million.
"Financial performance was once again solid (in nominal Q4 2010) – for the eighth consecutive quarter we met or exceeded all guidance targets and generated cash," said Rajeev Madhavan, Magma chairman and chief executive officer.
"Magma products are performing well across the board. Our core digital platform Talus is the 28-nanometer plan of record at several leading-edge semiconductor companies and has been used to complete 28-nm production and 20-nm test chip tapeouts. In analog implementation, Titan continued its momentum with two new logos in the quarter, and in circuit simulation FineSim continued to take share as we signed up more than 10 new FineSim logos – all companies that previously were not Magma customers."
Overall Magma added 14 new customer logos during nominal Q4 2010, including four new users of SiliconSmart ACE, Magma's library characterization product. In one of these accounts, Magma SiliconSmart replaced an incumbent product at a Top 20 semiconductor company.
GAAP Results for nominal Q4 2010
In accordance with generally accepted accounting principles (GAAP), Magma ventured into the black, reporting net income of $961,000, or $0.01 per share for nominal Q4 2010, compared to a net loss of $2,638,000, or $(0.05) per share for the year-ago nominal Q4 2009. In the just prior nominal Q3 2010, Magma lost $2,714,000, or $(0.04).
Magma did not expect getting into the black in nominal Q4 2010 3 months ago, having issued guidance three months ago of a quarterly loss per share of $(0.04) to $(0.03).
In the third quarter, Magma generated cash flow from operations of approximately $6.8 million.
For Magma's nominal Q1 2011, the company expects total revenue in the range of $35.0 million to $35.5 million. GAAP net loss per share is expected to be in the range of $(0.04) to $(0.03).
Magma self description
Magma's electronic design automation (EDA) software provides the "Fastest Path to Silicon"(TM) and enables the world's top chip companies to create high-performance integrated circuits (ICs) for cellular telephones, electronic games, WiFi, MP3 players, digital video, networking and other electronic applications. Magma products are used in IC implementation, analog/mixed-signal design, analysis, physical verification, circuit simulation and characterization. The company maintains headquarters in San Jose, Calif., and offices throughout North America, Europe, Japan, Asia and India. Magma's stock trades on NASDAQ under the ticker symbol LAVA. Follow Magma on Twitter at www.Twitter.com/MagmaEDA and on Facebook at www.Facebook.com/Magma. Visit Magma Design Automation on the Web at www.magma-da.com. Magma is a registered trademark and "Fastest Path to Silicon" is a trademark of Magma Design Automation. All other product and company names are trademarks and registered trademarks of their respective companies.
On February 24, 2011 Mentor Graphics Corporation (NASDAQ:MENT) announced results for its fiscal fourth quarter (a.k.a. the nominal Q4 2010 to us) and for its full year ending January 31, 2011.
For the full nominal 2010 year, the company reported revenues of $914.75 million, up an impressive 13.67% from nominal year 2009. Moreover, the company achieved 2010 GAAP earnings of $27.140 million and 2010 GAAP earnings per share of $.25, compared to a 2009 GAAP loss of $21.889 million and a 2009 GAAP loss per share of $.23.
By the time Mentor execs estimated Q4 2010 results 3 months ago, they were a somewhat more aggressive, suggesting $900 million for the 2010 revenue and $0.19 for the EPS.
For nominal Q4 2010 alone, the company reported revenues of $307.31 million, up a colossal 29.56% from the $237.14 million nominal fourth quarter of the prior year, GAAP net income of $ 49.155 million in Q4 2010 vs. $39.367 million in Q4 2009 [+22.99%], and GAAP earnings per share of $.43, up 10.26% from the $0.39 the prior fourth quarter. (Indeed, the Q4 earnings of Q4 2009 contained a tax benefit of $19.576 million, representing nearly half of the earnings total in Q4 2009).
Only three months ago, Mentor had issued such robust guidance for nominal Q4 2010 that it seemed hard to believe at the time: revenue of “about” $293 million, and GAAP EPS of $0.40. In fact, both predictions issued only 3 months earlier turned out to be slightly conservative!
“Driven by over 40% year-over-year bookings growth in our core system design business, Mentor set an all-time revenue record this past year, growing the fastest of the ‘Big 3’ EDA companies,” said Dr. Walden C. Rhines, CEO and chairman of Mentor Graphics.
“Mentor’s decade-long emphasis on investment in system design software has driven us to a near-50% market share in printed circuit board design (PCB) software and an operating margin percent for PCB software that is twice that of the overall company.” 
We expect this momentum to continue in this fiscal year as we achieve over 9% growth in Mentor’s revenues and a much greater percentage growth in earnings,” Dr. Rhines concluded.
During the quarter, the company teamed up with ARM to provide an automated memory test and repair solution for ARM embedded memories and processor cores. Mentor also combined Veloce® hardware emulation technology with equipment from Rohde and Schwarz, the largest test and measurement supplier in Europe, to deliver a hardware accelerated debug platform for wireless communication systems-on-chip. The company collaborated with IBM, GLOBALFOUNDRIES and Samsung to design a test chip for 32nm and 28nm IC manufacturing technologies, using the Mentor® Olympus-SoCTM place and route system and the Calibre® physical verification and design for manufacturing platform. Mentor’s leading-edge products continued to receive endorsements from customers such as Broadcom, Infineon, Siemens, Fujitsu and Cypress Semiconductor.
In December, the company announced the acquisition of assets of CodeSourcery, a leading provider of open source tool chains and services for advanced embedded systems development. CodeSourcery software enables customers to maximize the performance of hardware platforms ranging from embedded devices to supercomputers.
“Cost controls remain an intense focus at Mentor Graphics,” said Gregory K. Hinckley, president of Mentor Graphics.
“We have reduced SG&A expense as a percent of revenue by five hundred basis points over the last two years, and are on track to reduce it another two hundred basis points this fiscal year. We are committed to continue to further reduce SG&A expense over the next several fiscal years.”
For nominal Q1 2011 (the fiscal first quarter ending April 30, 2011), the company expects revenue of about $225 million, and GAAP earnings per share of about $.06. For the full year 2011, the company expects revenues to be approximately $1 billion, and GAAP earnings per share of approximately $.77. This represents a 9% growth in revenue.
Mentor Graphics self description
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, semiconductor and systems companies. Established in 1981, the company reported revenues over the last 12 months of about $850 million. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.
On February 16, 2011 Synopsys, Inc. (NASDAQ: SNPS) reported results for the first quarter of its fiscal year 2011 (which we call nominal Q4 2010).
For nominal Q4 2010, Synopsys reported revenue of $364.64 million, compared to $330.17 million for the same quarter last year, an increase of 10.44%. However, the revenue of $364.64 million for Q4 2010 was down 2.89% from the just prior nominal Q3 2010’s $375.5 million.
Guidance for nominal Q4 2010 provided 3 months ago called for revenue between $360 million and $368 million, showing once more that when some 90% of a company’s revenue comes from backlog, accuracy in revenue guidance is a relative breeze.
"Synopsys began its fiscal year with a strong quarter, putting us well on-track towards meeting our objectives," said Aart de Geus, chairman and CEO of Synopsys.
"With a backdrop of a healthy semiconductor industry, we continue to deliver strong technology with our traditional EDA solutions, while achieving meaningful scale with our solutions in higher-growth adjacencies."
On a generally accepted accounting principles (GAAP) basis, net income for nominal Q4 2010 was $48.226 million, or $0.31 per share, compared to $132.786 million, or $0.88 per share, for nominal Q4 2009 (recall, however, that that the Q4 2009 net income included a one-time $91.6 million, or $0.61 per share, tax benefit associated with the IRS settlement for fiscal years 2002-2004, announced back on January 12, 2010). Q4 2010’s $49.226 million net income exceeded the just prior nominal Q3 2010 net of $25.5 million by 93.04%. Synopsys’ earnings guidance provided 3 months earlier called for a nominal Q4 2010 EPS between $0.21 and $0.28.
Synopsys also provided its financial targets for the nominal Q1 2011 and for the full year ending January 2012. These targets do not include future acquisition-related expenses that may be incurred. These targets constitute forward-looking information and are based on current expectations.
Nominal Q1 2011 Targets:
- Revenue: $386 million - $394 million
- GAAP expenses: $319 million - $338 million
- Other income and expense: $0 - $2 million
- Fully diluted outstanding shares: 150 million - 155 million
- GAAP earnings per share: $0.26 - $0.31
- Revenue from backlog: greater than 90%
The Year-Ahead Targets:
- Revenue: $1.5 billion - $1.525 billion
- Other income and expense: $1 million - $5 million
- Fully diluted outstanding shares: 149 million - 154 million
- GAAP earnings per share: $1.03 - $1.20
- Cash flow from operations: approximately $230 million - $250 million
Synopsys self description
Synopsys, Inc. (NASDAQ:SNPS) is a world leader in electronic design automation (EDA), supplying the global electronics market with the software, intellectual property (IP) and services used in semiconductor design, verification and manufacturing. Synopsys' comprehensive, integrated portfolio of implementation, verification, IP, manufacturing and field-programmable gate array (FPGA) solutions helps address the key challenges designers and manufacturers face today, such as power and yield management, system-to-silicon verification and time-to-results. These technology-leading solutions help give Synopsys customers a competitive edge in bringing the best products to market quickly while reducing costs and schedule risk. Synopsys is headquartered in Mountain View, California, and has approximately 70 offices located throughout North America, Europe, Japan, Asia and India. Visit Synopsys online at http://www.synopsys.com/.
We finally come to the Electronics IP portion of The EDA and Electronics IP Almanac: Q4 2010.
Recall from the Introduction, that these are the G5 IP Vendors we planned to cover here:
The Electronics IP G5 Results for Nominal Q4 2010
We begin our review of the Q4 2010 Electronics IP G5 performances by looking at the Electronics lP summary revenue list (Table 3) below.
Our eyes are drawn at once to the “bottom line” for the latest quarter’s Sum is revealed: nearly $310 million in revenues for the IP G5 in Q4 2010! An impressive 36.6% leap over the $227 million of Q3 2010 (and Q2 2010)!
And the distinction among the five IP vendors has never been more clear: two dominant vendors and three runners up. ARM Holdings’ strength and size is on display once more, joined this quarter by the royalties’ king: Rambus. While the business models of each are dramatically different, together the “odd couple” took 87.6% of the IP revenue sum in Q4 2010, leaving the last 12.4% to divide among the bottom three companies.
Yet in all five entities there is excitement and achievement to celebrate in Q4 2010, as the vendor by vendor details in the sequel will each reveal.
You want Profits? Check out Table 4 just below! The “odd couple” of ARM and Rambus dominates again, usurping a mind-boggling 94.6% of the $84.589 million in total earnings created this quarter by the G5.
Strangely enough, Q4 2010 was not the quarter with the largest total IP G5 profit of last year. That distinction goes to Q1 2010, when Rambus’ incredible $150.9 million in net income lifted the IP G5 to nearly $181 million in total Q1 earnings. Indeed, in Q1 2010 the odd couple created more than 100% of the IP G5’s total profit.
Electronics IP Vendor by Vendor Details -- Q4 2010
On February 01, 2011, ARM Holdings plc reported unaudited financial results for Q4 2010 and for the entire 2010 year. Revenues for Q4 2010 were $180.11 million, some 29.14% better than its Q4 2009 revenue of $139.47 million, and 13.91% more than $158.12 achieved in sequential Q3 2010. 
Net Income for Q4 2010 was $46.96 million, 65.4% improved over $28.392 recognized in Q4 2009, and more than double the $23.38 million achieved in just prior Q3 2010. 
For the entire year 2010, ARM delivered $628.50 million in revenue and $132.90 million in net income, up 31.42% and 110.02% compared to $478.23 million and $63.28 million in 2009, respectively.
During Q4 2010, several partners entered into long-term commitments to use ARM technology where the revenue associated with these agreements goes into backlog. The revenue for these agreements will be recognized in future quarters as engineering and delivery milestones are achieved. In addition, two new subscription licenses were signed and a third was renewed during the quarter. As a result, group backlog at the end of the quarter was up about 35% sequentially, and about 75% year-on-year, to a record high.
Progress on key growth drivers in Q4 2010
Growth in adoption of ARM processor technology:
o 35 processor licenses signed for a range of applications including smart-phones, mobile computers, servers and smartcards
o Microsoft announced that future generations of Windows operating system will support ARM-based chips
o NVIDIA licensed both Cortex™-A15 and the next-generation ARM architecture for computing markets
o Strong licensing drives a 35% sequential increase in order backlog
Growth in mobile applications:
o 1.1 billion ARM-processor based chips shipped into mobile devices
Growth beyond mobile in consumer electronics & embedded products:
o 0.7 billion ARM-processor based chips shipped into everything from smart-meters to solid-state drives
Growth in outsourcing of new technology:
o Physical IP: Freescale became ARM's first subscription licensee for physical IP at an advanced technology node; and a foundry licensed a royalty-bearing platform of physical IP.
o Graphics: 8 licenses for Mali™, ARM's advanced graphics processor
Warren East, Chief Executive Officer, said, "ARM continues to sign licenses with influential market leaders in an increasingly digital world, and as the industry chooses ARM technology in a broadening range of electronic products, it further drives our long-term royalty opportunity. The growth in licensing and royalty revenues, throughout 2010, has combined to deliver our highest ever annual revenues, profits and cash generation.”
“2011 will bring exciting opportunities and challenges as ARM enters competitive new markets and we are well positioned to succeed with leading technology, an innovative business model and a thriving ecosystem of partners," East concluded.
It is generally expected that, after a strong recovery in 2010, the semiconductor industry will see more typical growth levels in 2011. With ARM well positioned to continue to gain share, we expect group dollar revenues for the full-year to be at least in line with market expectations.
As of December 31, 2010, ARM had 1,889 full-time employees, a net increase of 179 since the start of the year. At the end of 2010, the group had 784 employees based in the UK, 505 in the US, 219 in Continental Europe, 276 in India and 105 in the Asia Pacific region. Worldwide, ARM enjoyed a very agreeable average of over $349,000 in revenue per employee in 2010.
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.
On January 31, 2011 CEVA, Inc. (NASDAQ: CEVA); (LSE: CVA) announced its financial results for Q4 2010 and for the 2010 year ended December 31, 2010.
All-time high quarterly and annual revenue of $13.0 million and $44.9 million, a 28% and a 17% increase, respectively
Record Q4 2010 royalty revenue of $7.5 million, up 55% vs. Q4 2009
Record shipment volumes of CEVA technology; CEVA becomes world's #1 DSP architecture deployed in cellular baseband processors
Record Q4 2010 GAAP operating margin of 29%
Total revenue for the fourth quarter of 2010 was $13.03 million, which represents an increase of 28.0% compared to $10.18 million reported for the fourth quarter of 2009, and an increase of 21.8% compared to the $10.70 million recognized in the just prior Q3 2010.
Fourth quarter 2010 licensing revenue was $4.6 million, a 2% decrease when compared to $4.7 million reported for the fourth quarter of 2009. Royalty revenue for the fourth quarter of 2010 was a record $7.5 million, an increase of 55% compared to $4.8 million reported for the fourth quarter of 2009. Revenue from services for the fourth quarter of 2010 was $0.9 million, an increase of 38% compared to $0.7 million reported for the fourth quarter of 2009.
U.S. GAAP net income for the fourth quarter of 2010 was $4.207 million, an increase of 44.57% over $2.910 million reported for the same period in 2009, and an increase of 40.75% compared to the $2.989 million in sequential Q3 2010. U.S. GAAP diluted earnings per share for the fourth quarter of 2010 were $0.18, an increase of 28.6% compared to $0.14 for the fourth quarter of 2009, and 38.5% more than the $0.13 of Q3 2010.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated, "The fourth quarter of 2010 was the strongest quarter in CEVA's history, resulting in record high revenues, royalties, operating margins, and earnings. Underpinning this performance, we experienced exceptional growth in the shipment of cellular baseband processors powered by CEVA DSPs across all handset and mobile broadband device market segments, including , feature phones, high-end smart-phones, tablets, data cards, and machine-to-machine equipment. This growth is indicative of the wireless industry momentum behind our licensable DSPs, whereby our customers continue to take market share from industry incumbents that rely on in-house developed DSP technology."
Mr. Wertheizer continued, "Overall, 2010 was an outstanding year for CEVA. We continued to increase and strengthen our strategic customer base with leading wireless semiconductor manufacturers and OEMs that will leverage our advanced DSP technologies for future mass deployment of 4G devices. Shipments of CEVA-powered chipsets increased 84% year over year to more than 600 million units, and we reached a historic milestone in becoming the world's number one DSP architecture deployed in cellular baseband processors. Looking ahead to 2011, we are extremely well positioned to continue our growth trends with tier-one handset OEMs and further expanding in two underpenetrated, significant market segments: the mobile broadband devices market, such as data cards, tablets and machine-to-machine devices, and handsets targeted at the emerging economies."
During the fourth quarter of 2010, the Company concluded five new license agreements. Four agreements were for CEVA DSP cores, platforms, and software, and one agreement was for CEVA Bluetooth technology. Target applications for customer deployment are 4G and 3G baseband processors for handsets, femtocells and low-power medical devices. Geographically, three of the agreements signed were in the U.S. and two were in Asia.
Full Year 2010 Review
Total revenue for 2010 was $44.9 million, an increase of 17% compared to $38.5 million reported for 2009. Royalty revenue for 2010 was a record high $22.9 million, representing an increase of 41% compared to $16.2 million reported for 2009. Licensing revenue for 2010 was $18.4 million, a decrease of 2% compared to $18.8 million reported for 2009.
U.S. GAAP net income and diluted earnings per share for 2010 was $11.4 million and $0.51, respectively, an increase of 36% and 24%, respectively, compared to $8.3 million and $0.41 reported for 2009.
Yaniv Arieli, Chief Financial Officer of CEVA, stated, "Our fourth quarter earnings demonstrate consistent execution of our strategy for growth and profitability. We achieved substantial progress both in terms of profitability and market traction for our technologies. Our success is clearly reflected in all-time record high royalty revenues for the fourth quarter and fiscal 2010.”
“We also generated significant positive cash flow of approximately $14 million during the fourth quarter. We ended the year with a very strong balance sheet, which included cash balances and marketable securities of approximately $131 million," concluded Arieli.
CEVA, Inc. self description
CEVA is the world's leading licensor of silicon intellectual property (SIP) platform solutions and DSP cores for the mobile handset, 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 2010, CEVA's IP was shipped in over 600 million devices, powering handsets from 7 out of the top 8 handset OEMs, including Nokia, Samsung, LG, Motorola, Sony Ericsson and ZTE. Today, more than one in every three handsets shipped worldwide is powered by a CEVA DSP core. For more information, visit www.ceva-dsp.com.
On January 25, 2011 MIPS Technologies, Inc. (NASDAQ: MIPS) reported consolidated financial results for calendar Q4 2010, its second fiscal quarter 2011 ended December 31, 2010. All financial results are reported in U.S. GAAP unless otherwise noted.
Summary of Q4 2010 Financial Highlights:
- Revenue was $21.9 million, a year-to-year increase of 44%
- Licensee royalty units grew to 173 million units from 126 million units in calendar Q3 2010
- GAAP net income was $6.0 million or $0.11 per share; up $2.8 million year-to-year
- Cash and investment balances ended the quarter at $101 million, a year-to-year increase of $53 million
More precisely, total revenue for Q4 2010 was $21.86 million, up 43.99% over Q4 2009’s $15.19 million, but down 3.23% from the just prior Q3 2010 figure of $22.59 million.
Q4 2010 revenue from royalties was $14.8 million, an increase of 30% from Q4 2009 driven by a 37% increase in units. License revenue was $7.0 million, an increase of 85% from the $3.8 million reported in the corresponding quarter a year ago.
Q4 2010 GAAP costs and operating expenses were $16.1 million; an increase of $3.0 million over Q4 2009. The increase was due mainly to higher R&D and Marketing investments.
Q4 2010 earnings were $6.048 million, up 84.55% over Q4 2009’s $3.277 million, but down 20.59% compared to sequential Q3 2010 earnings of $7.616 million.
"Both our royalty revenue and earnings exceeded our expectations during the quarter. Our financial performance in Q4 2010 demonstrates our continued momentum across the digital home, networking and mobile markets. This momentum includes the addition of three new licenses with companies that are developing chips for mobile solutions,” said Sandeep Vij, MIPS Technologies chief executive officer.
“Now that we have publicly shown the first MIPS-Based smart-phones and tablets, we look forward to continued traction in this area," Vij concluded.
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.
On February 03, 2011 MoSys, Inc. (NASDAQ: MOSY) reported financial results for the Q4 2010 and for its fiscal year ended December 31, 2010.
Q4 and Year 2010 Highlights
- Full year 2010 revenue increased 36% to $15.6 million from $11.5 million in 2009;
- Fourth quarter 2010 revenue increased 12% over the prior year period to $4.0 million;
- Raised $20.0 million in equity capital, ending the year with total cash and investments of $37.5 million;
- Launched Bandwidth Engine ® family of integrated circuits (ICs) in February 2010 and shipped first samples in December 2010;
- Introduced the GigaChip(TM) Interface, an open, CEI-11 compatible interface that enables highly efficient serial chip-to-chip communications in high-speed networking systems; and
- Established the GigaChip Alliance, an ecosystem of companies supporting the GigaChip Interface, with initial members including Altera, NetLogic Microsystems and Xilinx.
"MoSys made significant progress towards expanding our business and future growth opportunities in 2010. Further, total revenues increased 36 percent, driven by growth in both license and royalty. These increased revenues were more than offset as we invested heavily in the development of our new Bandwidth Engine family of ICs," commented Len Perham, President and CEO of MoSys.
"At the end of the year we strengthened our balance sheet by completing a direct equity financing of approximately $20 million, which will be used for general corporate purposes, including working capital and the further development of our Bandwidth Engine family of ICs. We announced our Bandwidth Engine family of ICs in February and shipped the first samples in December. This remarkable accomplishment was made possible by the extreme dedication and extraordinary efforts of our excellent team coupled with great support from our partners. The high level of interest being generated by potential customers is particularly gratifying."
Mr. Perham concluded, "Looking out over 2011, we anticipate increasing demand for Bandwidth Engine IC samples, both in the form of reference board pairs and stand alone components as we compete to win design-in runoffs at several potential customers. We also anticipate completing the definition and initiating the design of our second generation IC family aimed squarely at the bandwidth and access requirements of next generation networking equipment. Additionally, there will be an intensified level of activity around our IP business. In 2011, IP will be our primary source of sales, and we intend to support that business with the resources required to achieve maximum revenue contribution. Overall, our efforts will be focused on driving MoSys to become an IP-rich, fabless semiconductor company."
Fourth Quarter Results
Total net revenue for the fourth quarter of 2010 was $3.97 million, up 5.03% compared with $3.78 million reported in the third quarter of 2010 and up 12.15% compared to $3.54 million in the fourth quarter of 2009. Fourth quarter revenue was driven by increased royalties from licensees in the gaming and networking markets.
Fourth quarter 2010 total revenue included licensing revenue of $1.4 million, compared with $1.5 million for the previous quarter and $1.3 million for the fourth quarter of 2009. Fourth quarter royalty revenue was $2.6 million, compared with $2.3 million in the previous quarter and $2.2 million for the fourth quarter of 2009.
Gross margin for the fourth quarter of 2010 was 81%, compared with 81% for the third quarter of 2010 and 80% for the fourth quarter of 2009.
Total operating expenses on a GAAP basis for the fourth quarter of 2010 were $8.9 million, compared with $9.2 million in the previous quarter and $8.2 million for the fourth quarter of 2009. Fourth quarter 2010 operating expenses included $0.7 million of amortization of intangible assets and $1.0 million of stock-based compensation expense.
GAAP net loss for the fourth quarter of 2010 was $5.7 million, or ($0.17) per share, compared with a net loss of $6.2 million, or ($0.19) per share, for the previous quarter and a net loss of $4.9 million, or ($0.16) per share, for the fourth quarter of 2009. Earnings per share for the fourth quarter 2010 were computed using approximately 33.1 million shares basis.
Cash and investments totaled $37.5 million as of December 31, 2010, which included approximately $20 million in proceeds from the Company's December 2010 registered direct equity financing. The Company conducted the financing without the services of a placement agent or underwriter and issued approximately 5.0 million shares of common stock from its existing shelf registration statement.
Full Year 2010 Results
Total revenue for 2010 was $15.6 million, compared with $11.5 million for fiscal 2009. Net loss for the year was $23.1 million, or ($0.72) per share, compared with a net loss of $19.1 million, or ($0.61) per share, in 2009. Earnings per share for the full year 2010 were computed using approximately 31.9 million shares on a GAAP basis.
Mosys 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. MoSys' Bandwidth Engine ® family of ICs combines the company's patented 1T-SRAM ® high-density memory with its high-speed interface technology. A key element of Bandwidth Engine technology is the GigaChip(TM) Interface, an open, short-reach, low-power serial interface developed by MoSys to enable highly efficient, high-bandwidth, low-latency performance not achievable using currently available serial protocols. MoSys' IP portfolio includes silicon proven SerDes and DDR3 PHYs that support a wide range of data rates across a variety of standards and 1T-SRAM memory cores that 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 is headquartered in Santa Clara, California. More information is available on MoSys' website at WWW.MOSYS.COM
On January 27, 2011 Rambus Inc. (NASDAQ:RMBS) reported financial results for Q4 2010 and record results for its fiscal year ended December 31, 2010.
Revenue for the fourth quarter of 2010 was $90.9 million*, up 186% sequentially from the third quarter of 2010 primarily due to the revenue related to the Elpida, Renesas and Nvidia license agreements. As compared to the fourth quarter of 2009, revenue was up 195% primarily due to the revenue recognized from the agreements signed with Samsung and Elpida during 2010. Revenue for the year ended December 31, 2010 was $323.4 million, up 186% over the prior year, which was also due to the agreements signed with Samsung and Elpida during 2010.
“2010 was a great year for Rambus. We made tremendous progress, from the continued demonstration of our technology leadership to the execution of our licensing strategy,” said Harold Hughes, president and chief executive officer at Rambus.
“We estimate that the many licenses signed in 2010 may generate as much as $1.3 billion in royalties over the life of the agreements.”
Total operating costs and expenses for the fourth quarter of 2010 were $48.0 million, which included a $10.3 million gain related to the Samsung settlement, $7.3 million of stock-based compensation expenses and $0.8 million for previous stock-based compensation restatement and related legal expenses. This is compared to total operating costs and expenses for the third quarter of 2010 of $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. General litigation expenses for the fourth quarter of 2010 were $5.8 million, an increase of $1.2 million from the third quarter of 2010.
Total operating costs and expenses in the fourth quarter of 2009 were $47.5 million, which included $7.6 million of stock-based compensation expenses and $0.5 million for previous stock-based compensation restatement and related legal expenses. General litigation expenses in the fourth quarter of 2010 decreased $4.7 million from the fourth quarter of 2009.
Total operating costs and expenses for the year ended December 31, 2010 were $96.5 million, which included a $126.8 million gain related to the Samsung settlement, $30.5 million of stock-based compensation expenses and $4.2 million for previous stock-based compensation restatement and related legal expenses. This is compared to total operating costs and expenses of $188.9 million for the prior year, which included $31.6 million of stock-based compensation expenses and a net recovery of $13.5 million of previous stock-based compensation restatement and related legal expenses. General litigation expenses for the year ended December 31, 2010 were $22.7 million, a decrease of $32.8 million from the prior year.
Interest and other expense, net, for the fourth quarter of 2010 was $5.2 million as compared to $4.6 million in the third quarter of 2010 and $7.2 million in the fourth quarter of 2009. Interest and other expense, net, for the year ended December 31, 2010 was $18.8 million as compared to $16.9 million for the same period of 2009.
During the quarter ended December 31, 2010, the Company paid withholding taxes of $4.2 million. The Company recorded a provision for income taxes of $4.6 million for the fourth 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 $4.4 million for the quarter ended September 30, 2010 and a benefit from income taxes of $0.6 million for the quarter ended December 31, 2009.
During the year ended December 31, 2010, the Company paid withholding taxes of $55.1 million. The Company recorded a provision for income taxes of $57.1 million for the year ended December 31, 2010, which is primarily comprised of the withholding taxes. By comparison, the Company recorded a benefit from income taxes of $0.5 million for the year ended December 31, 2009.
Net income for the fourth quarter of 2010 was $33.084 million as compared to a net loss of $20.600 million in the third quarter of 2010 and a net loss of $23.293 million in the fourth quarter of 2009. Diluted net income per share for the fourth quarter of 2010 was $0.29 as compared to a net loss per share of $0.18 in the third quarter of 2010 and a net loss per share of $0.22 for the fourth quarter of 2009.
Net income for the year ended December 31, 2010 was $150.9 million as compared to a net loss of $92.2 million for the same period of 2009. Diluted net income per share for the year ended December 31, 2010 was $1.30 as compared to a net loss per share of $0.88 for the prior year.
Cash, cash equivalents, and marketable securities as of December 31, 2010 were $512.0 million, an increase of approximately $27.1 million from September 30, 2010. Additionally, $17.9 million was used in the acquisition of a business and intellectual property during the fourth quarter of 2010. The Company also paid $4.3 million of interest related to the 5% Convertible Senior Notes due 2014 during the fourth quarter of 2010.
About Rambus Inc. self description
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 enriching the end-user experience of electronic systems. Additional information is available at www.rambus.com.
EDA and Electronics IP Margins & Market Caps
Table 1 above provided revenue numbers for Q4 2010 and the three prior quarters, listing each of the G5 EDA vendor's revenue results for each of those quarters. Table 2 provided earnings numbers for Q4 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 Q4 2010 earnings.
Likewise, Table 3 provided revenue numbers for Q4 2010 and the three prior quarters, listing each of the G5 Electronics IP vendor's revenue results for each of those quarters. Table 4 provided earnings numbers for Q4 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 ten vendors, in a format which lists both the stock prices and Market Caps for both January 7, 2011 and March 25, 2011, we present below Table 5.
Note that 7 of the 10 vendors gained in market valuation over the 77 day interval.
Comparisons to other CAD and CAE Vendors:
Readers may be interested to compare the Q4 2010 financial performance of the G5 MCAE & MCAD Vendors that are reported on quarterly on MCADCafe.com, with those reported on in this current EDA and Electronics IP EDA WEEKLY Almanac: Q4 2010:
 Cadence Footnote: The distortion of including one-time tax benefits even in GAAP earnings numbers was thoroughly discussed in last quarter’s EDA/IP Almanac:
Readers will recall these remarks at that time:
When it comes to (Q3 2010) earnings in Table 2 below, however, the fun truly begins. We immediately observe the huge G4 total in the Q3 2010 profit column of nearly $165 million in earnings, $95 million more than Q2 2010's sum and a phenomenal $182 million better than the G4 created for Q3 2009.
We quickly spot the anomaly; Cadence's Q3 2010 profit seems unusually large at $126.75 million, and you'd be right. As is revealed in the in the vendor by vendor details below, Cadence reported a giant $143 million tax benefit in Q3 2010. It booked a similar but more modest boost of $67 million in tax benefit in Q2 2010, as did Synopsys (+$92 million) in Q4 2009. The one-off boosts almost obscure the actual nominal Q3 2010 fall off in Synopsys earnings.
Indeed, without the $302 million of G4 tax benefits over the last year, the trailing four quarters' G4 profitability would fall to only $109 million, or a G4 return on sales (ROS) of only 3.3% for that year-long period.
Once again, one might observe that the EDA G4 may still be operating too close to breakeven to generate much market enthusiasm. Nevertheless, a glance at the Q4 2010 portion of the stock market charts for the G4 contained in the sequel, might suggest plenty of “market enthusiasm.” Nevertheless, it's still difficult for this observer to predict that steady long-term prosperity for EDA will soon arrive. So the answer to the same question raised in the September 13, 2010 edition of the EDA WEEKLY, “Whither EDA?,” is still blowin' in the wind.
Additionally, such a loophole as one-off “tax benefits” able to cause earnings distortions of this magnitude resurrects the long standing debate about whether (even GAAP) 'net income' is a preferred way to measure company performance. This topic is further discussed herein, in both the Cadence and the Synopsys “details sections” in the sequel (see URL above).
 Mentor Graphics Footnote: Of course no one expects Dr. Rhines, as a newcomer to MGC in 1993, to remember now that the Mentor Graphics PCB Division had achieved just such a fast growth-highly profitable pinnacle and more -- back in the halcyon days of 1992 and 1993.
Here is a photo of Dr. Rhines toasting the PCB Division VP/GM at a Division-wide get together in San Jose in early 1994 after the Division had achieved the leading PCB Market Share in the world for the second straight year as measured by Dataquest:
Located 600 miles south of Wilsonville, Oregon, the San Jose headquartered PCB Division had also become the most profitable division in the company by a large factor at that time:
 Revenues and Earnings numbers expressed in US$ are based on ARM figures published in British Pounds, then multiplied by the average foreign exchange rates for the periods in discussion (quarters or years) obtained by averaging the exact monthly fx rates to five decimal places published on www.x-rates.com.
At the end of Q1 2011 the EDA Consortium (EDAC) Market Statistics Service (MSS) announced that the Electronic Design Automation (EDA) industry revenue increased 19.4% for Q4 2010 to $1507.7 million, compared to $1262.7 million in Q4 2009.
(Note that the “EDA and Electronics IP Almanac: Q4 2010” in the foregoing, revealed that the G5 alone accounted for $968.1 million or 64.2% of the total Q4 2010 revenue reported by EDAC. However, the year over year revenue increase for the G5 alone was only 16.7% vs. EDAC's number of 19.4% for all its reporting companies. Tossing in the other G5 Electronics IP revenue of $309.9 million, the G10 accounted for $1278 million in revenue, or 85% of the $1507.7 total Industry Revenue for Q4 2010 reported by EDAC. The G10 year over year growth was 24.3%).
Sequential EDA revenue for Q4 2010 increased 15.4% compared to Q3 2010, while the four-quarters moving average, which compares the most recent four quarters to the prior four quarters, increased by 11.3%. (The sequential revenue growth rate for the G10 alone was 13.8%).
“Fourth quarter 2010 results represent a significant increase in all product categories, both sequentially and compared to Q4 2009,” said Dr. Walden Rhines, EDAC chair and chairman and CEO of Mentor Graphics. “Geographically, all regions realized increased revenue in Q4 2010 compared to Q4 2009, with the Americas, Japan, and Asia/Pacific regions showing double digit (percentage) increases.”
EDA Industry Profitability
The EDAC does not report profitability of its covered companies.
EDA Industry Employment
Companies that were tracked employed 26,767 professionals in Q4 2010, an increase of 1.1% compared to the 26,474 people employed in Q3 2010, and up 3% compared to Q4 2009.
EDA Industry Revenue by Product Category
The largest category, Computer Aided Engineering (CAE), generated revenue of $576.5 million in Q4 2010. This represents a 19.5% increase over Q4 2009. The four-quarters moving average for CAE increased 10.9%.
IC Physical Design & Verification revenue increased to $301.8 million in Q4 2010, a 2.8% increase compared to Q4 2009. The four-quarters moving average increased 1.0%.
Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue of $165.6 million increased 26% compared to Q4 2009. The four-quarters moving average for PCB & MCM increased 6.1%.
Semiconductor Intellectual Property (SIP) revenue totaled $381.0 million in Q4 2010, a 39.7% increase compared to Q4 2009. The four-quarters moving average increased 33.9%. (The G5 Electronics IP companies alone generated $309.9 million in Q4 2010 revenue, a 55.3% increase over Q4 2009).
Services revenue was $82.8 million in Q4 2010, an increase of 0.1% compared to Q4 2009. The four-quarters moving average decreased 8.7%.
Revenue by Region
The Americas, EDA's largest region, purchased $643.8 million of EDA products and services in Q4 2010, an increase of 14.8% compared to Q4 2009. The four-quarters moving average for the Americas increased 7.5%.
Revenue in Europe, the Middle East, and Africa (EMEA) was up 7.2% in Q4 2010 compared to Q4 2009 on revenues of $273.7 million. The EMEA four-quarters moving average increased 6.0%.
Fourth quarter 2010 revenue from Japan increased 17.3% to $277.2 million compared to Q4 2009. The four-quarters moving average for Japan increased 0.6%.
The Asia/Pacific (APAC) region revenue increased to $313.1 million in Q4 2010, a 48.9% increase compared to the same quarter in 2009. The four-quarters moving average increased 39.6%.
About the MSS Report
The EDA Consortium Market Statistics Service reports EDA industry revenue data quarterly and is available by annual paid 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).
The EDA Consortium is an international association of companies that provide design tools and services that enable engineers to create many of 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 for a paid subscribtion to the Market Statistics Service, call 408-287-3322 or email Email Contact.
On April 4, 2011 the Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, announced that worldwide sales of semiconductors were $25.2 billion for the month of February 2011, a slight decline of 1.1% from the prior month when sales were $25.5 billion and in line with historical seasonal trends for the industry. Sales increased by 13.6% from $22.2 billion in February 2010. All monthly sales numbers represent a three-month moving average.
“The February sales numbers released today, which show a significant increase from February 2010, predate the March 11th earthquake and tsunami in Japan. SIA extends our deepest sympathies to the Japanese people as they recover from this tragedy,” said Brian C. Toohey, president, Semiconductor Industry Association. “Many of our member companies responded immediately to deliver humanitarian supplies and financial aid to the most impacted areas and continue to provide valuable assistance in the recovery efforts. We are continuing to closely monitor potential impacts on the supply chain.”
Thought you’d escape without a political statement? Nein, mon Ami!
If you’re game, check out this editorial:
About the Writer 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-five (95) 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 marked the 15th Anniversary of the founding of HENKE ASSOCIATES.