EDA industry revenue down in Q2-09

SAN JOSE, USA: The EDA Consortium (EDAC) Market Statistics Service (MSS) today announced that the Electronic Design Automation (EDA) industry revenue for Q2 2009 is $1,125.5 million, a 5.6 percent sequential decline from Q1.

On a Q2/Q2 basis, EDA industry revenue declined 15.8 percent to $1,125.5 million, compared to $1,335.9 million in Q2 2008. The four-quarter moving average declined 13.9 percent.

“This recession started with the most precipitous drop in electronics industry history. Nevertheless, the normal pattern of preserving most R&D spending has been maintained by most electronics companies,” said Wally Rhines, EDAC chair and chairman and CEO of Mentor Graphics. “As the electronics industry recovers, and its R&D spending increases to come in line with its growing revenue, the EDA industry would be expected to recover as well.”

Companies that were tracked employed 26,298 professionals in Q2 2009, down 6.1 percent from the 28,004 employed in Q2 2008, and down 1.0 percent from the 26,561 employed in Q1 2009.

Revenue by product category
Computer Aided Engineering (CAE), EDA’s largest category, generated revenue of $449.7 million in Q2 2009. This represents a 12.2 percent decrease over the same period in 2008. The four-quarter moving average for CAE declined 18.6 percent.

In the next largest category, IC Physical Design and Verification, revenue decreased to $270.6 million in Q2 2009, a 12.8 percent decrease compared to Q2 2008. The four-quarter moving average declined 19.7 percent for IC Physical Design & Verification.

Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue decreased 24.1 percent compared to Q2 2008, to $105.8 million. The four-quarter moving average for PCB and MCM decreased 10.4 percent.

Semiconductor Intellectual Property (SIP) revenue totaled $221.6 million in Q2 2009, a 16.3 percent decrease compared to Q2 2008. The four-quarter moving average for SIP decreased 5.0 percent.

Services revenue was $77.8 million in Q2 2009, a decrease of 28.6 percent compared to Q2 2008. The four-quarter moving average for services increased 7.5 percent.

Revenue by consuming region
The Americas, EDA’s largest region, purchased $509 million of EDA products and services in Q2 2009, representing an 11.5 percent decrease compared to Q2 2008. The four-quarter moving average was down 14.7 percent for the region.

Revenue in Europe, the Middle East, and Africa (EMEA) was down 21.1 percent in Q2 2009 compared to Q2 2008 on revenues of $212.4 million. The four-quarter moving average for EMEA was down 14.3 percent.

Q2 2009 revenue from Japan decreased 21.5 percent to $217.8 million compared to Q2 2008. The four-quarter moving average for Japan decreased 17.9 percent.

The Asia/Pacific (APAC) region decreased to $186.3 million in Q2 2009, a 13.1 percent decrease compared to the same quarter in 2008. The four-quarter moving average declined 5.3 percent.