Reading the tea leaves: How deep will EDA losses go?
Gabe Moretti, EE Times
(08/29/2008 11:49 AM EDT)
The four largest EDA companies have now all reported their financial results for their respective quarters. Only Synopsys had a positive result, while Cadence, Magma, and Mentor all reported losses. The obvious questions are: what are the causes, how deep will the losses go, and how long will the downturn last. Forecasting is usually a tricky business, but in this case, some properties of the near future behavior of the EDA industry are clearly visible. All that is required is a dispassionate reading of what the CEO of these companies are saying.
(08/29/2008 11:49 AM EDT)
The four largest EDA companies have now all reported their financial results for their respective quarters. Only Synopsys had a positive result, while Cadence, Magma, and Mentor all reported losses. The obvious questions are: what are the causes, how deep will the losses go, and how long will the downturn last. Forecasting is usually a tricky business, but in this case, some properties of the near future behavior of the EDA industry are clearly visible. All that is required is a dispassionate reading of what the CEO of these companies are saying.
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