EDA Consortium Reports Revenue Increase for Q2, 2012

SAN JOSE, California, October 2, 2012—The EDA Consortium (EDAC) Market Statistics Service (MSS) today announced that the Electronic Design Automation (EDA) industry revenue increased 10.8 percent for Q2 2012 to $1593.0 million, compared to $1438.1 million in Q2 2011. Sequential EDA revenue for Q2 2012 increased 3.2 percent compared to Q1 2012, while the four-quarters moving average, which compares the most recent four quarters to the prior four quarters, increased by 12.0 percent.

“In second quarter the EDA industry returned to double-digit growth,” said Walden C. Rhines, board sponsor for the EDAC MSS and chairman and CEO of Mentor Graphics. “Growth was driven by North America and Asia/Pacific, although all regions were positive. CAE, IC Physical Design, and Semiconductor IP all showed double-digit increases.”

Companies that were tracked employed 28,205 professionals in Q2 2012, an increase of 5.6 percent compared to the 26,721 people employed in Q2 2011, and up 1.3 percent compared to Q1 2012. The Q2 number is an all-time high, surpassing the prior high point of 28,176 reported in Q3 of 2008.

The complete MSS report, containing detailed revenue information broken out by both categories and geographic regions, is available via subscription from the EDA Consortium.

Revenue by Product Category

The largest category, Computer Aided Engineering (CAE), generated revenue of $618.4 million in Q2 2012, which represents a 12.5 percent increase over Q2 2011. The four-quarters moving average for CAE increased 10.7 percent.

IC Physical Design & Verification revenue increased to $327.9 million in Q2 2012, a 14.3 percent increase compared to Q2 2011. The four-quarters moving average increased 17.6 percent.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue of $141.0 million represents a decrease of 2.7 percent compared to Q2 2011. The four-quarters moving average for PCB & MCM decreased 1.4 percent.

Semiconductor Intellectual Property (SIP) revenue totaled $420.5 million in Q2 2012, a 14.4 percent increase compared to Q2 2011. The four-quarters moving average increased 16.6 percent.

Services revenue was $85.1 million in Q2 2012, a decrease of 4.1 percent compared to Q2 2011. The four-quarters moving average increased 3.4 percent.

Revenue by Region

The Americas remains EDA’s largest region, purchasing $707.2 million of EDA products and services in Q2 2012, an increase of 13.0 percent compared to Q2 2011. The four-quarters moving average for the Americas increased 14.7 percent.

Revenue in Europe, the Middle East, and Africa (EMEA) was up 6.0 percent in Q2 2012 compared to Q2 2011 on revenues of $261.2 million. The EMEA four-quarters moving average increased 10.4 percent.

Second quarter 2012 revenue from Japan increased 1.8 percent to $258.6 million compared to Q2 2011. The four-quarters moving average for Japan deceased 3.1 percent. The Asia/Pacific (APAC) region revenue increased to $366.0 million in Q2 2012, an increase of 17.5 percent compared to the second quarter in 2011. The four-quarters moving average increased 20.9 percent.

About the MSS Report

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 & 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.

About the EDA Consortium

The EDA Consortium is the international association of companies that provide design tools and services that enable engineers to create the world’s electronic products used for communications, computer, space technology, medical, automotive, industrial equipment, and consumer electronics markets among others. For more information about the EDA Consortium, visit www.edac.org, or to subscribe to the Market Statistics Service, call 408-287-3322 or email mss12@edac.org.