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Peggy Aycinena
Peggy Aycinena
Peggy Aycinena is a freelance journalist and Editor of EDA Confidential at www.aycinena.com. She can be reached at peggy at aycinena dot com.

EDAC’s Quarterly Report: Going forward, make Segars sell it

 
March 24th, 2016 by Peggy Aycinena


Luckily, there wasn’t time this week to speak by phone
with Mentor Graphics CEO Wally Rhines. After all, who wants to hear bad news in person: EDA has turned south.

Here’s the quote from Rhines included in EDAC’s press release discussing their Market Statistics Service report for Q4_2015:

“After 23 consecutive quarters of growth, the EDA Industry revenues declined slightly in the fourth quarter, compared to a particularly strong Q4 2014. However, industry revenue increased 5 percent for calendar 2015 compared to 2014, and the semiconductor IP and services categories increased in Q4. Geographically, the Asia Pacific region continues to grow, while other regions saw modest declines this quarter.”

Conclusion No.1: If you’ve been investing in IP, keep it up. MSS says revenue for the IP segment of the industry was up 9.2% in Q4_2015 over Q4_2014.

Conclusion No.2: If you’ve been investing in EDA, think again. MSS says revenue for the CAE segment of the industry decreased 7.8% over the same time frame, the physical design and verification segment of the industry decreased 8.1%, and the PCB and multi-chip module segment of the industry decreased 6.2%.

Conclusion No.3: ARM CEO Simon Segars should take over the brutal burden of Meet the Press that CEO Rhines has been so valiantly handling for many, many quarters. After all, Segars is as much a part of the EDAC Board as Rhines is, but Segars works in IP. Rhines works in EDA.

Let the guy who’s got a happy story to tell, go out and sell it.

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