Commentary: Electronics IP Industry — A May 2006 Update

Commentary: Electronics IP Industry — A May 2006 Update

by Dr. Russ Henke and Dr. Jack Horgan
Henke Associates


In their September 2003, December 2003, February 2004, May 2004, August 2004, November 2004, February 2005, May 2005, August 2005, November 2005 and February 2006 Electronics IP Industry Commentaries, the authors examined the recent financial histories and future outlooks of the remarkable phenomenon of Electronics Intellectual Property (IP) providers, a niche that has emerged in its own right to claim a substantial amount of revenue in the world of Electronics Design Automation. We had arbitrarily selected eight (8) publicly-traded companies originally (then called the "Group-of-8" or "G8"), as representative of the current financial state of the Electronics IP industry. At the end of 2004, ARM completed its acquisition of Artisan Components, Inc., thereby reducing our "G8" to "G7". Accordingly, in this May 2006 Commentary, we look at the financial performances of the "G7" Electronics IP vendors during the first quarter of 2006.

Group-of-7 ("G7"):

ARM Holdings, plc
Ceva, Inc.
LogicVision, Inc.
MIPS Technologies, Inc.
MoSys, Inc
Rambus, Inc.
Virage Logic Corporation
Cambridge, UK
San Jose, CA
San Jose, CA
Mountain View, CA
Sunnyvale, CA
Los Altos, CA
Fremont, CA

For the "G7" companies above, we assume that all of their revenues are Electronics IP sales and directly related IP services.

Recent Electronics IP News Highlights

On May 1, 2006, the Semiconductor Industry Association (SIA) reported that worldwide sales of semiconductors of $59.1 billion in the first quarter of 2006 were 7.3% higher than the first quarter of 2005, when global sales were $55.1 billion. First-quarter sales declined by 1.3% from the fourth quarter of 2005, when semiconductor sales were $59.9 billion. The SIA said the sequential decline reflected normal seasonal patterns.

How did the Electronics IP G7 perform in the First Quarter of 2006?

On the revenue front, Table 1 below reveals that the G7's combined Q1 2006 performance was up 9.5% year-over-year. Percentage-wise, MoSys led the pack with 31% growth. Rambus and Virage Logic had growth approaching 20%. LogicVision and Ceva were the largest decliners at -36% and -19%, respectively.

On a sequential basis, growth of the G7 was still positive, at 7.2%. MoSys was again the percentage growth leader at 47% with Rambus and Virage Logic next, with 14% and 11% growth, respectively. Only LogicVision had a decline relative to the previous sequential quarter.

Company
Last
QTR
Revenue
Prev
QTR
Revenue
Last
vs.
Prev QTR
Comparable
2005
QTR
Last QTR
vs.
Comparable
QTR
ARM £ 64,634 62,893 2.8% 55,017 17.5%
ARM $ 113,050 108,817 3.9% 103,400 9.3%
Ceva 8,134 7,681 5.9% 10,021 -18.8%
LogicVision 2,349 2,470 -4.9% 3,677 -36.1%
MIPS 17,497 16,375 6.9% 16,795 4.2%
MoSys 3,522 2,402 46.6% 2,683 31.3%
Rambus 47,245 41,589 13.6% 39,611 19.3%
Virage Logic 15,196 13,725 10.7% 12,784 18.9%
Total 206,993 193,059 7.2% 188,971 9.5%
Table 1 Quarterly Revenue of the Group-of-7 (G7) IP Providers
(US$000)


Figure 1 below provides a bar graph of each vendor's revenue for Q1 2005, Q4 2005, and Q1 2006 in sequence. ARM is obviously the dominant revenue player with 55% of the G7 total. Rambus is second with 23%. MIPS and Virage Logic are next with 8% and 7%, respectively.


Figure 1 Quarterly Revenues of the Group-of-7 (G7) IP Providers
(US$ millions)

1 | 2 | 3 | 4 | 5 | 6 | 7  Next Page »



Review Article Be the first to review this article
Featured Video
Jobs
Principal Engineer FPGA Design for Intevac at Santa Clara, CA
SOC Logic Design Engineer for Global Foundaries at Santa Clara, CA
Technical Marketing Manager Valley for EDA Careers at San Jose, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
Technical Support Engineer for EDA Careers at Freemont, CA
Upcoming Events
DVCon 2017 Conference at DoubleTree Hotel San Jose CA - Feb 27 - 2, 2017
IoT Summit 2017 at Great America ballroom, Santa Clara Convention Center Santa Clara CA - Mar 16 - 17, 2017
SNUG Silicon Valley 2017 at Santa Clara Convention Center Santa Clara CA - Mar 22 - 23, 2017
CDNLive Silicon Valley 2017 at Santa Clara Convention Center Santa Clara CA - Apr 11 - 12, 2017



Internet Business Systems © 2017 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy