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
CST Webinar Series

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Upcoming Events
2016 IEEE International Electron Devices Meeting at Hilton San Francisco Union Square 333 O’Farrell Street San Francisco CA - Dec 3 - 7, 2016
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 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