Commentary: EDA Industry Update August 2006 -- What did the Last Quarter Bring?

As guidance Ansoft is expecting revenue in the next quarter to be in the range of $20 million to $20.5 million. For the year Ansoft expects revenue growth of 10% to 15%.

For the third quarter of 2006, Cadence expects total revenue in the range of $350 million to $360 million, compared to $358 million in the quarter just completed. For the full year 2006, the company expects total revenue in the range of $1.425 billion to $1.475 billion.

As guidance Magma expects total revenue for the next quarter to be in the range of $40 million to $44 million. This compares to $41 million in the quarter just reported, and to $40 million in the same quarter in 2005.

As guidance Mentor Graphics expects revenue of approximately $180 million for the third quarter, compared to $178 million in the quarter just reported and $164 million in the third quarter of 2005. For full year 2006, the company expects revenue of $763 million, compared to $705 million in 2005.

Gregory K. Hinckley, president of Mentor Graphics, said, “We continue to keep a tight lid on expenses, with GAAP operating expense rising a modest 5% on a 15% rise in revenue. Our renewal outlook for the second half of the year remains solid. This, combined with strong execution in the second quarter, strengthens our confidence in the business.”

As guidance Synopsys expects revenue in the next quarter to be in the range of $274 million to $282 million. This compares to $277 million in the quarter just concluded and $252 million in the same quarter a year ago. For fiscal 2006 the firm expects revenue between $1,086 million and $1,094 million, compared to $992 million last year.

As guidance Synplicity expects revenue in the next quarter to be in the range of $16.0 million to $16.5 million. This compares with $15.4 million in the quarter just reported and with $16 million in the third quarter of 2005. The company also expects revenue for the year to be in the range of $63 to $65 million.

EDA Consortium's Market Statistics

During Q1 2006, North America accounted for 47% of total EDA revenue, Europe for 18%, Japan for 24% and ROW for 11%. (Table 14)

Reporting companies employed 23,128 professionals in Q1 2006, up 4% from the 22,236 reported in Q1 2005.

Walden C. Rhines, chairman and CEO of Mentor Graphics Corporation, and vice-chair of the EDA Consortium, “Last year's fourth quarter strength expanded in Q1, fueled by solid growth in North America and Western Europe.”

The EDA Consortium is the international association of companies that provide tools and services that enable engineers to create the world's electronic products. EDA is the critical technology used to design electronics for the communications, computer, space technology, medical and industrial equipment and consumer electronics markets among others.

Geopolitical and Economic Commentary:

Finally, for Geopolitical and Economic Commentary on conditions that affect the EDA Industry, i.e. such commentary that occasionally appears at the end of these articles, interested readers may be motivated to click on the following URL. It will take you to the EDA Commentary for May 2006, and you can scroll down to the Geopolitical Section, which has been updated from May all the way through mid-August 2006:

Interested readers who missed the August 18, 2006 article, "JUDGMENT DAY COMING -- FOR THE NEOCONS," by Patrick J Buchanan, from Creators Syndicate, Inc., can try to click on it here:

If there is already a later Buchanan article there, you might search their archive. Last resort, send an email to Email Contact and we'll send you a copy of Buchanan's JUDGMENT DAY in MS WORD.


Comments? Feedback? Tell us what you think about this topic, or share any additional information you may have on the subject! Submit your comments to: EDACafe-Editor.

About the Authors:

Since 1996, Dr. Russ Henke has been president of HENKE ASSOCIATES, a San Francisco Bay Area high-tech business & management consulting firm. The number of client companies for Henke Associates now numbers forty. During his corporate career, Henke operated sequentially on "both sides" of MCAD and EDA, as a user and as a vendor. He's a veteran corporate executive from Cincinnati Milacron, SDRC, Schlumberger Applicon, Gould Electronics, ATP, and Mentor Graphics. Henke is a Fellow of the Society of Manufacturing Engineers (SME) and served on the SME International Board of Directors. He is also a member of the IEEE and a Life Fellow of ASME International. In April 2006, Dr. Henke received the 2006 Lifetime Achievement Award from The CAD Society, presented by CAD Society president Jeff Rowe at COFES2006 in Scottsdale, AZ.

An affiliate of the HENKE ASSOCIATES team since 2001, LA-based Dr. John R. (Jack) Horgan co-authored this August 2006 EDA Industry Commentary. Dr. Horgan's prior corporate career has included executive positions at Applicon, Aries Technology, CADAM and MICROCADAM, as well as a stint at IBM. Dr. Horgan is also an editor of EDAcafe Weekly.

Since May 2003 the authors have now published a total of forty-five (45) independent articles on MCAD, PLM, EDA and Electronics IP on MCAD, PLM, EDA and Electronics IP on IBSystems' MCADCafé and EDACafé. Further information on HENKE ASSOCIATES, and URL's for past Commentaries, are available at

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