Cadence executives are clearly focused on the future.
Footnote: On May 18, 2009 Cadence introduced a scalable co-design solution for designing FPGAs onto PCB systems. The Cadence® OrCAD® and Allegro® FPGA System Planner is said to shorten time to design-in complex FPGAs -- those with large pin counts and elaborate banking and pin assignment rules -- while reducing risk by delivering an automated placement-aware FPGA pin I/O assignment synthesis. Developed by Taray, Inc. and available to Cadence customers through an OEM agreement, this joint solution reportedly offers an optimized correct-by-construction FPGA pin assignment that reduces the number of pin optimization iterations during PCB layout while reducing the number of layers required to route the FPGA on a PCB design.
This new Cadence capability is similar to a product suite introduced by Mentor Graphics Corporation some years ago. If you’re interested, check out the following:
On May 27, 2009 Magma Design Automation, Inc announced financial results for its fourth quarter and 2009 fiscal year, both ended May 3, 2009. Total revenue for the quarter was $34.1 million, a drop of 38% from the $55 million in the same quarter a year earlier, but an increase of 11% from the $30.1 million in the just prior quarter. The $34.1 million for its fourth fiscal quarter was just above the revenue guidance provided by Magma last quarter.
License revenue was $17.6 million, accounting for 51% of total revenue. This was a decrease of 51% year-over-year, but an increase of 34% sequentially. Bundled revenue was $7.8 million or 23% of the total. This was a drop of 25% from the year ago quarter and a drop of 5.8% from the previous quarter. Services revenue was $8.8 million, a dip of almost 1% year-over-year and a decline of 6.4% from the prior quarter. In the quarter the percentage of revenue from backlog-related transactions was greater than 90%.
Net loss for the quarter was $10.6 million, worse than a net loss of $5.8 million in the year ago quarter, but not nearly as deep in the red as the net loss of $78.1 million in the just previous quarter.
Revenue for the entire fiscal year was $147 million, down 32% from the $214 million in the previous fiscal year. The $147 million in revenue was in line with the range offered as guidance last quarter, License revenue was $76.5 million, or 52% of total revenue. This figure was down 45%. Bundled revenue was $33 million, or 23% of the total. Bundled revenue was down 17%. Services revenue was $37 million, up 6.3%. Net loss for the year was $127.1 million, compared to a net loss of $30.8 million last year.
Backlog at the end of the year was greater than $292 million. This represents a 25% decline from the backlog at the end of fiscal 2008, which was reported at greater than $390 million. Two factors contributed to this decline. First, in this current economic climate EDA customers exercised greater caution in their purchase decisions, particularly toward the end of calendar 2008. Second, over the past year customers renewed for shorter periods, often 1-2 years instead of the 3-4 year contracts more common in past years.
Magma said it intends to offer holders of its outstanding 2.0% convertible notes due in May 2010 the right to exchange those notes for 8.0% convertible notes due in 2014. The purpose of this exchange offer is to improve the firm’s liquidity and financial position.
Rajeev Madhavan, chairman and CEO of Magma, said, “In Q4 we exceeded our key financial guidance ranges and re-established positive cash flow. I anticipate our product teams will continue to deliver innovative technology advancements in fiscal 2010, such as the new Talus COre technology we announced today."
On May 29, 2009 Mentor Graphics Corporation announced financial results for the first fiscal quarter of 2010, ending April 30, 2009. Total revenue for the quarter was $193.8 million, an increase of 8.1% from the $179.2 million in the same quarter a year earlier, but a decrease of 20% from the $242.6 million in the just previous quarter. The $193.8 million was below the range of $200 million to $210 million revenue given as guidance last quarter.
System and Software revenue was $115 million, or 60% of total revenue, up over 19% year-over-year but down almost 27% sequentially. Service and Support revenue was $78.4 mi,llion accounting for 40% of the total. This was a decline of just under 5% from the first quarter of fiscal 2009, and a drop of 7.9% from the prior quarter.
Upfront revenue was responsible for 75% of total revenue, perpetual for 15% and ratable for 10%.
Net loss for the quarter was $13 million, compared to a net loss of $25.4 million in the year ago quarter and a net gain of $31.5 million in the last quarter.
Walden C. Rhines, CEO and chairman of Mentor Graphics, said, “We believe the semiconductor market has stabilized, and that customers who wish to remain competitive will sustain most of their design effort. Mentor’s investments in markets adjacent to traditional EDA helped drive the quarter’s results with 10% of total bookings from transportation companies and 5% from the thermal analysis market. The quarter’s strength was across Mentor’s broad customer base within EDA, spanning both semiconductor and systems companies. Systems companies contributed to a 55% increase in bookings for our Integrated Systems Design division, while semiconductor companies drove a 35% increase in IC Design to Silicon division bookings.”
On May 20, 2009 Synopsys, Inc reported financial results for the second quarter of its fiscal 2009 year. Total revenue for the year $337 million, an increase of 3.8% from the $324 million in the same quarter a year ago, and a slight drop of almost 1% drop from the $340 million in the previous quarter. The $337 million for the current quarter was above the middle of the range given as guidance last quarter.
Time-based license revenue was a remarkable $283 million, or 84% of total revenue. This was a 2% increase year-over-year, and a 0.4% dip from the prior quarter. Upfront license revenue was $16 million, or 4.7% of total revenue. This was a 31% increase from the year ago quarter and 1.3% increase sequentially. Maintenance and service revenue was $36.8 million, accounting for 11% of the total. This was an increase of 8% from the same quarter a year earlier and 1.3% increase from the prior quarter.
North America accounted 49% of total revenue, Europe 15%, Japan 20% and Asia Pacific 16%. See Table 10.
Revenue from Core EDA accounted for 75% of total revenue, revenue from IP & Systems accounted for 8%, DFM revenue for 12%, and Services revenue for4.5%.
Net income for the quarter was $48.3 million, an increase of 23% from the $39.4 million in the year ago quarte,r but a decrease of nearly 8% from the prior quarter.
In the quarter, Synopsys reached a tentative settlement with the IRS that would resolve a dispute regarding its 2002-2004 tax returns, primarily associated with the acquisition of Avant!. The tentative settlement is subject to further approval by the government. If approved, the company does not expect a material impact to its income statement. However, the firm does expect it to result in a cash payment to the IRS of approximately $50 million, most likely within the next 12 months. If the tentative settlement is approved, this payment would be fully offset by tax reductions in future years.