Source: Dataquest/Gartner Group.
Even though the percentage growth has slowed over the last several years, the IP provider niche has clearly emerged as a significant revenue contributor to the overall electronic design automation marketplace.
To probe further into the IP provider market niche, we have arbitrarily selected eight (8) publicly-traded companies (hereinafter known as the "Group-of-8" or "G8"), as representative of the current state of the electronics IP industry.
|ARM Holdings, plc||Cambridge, UK|
|Artisan Components, Inc.||Sunnyvale, CA|
|LogicVision, Inc.||San Jose, CA|
|MIPS Technologies, Inc.||Mountain View, CA|
|Monolithic System Technology, Inc.||Sunnyvale, CA|
|ParthusCeva, Inc.||San Jose, CA|
|Rambus, Inc.||Los Altos, CA|
|Virage Logic Corp.||Fremont, CA|
For the G8 companies above, we will assume that all of their revenues are electronics IP and directly-related IP services.
How has the Group-of-8 (G8) IP providers performed financially?
Figure 2 lists the revenue records of the selected G8 IP providers for 2001 and 2002. Based on this set of numbers, three of the companies (Artisan, Monolithic and VirageLogic) showed substantial percentage revenue growth, one grew only slightly (ARM), and four (LogicVision, MIPS, ParthusCeva, and Rambus) were down year-over-year.
The full Group-of-8 revenues were relatively flat between 2001 and 2002.
|Company||Total Revenue 2001||Total Revenue 2002||2002 % of 2001|
Figure 2 - Revenues for the G8 IP providers for 2001 and 20021
(US$ Sources: company financial statements & filings)
By studying the G8's 2001 and 2002 revenue performance by quarter, other trends emerge, as in Figure 3. Note that the revenue figures for first two quarters of 2003 are also included in Figure 3.