Electronics IP Industry – A May 2009 Update
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Electronics IP Industry – A May 2009 Update

Commentary:

Electronics IP Industry – A May 2009 Update


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


 

In their previous twenty-three (23) quarterly issues of the 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 2009 Commentary, we look at the financial performances of the "G7" Electronics IP vendors during the first quarter of 2009.

Group-of-7 ("G7"):



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

Recent EDA and Electronics IP Industry News Highlights

On May 7, 2009 Mentor Graphics Corporation and LogicVision announced the two companies have signed a definitive merger agreement pursuant to which Mentor Graphics will acquire LogicVision. Under the terms of the agreement, which was approved by the boards of directors of both companies, LogicVision stockholders will receive 0.2006 of a share of Mentor Graphics common stock for each share of LogicVision, for aggregate consideration of approximately $13 million dollars (as of May 7, 2009).

On May 8, 2009 Synopsys announced it had acquired the Analog Business Group of MIPS Technologies, Inc for $22 million in cash. The acquisition expands Synopsys' DesignWare(R) intellectual property (IP) portfolio with a new family of analog IP such as Analog-to-Digital Converters, Digital-to-Analog Converters, Audio Codecs and Power Management. It will also add HDMI TX and RX protocols to Synopsys' existing interface IP solution.

On March 11, 2009 iSuppli announced its ranking of semiconductor suppliers in 2008. From that announcement, the top ten firms were:


Note in Table 1 that only Qualcomm (15%) and STMicroelectronics (3.3%) experienced revenue growth relative to the prior year.

Total revenue from all firms surveyed by iSuppli was $258 billion, a decline of 5.2% from 2007.


On May 01, 2009 the Semiconductor Industry Association (SIA) reported that worldwide sales of semiconductors were $14.7 billion in March, a gain of 3.3% from the prior month when sales were $14.2 billion. Sales for the first quarter of 2009 amounted to $44.0 billion, a 29.9% decline from the first quarter of 2008 when sales were $62.8 billion. Sales declined by 15.7% from the fourth quarter of 2008 when sales were $52.2 billion. Note: Table 2 gives three month moving average sales.


Sales in all geographic regions except Japan showed month-to-month gains. Sales in Japan were sharply lower, reflecting a drop in the country’s economic output. All geographic regions reported lower first-quarter sales compared to the same period of 2008.

SIA President George Scalise said, “The modest sequential rebound in worldwide sales in March suggests that demand has stabilized somewhat, albeit at substantially lower levels than last year. While all major product sectors showed month-on-month growth, there continues to be limited visibility in end markets. There are some bright spots such as ‘smart phones’ and ‘netbook’ PCs, but there are no clear signs of early firming of demand in other major end markets such as automotive, corporate information technology, and consumer electronics”.

Scalise continued, “The global chip industry continues to reflect the influence of the worldwide economic slowdown. We expect economic stimulus measures in the U.S. combined with other countries will begin to impact sales as we enter 2010.”

How did the Electronics IP G7 perform in the First Quarter of 2009?

On the IP revenue front, Table 3 below reveals that the G7's combined Q1 2009 revenue performance was $197 million, a 15% decline form the $232 million in the first quarter of 2008, and a drop of 18.5% from the $242 million in the fourth quarter of 2008. LogicVision was the only member of IP G7 to experience revenue growth year-over-year. Rambus suffered the largest decline at -31%, followed by Virage Logic at -24.9% and MIPS at -16.9%. Sequentially, LogicVision was also the only vendor to see a revenue increase relative to the last quarter. MoSys was the largest decliner at -35%, followed by Rambus at -27.3%. ARM and MIPS experienced percentage revenue declines in the teens.


Figure 1 below provides a bar graph of each vendor's revenue for Q1 2008, Q4 2008, and Q1 2009 in sequence.




ARM continues to dominate with 60% of total Q1 2009 revenue with Rambus a distant second at 14% relative market share. MIPS was in third place at 12%. See Figure 2.


Relative to earnings of the G7, Table 4 reveals that G7 IP Providers endured a combined Q1 2009 net loss of $32.6 million. This compares to a far smaller net loss of $5.28 million in the first quarter of 2008 and an actual net gain of $13.4 million in the just previous quarter. ARM and CEVA were the only two firms to report net income in the 2009 first quarter. ARM’s net income increased 16% year-over-year. Virage Logic suffered the largest percentage net loss in the quarter at -26.3%, compared to net income of $632 thousand in the year ago quarter. Rambus had the second largest loss in the quarter at -$17.4 million. LogicVision, MIPS and MoSys reduced their net losses relative to the first quarter of 2008. On a sequential basis LogicVision CEVA, and MoSys experienced earnings growth. ARM’s net income dropped 46%. Virage Logic suffered the largest decline quarter over quarter due to the large loss in the quarter, mostly non-recurring charges.


Q1 2009 Results of Individual Electronics IP Providers:



On April 29, 2009 ARM Holdings plc reported financial results for the first quarter ended March 31, 2009. Total revenue for the quarter was $121 million, a 10% drop from the $134 million in the same quarter a year earlier and a 19% drop from the record $149 million in the just prior quarter. Overall semiconductor industry revenues declined about 30% in the same period.

Total dollar license revenues in Q1 2009 declined by 15% year-on-year to $40.7 million, representing 34% of group revenues. License revenues comprised $31.9 million from PD and $8.8 million from PIPD. Total dollar royalty revenues in Q1 2009 declined by 9% to $58.3 million, representing 48% of group revenues. Royalty revenues comprised $50.3 million from PD and $8.0 million from PIPD.

PD royalty revenues in Q1 2009 declined 8% year-over-year. This compares with industry revenues declining by about 20% in the
shipment period (i.e. Q4 2008 compared to Q4 2007), demonstrating ARM’s market share gains over the last 12 months.

PIPD royalties in Q1 2009 were $8.0 million, down from $10.5 million in Q4 2008, reflecting the significant slowdown in foundry activity levels in the fourth quarter Underlying royalties in Q1 were $6.4 million, down 22% year-on-year, compared to the decline in overall foundry revenues during the corresponding period of some 30%. Current analysis of Q1 2009 foundry revenue suggests a further sequential decline of approximately 40%.

Sales of development systems in Q1 2009 were $14.6 million, representing 12% of group revenues, compared to $14.2 million in Q1 2008 and $12.9 million in Q4 2008. The sequential increase was partly due to a large software tools licensing deal, with a tier 1 OEM company adopting ARM tools across multiple sites.

Service revenues in Q1 2009 were $7.3 million, representing 6% of group revenues, down 10% compared to $8.1 million in Q1 2008 and down over 5% sequentially.

The Processor Division (PD), formerly the original ARM, had total revenues of $82 million, a decrease of nearly 10% from the year ago quarter and a 24% decrease from the prior quarter. ARM signed 17 processor licenses in Q1. The quarter was characterized by licensing of ARM technologies across the portfolio. Four companies licensed Cortex-M processors demonstrating the growing demand for ARM in microcontrollers. Approximately 70% of licenses signed in Q1 are expected to be used initially in applications such as high-definition TV, microcontrollers, networking and storage.

The Physical IP division (PIPD), the Artisan division established after the acquisition at the end of 2004, had total revenue of $16.8 million, a drop of almost 20%% from the same quarter a year earlier and a 17% decrease from the preceding quarter. ARM signed twelve physical IP licenses in Q1 for technologies at process nodes from 90nm to 32nm. There were five more deals for ARM’s advanced technology with two PHYs at 65nm and cell libraries and memories at 65nm and 45nm. In addition, the first ARM processor to be manufactured using ARM’s 32nm physical IP has been delivered to ARM for testing.

Net income for the quarter was $14.8 million, a 16% increase compared to $12.7 million in the year ago quarter, but a 47% drop from the $27.9 million in the just previous quarter.

Warren East, Chief Executive Officer, said, “ARM has made an encouraging start to 2009. Leading semiconductor and OEM companies are continuing to utilize ARM technology, creating healthy demand for our latest processors and physical IP products.

ARM has outperformed the semiconductor industry in the first quarter. ARM’s Q1 dollar revenues are 10% lower than a year ago whilst overall industry revenues have declined by about 30% over the same period. This outperformance, combined with careful management of costs and the strengthening of the dollar against sterling, has given rise to year-on-year earnings growth of 18% and further robust net cash generation in the first quarter.”


On May 5, 2009 CEVA, Inc. announced financial results for the first quarter ended March 31, 2009. Total revenue was $9.5 million, a drop of 5.5% from the $10.1 million in the first quarter of 2008 and a drop of 5% from the $10.0 million in the fourth quarter of 2008. License revenue was $4.5 million, accounting for 48% of total revenue. This was a decline of almost 8% year-over-year and a dip of 1.5% from the prior quarter. Royalty revenue was $3.8 million, or 40% of the total. This was an increase of 0.7% from the year ago quarter and a 12.5% drop from the previous quarter. Service revenue was $1.2 million or nearly 13% of total revenue. This was a decline of almost 3% from the same quarter a year earlier but an increase of 8.6% sequentially.

During the quarter, the Company concluded nine new license agreements. Eight agreements were for CEVA DSP cores and platforms and one was for CEVA Serial Attached SCSI (SAS) technology.

Net income for the quarter was $1.37 million, a drop of 75% from the first quarter last year, but a 42.5% increase from the last quarter. The financial results for the first quarter of 2008 included a capital gain of $10.9 million from the divestment of the Company's equity investment in GloNav Inc. to NXP Semiconductors; a tax expense of $3.1 million related to such divestment; a reorganization expense associated with the termination of the long-term Harcourt lease in Ireland of $3.5 million.

Yaniv Arieli, Chief Financial Officer of CEVA, stated, "During the first quarter, we continued to set new standards for the Company's financial performance, generating record U.S. GAAP and non-GAAP operating margins of 12% and 20%, respectively. In addition, CEVA recorded all-time high non-GAAP net income and non-GAAP EPS. The Company generated positive cash flow of approximately $1.3 million before taking into account $0.8 million of cash outflow associated with our share buyback program.”


On April 21, 2009 LogicVision, Inc. reported financial results for the first quarter ended March 31, 2009. Total revenue for the quarter was $3.06 million, an increase of 3.2% from the $2.97 million in the first quarter of 2008 and a 2.3% increase from the $3 million in the fourth quarter of 2008. The $3.06 million was at the low end of the guidance range given last quarter. 90% of the revenue came from backlog and 72% was generated in the US. On a product line basis, 34% was from ET Memory, 25% from ET Logic, 16% from ET Boundary Scan, 15% Silicon Insert and Services 10%. License revenue was $2.81 million or 90% of total revenue. License revenue was down 1.2% year-over-year but up 94% sequentially. Service revenue was $283 thousand or 9% of total revenue. Service revenue was up 82% year-over-year, but down 82% sequentially.

Net loss for the quarter was $104 thousand compared to a net loss of $1.27 million in the year ago quarter and compared to a net loss of $728 thousand in the fourth quarter of last year.

James T. Healy, president and CEO of LogicVision, said, “Operationally, LogicVision performed well during the first quarter of 2009, especially in light of the current state of the economy. This allowed us to achieve solid first quarter financial results, including revenues in line with guidance, cash and cash equivalents at about $6.9 million, with cash and receivables totaling about $8.9 million, and strong quarterly bookings. We were pleased to have recorded our first quarter of operating profit in the past seven years; however, the approximate $243,000 in costs we incurred associated with considering our strategic alternatives resulted in a net loss for the quarter.”

CEO Healy also said, “While there are preliminary indications that the economy may be reaching a bottom, we believe that the recovery will take some time. Some of our customers are continuing to express uncertainty about their businesses and as such, we plan to continue our on-going cost-control measures this quarter. In the longer term, we believe that the economic turmoil has caused some companies to more seriously re-evaluate their ‘make’ versus ‘buy’ decisions, which could positively impact us in the future.”

On May 7, 2009 Mentor Graphics Corporation and LogicVision announced the two companies have signed a definitive merger agreement pursuant to which Mentor Graphics will acquire LogicVision. Under the terms of the agreement, which was approved by the boards of directors of both companies, LogicVision stockholders will receive 0.2006 of a share of Mentor Graphics common stock for each share of LogicVision, for aggregate consideration of approximately $13 million dollars (as of May 7, 2009).

“We are excited about the proposed combination with a successful company like Mentor, and believe that the transaction will allow our stockholders to continue to participate in the potential of the combined entity,” said Jim Healy, LogicVision’s President and Chief Executive Officer.


On April 30, 2009 MIPS Technologies, Inc reported consolidated financial results for its third quarter fiscal 2009 ended March 31, 2009. Revenue for the quarter was $22.7 million, a 14% decline compared with the prior quarter revenue of $26.4 million and a 17% decline from the $27.3 million reported in the same fiscal quarter a year ago. The sequential revenue decrease was anticipated and reflects the softness in the consumer electronics and semiconductor industry.

Revenue from royalties was $10.9 million, a decrease of $2.1 million or 16% from the prior quarter and $1.7 million or 13% from the $12.6 million reported in the year ago quarter. The sequential decrease in royalty revenue was a result of lower licensee unit volumes compared with the prior quarter and is consistent with lower consumer electronics spending. Licensee units declined 15% sequentially to 107 million units and also declined 7% on a year to year basis. Contract and license revenue was $11.8 million, a decrease of 12% from the $13.4 million reported in the prior quarter and a 20% decrease from the $14.8 million reported in the quarter a year earlier.

Net loss for the quarter was $807 thousand, compared to a net loss of $4.26 million in the year ago quarter and a net gain of almost $5 million in the previous quarter.

John Bourgoin, president and CEO, said, "Q3 marks the third quarter in a row of positive cash flow for MIPS as we continue strengthening our financial position despite a weakening market. MIPS is well positioned with an excellent and unique product line leveraging advanced multi-threading, multicore, and high performance single core products that are generating good profits.”

On May 8, 2009 Synopsys announced it had acquired the Analog Business Group of MIPS Technologies, Inc for $22 million in cash. The acquisition expands Synopsys' DesignWare(R) intellectual property (IP) portfolio with a new family of analog IP such as Analog-to-Digital Converters, Digital-to-Analog Converters, Audio Codecs and Power Management. It will also add HDMI TX and RX protocols to Synopsys' existing interface IP solution.

"With this acquisition, Synopsys is well-positioned to provide our customers with a strong interface and analog IP portfolio that is silicon-proven, shipping in volume and unmatched in the industry," said Joachim Kunkel, vice president and general manager of the Solutions Group at Synopsys.




On April 28, 2009 MoSys, Inc. reported financial results for the first quarter ended March 31, 2009. Total revenue was $2.56 million, a decrease of nearly 9% from the $2.82 million in the first quarter of 2008 and a 35% drop from the $3.96 million in the fourth quarter of 2008. Licensing revenue was $524 thousand or 20% of total revenue. This was an increase of 21% year-over-year but a 39% drop sequentially. Royalty revenue was $2.0 million, or 80% of the total. This was a decline of over 14% year-over-year and a drop of 34% from the prior quarter. Royalties for the quarter includes royalties associated with the Nintendo Wii game console. During the quarter MoSys completed the exit of the analog/mixed-signal product lines, which is expected to result in a $5.5 million annual cost savings.

Net loss for the quarter was $4.1 million, compared to net loss of $4.28 million in the same quarter a year earlier, and compared to net loss of $6.3 million in the previous quarter.

Len Perham, MoSys’ President and Chief Executive Officer, stated, “The first quarter remained challenging for MoSys due to the continued uncertainty in the macroeconomic environment as customers delayed or cancelled projects and tightly managed spending levels. During the quarter, we secured two new 1T-SRAM macro licenses, one of which we anticipate will be used in an application in a new market segment for our technology. Royalty revenue decreased from the previous quarter primarily due to the gradual transition by a major integrated device manufacturer licensee to an SoC utilizing a more advanced processing node. As a result of this transition, royalties that were previously being reported and recognized by us in the quarter in which the licensee shipped the SoCs are now being reported and recognized by us in the quarter subsequent to shipment. In response to the global economic crisis, we continued to closely manage expenses while also completing our exit from the analog/mixed-signal product lines, which contributed to a sequential decrease in total operating expenses.”




On April 23, 2009 Rambus Inc. reported financial results for the first quarter ended March 31, 2009. Total revenue for the quarter was $27.3 million, a 31% drop from the $39.8 million in the first quarter of 2008, and a 27% drop from the $37.6 million in the fourth quarter of 2008. The $27.3 million was within the range given as guidance last quarter. The year-over-year decline was primarily a result of lower royalties due to the expiration of the Elpida patent license agreement at the end of the first quarter of 2008, while the sequential drop was primarily due to the receipt of the withheld royalties related to the now vacated Federal Trade Commission order in the fourth quarter of 2008 as well as decreased royalties from technology licenses. Royalty revenue was $26.2 million or 96% of total revenue. Royalty revenue was down 21% from the same quarter a year ago and down 27% from the preceding quarter. Contract revenue was $1.1 million or 4.3% of total revenue. This was 82% of the contract revenue a year earlier and down 38% sequentially.

Total costs and expenses for the quarter was $43.5 million, compared to $63 million in the year ago quarter, and to $55.6 million in the just previous quarter. This quarter included net recovery of $13.6 million for stock-based compensation. General litigation expenses were $18 million, up nearly $5 million from the same quarter last year.

Net loss for the quarter was $17.4 million, compared to net loss of $14.3 million a year earlier, and net loss of $10.7 in the prior quarter.

Harold Hughes, president and chief executive officer at Rambus, said, "During the quarter we made great progress on the legal front with the final judgment in the Hynix matter entered and the FTC's ill-founded allegations put to rest. Likewise, we advanced our technology leadership with the launch of our Mobile Memory Initiative. And thanks to our solid cash position we were able to complement our strong innovation development efforts with the acquisition of System-in-Package patents from Inapac."

On April 23, 2009, the Rambus founders issued an open letter to its stockholders asking for all Rambus stockholders to vote for Approval of the Amendment to the Company’s 2006 Equity Incentive Plan. The letter argued that stock options are necessary to attract top Silicon Valley talent. The letter also noted that this letter is not the founders’ normal practice.

On April 07, 2009, Rambus announced it had acquired a number of patents from Inapac Technology, Inc. to broaden its offerings for the mobile memory market. These patented innovations complement the high-bandwidth, low-power memory technologies developed by Rambus as part of its Mobile Memory Initiative, announced earlier this year. Specific terms of the deal were not disclosed. Known to the industry as SiPFLOW™, the acquired patented innovations greatly increase the assembly yield in SiP devices. Industry-leading reliability rates of less than 100 defective parts per million (DPPM) have been achieved in high-volume SiP containing a DRAM and media processor. Products including the Motorola RAZR V3i and the Sony Ericsson C902 mobile phones have used these patented innovations through separate technology license agreements with Inapac.

On March 10, 2009, Rambus announced that the U.S. District Court for the Northern District of California has entered final judgment in the Hynix Semiconductor matter. Judgment was entered against Hynix in the amount of approximately $134 million for infringement through December 31, 2005 and approximately $215 million for its infringement from January 1, 2006 through January 31, 2009. In addition, the Court awarded about $48 million in pre-judgment interest to Rambus.





On April 29, 2009 Virage Logic Corporation reported financial results for its second quarter ended March 31, 2009. Total revenue for the quarter of fiscal 2009 was $11.0 million, compared with $11.3 million for the previous quarter and $14.7 million for the same quarter of fiscal 2008. The $11.0 million was below the guidance range given last quarter. License revenue for the quarter was $9.1 million, or 83% of total revenue, compared with $8.5 million for the prior quarter, and $12.1 million for the same period a year ago. Royalties for the quarter were $1.9 million, compared with $2.8 million for the prior quarter, and $2.6 million for the year ago quarter.

Net loss for the quarter was $26.3 million, compared to a net gain of $632 thousand in the same quarter a year earlier, and compared to a net loss of $2.6 million in the previous quarter. The net loss for the quarter included $24.3 million of non-recurring charges for restructuring, goodwill impairment and a valuation allowance on deferred tax assets was $26.3 million.

Virage Logic President and CEO, Dr. Alex Shubat said, "In our second fiscal quarter, we were able to grow license bookings significantly and license revenue by 7.4% over first fiscal quarter 2009 in a very challenging environment. Additionally, we captured several delayed orders in the first weeks of the third fiscal quarter. As anticipated, royalty revenue declined substantially from the previous quarter, as the semiconductor industry continues to experience record low foundry utilization.”

He added, "During this unprecedented global economic downturn, we continue to scrutinize all aspects of our operations. In the quarter we restructured our organization, consolidated two smaller research and development (R&D) sites into four existing major R&D centers and aligned our sales resources to address market opportunities. We expect to realize an 11% savings in labor and overhead expenses as a result of these actions.”

Stock Market Prices of the G7 Electronics IP Providers

As shown in Tables 7 and 8 and Figure 3 below, the combined stock prices for the G7 decreased in absolute terms 42% year-over-year, and decreased 12.4% sequentially. The average price change was -36.5% from the previous year, but up 18.4% from the previous quarter. During the same time period the major stock indexes fell an average of over 37% from last year, and fell almost 11% from the last quarter.


On a year-over-year all G7 stock prices tumbled. CEVA fell the least at only 6% followed by ARM which fell almost 12%. MoSys dropped the most at -60% with Rambus a close second at -58%. Virage Logic and LogicVision declined over 40% while MIPS declined 31%. On a sequential basis MIPS rose a dramatic 142%, far outdistancing LogicVision with a 22% increase and ARM with a 22% increase. Rambus had the greatest drop at nearly 40%. MoSys declined nearly 16%.






Forecast Guidance from Individual IP Providers

The G7 IP Providers who provided guidance for the next quarter were not very optimistic. Rambus and Virage Logic expect 20% drops compared to the third quarter last year. CEVA has it pegged at an almost 13% decline. LogicVision is more upbeat at -1.7% dip.




Individual Company by Company Guidance

As guidance ARM said, “We reiterate our previous guidance for 2009; that we expect group dollar revenues for the full-year to be at least in line with market expectations, unless industry conditions deteriorate to a greater extent than is generally anticipated.

Overall semiconductor industry activity continued to slow in Q1 2009, and whilst there are early signs of improving visibility in some sectors, the near term remains uncertain. However, with demand for ARM’s portfolio of products remaining robust, we believe that the Company is positioned to continue to perform resiliently in this difficult trading environment.”


As guidance CEVA expects revenue in the second quarter to be in the range $8.3 million to $9.3 million, compared to $9.5 million in the quarter just reported and compares to $10.1 in the second quarter of 2008.

As guidance LogicVision expects revenue in the next quarter to be in the range of $2.9 to $3.0 million, compared to $3.06 in the quarter just reported, and compared to $3.0 million in the same quarter last year. The company expects to be at break-even or profitable on an operational basis next quarter.

As guidance Rambus expects revenue for the next quarter to be in the range $27 million to $30 million, and expense excluding stock-based compensation in the range of $43 million to $48 million. This compares to $27.5 million in the quarter just reported, and compares to $35.7 million in the same quarter a year earlier.

As guidance Virage Logic expects revenue in the next quarter to be in the range of $11.5 million to $12.5 million, compared to $11.0 million in the quarter just reported and compared to $15.1 million in the year ago quarter.

EDA Consortium's Market Statistics


On April 7, 2009 the EDA Consortium Market Statistics Service (MSS) announced that the EDA industry revenue for Q4 2008 declined 17.7% to $1318.7 million, compared to $1602.7 million in Q4 2007. The four-quarter moving average declined 9.4%.

In the fourth quarter of 2008 the CAE segment accounted for 38.1% of the total EDA revenue, IC Design & Verification for 22.5%, Semiconductor IP for 21.7%, PCB/MCM for 10.3% and Services for 7.5%. CAE and IC D&V each declined over 24% while Services shot up 25% and SIP rose nearly 8%.



For the fourth quarter of 2008 North America accounted 43.2% of total EDA revenue, Europe for 22%, Japan for almost 20% and Rest-of-World for 15%.


Dr. Walden C. Rhines, EDA Consortium chair and Mentor Graphics CEO and chairman. Said, “Declines in CAE, IC Physical Design & Verification, and PCB/MCM resulted in an overall decline for Q4 2008. For Q4, the double-digit drop occurred in all regions except Western Europe, which showed an 8.4% decline.”

                                                                                    
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About the Authors of this Electronics IP Commentary:

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 more than forty. During his corporate career, Henke operated sequentially on "both sides" of MCAE/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. In February 2007, Henke became affiliated with Cyon Research's select group of experts on business and technology issues as a Senior Analyst. This Cyon Research connection aids and supplements Henke's ongoing, independent consulting practice (HENKE ASSOCIATES).

An affiliate of the HENKE ASSOCIATES team since 2001, LA-based Dr. John R. (Jack) Horgan co-authored this May 2009 IP 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 EDAcafé Weekly.


Since May 2003 the authors have now published a total of seventy-six (76) independent articles 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 http://www.henkeassociates.net. March 31, 2009 marked the 13th Anniversary of the founding of HENKE ASSOCIATES. http://www.henkeassociates.net


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