December 12, 2005
Bridging the Gap
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Jack Horgan - Contributing Editor

by Jack Horgan - Contributing Editor
Posted anew every four weeks or so, the EDA WEEKLY delivers to its readers information concerning the latest happenings in the EDA industry, covering vendors, products, finances and new developments. Frequently, feature articles on selected public or private EDA companies are presented. Brought to you by If we miss a story or subject that you feel deserves to be included, or you just want to suggest a future topic, please contact us! Questions? Feedback? Click here. Thank you!

In your latest financial report the revenue by geographic segment is 39% Europe, 39% US and Asia Pacific 22%. Do you see this changing over time?

The revenue is in pounds sterling, so that the exchange rate has an impact. A couple of years ago you would have seen the US a much larger percentage. The sterling/dollar exchange rate has impacted that. There is an increasing trend towards work being done in Asia Pacific. We are seeing particularly in some of our bigger accounts, where 5 years ago our work with them was 100% in the US, now it may be split 50% in the US and 50% in India or China. We are definitely seeing a trend there in terms of the software use. A lot of design work can be held in the main location but we are seeing a lot of offshore development work. That is a change that we have to be able to make accommodation
for in our business model as we build our infrastructure around the world to support those operations. If anything, I see that the trend towards Asia Pacific is (I guess) principally at the expense of the US and also Europe to some extent. This is a trend we have seen and will continue to see.

If you have a customer who has sites in both the US and in India or China, where the labor costs are substantially lower, do you charge the same price for your software?

It is not vastly different but there are small changes. The software is pretty much the same price around the world. Clearly, that is a challenge in some geographies. The big multinational companies understand that and in any case we normally have a price for that customer regardless of where they want to use the software.

It is possible when there is a 5 or 8 hour time difference between sites to use the same piece of code. How do you address that?

That is something that we have to live with as a reality. Our software is a floating license that can be used anywhere on the customer's network, if they allow it to be used in that way. We separate the use of the software from the support of the software. We charge separately for the remote support of these different locations. But the customer has a floating license which he can use wherever he can access the network. It's a challenge the software industry has been facing in recent years. I've spent quite a lot of my time trying to wrestle with that problem. You can either try to fight it and manage it or embrace it. I believe that it is in the customer's benefit and ours to
embrace it.

Do you have anything to add that my readers might be interested in?

We have covered some things in parts which I would like to bring together. Flomerics is trying to break down the barriers between the mechanical and electronic engineering functions. That is something we continue to work on. We see with the increasing complexity of design, we see even at the customer level, a blurring in the distinction and the two disciplines coming together. As such we are working to respond to that increasing need through the tools, the products, the functionality within the products, and our engineering around the world to help customers to bridge that gap and make the best of that. That's what we are all about at Flomerics.

The top articles over the last two weeks as determined by the number of readers were

Synopsys Posts Financial Results for Fourth Quarter and Full-Year Fiscal 2005 For the fourth quarter of fiscal 2005, Synopsys reported revenue of $254.8 million, an 11 percent increase compared to $230.6 million for the fourth quarter of fiscal 2004. Revenue for fiscal year 2005 was $991.9 million, a decrease of 9 percent from the $1.09 billion in fiscal 2004. Lower revenue in fiscal 2005 reflects the company's shift to an almost fully ratable license model initiated in the fourth quarter of fiscal 2004. See the EDA industry quarterly report on this website.

Silicon Canvas Offers a Complete Analog Design Platform with the Release of Laker ADP Laker ADP (Analog Design Platform) includes a schematic entry, a simulation control console, and a waveform viewer. Together with its custom layout products, Silicon Canvas is moving to a true concurrent and unified custom design and verification environment

Logic Soft Errors in Sub-65nm Technologies - Design and CAD Challenges - Technical Paper from DAC 2005 Effective logic soft error protection requires solutions to the following three problems: (1) Accurate soft error rate estimation for combinational logic networks; (2) Automated estimation of system effects of logic soft errors, and identification of regions in a design that must be protected; and, (3) New cost-effective techniques for logic soft error protection, because classical fault-tolerance techniques are very expensive.

Motions in Magma-Synopsys Patent Case to be Determined Without Oral Argument; Court Ruling Acknowledges Magma as Owner of Record, Synopsys Might Demonstrate Co-Ownership A hearing on several motions that had been scheduled for Dec. 2 was taken off the court's calendar. The court will rule on the motions based on written record provided by the companies. The court also affirmed that Magma is the owner of record of certain patents but indicated that Synopsys may be able to demonstrate co-ownership of the patents. The court also noted this ruling does not preclude the U.S. Patent and Trademark Office
(USPTO) or other parties from initiating re-examination of the patents.

Parameterized Block-Based Statistical Timing Analysis with Non-Gaussian Parameters, Nonlinear Delay Functions - Technical Paper from DAC 2005 The technique described in the paper improves accuracy in predicting circuit timing characteristics and retains such benefits of parameterized block-based statistical STA as an incremental mode of operation, computation of criticality probabilities and sensitivities to process parameter variations

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-- Jack Horgan, Contributing Editor.


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