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Posts Tagged ‘CDNS’

Money matters: It’s an IP, IP, IP, IP World

Thursday, July 25th, 2013

 

Fifty years ago, you would have known that it was a Mad, Mad, Mad, Mad World. Today, however, it’s an IP, IP, IP, IP World. Should you choose to cling to any skepticism about this state of affairs, here’s how to get over it.

Below you’ll find a very rough set of numbers [gleaned from Yahoo Financials] that look at the stock valuations of four companies that Play Large in the world of EDA and IP.  You’ll see posted there, a compare/contrast of the corporate performances of Mentor Graphics, Synopsys, Cadence, and ARM over the last 1 year, 2 years, and 5 years.

Remember back to the summer of 2008? The sky was falling, the world’s economy was  hell-bent on reaching the brink of cataclysmic collapse, and although Cadence was aggressively going after Mentor Graphics, the company was in truth only a handful of weeks away from a complete collapse of its own, the dismembering of the executive team in mid-October 2008.  Given the drama of that time, could we have predicted where we would be today?

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M&A: CDNS + Tensilica = win/win

Tuesday, March 12th, 2013

 

As the trading day in New York draws to a close, it would appear that some analysts are correct; the market’s not too pleased about yesterday’s announcement that Cadence is acquiring Tensilica. Shares of CDNS are trading down well over 3% today. But you know, the market’s stupid. They understand zip zero nada about EDA or IP, and really why should they?

After all, EDA and IP providers make the black magic that they do look so easy. And, they’re constantly telling people that what they do isn’t rocket science. But it is! The EDA vendors make the tools that IP vendors use to create their products, and designers use to integrate said IP into the larger designs. It’s called an eco-system and it is rocket science.

It’s also on the level of brain surgery, quantum physics, and a bunch of other esoteric science and engineering disciplines that require a lot of education and and a lot of OJT, and even then is really hard to do. How many traders on Wall Street, or the analysts who track it all, really understand what EDA and/or IP are all about? Exactly!

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