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Rhines: EDAC’s Numbers as The World Turns

Thursday, July 17th, 2014

 

Once again EDAC’s Market Statistics Service has released quarterly results for the EDA and IP industries, and once again Mentor Graphics CEO Wally Rhines has taken time to debrief the press on the numbers. When we spoke by phone on July 15th, Rhines started with a qualitative eval of the financial situation in Q1_2014, and moved from there to answer several longer-range questions about autos and today’s troubled world.

“The first quarter of 2014 was good for the industry, but not great,” he said. “With overall growth of 4.6 percent, year over year, it was a good quarter with the highlight being logic design was up a solid 6.6 percent. Other than that, there was not a lot else [remarkable in EDA].”

“Steady, but not glamorous, for Q1?” I asked.

Rhines said, “Yes, steady as she goes in EDA. The IP business, however, was up strongly in Q1, driven up by results from the non-reporting companies, not members of EDAC. We collect public info from non-reporting IP companies such as ARM, Imagination Technologies, MIPS, Rambus [and Synopsys], and we can see overall that the IP business [exhibited] 10-percent growth, quarter over quarter, Q1_2013 to Q1_2014.”

He added, “The bigger trend [visible in] the current MSS report is that all of the world is showing strong [sales], except Japan which is very weak, down 19 percent in contrast to Asia Pacific, which is up 13.5 percent.

“You should also note that North America and Europe are quite strong, up 7 percent or more.  Japan is well below those regions as well. Japan used to be a big part of the total [numbers for the industry], substantially larger than the Asia Pacific Region, but now the Pac Rim is twice the size of the Japanese market.”

(more…)




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