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EDA industry revenue grows for full year 2018
The Electronic Design Automation (EDA) industry revenue decreased 3.1 percent for Q4/2018 to USD 2570.1 million, compared to USD 2652 million in Q4/2017. The four-quarters moving average, which compares the most recent four quarters to the prior four quarters, increased by 3.7 percent.
“While CAE and PCB & MCM categories reported an increase, the EDA industry overall reported reduced revenues in Q4, partly due to accounting and reporting changes by IP providers. The decrease is also in comparison to a particularly strong Q4 2017,” said Walden C. Rhines, CEO Emeritus of Mentor, a Siemens Business, and member of the ESD Alliance Governing Council in a press release. “An annual revenue increase of 3.7 percent in 2018 completes nine years of continuous positive growth.” Companies that were tracked employed 42,790 professionals in Q4/2018, an increase of 7.1 percent compared to the 39,964 employed in Q4/2017, and up 1.5 percent compared to Q3/2018. Revenue by Product Category Computer Aided Engineering (CAE) generated revenue of USD 866.2 million in Q4/2018, which represents a 2.4 percent increase compared to Q4/2017. The four-quarters moving average for CAE increased 7.5 percent. IC Physical Design & Verification revenue was USD 485.1 million in Q4/2018, an 11.8 percent decrease compared to Q4/2017. The four-quarters moving average increased 3.4 percent. Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue of USD 247.3 million for Q4/2018 represents an increase of 2.6 percent compared to Q4/2017. The four-quarters moving average for PCB & MCM increased 9.7 percent. Semiconductor Intellectual Property (SIP) revenue totalled USD 866.1 million in Q4/2018, a 3.5 percent decrease compared to Q4/2017. The four-quarters moving average decreased 0.8 percent. The decrease is due in part to software IP accounting and reporting changes by SIP providers in 2018. Services revenue was USD 105.5 million in Q4/2018, a decrease of 10.7 percent compared to Q4/2017. The four quarters moving average increased 0.8 percent. Revenue by Region The Americas, EDA’s largest region, purchased USD 1159 million of EDA products and services in Q4/2018, a decrease of 7.4 percent compared to Q4/2017. The four-quarters moving average for the Americas increased 4.1 percent. Revenue in Europe, the Middle East, and Africa (EMEA) decreased 12 percent in Q4/2018 compared to Q4/2017 on revenues of USD 339.8 million. The EMEA four-quarters moving average increased 3.7 percent. Fourth quarter 2018 revenue from Japan decreased 1.7 percent to USD 225 million compared to Q4/2017. The four quarters moving average for Japan increased 5.3 percent. The Asia/Pacific (APAC) region revenue decreased slightly to USD 846.3 million in Q4/2018, a decrease of 0.4 percent compared to the fourth quarter of 2017. The four-quarters moving average increased 2.8 percent.
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