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Software | April 04, 2008

EDA reports 6.7% revenue growth in Q4/07

The EDA Market Statistics Service (MSS) announced that the electronic design automation (EDA) industry revenue for Q4/07 grew by 6.7% to $1,602.7 million (Q4/06: $1,501.9 million).
The four-quarter average growth rate, which compares the most recent four quarters to the same four quarters in the prior year, was 9.1%.

“The reported worldwide EDA industry showed continued growth in Q4 2007, with double digit growth in Japan and the Rest-of-World,” said Robert Gardner, executive director of EDA. “Overall industry revenue increased relative to both Q4 2006 and the four quarter moving average. EDA employment has seen steady growth over the course of 2007.”

Companies that were tracked employed 27,563 professionals in Q4 2007, up 7.7% from the 25,586 employed in Q4/06.

Revenue by Product Category
EDA’s largest category, Computer Aided Engineering (CAE), generated revenue of $663.6 million in Q4/07, representing a 13.5% increase over the same period in 2006. The four quarter moving average CAE growth rate was 12.2 percent.

For IC Physical Design & Verification, the next largest category, revenue increased to $440.5 million in Q4/07, a 14.3% increase compared to Q4/06. The four quarter moving average growth rate was 12.3% for IC Physical Design & Verification.

Semiconductor Intellectual Property (SIP) revenue totalled $265.4 million in Q4/07, a 6.3% decrease over Q4/06. The four quarter moving average growth rate for SIP remained positive at 4.1%.

Services revenue was $79.4 million in Q4/07, up 3.0% from Q4/06. The four quarter moving average growth rate was 9.3% for services.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue decreased 10.4% over Q4/06 to $153.8 million. The four quarter moving average growth rate for PCB & MCM showed a 1.5% decrease.

Revenue by Consuming Region
North America, EDA’s largest region, purchased $735.9 million of EDA products and services in Q4/07. Although this represents a 5.6% decrease compared to a strong Q4/06, the four quarter moving average growth rate was up 2.8% for North America.

Western Europe revenue was up 9.8% in Q4/07 compared to Q4/06, with revenues of $316.9 million. The four quarter moving average growth for Western Europe was 9.9%.

Q4/07 revenue from Japan increased 30.4% to $316.0 million compared to Q4/06. The four quarter moving average increase was 10.1% for Japan.

Rest-of-World (ROW) continued to extend previous years of revenue growth by increasing to $233.8 million, a 22.1% increase compared to the same quarter in 2006. The four quarter moving average growth was also strong at 30.8%.
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