EDA Industry Posts Solid Revenue Growth in Q1

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The EDA Consortium (EDAC) Market Statistics Service (MSS) has announced that the EDA industry revenue increased 7.5 percent for Q1 2015 to $1.87 billion, up from $1.75 billion in Q1 2014. PCB and MCM revenue rose 1.1 percent compared to the previous-year period. The four-quarters moving average, which compares the most recent four quarters to the prior four quarters, increased by 8.0 percent.

"The EDA Industry continues to show solid revenue growth in the first quarter, led by semiconductor IP," said Walden C. Rhines, board sponsor for the EDAC MSS and chairman and CEO of Mentor Graphics. "All categories showed revenue increases except CAE. Geographically, the Americas and Asia-Pacific reported double-digit growth."

Companies that were tracked employed a record 32,127 professionals in Q1 2015, an increase of 5.5 percent compared to the 30,440 people employed in Q1 2014, and up 1.2 percent compared to Q4 2015.

The complete quarterly MSS report, containing detailed revenue information broken out by both categories and geographic regions, is available to members of the EDA Consortium.

Revenue by Product Category

The largest category, Computer Aided Engineering (CAE), generated revenue of $633.7 million in Q1 2015, which represents a 0.8 percent decrease compared to Q1 2014. The four-quarters moving average for CAE decreased 3.0 percent.

IC Physical Design & Verification revenue was $359.3 million in Q1 2015, an 8.3 percent increase compared to Q1 2014. The four-quarters moving average increased 7.1 percent.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue of $161.5 million for Q1 2015 represents an increase of 1.1 percent compared to Q1 2014. The four-quarters moving average for PCB & MCM increased 5.0 percent.

Semiconductor Intellectual Property (SIP) revenue totaled $618.1 million in Q1 2015, a 19.3 percent increase compared to Q1 2014. The four-quarters moving average increased 24.3 percent.

Services revenue was $104.4 million in Q1 2015, an increase of 6.8 percent compared to Q1 2014. The four-quarters moving average increased 9.1 percent.

Revenue by Region

The Americas, EDA's largest region, purchased $853.2 million of EDA products and services in Q1 2015, an increase of 12.2 percent compared to Q1 2014. The four-quarters moving average for the Americas increased 11.6 percent.

Revenue in Europe, the Middle East, and Africa (EMEA) decreased 6.2 percent in Q1 2015 compared to Q1 2014 on revenues of $278.3 million. The EMEA four-quarters moving average increased 0.2 percent.

First quarter 2014 revenue from Japan decreased 0.2 percent to $209.3 million compared to Q1 2014. The four-quarters moving average for Japan decreased 13.3 percent.

The Asia/Pacific (APAC) region revenue increased to $536.2 million in Q1 2015, an increase of 12 percent compared to the first quarter of 2014. The four-quarters moving average increased 17.5 percent.

The complete MSS report, available to the EDA Consortium members, contains additional detail for countries in the Asia/Pacific region.

About the MSS Report

The EDA Consortium Market Statistics Service reports EDA industry revenue data quarterly and is available to EDAC members. Both public and private companies contribute data to the report. Each quarterly report is published approximately three months after quarter close. MSS report data is segmented as follows: revenue type (product licenses and maintenance, services, and SIP), application (CAE, PCB/MCM Layout, and IC Physical Design & Verification), and region (the Americas, Europe Middle East and Africa, Japan, and Asia Pacific), with many subcategories of detail provided. The report also tracks total employment of the reporting companies.

About the EDA Consortium

The EDA Consortium is the international association of companies that provide design tools and services that enable engineers to create the world's electronic products used for communications, computer, space technology, medical, automotive, industrial equipment, and consumer electronics markets among others. For more information about the EDA Consortium, visit www.edac.org, or to subscribe to the Market Statistics Service, call 408-287-3322 or email mss14@edac.org.