Blogs from Silicon Beach

More Changes On Schedule For Cadence?

In an article in EE Times on August 1, Dylan McGrath asks if the departure of John Bruggeman from Cadence is a signal of a coming CEO change at the company.

If it is, then it is a sign that John Bruggeman had either been told or understood that the position would not be offered to him. After all John as the CEO would look too much like the "good old days" of Joe Costello's leadership. As an industry watcher, this scenario would have been not only desirable but fascinating.

Bruggeman Leaves Cadence

Unfortunately Cadence does not seem to rid itself of political intrigue and infighting, no matter how hard it tries. And this time it managed to divert the attention of analysts and editors from a good second quarter result that beat expectations, with the almost instantaneous departure of John Bruggeman.

Rumors at DAC indicated that John was less than delighted with its situation within Cadence, but DAC and rumors go hand in hand. On the morning following the webcast announcing the fiscal results, I was notified that John had resigned his position as Chief Marketing Officer at Cadence.

Changes In EDAC's MSS Report Highlight Problems

EDAC rightly considers its MSS Market Statistics Service as one, if not the, most valuable service to its members and, for that matter, the EDA industry. The report, issued quarterly, is also used by financial analysts as a tool in developing their investment advice.

It was then quite a surprise to read the following statement in the MSS release covering 1Q11:
“Please note that beginning in Q1 2011, Synopsys is no longer providing revenue information to the MSS. The EDA Consortium Market Statistics Service is providing estimated category data based on current public financial statements and an average of the specific category data for previous quarters as reported by Synopsys”

The AWR, Apache, and Verigy Acquisitions

The news in the EDA industry lately has been dominated by three acquisitions. My own opinion is less optimistic for EDA and more optimistic for system level solution providers, like those than consumed the acquisitions.

DAC, The Industry Takes A Breath

First of all I must correct something I wrote just before DAC. I wrote that Steve Wozniak had asked to be interviewed by a reporter from the San Jose Mercury. It is not true. In fact using said reporter was the idea of Patrick Groeneveld, Chief Technologist at magma and Vice/Finance Chair of the just finished conference and Chair of the 2012 conference.

Egypt and Italy: My Other Side

I did not work during most of May. I took, for Silicon Valley standards, a long vacation.
I must thank the "Unknown" editor who volunteered in my absence to write a weekly review of the industry. It is a time consuming effort. It was done very professionally. I for one will miss it.

A Comment On The RTL Signoff Article

The March issue of "Assembling The Future" is devoted to the subject of RTL signoff. You can read the entire article here. You can also subscribe to the free newsletter by following this link.
Mike Gianfagna, VP of Marketing at Atrenta, liked the article and sent the following comment.

Icahn Presents His Mentor Case To ISS

Reporting in the Portland Business Journal, Erik Siemers reported that Carl Icahn has sought a major ally in his quest to have his three candidates elected to mentor's Board of Directors. Carl Icahn made a presentation to the Institutional Shareholder Services (ISS), a Rockville, Md.-based proxy advisory firm, whose opinions often sway the vote of institutional shareholders.

Carl Icahn Responds to Mentor's Offer of Convertible Debt

The interaction between Carl Icahn and Mentor has now taken on the characteristics of a tennis match. As one party forehands the ball in the opposite court, the other responds with a backhand down the line. Mentor staying power is remarkable, but Icahn is a very skilled player of the game. In the end the Mentor stockholders are the referee and the first set will be concluded at the stockholders meeting in May. The first response to the deliberations of Mentor's Board of Directors was a letter reproduced below in its entirety.

Mentor Graphics Board of Directors Affirms Commitment to Strategic Plan

The next installment of the Mentor saga was made public today. And the round goes to Mentor on points. Mentor Graphics Corp. announced that its Board of Directors has determined that the continued execution of the company’s strategic plan offers the greatest value to Mentor Graphics shareholders. In reaching its unanimous decision, the Board concluded that the $17 per share proposal made by Carl Icahn and certain of his affiliated entities (“Icahn Entities”) undervalues the company and its future prospects. The Board also determined that Icahn’s proposal that Mentor put itself up for sale to a strategic buyer entails significant commercial and regulatory risk and is therefore not in the best interest of the company and Mentor’s shareholders.