Before the end of year hiatus, I posted a number of articles, mostly written by executives from corporate members of the EDAMarket service. It is composed of 13 articles, plus four other articles from non members companies that you can find in the Open Channel section.
The rush to finish the year, both from the revenues and the engineering projects aspects has left some readers with the problem of trying to find the article now, almost four weeks since they were published.
I have been thinking about Daniel Nenni's blog of November 21st, yes I know it has taken a while for all the neurons to fire, and I must say there are a few points I do not agree with. The title of the blog is "Mentor Acquires Magma?". To get to that story though you first have to read about how Magma is "the only EDA company" not preparing for the EDA360 message about the integration of software and semiconductor design. Unfortunately for Daniel, the EDA360 message is much deeper than just "pay attention to the software". The EDA360 core message is: pay attention to applications. Magma is doing that through analog IP and the integration of IP with the tools they license. So Magma is in their own way ahead of the game in that area, since neither of the big three has yet figured out how to integrate IP and tools under one license.
This morning I read in the paper (the Herald-Tribune is the third largest newspaper in the New York Times Company) that Daniel Ellsberg defended Wikileaks creator Julian Assange's rights to publish the leaked US Government papers. The justification, just as with the letter from the faculty of the School of Journalism at Columbia University sent to President Obama, is freedom of the Press. Mr. Ellsberg equates the latest Wikileaks publishing "accomplishment" with his release of the Pentagon Papers to New York Times reporter Neil Sheenan in February 1971. The reporter would then begin publishing excerpts from the 43 volumes he received (there were a total of 45 volumes) in June of the same year.
The year 2011 will be challenging for EDA vendors. I do not mean to say that I am not forecasting a growth for the industry, I mean that most of the growth will come from segments that traditionally have not been considered key to our industry. In preparation for this article I solicited input from executive managers of EDA vendors, as well as studied forecasts from various sectors of the electronics industry. I will publish all of the Viewpoints I have received from EDA vendors in the next few days.
Magma Design Automation reported its second quarter and first half of its fiscal 2011 financial results and overall provided a picture of a company that has almost regained its fiscal health, is delivering new technology that is well received in the market, is improving its operating results, and can look at the future with less anxiety. The remarks by Rajeev Madhavan during the earning calls are reported here.
In my review of Mentor Graphics 3Q11 financial results I stated that "Mentor is certainly not the leader in the DFT". This statement has brought rebuttals from both Gene Forte and Ry Schwark of Mentor. The bottom line of their respective messages is: "I am wrong". It all depends on how one looks at the market, but using the definition of the DFT market provided by Mentor, there is little doubt that Mentor does have the largest market share.
You can read Jay Vleeschhouwer's financial analysis here. What follows is my opinion as a long time partecipant in this industry. It is meant to complement what Jay has written. Mentor Graphics Corporation announced results for the fiscal third quarter ending October 31, 2010. For the fiscal third quarter, the company reported revenues of $238.9 million, non-GAAP earnings per share of $.22, and GAAP earnings per share of $.14.
The non-GAAP results certainly merit an A grade, but the GAAP results are still not quite to par and get a C justified by the effort being made to get back in black figures. Let's look at the details.
The EDA industry often forgets that companies like Ansys that develop, market, and sell products that serve markets not traditionally associated with EDA, also play an important role in our industry. They are not frequently mentioned in the traditional press, but I think that they represent a model for possible future growth of traditional EDA ventures.
On approaching the San Jose Marriott I encountered a large crowd of people milling around the entrance of the Convention Center, and trying to park at the Convention Center was quite a challenge. Could EDA have fund sudden popularity? It turned out that the crowd was there to see and greet the Dalai Lama, and that he was not going to receive the Phil Kaufman Award, either. I think the Dalai Lama should have checked the calendar and not book his event concurrently with ours.