Posts Tagged ‘Magma’

My Obligatory TOP 10 for 2009

Thursday, December 31st, 2009

2009 To 2010

http://www.flickr.com/photos/optical_illusion/ / CC BY 2.0

What’s a blog without some sort of obligatory year end TOP 10 list?

So, without further ado, here is my list of the TOP 10 events, happenings, occurrences, observations that I will remember from 2009. This is my list, from my perspective, of what I will remember. Here goes:

  1. Verification Survey - Last February, as DVCon was approaching, I thought it would be interesting to post a quickie survey to see what verification languages and methodologies were being used. Naively, I did not realize to what extent the fans of the various camps would go to rig the results in their favor. Nonetheless, the results ended up very interesting and I learned a valuable lesson on how NOT to do a survery.
  2. DVCon SaaS and Cloud Computing EDA Roundtable - One of the highlights of the year was definitely the impromptu panel that I assembled during DVCon to discuss Software-as-a-Service and Cloud Computing for EDA tools. My thanks to the panel guests, James Colgan (CEO @ Xuropa), Jean Brouwers (Consultant to Xuropa),  Susan Peterson (Verification IP Marketing Manager @ Cadence), Jeremy Ralph (CEO @ PDTi), Bill Alexander (VP Marketing @ Blue Pearl Software), Bill Guthrie (VP Marketing @ Numetrics). Unfortunately, the audio recording of the event was not of high enough quality to post, but you can read about it from others at the following locations:

    > 3 separate blog posts from Joe Hupcey (1, 2, 3)

    > A nice mention from Peggy Aycinena

    > Numerous other articles and blog posts throughout the year that were set in motion, to some extent, by this roundtable

  3. Predictions to the contrary, Magma is NOT dead. Cadence was NOT sold. Oh, and EDA is NOT dead either.
  4. John Cooley IS Dead - OK, he’s NOT really dead. But this year was certainly a turning point for his influence in the EDA space. It started off with John’s desperate attempt at a Conversation Central session at DAC to tell bloggers that their blog sucks and convince them to just send him their thoughts. For those who took John up on his offer by sending their thoughts, they would have waited 4 months to see them finally posted by John in his December DAC Trip report. I had a good discussion on this topic with John earlier this year, which he asked me to keep “off the record”. Let’s just say, he just doesn’t get it and doesn’t want to get it.
  5. The Rise of the EDA Bloggers.
  6. FPGA Taking Center Stage - It started back in March when Gartner issued a report stated that there were 30 FPGA design starts for every ASIC start. That number seemed very high to me and to others, but that did not stop this 30:1 ratio from being quoted as fact in all sorts of FPGA marketing materials throughout the year. On the technical side, it was a year where the issues of verification of large FPGAs came front-and-center and where a lot of ASIC people started transitioning to FPGA.
  7. Engineers Looking For Work - This was one of the more unfortunate trends that I will remember from 2009 and hopefully 2010 will be better. Personally, I had difficulty finding work between projects. DAC this year seemed to be as much about finding work as finding tools. A good friend of mine spent about 4 months looking for work until he finally accepted a job at 30% less pay and with a 1.5 hour commute because he “has to pay the bills”. A lot of my former EDA sales and AE colleagues have been laid off. Some have been looking for the right position for over a year. Let’s hope 2010 is a better year.
  8. SaaS and Cloud Computing for EDA - A former colleague of mine, now a VP of Sales at one of the small but growing EDA companies, came up to me in the bar during DAC one evening and stammered some thoughts regarding my predictions of SaaS and Cloud Computing for EDA. “It will never happen”. He may be right and I may be a bit biased, but this year I think we started to see some of the beginnings of these technologies moving into EDA. On a personal note, I’m involved in one of those efforts at Xuropa. Look for more developments in 2010.
  9. Talk of New EDA Business Models - For years, EDA has bemoaned the fact that the EDA industry captures so little of the value ($5B) of the much larger semiconductor industry ($250B) that it enables. At the DAC Keynote, Fu-Chieh Hsu of TSMC tried to convince everyone that the solution for EDA is to become part of some large TSMC ecosystem in which TSMC would reward the EDA industry like some sort of charitable tax deduction. Others talked about EDA companies having more skin in the game with their customers and being compensated based on their ultimate product success. And of course there is the SaaS business model I’ve been talking about. We’ll see if 2010 brings any of these to fruition.
  10. The People I Got to Meet and the People Who Wanted to Meet Me- One of the great things about having a blog is that I got to meet so many interesting people that I would never have had an opportunity to even talk to. I’ve had the opportunity to talk with executives at Synopsys, Cadence, Mentor, Springsoft, GateRocket, Oasys, Numetrics, and a dozen other EDA companies. I’ve even had the chance to interview some of them. And all the fellow bloggers I’ve met and now realize how much they know. On the flip side, I’ve been approached by PR people, both independent and in-house. I was interviewed 3 separate times, once by email by Rick Jamison, once by Skype by Liz Massingill, and once live by Dee McCrorey. EETimes added my blog as a Trusted Source. For those who say that social media brings people together, I can certainly vouch for that.

harry the ASIC guy

Thoughts On Synopsys’ Q2 2009 Earnings Call

Thursday, May 21st, 2009

Last night you may have watched the NBA Playoff game in which the Orlando Magic came back to defeat the heavily favored Cleveland Cavaliers. Great game!!!

Or the finale of American Idol in which Kris Allen came back to defeat the heavily favored Adam Lambert. Great show!!!

What did I do last night? I listened to the Q2 2009 Synopsys earnings call. Great conference call!!!

(OK … I’ll admit it wasn’t as exciting and nail biting as either of the other viewing options. Just think of it like this: I took on the work of listening to the call and summarizing it for you, in order to free you up to watch the game or idol. You can thank me later :-) )

Here’s the summary. (You can read the full transcript here if you like).

Financials

On the up side, Synopsys had a good Q2, beating their revenue and earnings per share guidance slightly. On the down side, Synopsys lowered its revenue and cash flow guidance slightly for the rest of the year, allowing for potential customer bankruptcies, late payments, and reduced bookings. Customers are approaching Synopsys to “help them right now through this downturn”, i.e. to reduce their cost of software. It looks like the recession is finally catching up to them.

As I finish off this post on Thursday morning, it looks like the analysts agree. Synopsys shares are down 10%, so it seems they are getting punished for revising their forecast. 

Still, Synopsys is in very good financial health, with $877M in cash and short term investments. Their cash flow is going to go down the rest of the year, so they will eat into this fund, but they will still have plenty to selectively acquire strong technology that might add to their portfolio, as they did with the MIPs Analog Business Group.

Themes

There were 2 themes or phrases that kept recurring in the call that I am sure were points of emphasis for Aart.

First, the word “momentum” was used 6 times (by my count) during the call. Technology momentum. Customer momentum. Momentum in the company. Clearly, Synopsys is trying to portray an image of the company building up steam while the rest of the industry wallows in the recession.

Second, customers are “de-risking their supplier relationships”, i.e. looking to consolidate with an EDA vendor with strong financials who’ll still be there when the recession ends. Again, Synopsys is trying to portray itself as the safe choice for customers, hoping to woo customers away from less financially secure competitors like Cadence and Magma. This ties in with the flurry of “primary EDA vendor” relationships that Synopsys has announced recently.

The opportunity for Synopsys (and danger for the competition) is to pick up market share during this downturn and it looks like that may be happening as companies “de-risk” by going with the company with the “momentum” and a “extraordinarily strong position”. Or at least that’s the message that Synopsys is sending.

Technology

Aart did rattle off the usual laundry list of technology that he wanted to highlight, including some introduced last year (e.g. Z-route). Of note were the following:

  • Multi-core technology in VCS with 2x speedup (is 2x a lot?)
  • Custom Designer, which Aart called “a viable alternative to the incumbent” (ya know marketing didn’t pick the word “viable”)
  • Analog IP via the MIPS Analog Business Group acquisition, especially highlighting how that complements the Custom Designer product (do I see “design kits” in the future?)
  • The Lynx Design System (see my 5-part series)
  • IC-Validator (smells like DRC fixing in IC Compiler - Webinar today, I’ll find out more)

__________

In summary, Synopsys had a good quarter, but they have finally acknowledged that they are not immune to the downturn and they expect to get impacted the next few quarters.

harry the ASIC guy

EDA Merger Poll - What’d Be The Best Merger

Friday, May 1st, 2009

Rumors are flying concerning some big changes next week in EDA amongst the big players. It first got started by John Blyler on Twitter. Then Magma stock took off this week for no apparent reason. And rumors of a Cadence-Magma merger have been flying around for about a month since Rajeev denied them.

Something may happen or nothing may happen. But it’s always fun to speculate. So, what do you think would be the best merger of the top 4 EDA companies?

Vote here or feel free to leave your comments below. We’ll see who, if anyone, is right :-)

harry the ASIC guy

The Week Ahead: All Eyes on SNPS & MENT

Monday, August 18th, 2008

It’s been a rocky month for EDA.

On July 23rd Cadence revised strongly downward its revenue forecast for the last 6 month of 2008. Cadence stock plummeted 30% the next day. As a direct result, Cadence scrapped its takeover bid for Mentor Graphics this past Friday.

On July 24th Rambus reported Q2 revenue down 10% from Q1 and down 25% from Q2′07. Their closing price that day of $14.70 culminated a decline of almost one-third over the previous month. As a result, Rambus has announced its cutting 20% of its workforce.

On August 7th, Magma pre-announced that its Q1 revenue would be 10% lower than expected. Result: $6.77 => $5.45 (-19%).

And just last week, MIPs announced a $100M write-down due to “the softening overall market for intellectual property and delays experienced in realizing expected synergies” (with the Chipidea acquisition). With it, a 15% layoff.

And so, all eyes will be on Synopsys and Mentor this Wednesday. First, Mentor will announce Q2 earnings at a 5:30 AM (PDT) conference call. (Show of hands, who is getting up early for that one). Then, Synopsys will announce Q3 earnings at a more reasonable time, 2:00 PM (PDT).

A few things that I’ll be watching for:

  1. During Cadence’s earnings call, Mike Fister blamed most of their predicted revenue shortfall on their customers’ decision to postpone purchases in the face of uncertainty in their own businesses. This seems to be supported by the subsequent bad news from Magma, Rambus, and MIPs. If that is the case, expect to hear similar bad news and comments from Synopsys and Mentor.  If not, then the finger will point back to Cadence.
  2. What will Mentor say about the withdrawn offer by Cadence? (Note: Mentor stock dropped 25% midday Friday after the news broke).
  3. Several analysts and observers (including myself) felt that Synopsys would benefit from the uncertainty caused by the Cadence - Mentor acquisition battle. I’ll be interested to see if Synopsys’ numbers show that or if there is any anecdotal information of a big customer switching to Synopsys as a result.
  4. This will be the 1st quarter since Synopsys acquired Synplicity, so look to see how that is going.  From what I hear, Synopsys plans to keep the businesses mostly separate through the end of FY08 (October).

It should be an interesting week…

harry the ASIC guy