Global semiconductor revenue growth accelerated again to 18.1% during Q1 2017 vs. Q1 2016 (SIA), following 12.3% growth in Q4 2016. There’s more good growth forecast in the Semiconductor market, with increases in both DRAM and NAND pricing and Gartner raising its 2017 growth forecast to 12% (from a previous 7.2%).
This robust semiconductor industry performance is reflected more modestly in the Q1 2017 quarterly EDA results. Synopsys grew revenues by 12.4% Q1* 2017 vs Q1* 2016, while Cadence reported steady consistent 6.5% growth:
View attachment 19871
For comparison, the % growth rates in the previous quarter, Q4* 2016 versus Q4* 2015: Synopsys 14.8%, Cadence 6.3%, ESD Alliance 18.9% and semiconductor revenues 12.3%.
Examining the delta in revenue growth in dollars, Synopsys and Cadence's Q1* 2017 vs Q1* 2016 revenues increased by $75.1M and $29.0M respectively. Synopsys and Cadence surpassed their own mid-point revenue guidance for the quarter by $7.6M and $1.9M respectively:
View attachment 19872
Guidance for the current quarter
The EDA companies’ own guidance (mid-point) for Q2* 2017 equates to percentage revenue growth as follows: Synopsys: 12.6% ($77.3M growth to $692.5M); Cadence 4.9% growth ($22.0M growth to $475M):
View attachment 19873
In summary, Q1 2017 global semiconductor revenue grew very strongly to a new all-time record for the first quarter of the year at $92.6 billion, up 18.1% versus Q1 2016, while Synopsys and Cadence achieved 12.6% and 6.5% growth rates respectively. The EDA companies own guidance for Q2* 2017 is for Synopsys to grow revenues 2.5 times faster than Cadence (at 12.6% versus 4.9% growth rates respectively).
The author, Gerry Byrne is the founder of edalics, the only independent EDA Budget Management advisor to leading semiconductor companies.
To schedule a meeting with Gerry at DAC in Austin, June 18-22, simply email: Gerry.Byrne@edalics.com.
To subscribe to future quarterly EDA results updates, simply email: subscribe@edalics.com . For more information about edalics services see: www.edalics.com
* Based on each company’s reported financial quarterly data which most closely match that calendar quarter.
This robust semiconductor industry performance is reflected more modestly in the Q1 2017 quarterly EDA results. Synopsys grew revenues by 12.4% Q1* 2017 vs Q1* 2016, while Cadence reported steady consistent 6.5% growth:
View attachment 19871
For comparison, the % growth rates in the previous quarter, Q4* 2016 versus Q4* 2015: Synopsys 14.8%, Cadence 6.3%, ESD Alliance 18.9% and semiconductor revenues 12.3%.
Examining the delta in revenue growth in dollars, Synopsys and Cadence's Q1* 2017 vs Q1* 2016 revenues increased by $75.1M and $29.0M respectively. Synopsys and Cadence surpassed their own mid-point revenue guidance for the quarter by $7.6M and $1.9M respectively:
View attachment 19872
Guidance for the current quarter
The EDA companies’ own guidance (mid-point) for Q2* 2017 equates to percentage revenue growth as follows: Synopsys: 12.6% ($77.3M growth to $692.5M); Cadence 4.9% growth ($22.0M growth to $475M):
View attachment 19873
In summary, Q1 2017 global semiconductor revenue grew very strongly to a new all-time record for the first quarter of the year at $92.6 billion, up 18.1% versus Q1 2016, while Synopsys and Cadence achieved 12.6% and 6.5% growth rates respectively. The EDA companies own guidance for Q2* 2017 is for Synopsys to grow revenues 2.5 times faster than Cadence (at 12.6% versus 4.9% growth rates respectively).
The author, Gerry Byrne is the founder of edalics, the only independent EDA Budget Management advisor to leading semiconductor companies.
To schedule a meeting with Gerry at DAC in Austin, June 18-22, simply email: Gerry.Byrne@edalics.com.
To subscribe to future quarterly EDA results updates, simply email: subscribe@edalics.com . For more information about edalics services see: www.edalics.com
* Based on each company’s reported financial quarterly data which most closely match that calendar quarter.