Jay Vleeschhouwer did his annual...well, he did it last year, too...View from Wall Street in the DAC Pavilion. I've known Jay for years since I spent a couple of years being the person in Cadence who was house-trained on what I could and could not say, and I knew the whole product line in enough detail to cover anything a financial analyst needed to know. (I used to think I was one of the people that knew Jay well enough I could even spell his name, but then I messed it up in my post a couple of weeks ago.) Anyway, in those meetings almost twenty years ago with Jay and other analysts, one thing I knew not to talk about was anything to do with finance—that was other people's jobs.
It's the same today in this post, so let me emphasize that everything in this post is me reporting Jay's opinions on the EDA marketplace, and in no sense should be taken as official guidance. See our 10-K blah blah blah.
Jay started off by saying that there are two arms races in technology: software development and silicon development. Semiconductor companies still provide the bulk of the EDA industry's revenue, but system companies are increasingly doing design to support their strategies. They are a fast-growing part of the business that is helping support the EDA industry's momentum. Lots of tool categories are doing well, not just one or two. This is a contrast to much of the past where growth was often more narrowly focused.
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