But does the semiconductor industry want an EDA market increasingly dominated by one player?

"Customers want to make sure there are at least two viable EDA vendors," said Rich Valera, an analyst with Needham & Co.

Synopsys earlier this week surprised analysts and just about everyone who has been paying attention to the electronics ecosystem by posting better-than-expected revenue and profit for the quarter ended Jan. 31. Synopsys posted a net income, based on generally accepted accounting principles (GAAP), of $52.4 million on revenue of $339.8 million. And the company expects to maintain revenue for the current quarter, even in the face of an ugly downturn, projecting sales of between $332 million and $340 million.

By contrast, Cadence Design Systems Inc. reported a GAAP net loss of $1.85 billion for fiscal 2008 and expects revenue to be down significantly this year. Mentor Graphics Corp., which reports quarterly earnings next week, expects to miss its revenue target by 10 percent and last year cut its revenue outlook for 2009 to $815 million from $915 million.

Magma Design Automation Inc., once following close behind the three biggest EDA players, has had two recent rounds of layoffs and is expecting revenue for its fiscal year ending May 3 of only $145 million.

Executives say Synopsys is weathering the economic storm that is decimating competitors and customers by virtue of its size, product portfolio and the trend toward EDA vendor consolidation.