Cadence Plunges on Reduced Outlook, New Rev Model
Cadence Design Systems (CDNS) shares have fallen steeply in after-hours trading after the company announced a change in the way it does business that resulted in much lower than expected guidance for both the third quarter and all of 2008.
For its second quarter, the electronic design automation software company posted revenue of $329 million and non-GAAP profits of 14 cents a share, compared with Street expectations of $316.2 million and 14 cents. In a statement, CEO Mike Fister said that while the company hit its numbers, “it was more difficult than we planned.”
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