Cadence Postpones Earnings; Finds Accounting Issues
Cadence Design Systems (CDNS) this afternoon said it is reviewing its revenue recognition practices for customer contracts signed in the first quarter.
The company that while reviewing third-quarter results, it discovered that $24 million of revenue recognized in Q1 should have been recognized ratably over the duration of the contracts starting in Q2. Cadence said it expects to restate its financial results for Q1 and Q2.
Cadence, which was supposed to release third quarter results today, now says it will issue the new numbers “as soon as practicable.”