AllThingsD » Cadence Design Systems

Cadence Tries to Incite Its Industry to Think Bigger

Don Clark — Wed, 28 Apr 2010 07:00:03 +0000

Cadence Design Systems (CDNS) is not exactly the first company to suggest the app explosion has changed everything. But it has an unusual vantage point to discuss how other companies may jump on high-tech’s latest bandwagon.

The company, readers may recall, is one of the best-known players in what Silicon Valley has long called EDA, or electronic design automation. What that has meant, historically, is software for designing computer chips. Think of engineers toiling endlessly in front of mind-bending diagrams on computer screens, working for the day they can push the button to send a chip design off to be manufactured at a factory in Taiwan.

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Cadence: The Street Gives Up

Eric Savitz — Thu, 23 Oct 2008 20:31:02 +0000

Investors have thrown in the towel on Cadence Design Systems (CDNS).

Just a week after the board booted most of senior management, the company yesterday disclosed some serious revenue recognition issues. While the company confirmed its previous Q3 guidance, the Street has obviously lost all faith in Cadence, and the stock has cratered.

Citigroup’s Terence Whalen today cut his rating on the stock to Hold from Buy, lowering his price target on the shares to $5.50 from $11.50. He says that the accounting freeze stops the company from buying back stock and “casts doubt” on results and the guidance. And he says the management exodus “was deeper and potentially more disruptive than we expected.”

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Cadence Postpones Earnings; Finds Accounting Issues

Eric Savitz — Wed, 22 Oct 2008 23:09:45 +0000

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.”

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Cadence: CEO Fister, Other Execs Resign; Stock Tumbles

Eric Savitz — Wed, 15 Oct 2008 16:17:59 +0000

Cadence Design Systems (CDNS) this morning announced the resignation of CEO Michael Fister “by mutual agreement” with the company’s board. Also headed for the exits: Kevin Bushby, EVP for worldwide field operations; James Miller, EVP for products and technologies organization; William Porter, chief administrative officer; and R.L. Smith McKeithen, EVP for corporate affairs.

Cadence named an interim office of the chief executive to oversee day-to-day operations, including Chairman John Shoven, new Vice Chairman Lip-Bu Tan and CFO Kevin Palatnik. The company has started a search for a new CEO.

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Cadence Plunges on Reduced Outlook, New Rev Model

Eric Savitz — Wed, 23 Jul 2008 22:28:03 +0000

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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