Cadence Design Systems Inc (CDNS)

[eastunder]

and this morning it's even more lovely. :(

Thursday , January 31, 2008 10:19ET

By Staff Reporter
NEW YORK, Jan 31, 2008 (AP via COMTEX) -- Shares of Cadence Design Systems Inc. plunged in premarket electronic trading Thursday after the semiconductor manufacturing equipment maker sharply cut its outlook to below Wall Street expectations.

Late Wednesday, the San Jose, Calif., company cut its forecasts for both the first quarter and full year.

The move prompted a downgrade to "Underweight," or "Sell," from JPMorgan analyst Sterling Auty, who previously had a "Neutral" rating on the shares. It was the second downgrade from the analyst on Cadence in as many weeks. Auty said last week's cut was related to concerns about slowing research and development spending and larger issues related to slowing consumer spending on electronics. The analyst said the company's 2008 guidance for declining revenue and earnings "is well below even our recently cut numbers," and predicted the stock will have a "tough time performing" even if it bottoms out in Thursday's session.

Cadence shares dropped $3.45, or 22.8 percent, to $11.71 premarket. If the decline persists when the market opens, the stock would open below its annual low of $13.51, hit last week. Shares closed Wednesday at $15.16, 39 percent off their annual high, reached in June.