Cadence Design Systems Inc (CDNS)

[eastunder]

CDNS: Q2 Adj EPS 14c vs 30c Meets 14c Est; Guidance Below Consensus

Wednesday, July 23, 2008 16:29ET

QUARTER RESULTS
Cadence Designs Systems, Incorporated (CDNS) reported Q2 results ended June 2008. Q2 Revenues were $329.48M; -15.73% vs yr-ago; BEATING revenue consensus by +4.60%. Q2 EPS was 2c. Adjusted Q2 EPS was 14c; -53.33% vs yr-ago; MATCHING earnings consensus.

Q2 RESULTS
Reported Revenues: $329.48M
Year-Ago $390.96M
Y/Y Chg -15.73%
Estimate $314.99M
SURPRISE +4.60%

EPS: 2c
Adj EPS: 14c
Year-Ago 30c
Y/Y Chg -53.33%
Estimate 14c
surprise 0.00%

GUIDANCE

Q3-08 Revenue Outlook [$235 - $245M]: The company expects total revenue in the range of $235 million to $245 million. The Q3-08 revenue forecast is below current consensus estimates.
Q3-08 Earnings Outlook [(11c) - (9c)]: Net loss per share using the non-GAAP measure is expected to be in the range of $(0.11) to $(0.09). The Q3-08 earnings forecast is below current consensus estimates.

FY-08 Revenue Outlook [$1120 - $1140M]: The company expects total revenue in the range of $1.120 billion to $1.140 billion. The FY-08 revenue forecast is below current consensus estimates.
FY-08 Earnings Outlook [1c - 5c]: Using the non-GAAP measure, diluted earnings per share for fiscal 2008 are expected to be in the range of $0.01 to $0.05. The FY-08 earnings forecast is below current consensus estimates.




ADDITIONAL COMMENTARY:
The Company's CEO stated that customers are demanding more flexibility in when, what and how they purchase software and hardware and as a result the Company lowered its outlook and transition to an approximately ninety-percent ratable license mix. The Company is projecting cash flow from operations of $175 million in 2008, and $250 million in 2009.



ORIGINAL EARNINGS RELEASE
Consensus estimate data provided by Reuters.
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