Cadence Design Systems Inc (CDNS): Wednesday, October 22, 2008

Reply Private New

Next 10 Prev Next

Send PM Follow Ignore

Followers	194
Posts	46953
Boards Moderated	1
Alias Born	11/09/2004

eastunder

Re: None

Thursday, 10/23/2008 12:48:41 PM

Thursday, October 23, 2008 12:48:41 PM

Wednesday, October 22, 2008 - 2:42 PM PDT
Cadence reviewing recognition of $24M in revenue, will restate financials

Cadence will restate earlier revenue

Cadence CEO, four other executives resign
Liga Systems names new CEO, founder to take CTO post

Cadence Design Systems Inc. said Wednesday it's reviewing the recognition of revenue related to customer contracts signed during the first quarter.

San Jose-based Cadence (NASDAQ:CDNS) said the company found during its review of third quarter results that approximately $24 million of revenue relating to these contracts was improperly recognized during the first quarter of 2008.

The company said the revenue should have been recognized ratably over the duration of the contracts commencing in the second quarter of 2008.

Cadence expects to restate its financial statements for the first quarter of 2008 and the first half of 2008 to correct the revenue recognition and said it will release third quarter financial results as soon as possible.

The company said it expects third quarter revenue of $235 million to $245 million with a loss of 25 cents to 27 cents a share.

"It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness;

-- Charles Dickens