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Cadence sees momentum gain for design activity

Posted: 30 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:20nm design technology? digital analog chips? custom analog chips?

Design activity for Cadence Design Systems Inc. has been projected to remain at a good pace in 2Q12 despite macroeconomic challenges, said President and CEO Lip-Bu Tan.

Tan acknowledged that both PC shipments and infrastructure equipment sales have dropped and that a shortage of 28nm foundry capacity has withdrawn some customer sales.

However, Tan showed confidence for the design activity in the second half. "We are working closely with customers on the most complex designs, our backlog remains strong, and we continue to strengthen our product portfolio. After reviewing our pipeline for the second half, and taking into account the macro risks, we are modestly raising guidance."

The 20nm design technology developed by Cadence sees continuous growth for digital and custom analog chips. Customer accommodation has strengthened as the company is presently working with 16 different customers at 20nm, with more than 30 designs being worked on or already complete. On the other hand, Cadence is working on thest chips at the 14-nm node.

Second quarter sales have been reported to reach $326 million, a figure that has seen a 3 percent increase from the first quarter and 15 percent from 2Q11.

In adherence to generally accepted accounting principles (GAAP), Cadence reported a net income of $36 million or 13 cents per diluted share. Non-GAAP termed computations show that Cadence reached a net income of $53 million or 19 cents per diluted share.

According to Yahoo Finance, sales for 3Q12 is forecasted to fall between $325 million and $335 million, outnumbering analysts' expectation of $323 million. Cadence anticipates a net income of 17 to 18 cents per share on a GAAP basis, and 18 to 19 cents per share on a non-GAAP basis.

Expectations for the entire year suggest that sales would reach between $1.295 billion and $1.315 billion, better than the previously forecasted $1.27 billion and $1.3 billion.

- Dylan Mcgrath
?? EE Times U.S.

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