Cadence Design Systems, Inc. (NASDAQ: CDNS), a leader in global
electronic design innovation, today announced that Geoff Ribar,
chief financial officer of Telegent Systems, Inc., will be
appointed senior vice president and chief financial officer of
Cadence effective on or about November 1, 2010. Kevin S. Palatnik
is leaving the company to pursue other interests. Mr. Palatnik will
remain with the company as an advisor to ensure a smooth and
orderly transition of duties to Mr. Ribar, leaving by the end of
the first quarter of 2011.
"The Cadence Board of Directors and I are pleased that Geoff
Ribar has agreed to serve as the CFO of Cadence," said Lip-Bu Tan,
president and chief executive officer of Cadence. "Geoff is an
experienced executive who brings to Cadence a wealth of financial,
IT and operational expertise at public and private high tech
companies, including SiRF, Matrix Semiconductor, nVidia and
Advanced Micro Devices. We are confident Geoff's deep experience
will serve Cadence well as we build upon the important progress we
have made with our EDA360 strategy and further expand Cadence's
position with customers, increase top line growth and improve
profitability. We look forward to a smooth transition as Kevin will
remain with Cadence through February 2011 and share his deep
knowledge of Cadence with Geoff."
Mr. Tan continued, "On behalf of our Board of Directors and the
entire Cadence team, I want to express our deep gratitude to Kevin
for his significant contributions and dedication to Cadence over
the last nine years, serving in many capacities, including most
recently as CFO and previously as Corporate Controller. Kevin is a
world class CFO who has been instrumental in navigating Cadence
through tremendous change during the last two years. In particular,
Kevin led the transition to a highly ratable revenue model and
played an important role in planning and executing a company-wide
restructuring plan. We are grateful to have benefitted from Kevin's
exceptional financial, operational and strategic leadership and
wish him all the best in his future endeavors."
Third Quarter and Full Year 2010 Outlook
Affirmed
As disclosed in its second quarter earnings release of July 28,
2010 (as updated on our Current Report on Form 8-K, dated August 4,
2010), for the third quarter of 2010, the company expects total
revenue in the range of $225 million to $235 million. Third quarter
GAAP net loss per diluted share is expected to be in the range of
$(0.10) to $(0.08). Net income per diluted share using the non-GAAP
measure defined below is expected to be in the range of $0.01 to
$0.03.
For the full year 2010, the company expects total revenue in the
range of $900 million to $925 million. On a GAAP basis, net loss
per diluted share for fiscal 2010 is expected to be in the range of
$(0.04) to $(0.00). Using the non-GAAP measure defined below, net
income per diluted share for fiscal 2010 is expected to be in the
range of $0.12 to $0.16.
In addition to using GAAP results to evaluate Cadence's
business, management believes it is useful to measure results using
a non-GAAP measure of net income or net loss, which excludes, as
applicable, amortization of intangible assets, stock-based
compensation expense, integration and acquisition-related costs,
acquisition-related income tax benefits, shareholder litigation
costs, gains or losses and expenses or credits related to
non-qualified deferred compensation plan assets, restructuring
charges and credits, amortization of discount on convertible notes,
losses on extinguishment of debt, equity in losses or income from
investments, write-down of investments, and gains or losses on the
sale of investments. Non-GAAP net income or net loss is adjusted by
the amount of additional taxes or tax benefit that the company
would accrue if it used non-GAAP results instead of GAAP results to
calculate the company's tax liability. Investors and potential
investors are encouraged to review the reconciliation of the
business outlook from GAAP net loss and diluted net loss per share
to non-GAAP net income and diluted net income per share, available
in our second quarter 2010 Financial Schedules, which can be found
in the investor relations portion of our website at
www.cadence.com/cadence/investor_relations.
About Cadence Cadence enables global
electronic design innovation and plays an essential role in the
creation of today's integrated circuits and electronics. Customers
use Cadence software and hardware, methodologies, and services to
design, verify, and implement advanced semiconductors, consumer
electronics, networking and telecommunications equipment, and
computer systems. The company is headquartered in San Jose,
California, with sales offices, design centers, and research
facilities around the world to serve the global electronics
industry. More information about the company, its products, and
services is available at www.cadence.com.
The statements contained in this press release under the heading
"Third Quarter and Full Year 2010 Outlook Affirmed" and the
statements by Lip-Bu Tan include forward-looking statements based
on current expectations or beliefs, as well as a number of
preliminary assumptions about future events that are subject to
factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
Readers are cautioned not to put undue reliance on these
forward-looking statements, which are not a guarantee of future
performance and are subject to a number of risks, uncertainties and
other factors, many of which are outside Cadence's control,
including, among others: (i) Cadence's ability to compete
successfully in the electronic design automation product and the
commercial electronic design and methodology services industries;
(ii) Cadence's ability to successfully complete and realize the
expected benefits of the previously disclosed restructurings
without significant unexpected costs or delays, and the success of
Cadence's other efforts to improve operational efficiency and
growth; (iii) the mix of products and services sold and the timing
of significant orders for Cadence's products, and its shift to a
ratable license structure, which may result in changes in the mix
of license types; (iv) change in customer demands, including the
possibility that the previously disclosed restructurings and other
efforts to improve operational efficiency could result in delays in
customers' purchases of products and services; (v) economic and
industry conditions in regions in which Cadence does business; (vi)
fluctuations in rates of exchange between the U.S. dollar and the
currencies of other countries in which Cadence does business; (vii)
capital expenditure requirements, legislative or regulatory
requirements, interest rates and Cadence's ability to access
capital and debt markets; (viii) the acquisition of other companies
or technologies or the failure to successfully integrate and
operate these companies or technologies Cadence acquires; (ix) the
effects of the previously disclosed restructurings and other
efforts to improve operational efficiency on Cadence's business,
including its strategic and customer relationships, ability to
retain key employees and stock prices; (x) events that affect the
reserves Cadence may take from time to time with respect to
accounts receivable, taxes, litigation or other matters; and (xi)
the effects of any litigation or other proceedings to which Cadence
is or may become a party.
For a detailed discussion of these and other cautionary
statements related to our business, please refer to Cadence's
filings with the Securities and Exchange Commission. These include
Cadence's Annual Report on Form 10-K for the year ended January 2,
2010, its Quarterly Reports on Form 10-Q for the quarters ended
April 3, 2010 and July 3, 2010, and Cadence's future filings.
Cadence's Quiet Period with respect to the third quarter of 2010
originally commenced on September 17, 2010. After the date of this
press release, Cadence will continue to observe a Quiet Period
during which the business outlook as provided in this press release
and the company's most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q no longer constitute the company's
current expectations. During the Quiet Period resuming after the
date of this press release, the business outlook in these documents
should be considered to be historical, speaking as of prior to the
Quiet Period only and not subject to any update by the company.
During the Quiet Period, Cadence's representatives will not comment
on Cadence's business outlook, financial results or expectations.
The Quiet Period will extend until the day when Cadence's Third
Quarter 2010 earnings release is published, which is currently
scheduled for October 27, 2010. Cadence does not customarily update
or reaffirm its business outlook after commencement of its Quiet
Period, and does not expect to do so in the future absent special
circumstances.
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For more information, please contact: Investors and Shareholders
Jennifer Jordan Cadence Design Systems, Inc. 408-944-7100
investor_relations@cadence.com Media and Industry Analysts Lynne
Cox Cadence Design Systems, Inc. 408-914-6016
publicrelations@cadence.com
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