Cadence Announces Fourth-Quarter 2002 Results

January 05, 2003 by Jeff Shepard

Cadence Design Systems Inc. (San Jose, CA) announced that fourth-quarter 2002 revenue will be in the range of $272 million to $278 million, due to a greater percentage of subscription-license product bookings than expected. Subscription licenses accounted for approximately 83 percent of product bookings versus 60 percent in the prior quarter. Total product bookings are expected to increase slightly in the fourth quarter over the prior-year quarter.

Fourth-quarter, pro-forma diluted earnings per share are expected to be approximately $0.02 to $0.04 before special charges, unusual items and amortization of acquired intangibles. During the quarter, the company continued to streamline for operational efficiency and rationalize product lines, resulting in a restructuring charge of approximately $70 million, which is composed of severance, facilities closures and related asset write-offs. Amortization of intangibles was approximately $30 million. In accordance with generally accepted accounting principles, the company expects to report net income of $88 million to $95 million and diluted net income per share of $0.32 to $0.34 for the fourth quarter.