Cadence Design Systems (CDNS) reported weak results for the second quarter, and blamed the shortfall on softness in EDA spending. We expect that a turnaround is going to take time due to mounting financial problems leading to a lackluster growth.

Third quarter and 2009 guidance was not encouraging. Although Cadence is offering new products and taking cost-cutting measures, we are not confident in the company s ability to grow and show healthy fundamentals over the near term. Cadence also withdrew its bid for Mentor Graphics in 2008, further dimming its growth prospects.

Cadence recently came out with enhanced versions of its products, but it will take time for these to generate additional revenue. 2011 estimates have been added.

We maintain an Underperform rating on the shares a six-month price target of $4.50.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (LMT) Lockheed Buys Gyrocam Systems LLC, Makers of Gyrostabilized Optical Surveillance SystemsLockheed Martin Corporation (LMT) yesterday completed the acquisition of Gyrocam Systems LLC, which develops and...
2. (SNPS) Synopsys Beats on Earnings – Outlook DisappointsSynopsys Inc. (SNPS) reported third-quarter pro forma EPS of 47 cents that beat the consensus...
3. (FSYS) Fuel Systems Solutions – crushed estimates 4 quarters by an average 147.21%Fuel Systems Solutions, Inc. (FSYS) is riding the alternative energy boom to big profits as...
4. (FSYS) Fuel Systems Solutions – products and systems allow regular cars to operate on propane or natural gasFuel Systems Solutions, Inc. (FSYS) delivered a solid third quarter and saw analysts boost estimates....
5. (GD) General Dynamics – sales increased in the Aerospace, Marine Systems and Information Systems and Technology groupsGeneral Dynamics Corp. (GD) reported third-quarter results in late October. Earnings per share of $1.59...
6. (FIX) – Comfort Systems USA – upward earnings estimate revisions from the analyst communityComfort Systems USA, Inc. (FIX) has performed well against the broader market. Earnings for this...

Search Posts by Tag: Cadence Design Systems Inc. | CDNS | Featured

RSS Feeds by Tag: Cadence Design Systems Inc. | CDNS | Featured |

Other Posts by: vitalstocks | RSS Feed for this author