Ouch. Turnaround pains.
biz.yahoo.com
Tuesday July 20, 4:05 pm Eastern Time
Company Press Release
Cadence Announces Second
Quarter 1999 Results
Company Adjusts Product Sales Model to Provide Customers Access to
New Technologies
SAN JOSE, Calif.--(BUSINESS WIRE)--July 20, 1999--Cadence Design Systems, Inc. (NYSE: CDN - news), the world's leading supplier of electronic design products and services, today announced second quarter revenue of $264 million, a decrease of 16% over the same
period in 1998, and $0.08 diluted earnings per share, excluding unusual items and goodwill amortization, a decrease of 67% from the second quarter of 1998. For comparative purposes, except where noted, the results discussed throughout this release reflect earnings before unusual items and goodwill amortization.
Product revenue for the second quarter of 1999 totaled $118 million, down 37% from the first quarter of 1999 and 34% from the second quarter of 1998. Services revenue was $75 million, an increase of 12% over the second quarter of 1998. Cadence achieved a services gross
margin of 35%, eight percentage points higher than the 27% posted in the second quarter of 1998.
During the second quarter, Cadence recorded unusual items totaling $20 million, primarily related to merger expenses, severance, and facilities consolidation costs associated with the Quickturn Design Systems, Inc. acquisition completed in the second quarter. Quarterly results included $13 million of goodwill amortization. Including the effects of these unusual items and goodwill amortization, the Company reported a diluted loss per share of $0.01. |
