Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cadence Design Systems -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (463)	7/24/1999 8:55:00 AM
From: kendall harmon	Read Replies (2) \| Respond to of 668

CDN-anyone see this Motley Fool piece from Thursday? An Interesting Profile. Looking at the performance of electronic design automation company Cadence Design Systems (NYSE: CDN) through the first six months of 1999, an investor might be led to think the company had done something terribly wrong. In fact, that isn't really the case. Through a series of acquisitions, the company has positioned itself well for future growth with a formidable array of products and product opportunities. Then why the loss this year? With Cadence, it's tough to tell when all the pieces will come together. Relatively new CEO Ray Bingham's interest in improving revenue visibility by prioritizing a shift to subscription-based (rather than flexible-access) software licensing may hurt results in the near term but stands to reward patient investors with increased predictability. If Bingham can make the transition work and successfully integrate purchases like OrCAD and Quickturn, it could mean fewer disappointments like Q2's earnings, which missed Street projections. Until the new CEO's stamp is well burned into Cadence's rump, it may be some time before the company falls into step with investors' designs. Loss: 58% through 6/30