CIMdata PLM Industry Summary Online Archive
7 November 2008
Financial News
Cadence Filed Form 12b-25: Notification of Late Filing with respect to its Quarterly Report on Form 10-Q
Cadence Design Systems, Inc. announced that it has filed a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission relating to its Quarterly Report on Form 10-Q for the quarter ended September 27, 2008. The delay in the filing of the Form 10-Q is related to the previously announced investigation being conducted by the Audit Committee of Cadence’s Board of Directors and its independent counsel. Cadence will file the Form 10-Q as soon as practicable.
As disclosed in its Form 12b-25, Cadence expects to report third quarter 2008 revenue of approximately $235 million to $245 million, compared to revenue of $400.9 million reported for the same period in 2007. Cadence expects to recognize a GAAP net loss of approximately ($0.67) to ($0.65) per share on a diluted basis in the third quarter of 2008, compared to a GAAP net income of $0.24 per share on a diluted basis in the same period in 2007. The anticipated GAAP net loss per share on a diluted basis is greater than Cadence previously estimated principally because the anticipated number now takes into account the third quarter restructuring charges for Cadence’s recently announced restructuring and an increased provision for income tax based on Cadence’s repatriation of previously untaxed earnings from foreign subsidiaries. The anticipated results for the third quarter of 2008 on both a GAAP and non-GAAP basis as reported in this release do not include the impact of any changes to Cadence’s financial statements that may arise from the previously announced investigation being conducted by the audit committee.
Cadence expects net loss per diluted share using the non-GAAP measure defined below to be in the range of $(0.09) to $(0.07) for the third quarter of 2008. In addition to using GAAP results in evaluating 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expense, in-process research and development charges, certain termination and legal costs, costs related to Cadence’s withdrawn proposal to acquire Mentor Graphics Corporation and losses on the sale of Mentor Graphics Corporation shares, integration and acquisition-related costs, gains or losses and expenses or credits related to non-qualified deferred compensation plan assets, executive severance payments, restructuring charges and credits, losses on extinguishment of debt, equity in losses (income) from investments and write-down 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 non-GAAP financial results with their most direct comparable GAAP financial results below.
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