Cadence Design Systems expect slow sales for 1999

Cadence Design Systems expect slow sales for 1999
Tom Foremski
Cadence Design Systems shocked its shareholders by reporting that it expects slow sales for the rest of the year.
Cadence reported fiscal first quarter revenue of $305m, up 13 per cent compared with last year. Profits were 23 per cent higher than first quarter 1998. Although the results beat analyst expectations, Cadence issued a warning that it expects the rest of the year to show slow growth.
The company tried to point to key improvements in its business but shareholders dumped their shares in the company, which fell by as much as 40 per cent in value.
“I am pleased with the progress we’ve made in addressing our margin issues, but there is more to be done with respect to our top line growth,” said Cadence CEO Jack Harding. “We are aggressively marketing a product portfolio that underscores our total design capability for managing the transition to 0.18 micron and systems on a chip. We will continue to focus on our services margin goals, building backlog visibility, and exploiting future growth opportunities.”

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