10/23/2008 7:09 AM
Over and above the Cadence troubles outlined in the blog entry in this space on October 19, 2008, called, “EDA Executives Pay the Price – and probably, so will many other employees”, the company announced still more problems yesterday when it postponed its promised final Q3 financial results.
On October 22, Cadence announced that “it is reviewing, in conjunction with the company’s independent accountants and legal advisors, the recognition of revenue related to customer contracts signed during the first quarter of 2008.”
Apparently, some $24 million in revenue associated with those contracts was booked in the first quarter but should have been booked over the duration of the contracts starting in the second quarter. Should this prove to be the case, Cadence will have to restate both Q1 and Q2.
In postponing yesterday’s Q3 earnings announcement, the company reiterated its earlier Q3 guidance from July 23, 2008: the company expects Q3 revenue to be in the range of $235 to $245 million; third quarter GAAP net loss per share to be in the range of $(0.27) to $(0.25); and non-GAAP net loss per share to be in the range of $(0.11) to $(0.09).As this blog entry is posted, Cadence shares have just today lost another $1.39 each, trading in the area of $2.88, or a downward plunge of 32% in the first few hours of the day in New York.