Cadence Design Systems Stock Slides After Company Issues Soft Outlook [Video]

Chip design software giant Cadence Design Systems (CDNS) topped first-quarter estimates but its guidance missed Wall Street’s current-quarter earnings and sales forecasts, sending its shares tumbling in extended trading Monday evening.

For the current quarter, the provider of semiconductor-design software and tools said it expects adjusted earnings to range between $1.20 and $1.24 per share, with the high end of that band falling considerably short of the $1.43-a-share figure expected by analysts. The company’s revenue guidance for the period of $1.03 billion to $1.05 billion also missed the mark, which Wall Street had modeled at $1.11 billion.

Cadence’s general manager for strategy and new ventures, Nimish Modi, attributed the softer-than-expected outlook to the timing of shipments connected to the company’s new generation of design and verification tools, which the company launched earlier this month. However, Modi added that customers have provided positive feedback about the company’s suit of new tools and emphasized that no deals have been delayed.

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