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Cadence Design Systems Inc. Message Board

  • euamrr euamrr Oct 24, 2008 10:19 AM Flag

    Is the pipe empty?

    For too long Cadence sales force has been driven
    hard to sell 3, 5 and even 8 year deals with as
    much up front revenue recognition as possible.
    Every medium or large client has been sold such

    Customers are not stupid. They saw the desperation
    and signed deals that value Cadence products well
    below what they could have been had Cadence not
    insisted on "as much cash as possible now please".

    Unfortunately this essentially means that they have
    sold their future. Whoever replaces Fister will
    have a very tough time turning this situation around.

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    • Not really, this is a perfect situation for a new ceo to come on board. He/she will spend a quarter understanding the mess, then set expectations at a level that's achievable. Nope, good time for the new exec team. The challenge is going to be that 100% of the engineers/other staff are under water on their options, so they will have to figure out a scheme to re-price. CDNS is going to loose 20% of it's team due to the current mess that Fister and co created, they have to figure out how to re-build moral and how to re-gain credibility with the street. This is a great mid term play - with the right 'leader' CDNS could once again be a place where people are proud to work and are happy to put the hours in.

      • 1 Reply to edatitanic
      • I wouldn't call the situation "perfect". Just because you
        get rid of 4-5 people at the top doesn't mean that the entire
        culture of the company is going to change with a new captain
        at the helm. If Cadence truly wants to be in this business
        then the new CEO will work with the BOD and scrape-off 2
        layers of upper management starting at the top and working
        their way down. Then you get rid of middle managers that
        have been promoted to "Directors". They're not directors ..
        it's a justification for higher salaries. Bring the company
        back to center ... invest in technology with the technical
        people you have. This is why I think Cadence is going down;
        the company has "too much" of a sales and marketing mentality that won't change with a new exec team. Work fast
        so you don't lose your technical worker bees. One quarter
        for most companies in trouble would be enough, not for this
        one. It's been a "Good 'Ol Boy" system for far too long,
        with all of it's upper management always looking up or side-to-side, but never down at the ranks that make up the
        foundation of the company. So, crumble it will. Nope ... if
        Cadence wants to stay in this business, they'll have to make
        some rules about privelage in the company and stick to them.
        You don't have anyone reporting to you, out of the window
        office you go ... no elite forces here. Start from scratch.

        But, it'll never happen, so ...


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