From the PR:
On a GAAP basis, Cadence recognized a net loss of $74 million, or $(0.29) per share on a diluted basis, in the second quarter of 2009,
They need to quickly cut spending.
yeah, they need to get spending under control if they want to be taken seriously by investors again.
You either grow revenue (which they are not doing), or you cut expenses. Hemoraging $75M a quarter just isn't going to cut it, and these mickey mouse layoffs of 200-500 at a time is just silly, and makes the management team look silly as well. Who can really take the most recent rhetoric from the CEO seriously??? It's complete bovine excrement. Layoffs is the only way to materially bring expenses into line.
Figure an expense run rate of ~$50K per employee per quarter... they need to reduce headcount by an additional 1500 employees in order to return to profitability.
As has been discussed at length here, they cannot do that through their usual peanut butter layoffs, they need to eliminate under performing segments of their business. They need to get serious here and stop pretending that it is business as usual.
They can play games all they want by positioning non-GAAP numbers, but GAAP is what counts. The fact is that as edawizzard points out, they are missing their quarterly GAAP projections.
Besides the games with GAAP/non-GAAP they did not answer the question about what product areas they will stop investing in.
Until CDNS cuts expenses by 1/2 from 2008 levels this will go no where!
The good news is Cadence will not lose as much money as they thought they would! Wouldn't be surprised to see a little positive action based on that.
The bad news is...well, let's see if they are losing share to SNPS and MENT, because, if they are then the future looks problematic. My bet is on problematic.
There is some agreement there:
"The company narrowed its 2009 loss forecast to 8 cents to 20 cents a share, excluding items, down from its previous loss view of 21 cents to 33 cents a share."
If you slash too deep, you won't be ready when the pendulum swings back the other way. Has it started that swing?
Guy stop pumping this! Stick to the facts.
Here is what they said in Q1.
Second quarter GAAP net loss per diluted share is expected to be in the range of $(0.24) to $(0.22).
What they delivered.
On a GAAP basis, Cadence recognized a net loss of $74 million, or $(0.29) per share
They had better announce some big expense reductions soon.