As you say in your 2nd paragraph, the price of stock is related to earnings per share (and future growth of earnings per share). Earnings can improve by reducing costs and/or increasing revenues. Many companies over the last year have improved earnings solely based on reducing costs. The question in 2010 is will they be able to increase revenue in order to continue to grow earnings.
For the sake of argument, if costs are reduced but revenue increases then every $ of increased revenue goes to earnings. Hence why I was pointing out that you don't need a 6X increase in revenue in order to see a 6X increase in stock price (and earnings). This is pretty basic stuff.
I certainly don't see CDNS going to $30 anytime soon, but $12 within a year or so, depending on the economy - not out of the question.