Looks like the bar is set very low and 2009 is written off for now.
Analysts are saying $50M of savings will come from another layoff of >600 people in 2009. Fine, but surely this will impact product roadmap and sales. They need to keep it together through 09 - a new CEO would help! I hope the interim office of the CEO is not getting too comfortable.
I'd be tempted to buy but am concerned that things will deteriorate further.
And yet, with only Mentor and Synopsis out there, CDNS should be able to keep most of the customers and get back in green. ? Or are there more real competitors out there nowadays (I've not followed closely last few years) ?
Umm, with restatements and Q4 predictions that will be all 4 quarters at a loss. (29.2, 16.7 169 and predict 73 for Q4) thats 287.9mil for the year! Balance sheet is also no so rosy, short term cash is down 1/3 and long term liabilities is now about the same as long term assets.
Without a strong leadership I don't see how they will pull out of this one.
Finally, one question, How long term is the long term 500mil convertible note and the 500mil 'Other longterm liabilities'?
the gist of it is that they beat the eps estimate for the 3rd quarter, the est was -0.11 and they claim -0.09. they did not missed on revenue, est was 239.3M and they claim 232M (missed by about 7M). eh not too bad
for next quarter, they est an eps of -0.06 to -0.04 which beats the analyst est of -0.07 but again they miss revenue, their est 215 million to $225M while the analyst are expecting 247M (that's over a 30M miss, over 10%!)
BUT, for the year of '08, cdn REALLY blows it out their ass. their est for eps for the year is -0.06 to -0.04 while the analysts expected 0.01. their est for rev for '08 is 1.025 billion to $1.035B, while the analysts expected 1.10B, again nearly a 10% miss. ouch!!
interesting that they are coming close to eps estimates on reduced revenue. my guess is they bought back a boat load of shares. this translates to: they're losing business like crazy to the competition.
so the question is: what's the bottom on the stock price. will it stay above a buck????