Although Cadence's management finds the non-GAAP measure useful in evaluating the performance of Cadence's business, reliance on this measure is limited because items excluded from such measures often have a material effect on Cadence's earnings and earnings per share calculated in accordance with GAAP. Therefore, Cadence's management typically uses the non-GAAP earnings and earnings per share measures, in conjunction with the GAAP earnings and earnings per share measures, to address these limitations.
Cadence's management believes that presenting the non-GAAP measure of earnings and earnings per share provides investors with an additional tool for evaluating the performance of the company's business, which Cadence's management uses in its own evaluation of performance, and an additional baseline for assessing the future earnings potential of the company. While the GAAP results are more complete, Cadence's management prefers to allow investors to have this supplemental measure since it may provide additional insights into the company's financial results.
Cadence expects that its corporate representatives will meet privately during the quarter with investors, the media, investment analysts and others. At these meetings, Cadence may reiterate the business outlook published in this press release. At the same time, Cadence will keep this press release, including the business outlook, publicly available on its Web site.
Prior to the start of the Quiet Period (described below), the public may continue to rely on the business outlook contained herein as still being Cadence's current expectations on matters covered unless Cadence publishes a notice stating otherwise.
Beginning December 19, 2008, Cadence will observe a Quiet Period during which the business outlook as provided in this press release and the company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q no longer constitute the company's current expectations. During the Quiet Period, the business outlook in these documents should be considered to be historical, speaking as of prior to the Quiet Period only and not subject to any update by the company. During the Quiet Period, Cadence's representatives will not comment on Cadence's business outlook, financial results or expectations. The Quiet Period will extend until the day when Cadence's Fourth Quarter and Fiscal Year 2008 Earnings Release is published, which is currently scheduled for February 4, 2009.
Cadence Design Systems, Inc.
Condensed Consolidated Balance Sheets
September 27, 2008 and December 29, 2007
(In thousands)
(Unaudited)
September 27, December 29,
2008 2007
------------- -------------
Current Assets:
Cash and cash equivalents $ 551,753 $ 1,062,920
Short-term investments 6,068 15,193
Receivables, net of allowances of $3,355 and
$2,895, respectively 278,458 326,211
Inventories 25,545 31,003
Prepaid expenses and other 84,112 94,236
------------- -------------
Total current assets 945,936 1,529,563
Property, plant and equipment, net of
accumulated depreciation of $636,305 and
$624,680, respectively 359,196 339,463
Goodwill 1,315,217 1,310,211
Acquired intangibles, net 101,409 127,072
Installment contract receivables 170,503 238,010
Other assets 356,527 326,831
------------- -------------
Total Assets $ 3,248,788 $ 3,871,150
============= =============
Current Liabilities:
Convertible notes $ - $ 230,385
Accounts payable and accrued liabilities 259,062 289,934
Current portion of deferred revenue 245,901 265,168
------------- -------------
Total current liabilities 504,963 785,487
------------- -------------
Long-Term Liabilities:
Long-term portion of deferred revenue 124,703 136,655
Convertible notes 500,178 500,000
Other long-term liabilities 413,993 368,942
------------- -------------
Total long-term liabilities 1,038,874 1,005,597
------------- -------------
Stockholders' Equity 1,704,951 2,080,066
------------- -------------
Total Liabilities and Stockholders' Equity $ 3,248,788 $ 3,871,150
============= =============
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Operations
For the Quarters and Nine Months Ended
September 27, 2008 and September 29, 2007
(In thousands, except per share amounts)
(Unaudited)
Quarters Ended Nine Months Ended
---------------------- ----------------------
Sept. 27, Sept. 29, Sept. 27, Sept. 29,
2008 2007 2008 2007
---------- ---------- ---------- ----------
Revenue:
Product $ 107,572 $ 273,799 $ 422,365 $ 775,496
Services 32,873 31,225 98,763 95,963
Maintenance 92,043 95,900 290,151 285,611
---------- ---------- ---------- ----------
Total revenue 232,488 400,924 811,279 1,157,070
---------- ---------- ---------- ----------
Costs and Expenses:
Cost of product 11,829 13,823 39,241 42,302
Cost of services 25,677 23,364 78,083 70,421
Cost of maintenance 13,910 15,217 42,889 45,635
Marketing and sales 91,075 97,163 274,016 297,924
Research and development 112,486 125,391 357,929 365,418
General and
administrative 32,937 40,747 105,608 123,166
Amortization of acquired
intangibles 5,626 4,739 17,206 13,661
Restructuring and other
charges (credits) 48,120 (7,066) 47,765 (9,584)
Write-off of acquired
in-process technology - 2,678 600 2,678
---------- ---------- ---------- ----------
Total costs and
expenses 341,660 316,056 963,337 951,621
---------- ---------- ---------- ----------
Income (loss) from
operations (109,172) 84,868 (152,058) 205,449
Interest expense (3,180) (2,849) (9,055) (9,373)
Other income (expense),
net (7,714) 14,201 (3,701) 47,938
---------- ---------- ---------- ----------
Income (loss)
before provision
for income taxes (120,066) 96,220 (164,814) 244,014
Provision for income
taxes 49,000 23,488 50,269 67,265
---------- ---------- ---------- ----------
Net income (loss) $ (169,066) $ 72,732 $ (215,083) $ 176,749
========== ========== ========== ==========
Basic net income (loss) per
share $ (0.67) $ 0.27 $ (0.84) $ 0.65
========== ========== ========== ==========
Diluted net income (loss)
per share $ (0.67) $ 0.24 $ (0.84) $ 0.60
========== ========== ========== ==========
Weighted average common
shares outstanding - basic 252,915 272,977 256,119 272,354
========== ========== ========== ==========
Weighted average common
shares outstanding -
diluted 252,915 299,506 256,119 297,783
========== ========== ========== ==========
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 27, 2008 and September 29, 2007
(In thousands)
(Unaudited)
Nine Months Ended
---------------------------
September 27, September 29,
2008 2007
------------ ------------
Cash and Cash Equivalents at Beginning of
Period $ 1,062,920 $ 934,342
------------ ------------
Cash Flows from Operating Activities:
Net income (loss) (215,083) 176,749
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 97,719 96,798
Stock-based compensation 57,678 78,828
Equity in loss from investments, net 823 2,504
(Gain) loss on investments, net 11,440 (16,608)
(Gain) loss on sale and leaseback of land
and buildings 350 (12,606)
Write-down of investment securities 10,666 2,550
Write-off of acquired in-process
technology 600 2,678
Non-cash restructuring and other charges
(credits) 222 (7,106)
Tax benefit of call options 7,034 7,036
Deferred income taxes (11,020) 4,848
Proceeds from the sale of receivables,
net 48,124 163,549
Provisions (recoveries) for losses
(gains) on trade accounts receivable and
sales returns 383 (975)
Other non-cash items (1,258) 8,525
Changes in operating assets and
liabilities, net of effect of acquired
businesses:
Receivables 21,489 9,053
Installment contract receivables 46,198 (273,301)
Inventories 5,486 (681)
Prepaid expenses and other (3,421) (23,229)
Other assets (1,849) (2,027)
Accounts payable and accrued
liabilities (41,582) (35,516)
Deferred revenue (32,243) 9,411
Other long-term liabilities 35,972 18,448
------------ ------------
Net cash provided by operating
activities 37,728 208,928
------------ ------------
Cash Flows from Investing Activities:
Proceeds from the sale of available-for-sale
securities 53,783 6,468
Purchases of available-for-sale securities (62,447) -
Proceeds from the sale of long-term
investments 3,250 6,323
Proceeds from the sale of property, plant
and equipment - 46,500
Purchases of property, plant and equipment (81,112) (57,405)
Purchases of software licenses (1,199) -
Investment in venture capital partnerships
and equity investments (4,053) (3,214)
Cash paid in business combinations and asset
acquisitions, net of cash acquired, and
acquisition of intangibles (20,621) (74,117)
------------ ------------
Net cash used for investing
activities (112,399) (75,445)
------------ ------------
Cash Flows from Financing Activities:
Proceeds from receivable sale financing 17,970 -
Principal payments on term loan - (28,000)
Payment of convertible notes due 2023 (230,207) -
Tax benefit from employee stock transactions 427 20,727
Proceeds from issuance of common stock 48,116 249,006
Stock received for payment of employee taxes
on vesting of restricted stock (3,693) (11,735)
Purchases of treasury stock (273,950) (372,416)
Other - 8,558
------------ ------------
Net cash used for financing
activities (441,337) (133,860)
------------ ------------
Effect of exchange rate changes on cash and
cash equivalents 4,841 1,622
------------ ------------
Increase (decrease) in cash and cash
equivalents (511,167) 1,245
------------ ------------
Cash and Cash Equivalents at End of Period $ 551,753 $ 935,587
============ ============
Cadence Design Systems, Inc.
As of December 10, 2008
Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Loss
Per Share
(Unaudited)
Quarter Ended Year Ended
January 3, 2009 January 3, 2009
----------------- -----------------
Forecast Forecast
----------------- -----------------
Diluted net loss per share on a
GAAP basis $(0.29) to $(0.27) $(1.13) to $(1.11)
Amortization of acquired
intangibles 0.04 0.17
Stock-based compensation
expense 0.11 0.34
Non-qualified deferred
compensation expenses
(credits) - (0.01)
Costs related to Cadence's
withdrawn proposal to acquire
Mentor Graphics Corporation - 0.01
Restructuring and other
charges 0.07 0.25
Write-off of acquired
in-process technology - -
Integration and
acquisition-related costs - -
Equity in losses from
investments, write-down of
investments, gains and losses
on non-qualified deferred
compensation plan assets - 0.06
Loss on sale of Mentor
Graphics Corporation shares - 0.04
Foreign currency charge
related to liquidation of
subsidiary 0.04 0.04
Income tax related to
repatriation of foreign
earnings - 0.28
Income tax effect of non-GAAP
adjustments (0.03) (0.11)
----------------- -----------------
Diluted net loss per share on a
non-GAAP basis $(0.06) to $(0.04) $(0.06) to $(0.04)
================= =================
Cadence Design Systems, Inc.
As of December 10, 2008
Impact of Non-GAAP Adjustments on Forward Looking Net Loss
(Unaudited)
Quarter Ended Year Ended
January 3, 2009 January 3, 2009
----------------- -----------------
($ in Millions) Forecast Forecast
----------------- -----------------
Net loss on a GAAP basis $ (74) to $ (68) $ (289) to $ (283)
Amortization of acquired
intangibles 10 44
Stock-based compensation
expense 28 86
Non-qualified deferred
compensation expenses
(credits) - (3)
Costs related to Cadence's
withdrawn proposal to acquire
Mentor Graphics Corporation - 3
Restructuring and other
charges 17 65
Write-off of acquired
in-process technology - 1
Integration and
acquisition-related costs - 1
Equity in losses from
investments, write-down of
investments, gains and losses
on non-qualified deferred
compensation plan assets - 16
Loss on sale of Mentor
Graphics Corporation shares - 9
Foreign currency charge
related to liquidation of
subsidiary 10 10
Income tax related to
repatriation of foreign
earnings - 71
Income tax effect of non-GAAP
adjustments (7) (29)
----------------- -----------------
Net loss on a non-GAAP basis $ (16) to $ (10) $ (15) to $ (9)
================= =================
Cadence Design Systems, Inc.
(Unaudited)
Revenue Mix by Geography (% of Total Revenue)
2006 2007
======================== ========================
GEOGRAPHY Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
=== === === === ==== === === === === ====
Americas 51% 48% 54% 60% 54% 48% 52% 41% 50% 49%
Europe 19% 18% 22% 19% 19% 15% 17% 25% 17% 18%
Japan 21% 24% 13% 10% 17% 27% 14% 22% 22% 21%
Asia 9% 10% 11% 11% 10% 10% 17% 12% 11% 12%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
2008
=========================
GEOGRAPHY Q1 Q2 Q3
======== ======== =====
(Restated)(Restated)
Americas 43% 48% 43%
Europe 24% 21% 23%
Japan 21% 19% 20%
Asia 12% 12% 14%
Total 100% 100% 100%
Revenue Mix by Product Group (% of Total Revenue)
2006 2007
======================== ========================
PRODUCT GROUP Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
=== === === === ==== === === === === ====
Functional
Verification 26% 22% 24% 23% 24% 24% 24% 20% 26% 24%
Digital IC Design 20% 26% 19% 26% 24% 26% 29% 27% 27% 27%
Custom IC Design 27% 27% 30% 26% 27% 24% 24% 32% 25% 27%
Design for
Manufacturing 8% 8% 8% 6% 7% 7% 7% 6% 6% 6%
System Interconnect 9% 8% 10% 11% 9% 10% 8% 7% 9% 8%
Services & Other 10% 9% 9% 8% 9% 9% 8% 8% 7% 8%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
2008
=========================
PRODUCT GROUP Q1 Q2 Q3
======== ======== =====
(Restated)(Restated)
Functional
Verification 22% 25% 22%
Digital IC Design 24% 24% 20%
Custom IC Design 26% 23% 26%
Design for
Manufacturing 5% 7% 7%
System Interconnect 11% 10% 11%
Services & Other 12% 11% 14%
Total 100% 100% 100%
Note: Product Group total revenue includes Product + Maintenance
Cadence Design Systems, Inc.
Impact of Restatement Adjustments on Previously Reported Condensed
Consolidated Statements of Operations
For the Quarter Ended March 29, 2008 and the
Quarter and Six Months Ended June 28, 2008
(In thousands, except per share amounts)
(Unaudited)
Quarter Quarter Six Months
Ended Ended Ended
March 29, June 28, June 28,
2008 2008 2008
---------- ---------- ----------
Total revenue as previously reported $ 287,189 $ 329,478 $ 616,667
Restatement adjustments (A),(B),(C) (16,439) (21,437) (37,876)
---------- ---------- ----------
Total revenue as restated $ 270,750 $ 308,041 $ 578,791
========== ========== ==========
Total costs and expenses as previously
reported $ 314,192 $ 310,092 $ 624,284
Restatement adjustments (B),(D) - (2,607) (2,607)
---------- ---------- ----------
Total costs and expenses as restated $ 314,192 $ 307,485 $ 621,677
========== ========== ==========
Provision (benefit) for income taxes as
previously reported $ (5,488) $ 9,760 $ 4,272
Restatement adjustments (E) (5,963) 2,960 (3,003)
---------- ---------- ----------
Provision (benefit) for income taxes as
restated $ (11,451) $ 12,720 $ 1,269
========== ========== ==========
Net income (loss) as previously
reported $ (18,747) $ 4,996 $ (13,751)
Restatement adjustments (10,476) (21,790) (32,266)
---------- ---------- ----------
Net loss as restated $ (29,223) $ (16,794) $ (46,017)
========== ========== ==========
Basic net income (loss) per share as
previously reported $ (0.07) $ 0.02 $ (0.05)
Restatement adjustments (0.04) (0.09) (0.13)
---------- ---------- ----------
Basic net loss per share as restated $ (0.11) $ (0.07) $ (0.18)
========== ========== ==========
Diluted net income (loss) per share as
previously reported $ (0.07) $ 0.02 $ (0.05)
Restatement adjustments (0.04) (0.09) (0.13)
---------- ---------- ----------
Diluted net loss per share as restated $ (0.11) $ (0.07) $ (0.18)
========== ========== ==========
Notes:
(A) This restatement adjustment corrects revenue recognition for one
arrangement under which $24.8 million of Product revenue was recognized
during the first quarter of 2008 and $1.0 million of Maintenance
revenue was recognized during the second quarter of 2008, but should
be recognized during the term of the arrangement, beginning in the
fourth quarter of 2008.
(B) This restatement adjustment corrects revenue recognition for one
arrangement identified during Cadence's remediation efforts under which
$12.0 million of Product revenue was recognized during the second
quarter of 2008, but should be recognized during the term of the
arrangement, beginning in the third quarter of 2008. As a result of
reversing this $12.0 million of Product revenue that was previously
recognized, Cadence also decreased Cost of product by $0.1 million for
the second quarter of 2008.
(C) Because Cadence is restating its financial results for the first and
second quarters of 2008 for the revenue arrangements described in
Notes (A) and (B), Cadence has also recorded two other Product revenue
adjustments, in the aggregate amount of $8.4 million, that were
previously disclosed in Cadence's Quarterly Report on Form 10-Q for
the quarter ended June 28, 2008, initially filed with the SEC on
July 29, 2008. Cadence determined that Product revenue for these two
contracts totaling $8.4 million recognized during the second quarter
of 2008 should have been recognized during the first quarter of 2008.
(D) This restatement adjustment reduces Cost of product for a hardware
arrangement during the second quarter of 2008 by $2.5 million.
(E) This restatement adjustment represents the tax effect of the
restatement adjustments noted above.
Cadence Design Systems, Inc.
Impact of Restatement Adjustments on Previously Reported Condensed
Consolidated Statements of Operations
For the Quarter Ended March 29, 2008
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended
March 29, 2008
------------------------------------------
As
Previously Restatement As
Reported Adjustments Restated
---------- ----------- ---------
Revenue
Product $ 156,193 $ (16,439) (A),(B) $ 139,754
Services 32,196 - 32,196
Maintenance 98,800 - 98,800
---------- ----------- ---------
Total revenue 287,189 (16,439) 270,750
---------- ----------- ---------
Costs and Expenses
Cost of product 12,001 - 12,001
Cost of services 25,193 - 25,193
Cost of maintenance 14,540 - 14,540
Marketing and sales 93,034 - 93,034
Research and development 125,356 - 125,356
General and administrative 37,708 - 37,708
Amortization of acquired
intangibles 5,760 - 5,760
Write-off of acquired
in-process technology 600 - 600
---------- ----------- ---------
Total costs and expenses 314,192 - 314,192
---------- ----------- ---------
Loss from operations (27,003) (16,439) (43,442)
Interest expense (2,995) - (2,995)
Other income, net 5,763 - 5,763
---------- ----------- ---------
Loss before benefit
for income taxes (24,235) (16,439) (40,674)
Benefit for income taxes (5,488) (5,963) (C) (11,451)
---------- ----------- ---------
Net loss $ (18,747) $ (10,476) $ (29,223)
========== =========== =========
Basic net loss per share $ (0.07) $ (0.11)
========== =========
Diluted net loss per share $ (0.07) $ (0.11)
========== =========
Weighted average common shares
outstanding - basic 262,825 262,825
========== =========
Weighted average common shares
outstanding - diluted 262,825 262,825
========== =========
Notes:
(A) This restatement adjustment corrects revenue recognition for one
arrangement under which $24.8 million of Product revenue was recognized
during the first quarter of 2008, but should be recognized during the
term of the arrangement, beginning in the fourth quarter of 2008.
(B) Because Cadence is restating its financial results for the first
quarter of 2008 for the revenue arrangement described in Note (A),
Cadence has also recorded two other Product revenue adjustments, in the
aggregate amount of $8.4 million, that were previously disclosed in
Cadence's Quarterly Report on Form 10-Q for the quarter ended June 28,
2008, initially filed with the SEC on July 29, 2008. Cadence determined
that Product revenue for these two contracts totaling $8.4 million
recognized during the second quarter of 2008 should have been
recognized during the first quarter of 2008.
(C) This restatement adjustment represents the tax effect of the
restatement adjustments noted above.
Cadence Design Systems, Inc.
Impact of Restatement Adjustments on Previously Reported Condensed
Consolidated Statements of Operations
For the Quarter Ended June 28, 2008
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended
June 28, 2008
------------------------------------------
As
Previously Restatement As
Reported Adjustments Restated
---------- ----------- ---------
Revenue
Product $ 195,444 $(20,405) (A),(B),(C) $175,039
Services 33,694 - 33,694
Maintenance 100,340 (1,032) (A) 99,308
---------- -------- --------
Total revenue 329,478 (21,437) 308,041
---------- -------- --------
Costs and Expenses
Cost of product 18,018 (2,607) (B),(D) 15,411
Cost of services 27,213 - 27,213
Cost of maintenance 14,439 - 14,439
Marketing and sales 89,907 - 89,907
Research and development 120,087 - 120,087
General and administrative 34,963 - 34,963
Amortization of acquired
intangibles 5,820 - 5,820
Restructuring and other
charges (credits) (355) - (355)
---------- -------- --------
Total costs and expenses 310,092 (2,607) 307,485
---------- -------- --------
Income from operations 19,386 (18,830) 556
Interest expense (2,880) - (2,880)
Other expense, net (1,750) - (1,750)
---------- -------- --------
Income (loss) before
provision for income
taxes 14,756 (18,830) (4,074)
Provision for income taxes 9,760 2,960 (E) 12,720
---------- -------- --------
Net income (loss) $ 4,996 $(21,790) $(16,794)
========== ======== ========
Basic net income (loss) per
share $ 0.02 $ (0.07)
========== ========
Diluted net income (loss) per
share $ 0.02 $ (0.07)
========== ========
Weighted average common shares
outstanding - basic 252,629 252,629
========== ========
Weighted average common shares
outstanding - diluted 269,060 252,629
========== ========
Notes:
(A) This restatement adjustment corrects revenue recognition for one
arrangement under which $24.8 million of Product revenue was recognized
during the first quarter of 2008 and $1.0 million of Maintenance
revenue was recognized during the second quarter of 2008, but should
be recognized during the term of the arrangement, beginning in the
fourth quarter of 2008.
(B) This restatement adjustment corrects revenue recognition for one
arrangement identified during Cadence's remediation efforts under which
$12.0 million of Product revenue was recognized during the second
quarter of 2008, but should be recognized during the term of the
arrangement, beginning in the third quarter of 2008. As a result of
reversing this $12.0 million of Product revenue that was previously
recognized, Cadence also decreased Cost of product by $0.1 million for
the second quarter of 2008.
(C) Because Cadence is restating its financial results for the second
quarter of 2008 for the revenue arrangements described in Notes (A) and
(B), Cadence has also recorded two other Product revenue adjustments,
in the aggregate amount of $8.4 million, that were previously disclosed
in Cadence's Quarterly Report on Form 10-Q for the quarter ended June
28, 2008, initially filed with the SEC on July 29, 2008. Cadence
determined that Product revenue for these two contracts totaling $8.4
million recognized during the second quarter of 2008 should have been
recognized during first quarter of 2008.
(D) This restatement adjustment reduces Cost of product for a hardware
arrangement during the second quarter of 2008 by $2.5 million.
(E) This restatement adjustment represents the tax effect of the
restatement adjustments noted above.
Cadence Design Systems, Inc.
Impact of Restatement Adjustments on Previously Reported Condensed
Consolidated Statements of Operations
For the Six Months Ended June 28, 2008
(In thousands, except per share amounts)
(Unaudited)
Six Months Ended
June 28, 2008
------------------------------------------
As
Previously Restatement As
Reported Adjustments Restated
---------- ----------- ---------
Revenue
Product $ 351,637 $ (36,844) (A),(B) $ 314,793
Services 65,890 - 65,890
Maintenance 199,140 (1,032) (A) 198,108
---------- ----------- ---------
Total revenue 616,667 (37,876) 578,791
---------- ----------- ---------
Costs and Expenses
Cost of product 30,019 (2,607) (B),(C) 27,412
Cost of services 52,406 - 52,406
Cost of maintenance 28,979 - 28,979
Marketing and sales 182,941 - 182,941
Research and development 245,443 - 245,443
General and administrative 72,671 - 72,671
Amortization of acquired
intangibles 11,580 - 11,580
Restructuring and other
charges (credits) (355) - (355)
Write-off of acquired
in-process technology 600 - 600
---------- ----------- ---------
Total costs and expenses 624,284 (2,607) 621,677
---------- ----------- ---------
Loss from operations (7,617) (35,269) (42,886)
Interest expense (5,875) - (5,875)
Other income, net 4,013 - 4,013
---------- ----------- ---------
Loss before provision
for income taxes (9,479) (35,269) (44,748)
Provision for income taxes 4,272 (3,003) (D) 1,269
---------- ----------- ---------
Net loss $ (13,751) $ (32,266) $ (46,017)
========== =========== =========
Basic net loss per share $ (0.05) $ (0.18)
========== =========
Diluted net loss per share $ (0.05) $ (0.18)
========== =========
Weighted average common shares
outstanding - basic 257,724 257,724
========== =========
Weighted average common shares
outstanding - diluted 257,724 257,724
========== =========
Notes:
(A) This restatement adjustment corrects revenue recognition for one
arrangement under which $24.8 million of Product revenue and $1.0
million of Maintenance revenue was recognized during the six months
ended June 28, 2008, but should be recognized during the term of
the arrangement, beginning in the fourth quarter of 2008.
(B) This restatement adjustment corrects revenue recognition for one
arrangement identified during Cadence's remediation efforts under which
$12.0 million of Product revenue was recognized during the six months
ended June 28, 2008, but should be recognized during the term of
the arrangement, beginning in the third quarter of 2008. As a result
of reversing this $12.0 million of Product revenue that was previously
recognized, Cadence also decreased Cost of product by $0.1 million for
the six months ended June 28, 2008.
(C) This restatement adjustment reduces Cost of product for a hardware
arrangement during the six months ended June 28, 2008 by $2.5 million.
(D) This restatement adjustment represents the tax effect of the
restatement adjustments noted above.
