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8-K - FORM 8-K - CADENCE DESIGN SYSTEMS INC | f56956e8vk.htm |
Exhibit 99.01
CADENCE ANNOUNCES CHIEF FINANCIAL OFFICER TRANSITION PLAN
Geoff Ribar to be Appointed Chief Financial Officer;
Current Chief Financial Officer Kevin S. Palatnik to Remain with Cadence Through Transition
Current Chief Financial Officer Kevin S. Palatnik to Remain with Cadence Through Transition
Company Affirms Outlook for Third Quarter and Full Year 2010
SAN JOSE, Calif., September 27, 2010 Cadence Design Systems, Inc. (Nasdaq: CDNS), a leader in
global electronic design innovation, today announced that Geoff Ribar, chief financial officer of
Telegent Systems, Inc., will be appointed senior vice president and chief financial officer of
Cadence effective on or about November 1, 2010. Kevin S. Palatnik is leaving the company to pursue
other interests. Mr. Palatnik will remain with the company as an advisor to ensure a smooth and
orderly transition of duties to Mr. Ribar, leaving by the end of the first quarter of 2011.
The Cadence Board of Directors and I are pleased that Geoff Ribar has agreed to serve as the CFO
of Cadence, said Lip-Bu Tan, president and chief executive officer of Cadence. Geoff is an
experienced executive who brings to Cadence a wealth of financial, IT and operational expertise at
public and private high tech companies, including SiRF, Matrix Semiconductor, nVidia and Advanced
Micro Devices. We are confident Geoffs deep experience will serve Cadence well as we build upon
the important progress we have made with our EDA360 strategy and further expand Cadences position
with customers, increase top line growth and improve profitability. We look forward to a smooth
transition as Kevin will remain with Cadence through February 2011 and share his deep knowledge of
Cadence with Geoff.
Mr. Tan continued, On behalf of our Board of Directors and the entire Cadence team, I want to
express our deep gratitude to Kevin for his significant contributions and dedication to Cadence
over the last nine years, serving in many capacities, including most recently as CFO and previously
as Corporate Controller. Kevin is a world class CFO who has been instrumental in navigating Cadence
through tremendous change during the last two years. In particular, Kevin led the transition to a
highly ratable revenue model and played an important role in planning and executing a company-wide
restructuring plan. We are grateful to have benefitted from Kevins exceptional financial,
operational and strategic leadership and wish him all the best in his future endeavors.
Third Quarter and Full Year 2010 Outlook Affirmed
As disclosed in its second quarter earnings release of July 28, 2010 (as updated on our Current
Report on Form 8-K, dated August 4, 2010), for the third quarter of 2010, the company expects total
revenue in the range of $225 million to $235 million. Third quarter GAAP net loss per diluted share
is expected to be in the range of $(0.10) to $(0.08). Net income per diluted share using the
non-GAAP measure defined below is expected to be in the range of $0.01 to $0.03.
For the full year 2010, the company expects total revenue in the range of $900 million to $925
million. On a GAAP basis, net loss per diluted share for fiscal 2010 is expected to be in the range
of $(0.04) to $(0.00). Using the non-GAAP measure defined below, net income per diluted share for
fiscal 2010 is expected to be in the range of $0.12 to $0.16.
In addition to using GAAP results to evaluate Cadences business, management believes it is useful
to measure results using a non-GAAP measure of net income or net loss, which excludes, as
applicable, amortization of intangible assets, stock-based compensation expense, integration and
acquisition-related costs, acquisition-related income tax benefits, shareholder litigation costs,
gains or losses and expenses or credits related to non-qualified deferred compensation plan assets,
restructuring charges and credits,
amortization of discount on convertible notes, losses on extinguishment of debt, equity in losses
or
income from investments, write-down of investments, and gains or losses on the sale of investments.
Non-GAAP net income or net loss is adjusted by the amount of additional taxes or tax benefit that
the
company would accrue if it used non-GAAP results instead of GAAP results to calculate the companys
tax liability. Investors and potential investors are encouraged to review the reconciliation of the
business outlook from GAAP net loss and diluted net loss per share to non-GAAP net income and
diluted net income per share, available in our second quarter 2010 Financial Schedules, which can
be found in the investor relations portion of our website at
www.cadence.com/cadence/investor_relations.
About Cadence
Cadence enables global electronic design innovation and plays an essential role in the creation of
todays integrated circuits and electronics. Customers use Cadence software and hardware,
methodologies, and services to design, verify, and implement advanced semiconductors, consumer
electronics, networking and telecommunications equipment, and computer systems. The company is
headquartered in San Jose, California, with sales offices, design centers, and research facilities
around the world to serve the global electronics industry. More information about the company, its
products, and services is available at www.cadence.com.
The
statements contained in this press release under the heading
Third Quarter and Full Year 2010 Outlook Affirmed and the statements by Lip-Bu Tan include forward-looking statements based on
current expectations or beliefs, as well as a number of preliminary assumptions about future events
that are subject to factors and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. Readers are cautioned not to put undue
reliance on these forward-looking statements, which are not a guarantee of future performance and
are subject to a number of risks, uncertainties and other factors, many of which are outside
Cadences control, including, among others: (i) Cadences ability to compete successfully in the
electronic design automation product and the commercial electronic design and methodology services
industries; (ii) Cadences ability to successfully complete and realize the expected benefits of
the previously disclosed restructurings without significant unexpected costs or delays, and the
success of Cadences other efforts to improve operational efficiency and growth; (iii) the mix of
products and services sold and the timing of significant orders for Cadences products, and its
shift to a ratable license structure, which may result in changes in the mix of license types; (iv)
change in customer demands, including the possibility that the previously disclosed restructurings
and other efforts to improve operational efficiency could result in delays in customers purchases
of products and services; (v) economic and industry conditions in regions in which Cadence does
business; (vi) fluctuations in rates of exchange between the U.S. dollar and the currencies of
other countries in which Cadence does business; (vii) capital expenditure requirements, legislative
or regulatory requirements, interest rates and Cadences ability to access capital and debt
markets; (viii) the acquisition of other companies or technologies or the failure to successfully
integrate and operate these companies or technologies Cadence acquires; (ix) the effects of the
previously disclosed restructurings and other efforts to improve operational efficiency on
Cadences business, including its strategic and customer relationships, ability to retain key
employees and stock prices; (x) events that affect the reserves Cadence may take from time to time
with respect to accounts receivable, taxes, litigation or other matters; and (xi) the effects of
any litigation or other proceedings to which Cadence is or may become a party.
For a detailed discussion of these and other cautionary statements related to our business, please
refer to Cadences filings with the Securities and Exchange Commission. These include Cadences
Annual Report on Form 10-K for the year ended January 2, 2010,
its Quarterly Reports on Form 10-Q
for the quarters ended April 3, 2010 and July 3, 2010, and Cadences future filings.
Cadences Quiet Period with respect to the third quarter of 2010 originally commenced on September
17, 2010. After the date of this press release, Cadence will continue to observe a Quiet Period
during which the business outlook as provided in this press release and the companys most recent
Annual Report on Form 10-K and Quarterly Report on Form 10-Q no longer constitute the companys
current expectations. During the Quiet Period resuming after the date of this press release, 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,
Cadences representatives will not
comment on Cadences business outlook, financial results or expectations. The Quiet Period will
extend until the day when Cadences Third Quarter 2010 earnings release is published, which is
currently scheduled for October 27, 2010. Cadence does not customarily update or reaffirm its
business outlook after commencement of its Quiet Period, and does not expect to do so in the future
absent special circumstances.
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For more information, please contact:
Investors and Shareholders
Jennifer Jordan
Cadence Design Systems, Inc.
408-944-7100
investor_relations@cadence.com
Jennifer Jordan
Cadence Design Systems, Inc.
408-944-7100
investor_relations@cadence.com
Media and Industry Analysts
Lynne Cox
Cadence Design Systems, Inc.
408-914-6016
publicrelations@cadence.com
Lynne Cox
Cadence Design Systems, Inc.
408-914-6016
publicrelations@cadence.com