Cadence sees lower 1Q revenue
SAN JOSE: Cadence Design Systems forecast a decline in revenue for the first quarter as its hardware sales were up against tough comparisons from a year earlier, during which it ramped up shipments to clear order backlog.

The company expects first-quarter revenue to fall about 2% to between US$990mil and US$1.01bil. Analysts were expecting US$1.08bil, according to LSEG data.

Cadence makes software for designing everything from chips to jet engines, and the company also sells computing systems designed to run that complex software.

In an interview with Reuters, Nimish Modi, senior vice-president of strategy and new ventures at Cadence, said the lower revenue forecast for the first quarter of 2024 is because the company was catching up on hardware shipments in 2023 after supply chain problems the previous year.

“We have expanded our manufacturing capacity, and the lead times now have gone to much more typical numbers,” Modi told Reuters.

The San Jose, California-based company expects adjusted per-share profit for the current quarter of between US$1.10 and US$1.14, well below analysts expectations of US$1.37.

Revenue in the last three months of the year stood at US$1.07bil, beating analysts’ expectations of US$1.06bil. — Reuters
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Cadence Design Systems forecast a decline in revenue for the first quarter as its hardware sales were up against tough comparisons from a year earlier, during which it ramped up shipments to clear order backlog.