Cadence Design Systems posts 4th-quarter profit on lower costs, offers 1Q outlook

Cadence Design posts 4Q profit on lower costs

SAN JOSE, Calif. — Cadence Design Systems Inc., a maker of chip manufacturing equipment, on Wednesday reported a profit for the fourth quarter as lower costs more than offset a drop in revenue.

The San Jose, Calif., company earned $1.8 million, or a penny per share, compared with a loss of $1.63 billion, or $6.55 per share, in the same quarter a year earlier. The 2008 quarter included a $1.36 billion noncash charge to write down the value of its assets.

Excluding one-time items, in the latest quarter Cadence earned $15 million, or 6 cents per share, compared with a year-ago loss of $11 million, or 4 cents per share.

Analysts forecast profit of 3 cents per share, according to Thomson Reuters. Analyst estimates typically exclude one-time items.

Revenue fell to $220.3 million from $227.3 million. Analysts forecast revenue of $220.7 million.

For the year, Cadence said it lost $149.9 million, or 58 cents per share, compared with a loss of $1.86 billion, or $7.30 per share, in 2008. Excluding one-time items, the company lost $16 million, or 16 cents per share, compared with a loss of $10 million, or 4 cents per share.

Looking ahead, Cadence said it expects to post first-quarter revenue of $210 million to $220 million with earnings. On a per-share basis, the company expects results to range from breakeven to profit of 2 cents per share.

Analysts expect the company to break even on revenue of $213.9 million.

For the year, Cadence projected revenue of $865 million to $900 million, with adjusted income of 5 cents to 15 cents per share. Analysts forecast revenue of $900.6 million and earnings of 11 cents per share.

Shares of Cadence fell by 18 cents, or 3 percent, to $5.90 in after-hours trading. They earlier finished the regular trading session down a penny at $6.08.