Cadence Design Systems, Inc.(CDNS), a maker of chip-design software, Wednesday reported a reduced loss in its third qaurter, helped by lower expenses. However, on an adjusted basis, earnings per share came in above analysts' expected loss. In addition, the company provided outlook for the fourth quarter and updated its guidance for the full year.
Cadence's net loss for the quarter narrowed to $14 million from $171 million in the year-ago period. On a per share basis loss was $0.05, compared with loss of $0.67 in the same quarter last year.
On a non-GAAP basis, net income was $7 million or $0.03 per share, compared with a net loss of $23 million, or $0.09 per share in the same quarter last year.
On average, six analysts polled by Thomson Reuters expected the company to report a loss of $0.01 per share for the quarter. Analysts' estimates typically exclude one-time items.
The San Jose, California-based company's revenue for the quarter declined to $216 million from $232 million in the comparable quarter last year. Analysts estimated revenue of $214.80 million for the quarter.
Loss from operations declined to $10.14 million from $109.17 million, as total cost and expenses for the quarter reduced to $ 226.26 million from $341.66 million in the year-ago period.
For the fourth quarter, the company expects GAAP net loss per share to be in the range of $0.08 - $0.06 and non-GAAP net income per share of $0.02 - $0.04, on revenues of $215 million - $225 million. Analysts estimate earnings of $0.01 per share, on revenues of $220.63 million for the fourth quarter.
Looking forward, for fiscal 2009, Cadence now expects net loss per share to be in the range of $0.66 to $0.64. On non-GAAP basis, net loss per share is now expected to be in the range of $0.10 - $0.08, compared to its prior range of loss $0.20 - $0.08. Total revenues are currently projected in the range of $845 million - $855 million. Analysts expect full-year loss of $0.14 per share, on revenues of $851.62 million.
CDNS closed Wednesday's regular trading at $7.03, down $0.32 or 4.35% on a volume of 3.01 million shares on the Nasdaq.
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