Cadence Design Systems, Inc. (CDNS) Reports Strong Fourth-Quarter Results

Analysts Richard Valera and Patrick O’ Brien at Needham have released a report reviewing the fourth-quarter results at Cadence Design Systems, Inc. (NASDAQ: CDNS). The company reported strong results across all metrics for the first time in several quarters, according to analysts.

The company reported revenue of $220 million, which was in line with the analysts’ estimate. The EPS of $0.06 beat the analysts’ estimate of $0.03. The company finished 2009 with $615 million of bookings.

The company also issued guidance for 2010. The initial guidance for bookings of $775-$825 million is in line with analysts’ estimates. The company expects EPS of $0.05-$0.15 on revenue of $865-$900 million for 2010.

Analysts have revised their estimates for 2010 and now estimate EPS of $0.09 on revenue of $883 million, slightly below their previous EPS estimate of $0.11 on revenue of $887 million.

Needham has maintained a Buy rating for Cadence Design Systems, Inc. The price target for Cadence has been now set at $7.50.