From Nasdaq:

Cadence Design Systems forecasts a first-quarter revenue decline due to a year-over-year comparison with increasing shipments in 2023. The company’s shares fell by about 6% in after-hours trading. The company expects the first-quarter revenue to be between $990 million and $1.01 billion, a 2% decline, below analysts’ expectations. Excluding items, the company reported a profit of $1.38 per share in the fourth quarter, above estimates of $1.33 per share.

Cadence makes design software for chips and jet engines and sells computing systems. The company’s lower revenue forecast for the first quarter is because of catching up on hardware shipments in 2023 after supply chain problems the previous year. The company expects adjusted per-share profit for the current quarter of between $1.10 and $1.14, well below analysts’ expectations of $1.37. CFO John Wall said that the company had about 1,000 extra employees in 2024, up about 10% from the end of 2022.



Read more: Cadence Design expects lower first-quarter revenue as hardware sales normalize