Cadence Design 2Q profit plummets, cuts guidance

Cadence Design Systems, Inc. reported late Wednesday that its net income plummeted in the second quarter and that it was lowering its earning expectations for the third quarter.

The electronic design software maker said net income dropped to $5 million, or 2 cents per share, in the second quarter, compared to $60 million, or 20 cents per share, for the same quarter last year.

Excluding special items, the company's net income was $38 million, or 14 per share, compared to $91 million, or 30 cents per share for the quarter last year _ meeting analyst expectations.

Analysts polled by Thomson Financial expected earnings of 14 cents per share for the company.

"Although we achieved our Q2 numbers, it was more difficult than we planned" said Mike Fister, CEO of Cadence. "Customers are demanding still more flexibility in when, what and how they purchase software and hardware."

The company lowered its outlook for the third quarter as well, saying it projects total revenue of $235 million to $245 million and a net loss of 25 to 27 cents per share for the quarter, or 9 to 11 cents per share excluding some items.

Shares of the company dropped more than 27 percent in after-hours trading to $7.42. The stock ended the regular trading session up 13 cents at $10.27.