Cadence Design Systems"under-perform"

01/02/04 - D.A. Davidson & Co.

NEW YORK, January 2 (New Ratings) - Analysts at DA Davidson issue an "underperform" rating on Cadence Design Systems (CDN).

In a research note published on December 31, the analysts mention that the company is likely to end 2004 with a weak financial position as a result of additional debt. The company’s cost structure is expected to improve during the year, although the analysts believe that Cadence Design Systems needs to integrate its various acquisitions. The company has not provided any guidance for the current quarter, but has announced the resignation of Penny Herscher as the general manager of its design and verification segment, the analysts say. Penny Herscher is credited with various cost cutting and rationalization measures during the year, the analysts point out.