(Reuters) – Cadence Design Systems provides for its annual income and lower profits to analysts’ estimates on Tuesday, in a signs of sweet demand for its flea design software, customers tighten expenses in a difficult economy.
The actions of the company based in San Jose, California, fell 5% in prolonged trade.
The company, which has British Chip Designer Arm Holdings, Nvidia and the manufacturer of Tesla electric vehicles among its customers, manufactures software to design everything, from chips to jet engines. It also sells IT systems designed to execute this complex software.
Berenberg analysts have said that customer demand and budgets for the design and analysis of the cadence system would be smothered throughout 2025 due to the continuous slowdown in industry on the final market of the automobile.
China represents a material part of cadence activities. New Restrictions by the United States government on semiconductor technology sales to Chinese entities could significantly reduce its activities in the country, they said in a note in January.
The highly concentrated rate of rate market share is also threatened by the acquisition proposed by the engineering software company by Rival Synopsys, Ansys in an agreement of 35 billion dollars in cash and topicality.
The company provides that its income from the 2025 fiscal year is between $ 5.14 billion and $ 5.22 billion, compared to the average estimate of analysts of $ 5.25 billion, according to data compiled by Lseg.
Cadence provides for its annual profit, excluding the elements, in a range of $ 6.65 to $ 6.75 per share, also below the estimate of $ 6.83 per share.
Its income amounted to $ 1.36 billion for the closed quarter on December 31, an increase of 26.8% compared to the previous year.
Excluding articles, the company won $ 1.88 per share in the fourth quarter, compared to the estimate of $ 1.82.
(Report by Juby Babu in Mexico City; edition by Shilpi Majumdar)
