Cadence Design Systems -4.7% on light Q2 guidance

|About: Cadence Design Systems, Inc. (CDNS)|By:, SA News Editor

Cadence Design Systems (CDNS +1.8%) has slipped 4.7% after hours following Q1 earnings that met expectations but featured some downside guidance for Q2.

Revenues grew 6.5% and EPS increased nearly 50% on a GAAP basis, to $0.25. Non-GAAP EPS increased to $0.32 from $0.28.

Cash and equivalents came to $544.1M as of April 1, up from $465.2M at year-end 2016.

Revenue breakout: Product and maintenance, $451.4M (up 9.6%); Services, $25.5M (down 29.4%).

For Q2, it's guiding to revenues of $470M-$480M (below consensus for $480.6M), with non-GAAP EPS forecast at $0.31-$0.33 (below expectations for $0.34). It's reiterating guidance for the full fiscal year, for revenue of $1.9B-$1.95B (vs. consensus for $1.93B) and non-GAAP EPS of $1.34-$1.42 (vs. $1.38 expected).

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