In a recent press release Cadence Design System (CDNS) stated that Toshiba Information Systems has selected the integrated Cadence “Virtuoso Custom IC” and “Encounter Digital Implementation System” (EDI System) technology as its mixed-signal design environment.
Cadence Virtuoso and EDI System already have a track record of delivering high-quality mixed-signal designs in a shorter design cycle. It could reduce area and design time through the seamless integration of analog and digital design functions.
Of course, this is a very big customer win for Cadence, but we are not certain about the timing of the revenue flow from this deal. Cadence did not specify any revenue details that it will generate from this customer. This apart, we believe that this deal will have a positive impact on the revenue stream, only in the medium to long term.
Cadence is struggling in a downturn in the semiconductor cycle. The company also provided a bleak second quarter and fiscal 2009 guidance. Until the second quarter results are released, we do not get a clear view of the future prospects of the company and will maintain our cautious approach on this stock.
We will maintain our Sell rating on the stock, as we believe there are better investment options available in the market.
Read the full analyst report on “CDNS”
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