SAN FRANCISCO -- As expected, Cadence Design Systems (CDNS) - Get Report reported a big first-quarter drop to both the top and bottom lines Wednesday.

The semiconductor-design software company

had projected at the end of January that revenue

would fall short of last year's performance.

The San Jose, Calif. company said Wednesday that revenue declined 21% to $287.2 million from $365.2 million a year ago. Analysts were expecting $284.3 million, according to Thomson Financial.

The company lost $18.7 million, or 7 cents a share, vs. posting earnings of $44.4 million, or 15 cents a share, in the year-ago period.

Excluding items, EPS was 4 cents. Analysts were expecting 5 cents.

Shares were down 29 cents, or 2.6%, to $10.95 in after-hours trading.

For the second quarter, the company projected revenue of $310 million to $320 million and EPS, less items, of 13 cents to 15 cents. Analysts were expecting $312.6 million and 15 cents a share, less items.

The company also named Kevin S. Palatnik as chief financial officer to succeed and report to William Porter, who was appointed to the newly created role of chief administrative officer.

As the chip industry forecasts slower growth, demand for design software and services has contracted at some suppliers. But Cadence competitors

Synopsys

(SNPS) - Get Report

and

Mentor Graphics

(MENT)

both beat expectations when they reported earnings in February.

Stock in smaller rival

Magma Design Automation

( LAVA) has fallen 22% in the past three months. It reports earnings May 1.