Cadence Design Systems' Net Doubles

Revenue was up 8.5% over the previous third quarter.
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Cadence Design Systems (CDNS) - Get Report said Thursday that its third-quarter earnings doubled, led by strong revenue and better margins.

The company, a provider of electronic design automation technologies and engineering services, earned $42.06 million, or 14 cents a share, in the quarter, compared with $21.27 million, or 7 cents a share, a year ago. Adjusted for items, earnings were 26 cents a share, in the most recent quarter. Analysts were expecting earnings of 25 cents a share.

Third-quarter revenue rose 8.5% from a year ago to $366.15 million.

The San Jose, Calif.-based company expects to earn 20 cents a share to 22 cents a share in the fourth quarter, on revenue of $405 million to $415 million. Adjusted earnings are expected to be 34 cents a share to 36 cents a share.

Full-year 2006 earnings are expected to be 50 cents a share to 52 cents a share, on revenue of $1.458 billion to $1.468 billion. Adjusted earnings are expected to be $1.04 a share to $1.06 a share.

Analysts expect EPS of 35 cents, on revenue of $410.68 million for the fourth quarter, and $1.03 a share, on revenue of $1.46 billion for the full year.

"We continue to execute on our strategy. We are growing our core business and in the case of verification, expanding the market," the company said. "Again in the third quarter we achieved our targets for revenue growth, operating margin and cash flow, led by solid business across all geographies and strong performances in verification and custom IC."

Shares were recently trading at $17.93, up 26 cents, or 1.47%.

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