Updated from 4:46 p.m. EST
Cadence Design Systems
quadrupled its fourth-quarter net income on sales growth of 10%, but the semiconductor software company also said late Thursday it will cut 200 jobs, or 4% of its workforce.
Cadence reported fourth-quarter net income of $60 million, or 20 cents a share, on sales of $343 million. During the same quarter last year, the company earned $15 million, or 5 cents a share, on sales of $311 million.
Excluding charges, Cadence earned 26 cents a share, a penny better than analysts expected. The sales target on Wall Street was $338 million, according to Thomson First Call.
Cadence's job cuts stem from an internal realignment that will eliminate marketing and development on a per-business-unit basis in favor of companywide marketing and development efforts. The cuts will mostly occur in San Jose, Calif., where Cadence is headquartered.
For the first quarter, Cadence expects earnings of 1 cent to 3 cents a share on sales between $280 million and $290 million. Excluding charges, the company predicted earnings to be between 13 cents and 15 cents a share. Analysts had predicted earnings excluding charges of 14 cents a share and sales of $289 million.
For full-year 2005, Cadence predicted earnings of 23 cents to 31 cents a share on sales between $1.24 billion and $1.3 billion. Excluding charges, the company targeted earnings of 73 cents to 81 cents a share.
Cadence's software is used by semiconductor makers to automate the design and manufacturing processes of chips.
Cadence will host an analysts' day on March 1, and the company's first-quarter report is scheduled for April 27.