BENSALEM, Pa., Oct. 24, 2008 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith announces that it is investigating potential claims against Cadence Design Systems, Inc. ("Cadence" or the "Company") (Nasdaq:CDNS) concerning possible securities violations related to the Company's October 22, 2008, press release in which Cadence informed investors that it was delaying the announcement of the Company's third-quarter financial results and that Cadence is reviewing, in conjunction with the Company's independent accountants and legal advisors, the recognition of revenue related to customer contracts signed during the first quarter of 2008.
Cadence further revealed that the Company initiated the review after preliminarily determining during its regular review of its third quarter results that approximately $24 million of revenue relating to these contracts was recognized during the first quarter of 2008, but should have been recognized ratably over the duration of the contracts, commencing in the second quarter of 2008. Cadence expects to restate its financial statements for the first quarter of 2008 and the first half of 2008 to correct the revenue recognition with respect to these contracts.
The disclosed accounting review follows a string of recent financial problems at the Company and several quarters of disappointing sales and profit reports. On October 15, 2008, Cadence's stock declined more than 15% after the Company disclosed that Michael Fister had resigned as President, Chief Executive Officer and a director of the company, and that four other Cadence executives had also resigned. In August 2008, Cadence was forced to terminate its hostile takeover bid for Mentor Graphics Corporation because of Cadence's deteriorating condition and difficulty in obtaining attractive financing terms from lenders.
If you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com.