I recall FF stating something to the effect that he would like EDIG to become a company like CADENCE. Anyone recall that off the cuff comment? Well it didn`t quite play out like that but, as a wise man once stated, ``We can whine about it, or move on to the next project which may have promise. I choose to keep the whinning to a minimum and see what is possible with this speculative penny stock.`` Anyone remember who said that?

Maybe EDIG will redeem itself as the IP efforts play out, as there has no doubt been tremendous growth in product development, leading the growth in chip sales.

Updated: Strong customer R&D investment drives Cadence growth

Spencer Chin, Dylan McGrath

EE Times

(07/26/2006 5:07 PM EDT)

SAN FRANCISCO — Driven by strength in verification and digital design tools, Cadence Design Systems Inc. posted its 11th consecutive quarter of year-to-year revenue growth during the second quarter, the company said Wednesday (July 26).

Cadence (San Jose, Calif.) reported second quarter revenue of $359 million, up 12 percent over the $321 million reported for the same period in 2005. GAAP net earnings were $30 million, or 10 cents per share, compared to $0.5 million or zero cents per share in the same period in 2005.

Sequentially, second quarter revenue was up 9 percent from the $328 million that Cadence posted for the first quarter.

In an interview with EE Times Jim Miller, executive vice president of Cadence`s products and technologies organization, characterized the second quarter as ``a very strong quarter.`` The quarter was the 11th consecutive quarter in which Cadence has posted year-to-year growth, Miller said.

Miller said the second quarter growth was led by strength in Cadence`s verification and digital product lines.

Miller said Cadence continues to see a interest driven by growth in consumer devices, which he noted now account for 54 percent of chips consumed, according to the Semiconductor Industry Association.

Cadence continues to benefit from strong R&D investment by customers, which continues to grow in the high single digits, Miller said.

For the third quarter of 2006, Cadence expects sales of $350 million to $360 million. Third quarter GAAP earnings are expected to be 12 to 14 cents per share.

For the full year 2006, the company expects total sales of $1.425 billion to $1.475 billion. On a GAAP basis, net earnings are expected to be 45 to 53 cents per share.

Last week, Mentor Graphics Corp. announced its second quarter financials, posting strong 15 percent year-to-year growth. In May, Synopsys Inc., the other member of EDA`s ``big three,`` posted 12 percent year-to-year growth for its fiscal second quarter.