28-07-2025
Chip design software provider Cadence raises annual sales forecast
(Reuters) -Cadence Design Systems raised its sales forecast for the year on Monday, after the U.S. lifted export curbs on chip design software to China earlier this month, allowing the company to resume sales to the key market.
Shares of the San Jose, California-based company rose 7% in extended trading after rising about 10% this year.
The company expects annual revenue between $5.21 billion and $5.27 billion, up from its earlier forecast of sales between $5.15 billion and $5.23 billion.
"Cadence delivered excellent results for Q2, with broad-based strength across all businesses, more than offsetting the impact of the temporary restrictions on exports to China imposed on May 23rd," Chief Financial Officer John Wall said in a statement.
Removal of the restrictions, which were announced late in May, allowed Cadence to again service the market that brings over 10% of revenue for the company, after an initial suspension of services to China had hurt sales and investor sentiment.
The company reported revenue of $1.28 billion for the June quarter, beating analysts' average estimate of $1.25 billion, according to data compiled by LSEG.
