What is the main reason for the financial restatement?

The primary reason for the restatement is to correct the accounting treatment for certain minority equity investments made by Cadence and its affiliated venture capital partnerships in prior periods.

Which financial periods are affected by the restatement?

The restatement affects Cadence's financial statements for its fiscal year 2002 and the first, second, and third quarters of fiscal 2003.

What is the SEC's involvement in this matter?

The SEC has been notified of the proposed restatement and is evaluating it as part of its current review of Cadence's Registration Statement on Form S-3. Cadence is working with the SEC to resolve these matters.

Could there be further financial impacts beyond the announced restatements?

Yes, there is a possibility. Cadence cannot assure that the SEC will agree with its proposed restatements, and the SEC might require additional items to be restated, potentially necessitating a re-audit of certain prior periods.

CDNS 8-K SEC Disclosure

Summary

Cadence Design Systems, Inc. (CDNS) announced in an 8-K filing on January 28, 2004, that it will restate financial information for its fiscal year 2002 and the first three quarters of fiscal 2003. The restatements are primarily due to accounting corrections related to minority equity investments made by the company and its affiliated venture capital partnerships. While some adjustments are expected to be immaterial individually and in aggregate, the company is cooperating with the SEC's review of these proposed restatements. In addition to the restatement announcement, Cadence also released its fourth-quarter and fiscal 2003 financial results. Investors should note the potential uncertainty surrounding the SEC's evaluation of the restatements, as the commission may require further adjustments or a re-audit of affected periods. The company is actively working to resolve these matters with the SEC.

Key Highlights

1Cadence Design Systems to restate financial statements for FY 2002 and Q1-Q3 of FY 2003.
2Restatements are related to accounting treatment of minority equity investments.
3SEC is currently reviewing the proposed restatements.
4Company is cooperating with the SEC and aims for a prompt resolution.
5Cadence also reported its Q4 and FY 2003 financial results.
6Potential for further restatements or re-audits if SEC requires additional items.
7The press release and detailed adjustment schedules are attached as exhibits.

CADENCE DESIGN SYSTEMS INC 8-K Report (Jan 28, 2004)

Summary

Key Highlights

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