Dallas, Texas 10/17/2013 (Financialstrend) – Cadence Design Systems Inc (NASDAQ:CDNS) is a technology player which builds software applications which helps business leverage technology. The past month has been most happening for this $3.95 billion applications provider. It released new software, managed to sell off non core business for a premium and at the end of it managed a ratings upgrade from ratings agency.
At the beginning of September, Cadence Design Systems Inc (NASDAQ:CDNS) had announced that it was selling its “PANTA display controller core” IP to ARM (ARMH +1.2%). At the time of announcement the financial implications of the deal were not disclosed. The products which were part of the portfolio picked up by ARM include display processors and display scaling coprocessor cores.
On September 27, rating agency D.A. Davidson upgraded the stock to buy. Thomas Diffely, the analyst who covers this stock for Davidson has summarized that the software vendor is displaying significant increase in design activity coupled with strong fundamentals. He had gone on to set a PT of $16.
In the latest development, on October 16, it announced the launch of a new series of “high performance data convertors”. The firm believes that these new convertor devices offer 10 times faster conversion in comparison to competing IP solutions. These newly released products are expected to cater to the growing demand for fast processors by “wired and wireless communications applications.”
Thanks to these positive developments, the stock of this IT vendor has regained some of its lost market valuation. As of close of business on October 16, the stock was trading at $14.25 per share up 1% from its previous day close. This appreciation was on the back of 6.9% increase the stock had charted during trading over the past week. Investors in the stock would be hoping that with these new launches coupled with sharper focus on its operations the company would be able to grow faster.