Cadence (San Jose, Calif.) posted fourth quarter revenue of $227 million, exceeding the guided range of $215 million to $225 million that the company provided in December. Still, fourth quarter revenue was down 102 percent from $458 million in the fourth quarter of 2007.

The $1.64 billion GAAP net loss, which equates to $6.57 per share on a diluted basis, Cadence said. For the comparable period of 2007 Cadence reported a net income of $120 million, or 41 cents per diluted share.

Revenue for the full year 2008 totaled $1.04 billion, down 36 percent from $1.62 billion in 2007, Cadence said. The company posted a GAAP net loss for fiscal 2008 of $1.85 billion, or $7.29 per share, compared to a net income of $296 million, or $1.01 per share, for 2007.

Cadence said the GAAP net loss for the fourth quarter and fiscal year 2008 included a non-cash impairment charge of $1.36 billion, related to Cadence's goodwill, intangible assets and fixed assets. The impairment charge, which was driven by adverse economic conditions and a decline in the company's market capitalization, has no effect on the company's cash flows, Cadence said.

Cadence said it expects revenue for the first quarter of 2009 to be between $200 million and $210 million. The company is expecting to report a loss of 31 to 33 cents per share on a GAAP basis, and 11 to 13 cents per share on a non-GAAP basis.

For full year 2009, Cadence expects revenue to be $830 million to $870 million. The company expects to report a loss for the year of 87 to 99 cents per share on a GAAP basis and 24 to 26 cents per share on a non-GAAP basis.

Cadence executives said the company made progress during the fourth quarter in moving toward its stated goal of a ratable business model in which 90 percent of revenue comes from backlog. More than 85 percent of orders booked during the fourth quarter were under ratable licenses, and Cadence expects to achieve close to 90 percent in ratable orders for 2009, said Kevin Palatnik, senior vice president and chief financial officer.

Lip-Bu Tan, Cadence's president and CEO, closed the analyst call following Cadence's earnings report by saying he believes in the company and its product portfolio. "While it's a tough environment for customers, we've taken the right steps to position Cadence for the future," Tan said.