Cadence, based in San Jose, Calif., reported net loss rose to $74.4 million, or 29 cents per share, in the three months ended July 4 compared with net loss of $18.8 million, or 7 cents per share, in the second quarter of 2008. The company's revenue tumbled 32 percent, to $210 million from $308.3 million in the comparable year-ago quarter.

The company piled up $18.5 million in restructuring and other charges in the recent quarter, helping to drive it deeper into the red. Cadence has been reorganizing operations and aggressively cutting costs to improve its competitive position.

The company is also recovering from the negative impact of its attempt to acquire a major rival in the EDA world. Executives at the company said they believe the company is poised for growth following its restructuring actions.

"While we have not yet seen a recovery in EDA spending, the Cadence recovery is well underway," said Cadence president and CEO Lip-Bu Tan in a statement. "We reduced our expense base, customer feedback is that the level of engineering and field engagement is extremely effective, and our key technologies continue to gain traction."

That optimism on the part of its executive is not fully reflected in the company's revenue forecast, though. Cadence said it sees third quarter revenue in the "range of $210 million to $220 million," representing at best a slight increase on a sequential basis and still below the $238 million in sales reported by the company in the September 2008 period.

The company is also projecting full year revenue of $830 million to $870 million, down from the $1 billion posted in 2008 and the $1.6 billion from 2007.