Cadence Design Systems, Inc. (NASDAQ:CDNS) received a lot of attention from a substantial price increase on the...

ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company.

Peak open interest sits at the May 80 call

Chip design software maker Cadence Design Systems late Monday beat Wall Street's sales and earnings targets for the first quarter. But its earnings outlook drove CDNS stock lower.

Cadence Reports First Quarter 2020 Financial Results

Cadence Design Systems, Inc. (Nasdaq: CDNS):

(Bloomberg) -- SoftBank Group Corp. doubled the amount it plans to spend buying back shares and announced changes to its board, including the resignation of long-time director Jack Ma.The company plans to repurchase as much as 500 billion yen ($4.7 billion) worth of its own stock by March 2021, it said in a statement. That’s on top of an equally sized repurchase it had announced in mid-March.The Tokyo-based company also announced several changes to its board, including the departure of Ma, the co-founder of Alibaba Group Holding Ltd. Three new directors have been nominated, including Chief Financial Officer Yoshimitsu Goto. SoftBank shares rose as much as 3%.SoftBank, led by founder Masayoshi Son, is buying back shares to bolster its stock price after its portfolio of startup investments lost value. The company expects to book a record 1.35 trillion yen operating loss for the year ended March 31 when it reports financial results Monday afternoon in Tokyo. After aggressively investing in startups in recent years, SoftBank is marking down the value of stakes in companies such as WeWork, Oyo Hotels and Uber Technologies Inc.“The buyback announcement is a surprise, given the slew of low expectations and bad news,” said Justin Tang, head of Asian research at United First Partners.SoftBank plans to fund the buybacks in part through the sale of stakes in Alibaba and T-Mobile US Inc., Bloomberg News has reported. SoftBank is now in talks to sell a “significant portion” of T-Mobile US to controlling shareholder Deutsche Telekom AG, Dow Jones reported.The company said on Friday that it had bought 250.6 billion yen of its own stock since March 13 under the original re-purchase plan, about half of the 500 billion yen budget.Read more: SoftBank’s $23 Billion Buyback Helps Investors Ignore Profit HitThat first buyback, announced in mid-March, initially failed to lift SoftBank’s stock amid concerns the conglomerate’s portfolio of startups is vulnerable to the economic shock from the coronavirus pandemic. When the shares plunged more than 30% in the week that followed, Son took an unprecedented step to unveil a broader plan to repurchase as much as 2 trillion yen, without detailing the timing. The latest announcement is part of that broader plan.“Son is also sending a message that he is serious about funding that 2 trillion yen buyback he announced in March,” Tang said.The stock gained almost 70% since SoftBank said it plans to sell assets to raise as much as 4.5 trillion yen over the coming year to buy shares and slash debt.Read more: SoftBank Heads for Record Loss After $80 Billion Startup SpreeThe company’s Vision Fund business, focused on technology investments that contributed more than half of its reported profit a year ago, has swung to a projected 1.8 trillion yen loss. The company’s overall net loss will likely reach 900 billion yen.Son’s increasingly risky bets over the past few years coincided with departures from SoftBank’s board of some of it most outspoken members. Shigenobu Nagamori, the founder of motor maker Nidec Corp., stepped down in 2017, while Fast Retailing Co. Chief Executive Officer Tadashi Yanai left last December. When Paul Singer’s Elliott Management Corp. disclosed in February that is has built a stake of close to $3 billion in SoftBank, one of its requests was to increase the number of independent directors.Ma’s departure is a historic moment since he and Son have sat on each other’s boards for years. Alibaba is regarded as Son’s most successful investment. In addition to Goto, a long-time SoftBank veteran, Lip-Bu Tan and Yuko Kawamoto will join, bringing the total of external board members to four.Tan is a founder and chairman of Walden International, a venture capital firm based in San Francisco, and CEO of Cadence Design Systems Inc. He holds a master’s degree in nuclear engineering from the Massachusetts Institute of Technology and received an MBA from the University of San Francisco.Kawamoto is a professor at Waseda University whose subjects include corporate governance. She holds a bachelor’s degree in social psychology from the University of Tokyo, a master’s degree in development economics from Oxford University and spent years working at McKinsey & Co. Kawamoto will be SoftBank’s sole female board member.(Updates with details of asset sales in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Is (CDNS) Outperforming Other Computer and Technology Stocks This Year?

Cadence Design Systems, Inc. (Nasdaq: CDNS):

Cadence (CDNS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Cadence’s Lip-Bu Tan to Present at J.P. Morgan Virtual Conference

Is (CDNS) Outperforming Other Computer and Technology Stocks This Year?

Cadence Design Systems (NASDAQ:CDNS) shareholders are no doubt pleased to see that the share price has had a great...

Q1 2020 Cadence Design Systems Inc Earnings Call

Intel Capital, the venture arm of chipmaker Intel Corp, has invested in two Chinese startups in the semiconductor sector, the company announced on Wednesday, as part of its latest batch of deals. The investments in companies that compete in fields typically dominated by U.S. players come as Intel remains embroiled in tensions between the United States and China over chip manufacturing. ProPlus, one the Chinese startups Intel Capital has funded, makes EDA software that chip makers use to design their products before manufacturing them.

Cadence (CDNS) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank 2 (Buy).

Investing.com - Cadence Design (NASDAQ:CDNS) reported on Monday first quarter earnings that beat analysts' forecasts and revenue that topped expectations.

Cadence's (CDNS) first-quarter 2020 results benefit from robust demand for the company's digital & signoff and IP solutions as well as Cadence Verification Suite's expanding clientele.

Futures fell as crude prices tumbled Monday The coronavirus stock market rally is running, with Microsoft, Amazon, Apple and AMD all showing strength. Sitting out is a risk.

Cadence broadened its collaboration with Arm to advance the development of mobile devices based on the Arm Cortex-A78 and Cortex-X1 CPUs.