J.P. Morgan Report It's Adjusting Cadence Design Systems' Product Revenue Mix

In a report published by J.P. Morgan, Cadence Design Systems' (NASDAQ: CDNS) product revenue mix is being adjusted.

J.P. Morgan said its model has been focused on the cascading waterfall associated with Cadence's shift to the 90% ratable model that drives total revenue, but it has not been focused nearly as much on how the accountants split that total revenue up into the various buckets (especially product and maintenance). “The reason for this is we have focused largely on bookings as the driver of revenue, given the subscription business model. Nonetheless, we are taking the opportunity to review the mix of product, service, and maintenance revenue to eliminate any investor confusion, and are leaving our estimates unchanged.”

Cadence Design Systems closed yesterday at $9.92.