...because he fixed it in the mix.
Don't believe me? From the Seeking Alpha transcript (I haven't had a chance to listen through the audio yet) of Cadence Design Systems' Q2 conference call:
"...we made the difficult but necessary decision to lower our outlook, and transition to an approximately 90% ratable license mix. We believe this transition will enable to us keep our focus on the value of our technology, and this decision is the right one for our business over the long-term and for building sustaining strong customer relationships in the future."
Which, as I recall, was the reason last time for adjusting the balance between how much revenue Cadence recognises upfront for licences in its quarterlies versus the amount spread out over the term of the licence. I need to dig out the old 10Qs and 10Ks and transcripts to find the previous changes in but, as I indicated in my first blog post about the attempted takeover of Mentor Graphics, this kind of financial shuffling is a familiar one to anybody who watches the electronic design automation. I didn't think they'd have the balls to try it again. I await the day when one of the big EDA companies goes for a 110% rateble mix and starts invoking complex numbers in its non-GAAP reporting.
This means that the discrepancies between Cadence's and Mentor's financials will be that much larger if the merger goes through, which makes any comparisons between the businesses now and in the future even tougher for anyone trying to analyse the figures.
And with that, over to Indeep.