Cadence's stock fell as low as 40-5/8 before finishing the day at 42--down 1-3/4 points from yesterday.
The company reported a fourth quarter net loss of $57.8 million, or 72 cents a share, for the quarter ending December 28, compared with net profits of $30.8 million, or 33 cents, a year ago. Cadence attributed the drop to snatching up High Level Design Systems.
The company, however, took a $100.5 million one-time charge for its High Level acquisition, which is designed to give Cadence a leg up in developing complex, densely packed semiconductors known as systems on-a-chip. Without the write-off, Cadence would have reported earnings of $41.1 million , or 44 cents a share.
That operating performance beat analysts' estimates of 41 cents a share, according to First Call.
Revenues climbed 29.6 percent to $212.3 million for the quarter, up from $163.7 million from a year ago.
Cadence also acquired Cooper & Chyan Technology, a printed circuit board and integrated circuits design tool maker, in a $420 million stock-swap deal last fall.