(Reuters) - Chip design software maker Cadence Design Systems ( CDNS ) forecast third-quarter revenue and profit below Wall Street estimates on Monday, indicating stiff competition from rival Synopsys ( SNPS ).

San Jose, California-based Cadence's shares were down 2.1% in extended trading.

The company makes software used by engineers for designing semiconductors and its competitors include Siemens AG's Siemens EDA, formerly Mentor Graphics, Ansys and Synopsys ( SNPS ).

Synopsys ( SNPS ) is buying Ansys in a $35 billion cash-and-stock deal that is likely to consolidate its foothold in an already highly concentrated industry.

Among Cadence's customers are British chip designer Arm Holdings, automaker Tesla and chip industry bellwether Taiwan Semiconductor Manufacturing Co.

Cadence forecast third-quarter revenue between $1.165 billion and $1.195 billion, the mid-point of which is below analysts' average estimate of $1.20 billion, according to LSEG data.

It forecast adjusted earnings per share between $1.39 and $1.49 for the third quarter, below estimates of $1.60.

The company raised its fiscal 2024 revenue forecast to between $4.60 billion and $4.66 billion, compared with its prior expectations of $4.56 billion to $4.62 billion.

Cadence trimmed its annual profit per share forecast to between $5.77 and $5.97, compared with its earlier expectations of $5.88 to $5.98.

Revenue for the second quarter ended June 30 came in at $1.06 billion, slightly beating estimates of $1.04 billion.

The company's adjusted profit per share for the reported quarter came in at $1.28, compared with estimates of $1.22.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi and Devika Syamnath)