Cadence Reports Third Quarter 2014 Financial Results

SAN JOSE, Calif. -- Oct 20, 2014 -- Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced results for the third quarter of fiscal year 2014.

Cadence reported third quarter 2014 revenue of $400 million, compared to revenue of $367 million reported for the same period in 2013. On a GAAP basis, Cadence recognized net income of $38 million, or $0.12 per share on a diluted basis, in the third quarter of 2014, compared to net income of $39 million, or $0.13 per share on a diluted basis, for the same period in 2013.

Using the non-GAAP measure defined below, net income in the third quarter of 2014 was $80 million, or $0.26 per share on a diluted basis, as compared to net income of $63 million, or $0.21 per share on a diluted basis, for the same period in 2013.

“Cadence continued to drive growth in the third quarter, with wins in core EDA and our expanding systems business,” said Lip-Bu Tan, president and chief executive officer. “We won significant new business in digital and signoff at the most advanced nodes, our Incisive® simulation business is at the highest level in years, and IP had a record quarter. We continue to invest in innovation, and announced two new products in the third quarter.”

“Cadence delivered strong results in Q3 with revenue and other key operating metrics exceeding targets,” added Geoff Ribar, senior vice president and chief financial officer. “Our consistent performance has enabled us to issue $350 million in investment-grade bonds - a significant milestone for any company our size - that will strengthen our capital structure and fund our continued investment in innovation.”

Business Outlook
For the fourth quarter of 2014, the company expects total revenue in the range of $417 million to $427 million. Fourth quarter GAAP net income per diluted share is expected to be in the range of $0.16 to $0.18. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.26 to $0.28.

For 2014, the company expects total revenue in the range of $1.575 billion to $1.585 billion. On a GAAP basis, net income per diluted share for 2014 is expected to be in the range of $0.46 to $0.48. Using the non-GAAP measure defined below, net income per diluted share for 2014 is expected to be in the range of $0.92 to $0.94.

A schedule showing a reconciliation of the business outlook from GAAP net income and diluted net income per share to non-GAAP net income and diluted net income per share is also included with this release.

Financial Tables

Click here for the Q3 2014 Financial Schedules.

Audio Webcast Scheduled
Lip-Bu Tan, president and chief executive officer, and Geoff Ribar, senior vice president and chief financial officer, will host a third quarter 2014 financial results audio webcast today, October 20, 2014, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting October 20, 2014 at 5 p.m. (Pacific) and ending December 19, 2014 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.

About Cadence
Cadence enables global electronic design innovation and plays an essential role in the creation of today’s integrated circuits and electronics. Customers use Cadence® software, hardware, IP, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. The company is headquartered in San Jose, California, with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company and its products and services is available at www.cadence.com.