Cadence Reports First Quarter 2016 Financial Results

SAN JOSE, Calif. , 25 Apr 2016 -- Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced results for the first quarter 2016. Cadence reported first quarter 2016 revenue of $448 million, compared to revenue of $411 million reported for the same period in 2015. On a GAAP basis, Cadence recognized net income of $51 million, or $0.17 per share on a diluted basis, in the first quarter of 2016, compared to net income of $36 million, or $0.12 per share on a diluted basis, for the same period in 2015.

Using the non-GAAP measure defined below, net income in the first quarter of 2016 was $86 million, or $0.28 per share on a diluted basis, as compared to net income of $72 million, or $0.23 per share on a diluted basis, for the same period in 2015.

“In the first quarter of 2016, we continued to innovate and execute to drive growth and deliver results for our customers. With customers enthusiastically embracing our Palladium® Z1 Enterprise Emulation Platform, Cadence achieved its best quarter ever for hardware revenue. Additionally, the release of the next-generation Virtuoso® platform sets a new standard for analog and mixed-signal design for broad applications including automotive and IoT,” said Lip-Bu Tan, president and chief executive officer. “Our recently announced pending acquisition of Rocketick Technologies will further strengthen our System Design Enablement strategy by delivering ultra-high-performance simulation to accelerate the development of complete end-product systems.”

“Strong execution at all levels of the company enabled Cadence to produce solid financial results in an environment that remains challenging,” said Geoff Ribar, senior vice president and chief financial officer. “During Q1, we repurchased 11.6 million shares for $240 million, reducing shares outstanding to 301 million at quarter-end.”

CFO Commentary
Commentary on the first quarter 2016 financial results by Geoff Ribar, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.

Business Outlook
For the second quarter of 2016, the company expects total revenue in the range of $445 million to $455 million. Second quarter GAAP net income per diluted share is expected to be in the range of $0.17 to $0.19. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.27 to $0.29.

For 2016, the company expects total revenue in the range of $1.790 billion to $1.840 billion. On a GAAP basis, net income per diluted share for 2016 is expected to be in the range of $0.71 to $0.81. Using the non-GAAP measure defined below, net income per diluted share for 2016 is expected to be in the range of $1.15 to $1.25.

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 included in this release.

Financial Tables

To read financial tables, click here

Audio Webcast Scheduled
Lip-Bu Tan, president and chief executive officer, and Geoff Ribar, senior vice president and chief financial officer, will host a first quarter 2016 financial results audio webcast today, April 25, 2016, 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 April 25, 2016 at 5 p.m. (Pacific) and ending June 17, 2016 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.

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