Cadence Reports Second Quarter 2016 Financial Results

SAN JOSE, Calif., 25 Jul 2016

Click here for the Q2 2016 Financial Schedules.

Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced results for the second quarter 2016.

Cadence reported second quarter 2016 revenue of $453 million, compared to revenue of $416 million reported for the same period in 2015. On a GAAP basis, Cadence recognized net income of $49 million, or $0.17 per share on a diluted basis, in the second quarter of 2016, compared to net income of $58 million, or $0.19 per share on a diluted basis, for the same period in 2015.

Using the non-GAAP measure defined below, net income in the second quarter of 2016 was $86 million, or $0.29 per share on a diluted basis, as compared to net income of $85 million, or $0.27 per share on a diluted basis, for the same period in 2015.

“The second quarter was highlighted by strong business with systems companies across multiple vertical segments,” said Lip-Bu Tan, president and chief executive officer. “Demand for our new Palladium® Z1 emulation platform led to another record quarter for hardware revenue, and we introduced the next generation of our OrCAD® and Allegro® families of printed circuit board design products with support for flexible board technology.”

“Through strong execution Cadence again produced good financial results in a challenging environment,” said Geoff Ribar, senior vice president and chief financial officer. “Since our current stock repurchase program began in Q3 of 2015, we have repurchased a total of 32.9 million shares for $720 million, representing approximately 11 percent of shares outstanding.”

CFO Commentary
Commentary on the second 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 third quarter of 2016, the company expects total revenue in the range of $440 million to $450 million. Third 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 $1.800 billion to $1.830 billion. On a GAAP basis, net income per diluted share for 2016 is expected to be in the range of $0.70 to $0.76. Using the non-GAAP measure defined below, net income per diluted share for 2016 is expected to be in the range of $1.17 to $1.23.

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.

Audio Webcast Scheduled
Lip-Bu Tan, president and chief executive officer, and Geoff Ribar, senior vice president and chief financial officer, will host a second quarter 2016 financial results audio webcast today, July 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 July 25, 2016 at 5 p.m. (Pacific) and ending September 16, 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.