Cadence Reports Second Quarter 2018 Financial Results

SAN JOSE, Calif. — (BUSINESS WIRE) — July 23, 2018 — Cadence Design Systems, Inc. (NASDAQ: CDNS) today reported its results under new revenue rules, ASC Topic 606. For the second quarter of 2018, Cadence reported revenue of $518 million, GAAP net income of $75 million, or $0.27 per share on a diluted basis, and non-GAAP net income (as defined below), of $126 million, or $0.45 per share on a diluted basis.

Cadence also reported its results under the old revenue rules, ASC Topic 605, for easier comparison with prior results, all of which were reported under ASC Topic 605.

Under ASC Topic 605, for the second quarter of 2018, Cadence reported revenue of $515 million, compared to revenue of $479 million reported for the same period in 2017. On a GAAP basis, Cadence recognized net income of $73 million, or $0.26 per share on a diluted basis, in the second quarter of 2018, compared to net income of $69 million, or $0.25 per share on a diluted basis for the same period in 2017. Using the non-GAAP measure defined below, net income for the second quarter of 2018 was $124 million, or $0.44 per share on a diluted basis, as compared to non-GAAP net income of $94 million, or $0.34 per share on a diluted basis, for the same period in 2017.

“Multiple technology waves, especially machine learning, are driving increased design activity and our System Design Enablement strategy is perfectly positioned to benefit from these across multiple verticals,” said Lip-Bu Tan, chief executive officer. “We had notable wins in Aerospace & Defense and introduced Cadence Cloud, the industry’s first broad cloud portfolio for the development of electronic systems and semiconductors.”

“Consistent execution delivered good results for Cadence again this quarter. We continue to lead with innovation, making Cadence products increasingly mission critical to our customers, while our efforts to continually improve operational efficiency results in increased profitability flowing through to free cash flow,” said John Wall, senior vice president and chief financial officer.

CFO Commentary

Commentary on the second quarter 2018 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.

Business Outlook

The outlook provided below is on an ASC Topic 606 basis, which Cadence has adopted for its fiscal year 2018 using the modified retrospective transition method. As required by the new standard, the company will report revenue under both methods for the 2018 transition year.

For the third quarter of 2018, the company expects total revenue in the range of $510 million to $520 million. Third quarter GAAP net income per diluted share is expected to be in the range of $0.22 to $0.24. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.40 to $0.42.

For 2018, the company expects total revenue in the range of $2.070 billion to $2.090 billion. On a GAAP basis, net income per diluted share for 2018 is expected to be in the range of $0.95 to $1.01. Using the non-GAAP measure defined below, net income per diluted share for 2018 is expected to be in the range of $1.64 to $1.70.

For 2018, the company is forecasting a non-GAAP income tax rate of 16 percent, down from 23 percent used in 2017, primarily resulting from the tax rate reduction.

For comparison purposes, the company expects the outlook at the midpoint for 2018 on the prior ASC Topic 605 basis to be as follows: revenue of $2.105 billion, GAAP net income per diluted share of $1.06 and non-GAAP net income per diluted share of $1.74.

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, chief executive officer, and John Wall, senior vice president and chief financial officer, will host the second quarter 2018 financial results audio webcast today, July 23, 2018, 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 23, 2018 at 5 p.m. (Pacific) and ending September 14, 2018 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.

About Cadence

Cadence enables electronic systems and semiconductor companies to create the innovative end products that are transforming the way people live, work and play. Cadence® software, hardware and semiconductor IP are used by customers to deliver products to market faster. The company’s System Design Enablement strategy helps customers develop differentiated products—from chips to boards to systems—in mobile, consumer, cloud datacenter, automotive, aerospace, IoT, industrial and other market segments. Cadence is listed as one of Fortune Magazine's 100 Best Companies to Work For. Learn more at cadence.com .

1 | 2 | 3 | 4  Next Page »



Review Article Be the first to review this article
Featured Video
Editorial
More Editorial  
Latest Blog Posts
Bob Smith, Executive DirectorBridging the Frontier
by Bob Smith, Executive Director
Breaking Down Chip Design Functional Verification with Breker’s Adnan Hamid
Anupam BakshiAgnisys Automation Review
by Anupam Bakshi
Welcome Back to DAC – in Person – in San Francisco
Vincent ThibautArteris IP Blog
by Vincent Thibaut
Why Automate Traceability?
Jobs
Business Operations Planner for Global Foundaries at Santa Clara, California
CSM Design Verification Lead for Apple Inc at Cupertino, California
Logic Design Engineer for Intel at Santa Clara, California
Technical Product Manager- SISW-EDA 238452 for Siemens AG at Fremont, California
Pre-silicon Design Verification Engineer for Intel at Santa Clara, California
Senior Staff Field Application Engineer for Global Foundaries at Santa Clara, California
Upcoming Events
67th Annual IEEE International Electron Devices Meeting at Hilton San Francisco Union Square hotel San Francisco - Dec 11 - 15, 2021
67th Annual International Electron Devices Meeting at Hilton San Francisco Union Square Hotel San Francisco, CA - Dec 13 - 15, 2021
DVCon India 2021 at India - Dec 14 - 16, 2021
SEMICON Japan 2021 Hybrid at Tokyo Big Sight / Online Tokyo Japan - Dec 15 - 17, 2021



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise