CADENCE DESIGN SYSTEMS INC Annual Report, Year Ended Dec 28, 2013

Cadence Design Systems (CDNS) reported fiscal year 2013 revenues of $1,460.1 million, a 10% increase year-over-year, driven primarily by growth in its product and maintenance revenue, which rose 12% to $1,357.9 million. The company's strategic focus on expanding its design IP offerings, bolstered by key acquisitions like Tensilica, Inc. and Cosmic Circuits Private Limited, contributed significantly to this growth. Despite increased investment in research and development, which rose 18% to $534.0 million, the company managed its expenses, with operating expenses as a percentage of revenue remaining stable at 71%. The company's backlog at the end of fiscal year 2013 stood at $1.9 billion, providing a strong foundation for anticipated fiscal year 2014 revenue. Financially, CDNS demonstrated solid operational cash flow generation, though its cash balance decreased in fiscal 2013 primarily due to significant cash outflows for acquisitions and debt repayment. The company's liquidity remains adequate, supported by its cash reserves and revolving credit facility. A notable risk factor highlighted is the cyclical nature of the semiconductor and electronics industries, which directly impacts customer demand for EDA products and services. Additionally, the company faces ongoing competitive pressures and the need for continuous technological innovation to maintain its market position.