10-QPeriod: Q1 FY2001

CADENCE DESIGN SYSTEMS INC Quarterly Report for Q1 Ended Mar 31, 2001

Filed May 14, 2001For Securities:CDNS

Summary

Cadence Design Systems, Inc. (CDNS) reported revenue of $344.7 million for the first quarter of 2001, a significant 34% increase compared to $257.5 million in the same period last year. This growth was primarily driven by a substantial 72% surge in product revenue, reaching $181.3 million, indicating strong demand for their electronic design automation (EDA) software, particularly in integrated circuit implementation and intellectual property creation products. While services revenue saw a modest 6% increase and maintenance revenue grew 10%, the overall financial performance reflects a company navigating a challenging industry landscape amidst a general economic slowdown.

Key Highlights

  • 1Total revenue increased by 34% year-over-year to $344.7 million, driven by strong product revenue growth.
  • 2Product revenue experienced a significant 72% increase to $181.3 million, signaling robust demand for EDA software.
  • 3The company acquired CadMOS Design Technology, Inc. for $92.7 million, expanding its capabilities in noise analysis for ultra-deep submicron processes.
  • 4Operating expenses increased across marketing & sales (8%), R&D (13%), and G&A (36%), with the latter largely due to bad debt expense and consulting services.
  • 5Significant 'unusual items' totaling $17.1 million were recorded, including a $12.1 million write-off of acquired in-process technology related to the CadMOS acquisition.
  • 6The company reported a net income of $3.8 million, or $0.01 per diluted share, a turnaround from a net loss of $(11.8) million, or $(0.05) per diluted share, in the prior year's first quarter.
  • 7Cash provided by operating activities was $45.7 million, a slight decrease from $51.1 million in the prior year's first quarter, but indicates positive cash generation.

Frequently Asked Questions

Cadence Design Systems reported a 34% increase in total revenue, reaching $344.7 million for the first quarter of 2001, up from $257.5 million in the first quarter of 2000. This growth was primarily fueled by a substantial 72% increase in product revenue.

Yes, in February 2001, Cadence acquired CadMOS Design Technology, Inc. for $92.7 million to enhance its noise-analysis solutions for advanced semiconductor processes. This acquisition resulted in goodwill of $58.3 million and intangibles of $12.9 million, and included a $12.1 million charge for acquired in-process technology.

Cadence Design Systems has turned a net loss of $11.8 million in the first quarter of 2000 into a net income of $3.8 million in the first quarter of 2001. This improvement is reflected in the earnings per share, which went from $(0.05) to $0.01 on a diluted basis.

The company reported $17.1 million in unusual items for the first quarter of 2001. This includes a significant $12.1 million write-off of acquired in-process technology related to the CadMOS acquisition, $3.5 million for Tality IPO fees and separation costs, and $1.5 million in restructuring charges.