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10-QPeriod: Q3 FY2012

CADENCE DESIGN SYSTEMS INC Quarterly Report for Q3 Ended Sep 29, 2012

Filed October 25, 2012For Securities:CDNS

Summary

Cadence Design Systems Inc. (CDNS) reported strong financial results for the quarter ended September 29, 2012. Total revenue increased by 16% year-over-year to $338.5 million, driven by a significant 32% surge in product revenue. This growth was fueled by increased business levels and effective revenue recognition from prior period bookings. The company also successfully integrated the acquisition of Sigrity, Inc. during the quarter, which is expected to enhance its product offerings in signal and power integrity analysis. Financially, Cadence demonstrated robust operational performance. Income from operations more than doubled to $59.4 million, leading to a net income of $58.6 million, a substantial increase from the previous year's quarter. The company's cash position strengthened, with cash and cash equivalents reaching $649.1 million. The company also managed its debt effectively, with convertible notes being a significant component. The classification of convertible notes as current liabilities reflects early conversion conditions being met due to stock price performance.

Financial Statements
Beta
Revenue$338.53M
Cost of Revenue$23.34M
Gross Profit$315.20M
Operating Expenses$279.09M
Operating Income$59.44M
Interest Expense$8.74M
Net Income$58.58M
EPS (Basic)$0.22
EPS (Diluted)$0.21
Shares Outstanding (Basic)271.35M
Shares Outstanding (Diluted)283.33M

Key Highlights

  • 1Total revenue increased 16% year-over-year to $338.5 million.
  • 2Product revenue saw a significant jump of 32% to $216.6 million.
  • 3Income from operations more than doubled to $59.4 million.
  • 4Net income rose to $58.6 million, up from $28.1 million in the prior year's quarter.
  • 5Cash and cash equivalents increased to $649.1 million.
  • 6Acquired Sigrity, Inc. to enhance signal and power integrity analysis capabilities.
  • 7The 2015 Convertible Notes were reclassified as a current liability due to early conversion conditions being met.

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