Early Access

10-QPeriod: Q3 FY2014

CADENCE DESIGN SYSTEMS INC Quarterly Report for Q3 Ended Sep 27, 2014

Filed October 20, 2014For Securities:CDNS

Summary

Cadence Design Systems, Inc. reported increased revenue for the nine months ended September 27, 2014, compared to the same period in 2013, driven primarily by growth in product and maintenance revenue. The company also saw an increase in operating expenses, largely due to R&D investments, acquisitions, and restructuring charges. Despite a decline in net income compared to the prior year, the company's balance sheet shows a healthy increase in total assets, largely due to a significant rise in goodwill and acquired intangibles, indicating strategic acquisitions. The company's liquidity remains strong, supported by substantial cash reserves. However, investors should note the upcoming maturity of the 2015 Convertible Notes, which carry significant conversion value, and the recent issuance of 2024 Senior Notes. The company also continues its share repurchase program, signaling confidence in its financial position and future prospects.

Financial Highlights

48 data points
Beta

Revenue

$400.50M

Net Income

$37.53M

0.1% Net Margin

EPS (Diluted)

$0.12

Total Assets

$2.71B

Cash & Equivalents

$500.48M

Free Cash Flow

$77.45M

Financial Statements
Beta
Revenue$400.50M
Operating Expenses$346.45M
Operating Income$54.05M
Interest Expense$7.52M
Net Income$37.53M
EPS (Basic)$0.13
EPS (Diluted)$0.12
Shares Outstanding (Basic)284.46M
Shares Outstanding (Diluted)310.00M

Key Highlights

  • 1Total revenue increased by 7% to $1,157.8 million for the nine months ended September 27, 2014, compared to $1,083.4 million in the prior year period.
  • 2Product and maintenance revenue grew by 8% to $1,085.9 million for the nine months ended September 27, 2014.
  • 3Net income decreased to $93.9 million for the nine months ended September 27, 2014, down from $126.5 million in the prior year period, impacted by higher operating expenses and restructuring charges.
  • 4Total assets grew to $2,705.9 million as of September 27, 2014, an increase from $2,428.6 million at the end of 2013, driven by an increase in Goodwill and Acquired Intangibles.
  • 5Cash and cash equivalents, along with short-term investments, totaled $595.5 million as of September 27, 2014, providing a strong liquidity position.
  • 6The company acquired Jasper Design Automation, Inc. for $139.5 million in cash, plus contingent payments, to expand its formal analysis solutions.
  • 7Cadence issued $350.0 million of 4.375% Senior Notes due 2024 on October 9, 2014, to fund general corporate purposes.

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