CADENCE DESIGN SYSTEMS INC Quarterly Report for Q3 Ended Sep 28, 2019

Summary

Cadence Design Systems, Inc. reported solid financial results for the nine months ended September 28, 2019. Total revenue increased by 11% year-over-year to $1.74 billion, driven by an 12% increase in product and maintenance revenue. This growth was observed across all geographic regions, with particularly strong performance in Asia. The company demonstrated strong operational efficiency, with income from operations increasing by 36% to $383 million and net income growing by 33% to $329 million for the nine-month period. Financially, Cadence maintained a healthy liquidity position, with cash and cash equivalents increasing by $122 million to $655 million. The company also continued its commitment to returning capital to shareholders through its share repurchase program, with $444 million remaining under its authorization as of the period end. The company's strategic investments and continued investment in R&D highlight its focus on long-term growth and innovation in the electronic design automation sector.

Key Highlights

• 1Total revenue grew 11% to $1.74 billion for the nine months ended September 28, 2019, compared to the same period in 2018.
• 2Product and maintenance revenue increased by 12% to $1.64 billion, indicating strong demand for core offerings.
• 3Income from operations rose significantly by 36% to $382.9 million for the nine-month period.
• 4Net income increased by 33% to $329.3 million for the nine months ended September 28, 2019.
• 5Cash and cash equivalents increased by $121.9 million to $655.2 million, indicating strong cash generation.
• 6Remaining authorized share repurchases amounted to $444 million as of September 28, 2019, demonstrating commitment to shareholder returns.
• 7The company continues to invest heavily in Research and Development, with R&D expenses increasing 5% to $700.6 million for the nine-month period.

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