[ Back ]   [ More News ]   [ Home ]
Cadence Reports Second Quarter 2012 Financial Results

SAN JOSE, CA -- (Marketwire) -- Jul 25, 2012 -- Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced results for the second quarter of fiscal year 2012.

Cadence reported second quarter 2012 revenue of $326 million, compared to revenue of $283 million reported for the same period in 2011. On a GAAP basis, Cadence recognized net income of $36 million, or $0.13 per share on a diluted basis in the second quarter of 2012, compared to net income of $27 million, or $0.10 per share on a diluted basis in the same period in 2011.

Using Cadence's non-GAAP measure, net income in the second quarter of 2012 was $53 million, or $0.19 per share on a diluted basis, as compared to net income of $32 million, or $0.12 per share on a diluted basis in the same period in 2011.

"The Cadence team executed well again in Q2," said Lip-Bu Tan, president and chief executive officer. "Our 20-nanometer engagements have expanded, use of our Azuro technology acquired in 2011 increased, our emulation business significantly exceeded expectations, we had a strong quarter for both design and verification IP, and the acquisition of Sigrity has significantly enhanced our printed circuit board product line."

"Cadence continues to deliver strong operating performance as measured by our key metrics of revenue growth, operating margin and cash flow," added Geoff Ribar, senior vice president and chief financial officer.

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

Business Outlook

For the third quarter of 2012, the company expects total revenue in the range of $325 million to $335 million. Third quarter GAAP net income per diluted share is expected to be in the range of $0.17 to $0.18. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.18 to $0.19.

For 2012, the company expects total revenue in the range of $1,295 million to $1,315 million. On a GAAP basis, net income per diluted share for 2012 is expected to be in the range of $0.51 to $0.55. Using the non-GAAP measure defined below, net income per diluted share for 2012 is expected to be in the range of $0.70 to $0.74.

A schedule showing a reconciliation of the business outlook from GAAP net income and diluted net income per share to non-GAAP net income and diluted net income per share is included with this release.

Audio Webcast Scheduled

Lip-Bu Tan, Cadence's president and chief executive officer, and Geoff Ribar, Cadence's senior vice president and chief financial officer, will host a second quarter 2012 financial results audio webcast today, July 25, 2012, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting July 25, 2012 at 5 p.m. (Pacific) and ending August 8, 2012 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/company/investor_relations.

About Cadence

Cadence enables global electronic design innovation and plays an essential role in the creation of today's integrated circuits and electronics. Customers use Cadence software, hardware, IP, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. The company is headquartered in San Jose, California, with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company and its products and services is available at www.cadence.com.

Cadence, the Cadence logo and Azuro are registered trademarks, and Sigrity is a trademark of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

The statements contained above regarding Cadence's second quarter 2012 results, as well as the information in the Business Outlook section and the statements by Lip-Bu Tan and Geoff Ribar include forward-looking statements based on current expectations or beliefs, as well as a number of preliminary assumptions about future events that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Readers are cautioned not to put undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence's control, including, among others: (i) Cadence's ability to compete successfully in the electronic design automation product and the commercial electronic design and methodology services industries; (ii) the success of Cadence's efforts to improve operational efficiency and growth; (iii) the mix of products and services sold and the timing of significant orders for Cadence's products, and its shift to a ratable license structure, which may result in changes in the mix of license types; (iv) change in customer demands, including those resulting from consolidation among Cadence's customers and the possibility that Cadence's customers' restructurings and other efforts to improve operational efficiency could result in delays in their purchases of products and services; (v) economic and industry conditions in regions in which Cadence does business; (vi) fluctuations in rates of exchange between the U.S. dollar and the currencies of other countries in which Cadence does business; (vii) capital expenditure requirements, legislative or regulatory requirements, interest rates and Cadence's ability to access capital and debt markets; (viii) the acquisition of other companies or technologies or the failure to successfully integrate and operate these companies or technologies Cadence acquires; (ix) the effects of Cadence's efforts to improve operational efficiency on its business, including its strategic and customer relationships, and its ability to retain key employees; (x) events that affect the reserves or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes, litigation or other matters; and (xi) the effects of any litigation or other proceedings to which Cadence is or may become a party.

For a detailed discussion of these and other cautionary statements related to Cadence's business, please refer to Cadence's filings with the Securities and Exchange Commission. These include Cadence's most recent reports on Form 10-K and Form 10-Q, including Cadence's future filings.

GAAP to non-GAAP Reconciliation

To supplement Cadence's financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence's performance. One such measure is non-GAAP net income, which is a financial measure not calculated under generally accepted accounting principles (GAAP), and is calculated by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, integration and acquisition-related costs, including changes in contingent consideration related to prior acquisitions and asset purchases, shareholder litigation costs, gains or losses and expenses or credits related to non-qualified deferred compensation plan assets, executive and other employee severance costs, restructuring charges and credits, amortization of discount on convertible notes, equity in losses or income from investments, write-down of investments and gains or losses on the sale of investments. Intangible assets consist primarily of purchased or licensed technology, backlog, patents, trademarks, distribution rights, customer contracts and related relationships and non-compete agreements. Non-GAAP net income is adjusted by the amount of additional taxes or tax benefit that Cadence would accrue if it used non-GAAP results instead of GAAP results to calculate the company's tax liability.

Cadence's management believes it is useful in measuring Cadence's operations to exclude amortization of intangible assets and integration and acquisition-related costs, including changes in contingent consideration related to prior acquisitions and asset purchases, because these costs are inconsistent in size, are significantly impacted by the timing and valuation of those acquisitions and generally cannot be changed by Cadence's management in the short term. In addition, Cadence's management believes it is useful to exclude stock-based compensation expense, because it is based on many subjective inputs at a point in time and many of these inputs are not necessarily directly attributable to the underlying performance of Cadence's business operations, and such exclusion enhances investors' ability to review Cadence's business from the same perspective as Cadence's management. Cadence's management also believes it is useful to exclude costs related to shareholder litigation because these costs are not related to Cadence's core business operations. Cadence's management also believes that it is useful to exclude restructuring charges and credits. Cadence's management believes that in measuring the company's operations, it is useful to exclude any such restructuring charges and credits because exclusion of such charges and credits permits consistent evaluations of Cadence's performance before and after such actions are taken. Cadence's management also believes it is useful to exclude gains or losses and expenses or credits related to the non-qualified deferred compensation plan assets because these gains or losses and expenses or credits are not part of Cadence's direct costs of operations, but reflect changes in the value of assets held in the non-qualified deferred compensation plan. Cadence's management also believes it is useful to exclude executive and other employee severance costs because exclusion of such costs permits consistent evaluations of Cadence's performance. Cadence's management also believes it is useful to exclude the amortization of the discount on convertible notes because this incremental cost recorded as interest expense does not represent a cash obligation of the company and is not part of Cadence's direct cost of operations. Finally, Cadence's management believes it is useful to exclude the equity in losses or income from investments, write-down of investments and gains or losses on the sale of investments because these items are not part of Cadence's direct cost of operations. Rather, these are non-operating items that are included in other income or expense and are part of the company's investment activities.

Cadence's management believes that non-GAAP net income provides useful supplemental information to Cadence's management and investors regarding the performance of the company's business operations and facilitates comparisons to the company's historical operating results. Cadence's management also uses this information internally for forecasting and budgeting. Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with their most directly comparable GAAP financial results.

The following tables reconcile the specific items excluded from GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:

                                                                            
Net Income Reconciliation                           Three Months Ended      
                                               ---------------------------- 
                                               June 30, 2012   July 2, 2011 
                                               -------------  ------------- 
                                                        (unaudited)         
(in thousands)                                                              
Net income on a GAAP basis                     $      36,386  $      26,908 
  Amortization of acquired intangibles                 6,534          6,988 
  Stock-based compensation expense                    10,361         10,341 
  Non-qualified deferred compensation expenses         2,278          1,186 
  Restructuring and other charges                         43            751 
  Shareholder litigation costs                             -          1,106 
  Executive and other employee severance costs             -          1,916 
  Integration and acquisition-related costs            3,627          1,005 
  Amortization of debt discount                        5,124          6,566 
  Other income or expense related to                                        
   investments and non-qualified deferred                                   
   compensation plan assets*                          (2,220)        (9,229)
  Income tax effect of non-GAAP adjustments           (9,245)       (15,560)
                                               -------------  ------------- 
Net income on a non-GAAP basis                 $      52,888  $      31,978 
                                               =============  ============= 
                                                                            
* Includes, as applicable, equity in losses or income from investments,     
write-down of investments, gains or losses on sale of investments and gains 
or losses on non-qualified deferred compensation plan assets recorded in    
Other income (expense), net.                                                
                                                                            
                                                                            
                                                                            
Diluted Net Income per Share Reconciliation         Three Months Ended      
                                               ---------------------------- 
                                               June 30, 2012   July 2, 2011 
                                               -------------  ------------- 
                                                        (unaudited)         
(in thousands, except per share data)                                       
Diluted net income per share on a GAAP basis   $        0.13  $        0.10 
  Amortization of acquired intangibles                  0.02           0.03 
  Stock-based compensation expense                      0.04           0.04 
  Non-qualified deferred compensation expenses          0.01           0.01 
  Restructuring and other charges                          -              - 
  Shareholder litigation costs                             -              - 
  Executive and other employee severance costs             -           0.01 
  Integration and acquisition-related costs             0.01              - 
  Amortization of debt discount                         0.02           0.02 
  Other income or expense related to                                        
   investments and non-qualified deferred                                   
   compensation plan assets*                           (0.01)         (0.03)
  Income tax effect of non-GAAP adjustments            (0.03)         (0.06)
                                               -------------  ------------- 
Diluted net income per share on a non-GAAP                                  
 basis                                         $        0.19  $        0.12 
                                               =============  ============= 
Shares used in calculation of diluted net                                   
 income per share -- GAAP**                          275,318        270,885 
Shares used in calculation of diluted net                                   
 income per share -- non-GAAP**                      275,318        270,885 
                                                                            
* Includes, as applicable, equity in losses or income from investments,     
write-down of investments, gains or losses on sale of investments and gains 
or losses on non-qualified deferred compensation plan assets recorded in    
Other income (expense), net.                                                
                                                                            
** Shares used in the calculation of GAAP net income per share are expected 
to be the same as shares used in the calculation of non-GAAP net income per 
share, except when the company reports a GAAP net loss and non-GAAP net     
income, or GAAP net income and a non-GAAP net loss.                         
                                                                            

Investors are encouraged to look at the GAAP results as the best measure of financial performance.

Cadence expects that its corporate representatives will meet privately during the quarter with investors, the media, investment analysts and others. At these meetings, Cadence may reiterate the business outlook published in this press release. At the same time, Cadence will keep this press release, including the business outlook, publicly available on its website.

Prior to the start of the Quiet Period (described below), the public may continue to rely on the business outlook contained herein as still being Cadence's current expectations on matters covered unless Cadence publishes a notice stating otherwise.

Beginning September 14, 2012, Cadence will observe a Quiet Period during which the business outlook as provided in this press release and the company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q no longer constitute the company's current expectations. During the Quiet Period, the business outlook in these documents should be considered to be historical, speaking as of prior to the Quiet Period only and not subject to any update by the company. During the Quiet Period, Cadence's representatives will not comment on Cadence's business outlook, financial results or expectations. The Quiet Period will extend until the day when Cadence's Third Quarter 2012 Earnings Release is published, which is currently scheduled for October 24, 2012.

                                                                            
                        Cadence Design Systems, Inc.                        
                    Condensed Consolidated Balance Sheets                   
                     June 30, 2012 and December 31, 2011                    
                               (In thousands)                               
                                 (Unaudited)                                
                                                                            
                                                     June 30,   December 31,
                                                       2012         2011    
                                                   ------------ ------------
                                                                            
Current Assets:                                                             
  Cash and cash equivalents                        $    661,658 $    601,602
  Short-term investments                                 51,304        3,037
  Receivables                                           123,243      136,772
  Inventories                                            41,066       43,243
  2015 notes hedges                                     219,199      215,113
  Prepaid expenses and other                             61,976       64,216
                                                   ------------ ------------
    Total current assets                              1,158,446    1,063,983
                                                                            
Property, plant and equipment, net of accumulated                           
 depreciation of $668,328 and $658,990,                                     
 respectively                                           251,920      262,517
Goodwill                                                192,238      192,125
Acquired intangibles, net of accumulated                                    
 amortization of $89,572 and $91,542, respectively      159,807      173,234
Long-term receivables                                     7,750       11,371
Other assets                                             59,096       58,039
                                                   ------------ ------------
Total Assets                                       $  1,829,257 $  1,761,269
                                                   ============ ============
                                                                            
Current Liabilities:                                                        
  Convertible notes                                $    301,292 $    294,061
  2015 notes embedded conversion derivative             219,199      215,113
  Accounts payable and accrued liabilities              153,957      165,791
  Current portion of deferred revenue                   328,405      340,401
                                                   ------------ ------------
    Total current liabilities                         1,002,853    1,015,366
                                                   ------------ ------------
                                                                            
Long-Term Liabilities:                                                      
  Long-term portion of deferred revenue                  58,213       73,959
  Convertible notes                                     135,006      131,920
  Other long-term liabilities                           131,172      128,894
                                                   ------------ ------------
    Total long-term liabilities                         324,391      334,773
                                                   ------------ ------------
                                                                            
Stockholders' Equity                                    502,013      411,130
                                                   ------------ ------------
Total Liabilities and Stockholders' Equity         $  1,829,257 $  1,761,269
                                                   ============ ============
                                                                            
                        Cadence Design Systems, Inc.                        
                  Condensed Consolidated Income Statements                  
     For the Three and Six Months Ended June 30, 2012 and July 2, 2011      
                  (In thousands, except per share amounts)                  
                                (Unaudited)                                 
                                                                            
                            Three Months Ended         Six Months Ended     
                         ------------------------  ------------------------ 
                          June 30,      July 2,     June 30,      July 2,   
                             2012         2011         2012         2011    
                         -----------  -----------  -----------  ----------- 
                                                                            
Revenue:                                                                    
 Product                 $   208,301  $   157,938  $   398,325  $   299,757 
 Services                     28,966       29,477       58,508       57,282 
 Maintenance                  89,209       95,855      185,473      192,333 
                         -----------  -----------  -----------  ----------- 
                                                                            
  Total revenue              326,476      283,270      642,306      549,372 
                         -----------  -----------  -----------  ----------- 
                                                                            
Costs and Expenses:                                                         
 Cost of product              21,585       20,074       36,986       34,268 
 Cost of services             17,071       20,616       36,445       40,691 
 Cost of maintenance          10,821       10,716       22,632       21,614 
 Marketing and sales          80,418       77,006      164,213      155,378 
 Research and                                                               
  development                112,031       99,268      220,625      200,567 
 General and                                                                
  administrative              30,244       25,377       58,014       44,679 
 Amortization of                                                            
  acquired intangibles         3,643        4,505        7,429        8,964 
 Restructuring and other                                                    
  charges (credits)               43          751           (8)         710 
                         -----------  -----------  -----------  ----------- 
                                                                            
  Total costs and                                                           
   expenses                  275,856      258,313      546,336      506,871 
                         -----------  -----------  -----------  ----------- 
                                                                            
   Income from                                                              
    operations                50,620       24,957       95,970       42,501 
                                                                            
 Interest expense             (8,566)     (10,768)     (17,103)     (21,754)
 Other income, net             3,669        8,394        6,103       12,863 
                         -----------  -----------  -----------  ----------- 
                                                                            
   Income before                                                            
    provision (benefit)                                                     
    for income taxes          45,723       22,583       84,970       33,610 
                                                                            
 Provision (benefit) for                                                    
  income taxes                 9,337       (4,325)      17,480          379 
                         -----------  -----------  -----------  ----------- 
                                                                            
   Net income            $    36,386  $    26,908  $    67,490  $    33,231 
                         ===========  ===========  ===========  =========== 
                                                                            
                                                                            
Basic net income per                                                        
 share                   $      0.13  $      0.10  $      0.25  $      0.13 
                         ===========  ===========  ===========  =========== 
                                                                            
Diluted net income per                                                      
 share                   $      0.13  $      0.10  $      0.24  $      0.12 
                         ===========  ===========  ===========  =========== 
                                                                            
Weighted average common                                                     
 shares outstanding -                                                       
 basic                       269,739      263,191      268,840      262,362 
                         ===========  ===========  ===========  =========== 
                                                                            
Weighted average common                                                     
 shares outstanding -                                                       
 diluted                     275,318      270,885      276,526      269,732 
                         ===========  ===========  ===========  =========== 
                                                                            
                        Cadence Design Systems, Inc.                        
              Condensed Consolidated Statements of Cash Flows               
          For the Six Months Ended June 30, 2012 and July 2, 2011           
                               (In thousands)                               
                                (Unaudited)                                 
                                                                            
                                                       Six Months Ended     
                                                   ------------------------ 
                                                     June 30,     July 2,   
                                                       2012         2011    
                                                   -----------  ----------- 
                                                                            
Cash and Cash Equivalents at Beginning of Period   $   601,602  $   557,409 
                                                   -----------  ----------- 
Cash Flows from Operating Activities:                                       
  Net income                                            67,490       33,231 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities:                                        
    Depreciation and amortization                       43,736       46,283 
    Amortization of debt discount and fees              11,529       14,587 
    Stock-based compensation                            21,886       19,698 
    Gain on investments, net                            (4,169)     (13,676)
    Non-cash restructuring and other charges               125          136 
    Deferred income taxes                                  459       (4,811)
    Provisions (recoveries) for losses (gains) on                           
     trade and installment contract receivables,                            
     net                                                     -       (5,885)
    Other non-cash items                                 3,439        2,518 
    Changes in operating assets and liabilities,                            
     net of effect of acquired businesses:                                  
      Current and long-term receivables                 16,513       64,535 
      Inventories                                          499       (6,987)
      Prepaid expenses and other                           414        1,969 
      Other assets                                        (169)       1,479 
      Accounts payable and accrued liabilities          (4,694)     (48,650)
      Deferred revenue                                 (27,446)      25,979 
      Other long-term liabilities                       (1,424)      (4,628)
                                                   -----------  ----------- 
        Net cash provided by operating activities      128,188      125,778 
                                                   -----------  ----------- 
                                                                            
Cash Flows from Investing Activities:                                       
  Proceeds from the sale and maturity of                                    
   available-for-sale securities                           136        9,588 
  Purchases of available-for-sale securities           (49,083)           - 
  Proceeds from the sale of long-term investments           44        2,785 
  Purchases of property, plant and equipment           (18,269)     (11,312)
  Investment in venture capital partnerships and                            
   equity investments                                     (250)        (608)
  Cash paid in business combinations and asset                              
   acquisitions, net of cash acquired, and                                  
   acquisition of intangibles                           (1,041)     (22,865)
                                                   -----------  ----------- 
        Net cash used for investing activities         (68,463)     (22,412)
                                                   -----------  ----------- 
                                                                            
Cash Flows from Financing Activities:                                       
  Principal payments on receivable sale financing       (2,907)      (2,829)
  Tax effect related to employee stock                                      
   transactions allocated to equity                      4,075          967 
  Payment of acquisition-related contingent                                 
   consideration                                           (39)           - 
  Proceeds from issuance of common stock                13,063       10,302 
  Stock received for payment of employee taxes on                           
   vesting of restricted stock                          (9,897)      (7,389)
                                                   -----------  ----------- 
        Net cash provided by financing activities        4,295        1,051 
                                                   -----------  ----------- 
                                                                            
Effect of exchange rate changes on cash and cash                            
 equivalents                                            (3,964)       3,491 
                                                   -----------  ----------- 
                                                                            
Increase in cash and cash equivalents                   60,056      107,908 
                                                   -----------  ----------- 
                                                                            
Cash and Cash Equivalents at End of Period         $   661,658  $   665,317 
                                                   ===========  =========== 
                                                                            
                      Cadence Design Systems, Inc.                      
                           As of July 25, 2012                          
Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per
                                  Share                                 
                               (Unaudited)                              
                                                                        
                                      Three Months                      
                                         Ending           Year Ending   
                                   September 29, 2012  December 29, 2012
                                   ------------------ ------------------
                                        Forecast           Forecast     
                                   ------------------ ------------------
                                                                        
Diluted net income per share on a                                       
 GAAP basis                          $0.17 to $0.18     $0.51 to $0.55  
                                                                        
  Amortization of acquired                                              
   intangibles                            0.03               0.10       
  Stock-based compensation expense        0.04               0.18       
  Non-qualified deferred                                                
   compensation expenses                    -                0.01       
  Integration and acquisition-                                          
   related costs                          0.01               0.03       
  Amortization of debt discount           0.02               0.08       
  Other income or expense related                                       
   to investments and non-                                              
   qualified deferred compensation                                      
   plan assets*                             -               (0.01)      
  Income tax effect of non-GAAP                                         
   adjustments                           (0.09)             (0.20)      
                                                                        
                                   ------------------ ------------------
Diluted net income per share on a                                       
 non-GAAP basis                      $0.18 to $0.19     $0.70 to $0.74  
                                   ================== ==================
                                                                            
   * Includes, as applicable, equity in losses or income from investments,  
  write-down of investments, gains or losses on sale of investments and     
  gains or losses on non-qualified deferred compensation plan assets        
  recorded in Other income (expense), net.                                  
                                                                            
                                                                            
                      Cadence Design Systems, Inc.                      
                           As of July 25, 2012                          
      Impact of Non-GAAP Adjustments on Forward Looking Net Income      
                               (Unaudited)                              
                                                                        
                                      Three Months                      
                                         Ending           Year Ending   
                                   September 29, 2012  December 29, 2012
                                   ------------------ ------------------
($ in millions)                         Forecast           Forecast     
                                   ------------------ ------------------
                                                                        
Net income on a GAAP basis             $46 to $51        $141 to $153   
                                                                        
  Amortization of acquired                                              
   intangibles                              8                 28        
  Stock-based compensation expense         13                 50        
  Non-qualified deferred                                                
   compensation expenses                    -                  4        
  Integration and acquisition-                                          
   related costs                            2                  8        
  Amortization of debt discount             5                 21        
  Other income or expense related                                       
   to investments and non-                                              
   qualified deferred compensation                                      
   plan assets*                             -                 (4)       
  Income tax effect of non-GAAP                                         
   adjustments                            (25)               (54)       
                                                                        
                                   ------------------ ------------------
Net income on a non-GAAP basis         $49 to $54        $194 to $206   
                                   ================== ==================

                                                                            
   * Includes, as applicable, equity in losses or income from investments,  
  write-down of investments, gains or losses on sale of investments and     
  gains or losses on non-qualified deferred compensation plan assets        
  recorded in Other income (expense), net.                                  
                                                                            
                                                                            
                        Cadence Design Systems, Inc.                        
                                (Unaudited)                                 
                                                                            
Revenue Mix by Geography (% of Total Revenue)                               
                                                                            
                                           2011                    2012     
                            ---------------------------------  ------------ 
GEOGRAPHY                     Q1     Q2     Q3     Q4    Year    Q1     Q2  
                            -----  -----  -----  -----  -----  -----  ----- 
                                                                            
 Americas                      44%    47%    44%    44%    45%    44%    46%
 Europe, Middle East and                                                    
  Africa                       21%    20%    21%    20%    20%    19%    20%
 Japan                         19%    17%    18%    17%    18%    18%    16%
 Asia                          16%    16%    17%    19%    17%    19%    18%
Total                         100%   100%   100%   100%   100%   100%   100%
                                                                            
Revenue Mix by Product Group (% of Total Revenue)                           
                                                                            
                                           2011                    2012     
                            ---------------------------------  ------------ 
PRODUCT GROUP                 Q1     Q2     Q3     Q4    Year    Q1     Q2  
                            -----  -----  -----  -----  -----  -----  ----- 
                                                                            
 Functional Verification                                                    
  and Design IP                28%    33%    30%    32%    30%    30%    33%
 Digital IC Design             24%    21%    22%    21%    22%    23%    22%
 Custom IC Design              20%    22%    23%    23%    22%    23%    22%
 Design for Manufacturing       8%     6%     6%     6%     7%     7%     6%
 System Interconnect           10%     8%     9%     8%     9%     8%     8%
 Services and other            10%    10%    10%    10%    10%     9%     9%
Total                         100%   100%   100%   100%   100%   100%   100%
                                                                            
Note: Product Group total revenue includes Product + Maintenance            
                                                                            

Add to Digg Bookmark with del.icio.us Add to Newsvine

For more information, please contact: 

Investors and Shareholders 
Alan Lindstrom
Cadence Design Systems, Inc. 
408-944-7100 

Email Contact 

Media and Industry Analysts
Nancy Szymanski
Cadence Design Systems, Inc. 
408-473-8382

Email Contact