Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three and Nine Months Ended September 27, 2014 and September 28, 2013

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Nine Months Ended

September 27,
2014

September 28,
2013

September 27,
2014

September 28,
2013

Revenue:

Product and maintenance

$        374,110

$        341,601

$     1,085,928

$     1,007,855

Services

26,386

25,046

71,906

75,539

Total revenue

400,496

366,647

1,157,834

1,083,394

Costs and expenses:

Cost of product and maintenance

36,954

32,546

116,858

90,488

Cost of services

17,125

17,190

48,733

50,682

Marketing and sales

100,387

98,094

297,321

283,773

Research and development

148,744

138,078

447,882

398,557

General and administrative

25,894

27,582

86,680

91,833

Amortization of acquired intangibles

6,316

5,141

17,105

14,259

Restructuring and other charges 

11,027

86

11,397

2,594

Total costs and expenses

346,447

318,717

1,025,976

932,186

Income from operations

54,049

47,930

131,858

151,208

Interest expense

(7,523)

(9,583)

(22,160)

(28,373)

Other income (expense), net

(417)

2,535

4,600

6,728

Income before provision for income taxes

46,109

40,882

114,298

129,563

Provision for income taxes

8,574

2,382

20,430

3,025

Net income 

$          37,535

$          38,500

$          93,868

$        126,538

Net income per share - basic

$               0.13

$               0.14

$               0.33

$               0.46

Net income per share - diluted

$               0.12

$               0.13

$               0.31

$               0.43

Weighted average common shares outstanding - basic

284,462

278,977

283,141

277,034

Weighted average common shares outstanding - diluted

309,995

296,958

305,595

294,531