Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three and Six Months Ended July 4, 2015 and June 28, 2014

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

July 4, 2015

June 28, 2014

July 4, 2015

June 28, 2014

Revenue:

Product and maintenance

$        384,951

$            354,468

$        768,588

$            711,818

Services

30,932

24,320

58,661

45,520

Total revenue

415,883

378,788

827,249

757,338

Costs and expenses:

Cost of product and maintenance

31,715

37,707

73,774

79,904

Cost of services

20,040

16,706

38,566

31,608

Marketing and sales

96,662

98,611

196,930

196,934

Research and development

157,974

152,672

320,970

299,138

General and administrative

27,467

32,042

55,109

60,786

Amortization of acquired intangibles

6,119

5,579

12,350

10,789

Restructuring and other charges (credits)

(498)

(26)

3,861

370

Total costs and expenses

339,479

343,291

701,560

679,529

Income from operations

76,404

35,497

125,689

77,809

Interest expense

(8,180)

(7,369)

(19,934)

(14,637)

Other income, net

1,347

1,635

6,128

5,017

Income before provision for income taxes

69,571

29,763

111,883

68,189

Provision for income taxes

11,411

6,500

17,464

11,856

Net income 

$          58,160

$              23,263

$          94,419

$              56,333

Net income per share - basic

$              0.20

$                  0.08

$              0.33

$                  0.20

Net income per share - diluted

$              0.19

$                  0.08

$              0.30

$                  0.19

Weighted average common shares outstanding - basic

285,297

283,344

284,910

282,480

Weighted average common shares outstanding - diluted

313,665

305,755

312,756

303,395