Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three Months Ended April 2, 2016 and April 4, 2015

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

April 2, 2016

April 4, 2015

Revenue:

Product and maintenance

$        411,744

$        383,637

Services

36,118

27,729

Total revenue

447,862

411,366

Costs and expenses:

Cost of product and maintenance

44,181

42,059

Cost of services

17,873

18,526

Marketing and sales

99,200

100,268

Research and development

179,906

162,996

General and administrative

28,300

27,642

Amortization of acquired intangibles

5,780

6,231

Restructuring and other charges 

14,586

4,359

Total costs and expenses

389,826

362,081

Income from operations

58,036

49,285

Interest expense

(5,357)

(11,754)

Other income, net

4,763

4,781

Income before provision for income taxes

57,442

42,312

Provision for income taxes

6,880

6,053

Net income 

$          50,562

$          36,259

Net income per share - basic

$              0.17

$              0.13

Net income per share - diluted

$              0.17

$              0.12

Weighted average common shares outstanding - basic

296,615

284,523

Weighted average common shares outstanding - diluted

303,434

311,847