Cadence reported fourth quarter 2016 revenue of $469 million, compared to revenue of $441 million reported for the same period in 2015. On a GAAP basis, Cadence recognized net income of $38 million, or $0.14 per share on a diluted basis, in the fourth quarter of 2016, compared to net income of $80 million, or $0.26 per share on a diluted basis, for the same period in 2015. Revenue for 2016 totaled $1.816 billion, compared to revenue of $1.702 billion for 2015. Net income for 2016 was $203 million, or $0.70 per share on a diluted basis, compared to net income of $252 million, or $0.81 per share on a diluted basis for 2015.
Using the non-GAAP measure defined below, net income in the fourth quarter of 2016 was $95 million, or $0.34 per share on a diluted basis, as compared to net income of $95 million, or $0.31 per share on a diluted basis, for the same period in 2015. For 2016, non-GAAP net income was $351 million, or $1.21 per share on a diluted basis, compared to non-GAAP net income of $341 million, or $1.09 per share on a diluted basis, in 2015.
"Through focus on innovation and execution, Cadence again delivered strong results for both the fourth quarter and fiscal 2016. Core EDA is foundational to our System Design Enablement (SDE) strategy, and digital and signoff revenue grew 9 percent for the year on strong customer adoption, while in System Integration, Palladium® Z1 had a phenomenal year with hardware revenue surging to a record high," said Lip-Bu Tan, president and chief executive officer. "SDE is expanding our reach with systems companies and into segments like automotive, aerospace and defense, where we had key wins with important customers in 2016."
"Cadence continued to deliver consistent, predictable financial results in 2016 with operating cash flow generation a standout at $445 million, up 18 percent over 2015," said Geoff Ribar, senior vice president and chief financial officer. "I am especially proud of the quality of our balance sheet. In the fourth quarter we completed our $1.2 billion stock repurchase program, cumulatively repurchasing 52 million shares representing approximately 18 percent of shares outstanding as of July 4, 2015. This week, we replaced our December 2012 senior credit facility, increasing our borrowing capacity and extending the term; and we maintain an investment grade rating for our outstanding public debt."
On January 30, 2017, Cadence entered into a new $350 million five year senior unsecured revolving credit facility with a group of lenders, which replaces the December 2012 senior credit facility.
On January 30, 2017, the Board of Directors of Cadence authorized the repurchase of $525 million of Cadence common stock. The actual timing and amount of repurchases will be subject to business and market conditions, corporate and regulatory requirements, acquisition opportunities and other factors.
CFO Commentary
Commentary on the fourth quarter and fiscal year 2016 financial results by Geoff Ribar, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.
Business Outlook
For the first quarter of 2017, the company expects total revenue in the range of $470 million to $480 million. First quarter GAAP net income per diluted share is expected to be in the range of $0.19 to $0.21. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.30 to $0.32.
For 2017, the company expects total revenue in the range of $1.900 billion to $1.950 billion. On a GAAP basis, net income per diluted share for 2017 is expected to be in the range of $0.89 to $0.99. Using the non-GAAP measure defined below, net income per diluted share for 2017 is expected to be in the range of $1.32 to $1.42.
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 in this release.
Audio Webcast Scheduled
Lip-Bu Tan, president and chief executive officer, and Geoff Ribar, senior vice president and chief financial officer, will host a fourth quarter and fiscal year 2016 financial results audio webcast today, February 1, 2017, 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 February 1, 2017 at 5 p.m. (Pacific) and ending March 17, 2017 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/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 Palladium are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.
The statements contained above regarding Cadence's fourth quarter and fiscal year 2016 financial results and authorization to repurchase shares of its common stock, as well as the information in the Business Outlook section, are or include forward-looking statements based on current expectations or beliefs and 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. These forward-looking statements 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; (iv) change in customer demands, including those resulting from consolidation among Cadence's customers and the possibility that the restructurings and other efforts to improve operational efficiency of Cadence's customers could result in delays in purchases of Cadence's 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, including the potential inability to retain customers, key employees or vendors; (ix) the effects of Cadence's efforts to improve operational efficiency in its business, including strategic, customer and supplier 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 U.S. Securities and Exchange Commission, which include Cadence's most recent reports on Form 10-K and Form 10-Q, including Cadence's future filings.
GAAP to Non-GAAP Reconciliation
Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. 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. Investors are also encouraged to look at the GAAP results as the best measure of financial performance.
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 GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets and debt discount related to convertible notes, stock-based compensation expense, acquisition and integration-related costs including retention expenses, special charges (comprised of executive severance costs), investment gains or losses, income or expenses related to Cadence's non-qualified deferred compensation plan, restructuring and other significant items not directly related to Cadence's core business operations, and the income tax effect of non-GAAP pre-tax adjustments.
Cadence's management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of the company's core business operations and therefore provides supplemental information to Cadence's management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence's management, including forecasting and budgeting.
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 | ||||||
|
|
|
December 31, 2016 |
|
January 2, 2016 | ||||
|
|
|
(unaudited) | ||||||
|
(in thousands) |
|
|
|
| ||||
|
Net income on a GAAP basis |
|
$ |
38,477 |
|
|
$ |
80,374 |
|
|
Amortization of acquired intangibles |
|
14,474 |
|
|
15,826 |
| ||
|
Stock-based compensation expense |
|
29,231 |
|
|
24,660 |
| ||
|
Non-qualified deferred compensation expenses |
|
544 |
|
|
575 |
| ||
|
Restructuring and other charges |
|
26,342 |
|
|
347 |
| ||
|
Acquisition and integration-related costs |
|
1,433 |
|
|
1,596 |
| ||
|
Special charges* |
|
— |
|
|
916 |
| ||
|
Other income or expense related to investments and non-qualified deferred compensation plan assets** |
|
(655) |
|
|
(579) |
| ||
|
Income tax effect of non-GAAP adjustments |
|
(14,672) |
|
|
(28,627) |
| ||
|
Net income on a non-GAAP basis |
|
$ |
95,174 |
|
|
$ |
95,088 |
|
|
|
|
|
* |
Comprised of executive severance costs. |
|
|
|
|
** |
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 or expense. |
|
Net Income Reconciliation |
|
Years Ended | ||||||
|
|
|
December 31, 2016 |
|
January 2, 2016 | ||||
|
|
|
(unaudited) | ||||||
|
(in thousands) |
|
|
|
| ||||
|
Net income on a GAAP basis |
|
$ |
203,086 |
|
|
$ |
252,417 |
|
|
Amortization of acquired intangibles |
|
60,482 |
|
|
64,248 |
| ||
|
Stock-based compensation expense |
|
109,217 |
|
|
92,341 |
| ||
|
Non-qualified deferred compensation expenses (credits) |
|
1,741 |
|
|
(369) |
| ||
|
Restructuring and other charges |
|
40,955 |
|
|
4,511 |
| ||
|
Acquisition and integration-related costs |
|
11,268 |
|
|
7,975 |
| ||
|
Special charges* |
|
— |
|
|
916 |
| ||
|
Amortization of debt discount on convertible notes |
|
— |
|
|
7,496 |
| ||
|
Other income or expense related to investments and non-qualified deferred compensation plan assets** |
|
(4,672) |
|
|
(1,979) |
| ||
|
Income tax effect of non-GAAP adjustments |
|
(70,847) |
|
|
(86,650) |
| ||
|
Net income on a non-GAAP basis |
|
$ |
351,230 |
|
|
$ |
340,906 |
|
|
|
|
|
* |
Comprised of executive severance costs. |
|
|
|
|
** |
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 or expense. |
|
Diluted Net Income per Share Reconciliation |
|
Three Months Ended | ||||||
|
|
|
December 31, 2016 |
|
January 2, 2016 | ||||
|
|
|
(unaudited) | ||||||
|
(in thousands, except per share data) |
|
|
|
| ||||
|
Diluted net income per share on a GAAP basis |
|
$ |
0.14 |
|
|
$ |
0.26 |
|
|
Amortization of acquired intangibles |
|
0.05 |
|
|
0.05 |
| ||
|
Stock-based compensation expense |
|
0.10 |
|
|
0.08 |
| ||
|
Non-qualified deferred compensation expenses |
|
— |
|
|
— |
| ||
|
Restructuring and other charges |
|
0.09 |
|
|
— |
| ||
|
Acquisition and integration-related costs |
|
0.01 |
|
|
0.01 |
| ||
|
Special charges* |
|
— |
|
|
— |
| ||
|
Other income or expense related to investments and non-qualified deferred compensation plan assets** |
|
— |
|
|
— |
| ||
|
Income tax effect of non-GAAP adjustments |
|
(0.05) |
|
|
(0.09) |
| ||
|
Diluted net income per share on a non-GAAP basis |
|
$ |
0.34 |
|
|
$ |
0.31 |
|
|
Shares used in calculation of diluted net income per share — GAAP*** |
|
278,917 |
|
|
310,512 |
| ||
|
Shares used in calculation of diluted net income per share — non-GAAP*** |
|
278,917 |
|
|
310,512 |
| ||
|
|
|
|
* |
Comprised of executive severance costs. |
|
|
|
|
** |
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 or expense. |
|
|
|
|
*** |
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. |
|
Diluted Net Income per Share Reconciliation |
|
Years Ended | ||||||
|
|
|
December 31, 2016 |
|
January 2, 2016 | ||||
|
|
|
(unaudited) | ||||||
|
(in thousands, except per share data) |
|
|
|
| ||||
|
Diluted net income per share on a GAAP basis |
|
$ |
0.70 |
|
|
$ |
0.81 |
|
|
Amortization of acquired intangibles |
|
0.21 |
|
|
0.21 |
| ||
|
Stock-based compensation expense |
|
0.37 |
|
|
0.30 |
| ||
|
Non-qualified deferred compensation expenses (credits) |
|
0.01 |
|
|
— |
| ||
|
Restructuring and other charges |
|
0.14 |
|
|
0.01 |
| ||
|
Acquisition and integration-related costs |
|
0.04 |
|
|
0.03 |
| ||
|
Special charges* |
|
— |
|
|
— |
| ||
|
Amortization of debt discount on convertible notes |
|
— |
|
|
0.02 |
| ||
|
Other income or expense related to investments and non-qualified deferred compensation plan assets** |
|
(0.02) |
|
|
(0.01) |
| ||
|
Income tax effect of non-GAAP adjustments |
|
(0.24) |
|
|
(0.28) |
| ||
|
Diluted net income per share on a non-GAAP basis |
|
$ |
1.21 |
|
|
$ |
1.09 |
|
|
Shares used in calculation of diluted net income per share — GAAP*** |
|
291,256 |
|
|
312,302 |
| ||
|
Shares used in calculation of diluted net income per share — non-GAAP*** |
|
291,256 |
|
|
312,302 |
| ||
|
|
|
|
* |
Comprised of executive severance costs. |
|
|
|
|
** |
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 or expense. |
|
|
|
|
*** |
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. |
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 March 17, 2017, Cadence will observe a Quiet Period during which the business outlook as provided in this press release and the 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 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 first quarter 2017 earnings release is published, which is currently scheduled for April 24, 2017.
For more information, please contact:
Investors and Shareholders
Alan Lindstrom
Cadence Design Systems, Inc.
408-944-7100
Email Contact
Media and Industry Analysts
Craig Cochran
Cadence Design Systems, Inc.
408-944-7039
Email Contact
|
Cadence Design Systems, Inc. | ||||||||||
|
Condensed Consolidated Balance Sheets | ||||||||||
|
December 31, 2016 and January 2, 2016 | ||||||||||
|
(In thousands) | ||||||||||
|
(Unaudited) | ||||||||||
|
|
|
|
|
|
| |||||
|
|
|
|
December 31, 2016 |
|
January 2, 2016 | |||||
|
|
|
|
|
|
| |||||
|
Current assets: |
|
|
| |||||||
|
|
Cash and cash equivalents |
$ 465,232 |
|
$ 616,686 | ||||||
|
|
Short-term investments |
3,057 |
|
94,498 | ||||||
|
|
Receivables, net |
157,171 |
|
164,848 | ||||||
|
|
Inventories |
39,475 |
|
56,762 | ||||||
|
|
Prepaid expenses and other |
37,099 |
|
31,441 | ||||||
|
|
|
Total current assets |
702,034 |
|
964,235 | |||||
|
|
|
|
|
|
| |||||
|
Property, plant and equipment, net of accumulated |
|
|
| |||||||
|
|
depreciation of $612,961 and $581,345, respectively |
238,607 |
|
228,599 | ||||||
|
Goodwill |
572,764 |
|
551,772 | |||||||
|
Acquired intangibles, net of accumulated amortization of |
|
|
| |||||||
|
|
$267,723 and $216,589, respectively |
258,814 |
|
296,482 | ||||||
|
Long-term receivables |
12,949 |
|
4,498 | |||||||
|
Other assets |
311,740 |
|
299,929 | |||||||
|
Total assets |
$ 2,096,908 |
|
$ 2,345,515 | |||||||
|
|
|
|
|
|
| |||||
|
Current liabilities: |
|
|
| |||||||
|
|
Revolving credit facility |
$ 50,000 |
|
$ - | ||||||
|
|
Accounts payable and accrued liabilities |
239,496 |
|
238,022 | ||||||
|
|
Current portion of deferred revenue |
296,066 |
|
298,285 | ||||||
|
|
|
Total current liabilities |
585,562 |
|
536,307 | |||||
|
|
|
|
|
|
| |||||
|
Long-term liabilities: |
|
|
| |||||||
|
|
Long-term portion of deferred revenue |
66,769 |
|
30,209 | ||||||
|
|
Long-term debt |
643,493 |
|
343,288 | ||||||
|
|
Other long-term liabilities |
59,314 |
|
59,596 | ||||||
|
|
|
Total long-term liabilities |
769,576 |
|
433,093 | |||||
|
|
|
|
|
|
| |||||
|
Stockholders' equity |
741,770 |
|
1,376,115 | |||||||
|
Total liabilities and stockholders' equity |
$ 2,096,908 |
|
$ 2,345,515 | |||||||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Cadence Design Systems, Inc. | ||||||||||||
|
Condensed Consolidated Income Statements | ||||||||||||
|
For the Three Months and Years Ended December 31, 2016 and January 2, 2016 | ||||||||||||
|
(In thousands, except per share amounts) | ||||||||||||
|
(Unaudited) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
Three Months Ended |
|
Years Ended | ||||||
|
|
|
|
|
December 31,
|
|
January 2,
|
|
December 31,
|
|
January 2,
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Revenue: |
|
|
|
|
|
|
| |||||
|
|
Product and maintenance |
$ 436,694 |
|
$ 413,489 |
|
$ 1,683,771 |
|
$ 1,578,944 | ||||
|
|
Services |
32,286 |
|
27,590 |
|
132,312 |
|
123,147 | ||||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
Total revenue |
468,980 |
|
441,079 |
|
1,816,083 |
|
1,702,091 | |||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Costs and expenses: |
|
|
|
|
|
|
| |||||
|
|
Cost of product and maintenance |
57,410 |
|
40,679 |
|
183,291 |
|
155,659 | ||||
|
|
Cost of services |
18,638 |
|
20,223 |
|
73,201 |
|
82,794 | ||||
|
|
Marketing and sales |
98,091 |
|
103,552 |
|
395,194 |
|
402,432 | ||||
|
|
Research and development |
181,516 |
|
161,970 |
|
735,340 |
|
637,567 | ||||
|
|
General and administrative |
29,977 |
|
26,789 |
|
125,106 |
|
109,982 | ||||
|
|
Amortization of acquired intangibles |
3,889 |
|
5,679 |
|
18,095 |
|
23,716 | ||||
|
|
Restructuring and other charges |
26,342 |
|
347 |
|
40,955 |
|
4,511 | ||||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
Total costs and expenses |
415,863 |
|
359,239 |
|
1,571,182 |
|
1,416,661 | |||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Income from operations |
53,117 |
|
81,840 |
|
244,901 |
|
285,430 | ||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
Interest expense |
(6,364) |
|
(4,200) |
|
(23,670) |
|
(28,311) | ||||
|
|
Other income, net |
5,481 |
|
2,510 |
|
15,922 |
|
10,477 | ||||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Income before provision (benefit) for income taxes |
52,234 |
|
80,150 |
|
237,153 |
|
267,596 | ||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
Provision (benefit) for income taxes |
13,757 |
|
(224) |
|
34,067 |
|
15,179 | ||||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Net income |
$ 38,477 |
|
$ 80,374 |
|
$ 203,086 |
|
$ 252,417 | ||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net income per share - basic |
$ 0.14 |
|
$ 0.27 |
|
$ 0.71 |
|
$ 0.88 | |||||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net income per share - diluted |
$ 0.14 |
|
$ 0.26 |
|
$ 0.70 |
|
$ 0.81 | |||||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Weighted average common shares outstanding - basic |
272,578 |
|
297,433 |
|
284,502 |
|
288,018 | |||||
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Weighted average common shares outstanding - diluted |
278,917 |
|
310,512 |
|
291,256 |
|
312,302 | |||||
|
Cadence Design Systems, Inc. | ||||
|
Condensed Consolidated Statements of Cash Flows | ||||
|
For the Years Ended December 31, 2016 and January 2, 2016 | ||||
|
(In thousands) | ||||
|
(Unaudited) | ||||
|
| ||||
|
|
|
|
|
|
|
|
|
Years Ended | ||
|
|
|
December 31, |
|
January 2, |
|
|
|
2016 |
|
2016 |
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
$ 616,686 |
|
$ 932,161 |
|
Cash flows from operating activities: |
|
|
|
|
|
Net income |
|
203,086 |
|
252,417 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
119,588 |
|
118,165 |
|
Amortization of debt discount and fees |
|
1,069 |
|
9,402 |
|
Stock-based compensation |
|
109,217 |
|
92,341 |
|
Gain on investments, net |
|
(4,725) |
|
(2,124) |
|
Gain on sale of property, plant and equipment |
|
(923) |
|
- |
|
Deferred income taxes |
|
(4,869) |
|
(13,148) |
|
Other non-cash items |
|
4,027 |
|
646 |
|
Changes in operating assets and liabilities, net of effect of acquired businesses: |
|
|
|
|
|
Receivables |
|
(3,299) |
|
(44,732) |
|
Inventories |
|
4,934 |
|
(1,120) |
|
Prepaid expenses and other |
|
(6,903) |
|
(1,380) |
|
Other assets |
|
(6,566) |
|
(1,558) |
|
Accounts payable and accrued liabilities |
|
2,655 |
|
15,321 |
|
Deferred revenue |
|
30,742 |
|
(27,019) |
|
Other long-term liabilities |
|
(3,154) |
|
(19,011) |
|
Net cash provided by operating activities |
|
444,879 |
|
378,200 |
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Purchases of available-for-sale securities |
|
(20,525) |
|
(96,531) |
|
Proceeds from the sale of available-for-sale securities |
|
55,619 |
|
60,949 |
|
Proceeds from the maturity of available-for-sale securities |
|
57,762 |
|
31,316 |
|
Proceeds from the sale of long-term investments |
|
2,917 |
|
4,570 |
|
Proceeds from the sale of property, plant and equipment |
|
923 |
|
- |
|
Purchases of property, plant and equipment |
|
(53,712) |
|
(44,808) |
|
Cash paid in business combinations and asset acquisitions, net of cash acquired |
|
(41,627) |
|
- |
|
Net cash provided by (used for) investing activities |
|
1,357 |
|
(44,504) |
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from term loan |
|
300,000 |
|
- |
|
Proceeds from revolving credit facility |
|
115,000 |
|
- |
|
Payment on revolving credit facility |
|
(65,000) |
|
- |
|
Payment of debt issuance costs |
|
(622) |
|
- |
|
Payment of convertible notes |
|
- |
|
(349,999) |
|
Payment of convertible notes embedded conversion derivative liability |
|
- |
|
(530,643) |
|
Proceeds from convertible notes hedges |
|
- |
|
530,643 |
|
Excess tax benefits from stock-based compensation |
|
- |
|
15,591 |
|
Proceeds from issuance of common stock |
|
55,440 |
|
74,938 |
|
Stock received for payment of employee taxes on vesting of restricted stock |
|
(37,226) |
|
(33,651) |
|
Payments for repurchases of common stock |
|
(960,289) |
|
(333,189) |
|
Net cash used for financing activities |
|
(592,697) |
|
(626,310) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
(4,993) |
|
(22,861) |
|
|
|
|
|
|
|
Decrease in cash and cash equivalents |
|
(151,454) |
|
(315,475) |
|
|
|
|
|
|
|
Cash and cash equivalents at end of year |
|
$ 465,232 |
|
$ 616,686 |
|
Cadence Design Systems, Inc. |
|
| ||||||||||
|
(Unaudited) |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Mix by Geography (% of Total Revenue) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
2016 | ||||||||
|
GEOGRAPHY |
|
Q1 |
Q2 |
Q3 |
Q4 |
Year |
|
Q1 |
Q2 |
Q3 |
Q4 |
Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
47% |
48% |
48% |
48% |
47% |
|
49% |
47% |
46% |
48% |
48% |
|
Asia |
|
24% |
23% |
25% |
25% |
24% |
|
22% |
24% |
27% |
25% |
24% |
|
Europe, Middle East and Africa |
|
19% |
20% |
18% |
17% |
19% |
|
19% |
20% |
19% |
19% |
19% |
|
Japan |
|
10% |
9% |
9% |
10% |
10% |
|
10% |
9% |
8% |
8% |
9% |
|
Total |
|
100% |
100% |
100% |
100% |
100% |
|
100% |
100% |
100% |
100% |
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Mix by Product Group (% of Total Revenue) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
2016 | ||||||||
|
PRODUCT GROUP |
|
Q1 |
Q2 |
Q3 |
Q4 |
Year |
|
Q1 |
Q2 |
Q3 |
Q4 |
Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Functional Verification, including Emulation and Prototyping Hardware |
23% |
21% |
23% |
25% |
23% |
|
26% |
27% |
24% |
25% |
25% | |
|
Digital IC Design and Signoff |
|
28% |
29% |
28% |
28% |
28% |
|
30% |
27% |
28% |
30% |
29% |
|
Custom IC Design |
|
27% |
27% |
26% |
25% |
26% |
|
25% |
26% |
27% |
25% |
25% |
|
System Interconnect and Analysis |
|
11% |
11% |
10% |
10% |
11% |
|
9% |
10% |
10% |
9% |
10% |
|
IP |
|
11% |
12% |
13% |
12% |
12% |
|
10% |
10% |
11% |
11% |
11% |
|
Total |
|
100% |
100% |
100% |
100% |
100% |
|
100% |
100% |
100% |
100% |
100% |
|
Cadence Design Systems, Inc. | ||||
|
As of February 1, 2017 | ||||
|
Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share | ||||
|
(Unaudited) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ending |
|
Year Ending |
|
|
|
April 1, 2017 |
|
December 30, 2017 |
|
|
|
Forecast |
|
Forecast |
|
|
|
|
|
|
|
Diluted net income per share on a GAAP basis |
$0.19 to $0.21 |
|
$0.89 to $0.99 | |
|
|
|
|
|
|
|
|
Amortization of acquired intangibles |
0.05 |
|
0.20 |
|
|
Stock-based compensation expense |
0.11 |
|
0.47 |
|
|
Acquisition and integration-related costs |
0.01 |
|
0.01 |
|
|
Income tax effect of non-GAAP adjustments |
(0.06) |
|
(0.25) |
|
|
|
|
|
|
|
Diluted net income per share on a non-GAAP basis�nbsp; |
$0.30 to $0.32 |
|
$1.32 to $1.42 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cadence Design Systems, Inc. | ||||
|
As of February 1, 2017 | ||||
|
Impact of Non-GAAP Adjustments on Forward Looking Net Income | ||||
|
(Unaudited) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ending |
|
Year Ending |
|
|
|
April 1, 2017 |
|
December 30, 2017 |
|
($ in millions) |
Forecast |
|
Forecast | |
|
|
|
|
|
|
|
Net income on a GAAP basis |
$53 to $59 |
|
$248 to $276 | |
|
|
|
|
|
|
|
|
Amortization of acquired intangibles |
14 |
|
56 |
|
|
Stock-based compensation expense |
31 |
|
132 |
|
|
Acquisition and integration-related costs |
1 |
|
3 |
|
|
Income tax effect of non-GAAP adjustments |
(16) |
|
(71) |
|
|
|
|
|
|
|
Net income on a non-GAAP basis�nbsp; |
$83 to $89 |
|
$368 to $396 | |
|
|
|
�nbsp;The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. |
SOURCE CDNS-IR
To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/cadence-reports-fourth-quarter-and-fiscal-year-2016-financial-results-300400700.html
SOURCE Cadence Design Systems, Inc.
| Contact: |
| Cadence Design Systems, Inc.
Web: http://www.cadence.com |