Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three Months Ended April 1, 2017 and April 2, 2016

(In thousands, except per share amounts)

(Unaudited)

April 1, 2017

April 2, 2016

Revenue:

Product and maintenance

$               451,407

$               411,744

Services

25,504

36,118

Total revenue

476,911

447,862

Costs and expenses:

Cost of product and maintenance

43,717

44,181

Cost of services

18,075

17,873

Marketing and sales

103,347

99,200

Research and development

198,286

179,906

General and administrative

31,816

28,300

Amortization of acquired intangibles

3,856

5,780

Restructuring and other charges (credits)

(1,788)

14,586

Total costs and expenses

397,309

389,826

Income from operations

79,602

58,036

Interest expense

(6,479)

(5,357)

Other income, net

1,059

4,763

Income before provision for income taxes

74,182

57,442

Provision for income taxes

5,923

6,880

Net income 

$                 68,259

$                 50,562

Net income per share - basic

$                     0.25

$                     0.17

Net income per share - diluted

$                     0.25

$                     0.17

Weighted average common shares outstanding - basic

270,173

296,615

Weighted average common shares outstanding - diluted

277,736

303,434