Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three and Nine Months Ended September 30, 2017 and October 1, 2016

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,
2017

October 1,
2016

September 30,
2017

October 1,
2016

Revenue:

Product and maintenance

$                    451,229

$             415,370

$                 1,346,483

$          1,247,077

Services

34,169

30,850

94,827

100,026

Total revenue

485,398

446,220

1,441,310

1,347,103

Costs and expenses:

Cost of product and maintenance

34,825

38,740

117,371

125,881

Cost of services

19,657

17,867

59,735

54,563

Marketing and sales

104,263

96,793

311,507

297,103

Research and development

206,568

191,547

600,755

553,824

General and administrative

36,302

30,441

100,892

95,129

Amortization of acquired intangibles

3,453

3,889

11,145

14,206

Restructuring and other charges (credits)

(55)

101

(2,772)

14,613

Total costs and expenses

405,013

379,378

1,198,633

1,155,319

Income from operations

80,385

66,842

242,677

191,784

Interest expense

(6,225)

(6,053)

(18,952)

(17,306)

Other income, net

12,387

2,836

14,370

10,441

Income before provision (benefit) for income taxes

86,547

63,625

238,095

184,919

Provision (benefit) for income taxes

5,390

(1,087)

19,552

20,310

Net income 

$                      81,157

$               64,712

$                    218,543

$             164,609

Net income per share - basic

$                          0.30

$                   0.23

$                          0.80

$                   0.57

Net income per share - diluted

$                          0.29

$                   0.23

$                          0.78

$                   0.56

Weighted average common shares outstanding - basic

273,156

280,622

271,739

288,476

Weighted average common shares outstanding - diluted

281,400

287,473

279,554

295,369