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Cadence Reports Fourth Quarter and Fiscal Year 2021 Financial Results

SAN JOSE, Calif. — (BUSINESS WIRE) — February 21, 2022 — Cadence Design Systems, Inc. (Nasdaq: CDNS) today announced results for the fourth quarter and fiscal year 2021.

Cadence reported 2021 revenue of $2.988 billion, compared to revenue of $2.683 billion for 2020. On a GAAP basis, Cadence achieved operating margin of 26 percent and recognized net income of $696 million, or $2.50 per share on a diluted basis, in 2021, compared to operating margin of 24 percent and net income of $591 million, or $2.11 per share on a diluted basis, for 2020. Revenue for the fourth quarter of 2021 totaled $773 million, compared to revenue of $760 million for the same period in 2020. Cadence achieved operating margin of 25 percent and recognized net income of $177 million, or $0.63 per share on a diluted basis, in the fourth quarter of 2021, compared to operating margin of 24 percent and net income of $174 million, or $0.62 per share on a diluted basis, for the same period in 2020.

Using the non-GAAP measures defined below, operating margin for 2021 was 37 percent and net income was $918 million, or $3.29 per share on a diluted basis, compared to operating margin of 35 percent and net income of $782 million, or $2.80 per share on a diluted basis, for 2020. For the fourth quarter of 2021, operating margin was 36 percent and net income was $227 million, or $0.82 per share on a diluted basis, compared to operating margin of 37 percent and net income of $234 million, or $0.83 per share on a diluted basis, for the same period in 2020.

“Cadence delivered exceptional business results for 2021, driven by our highly innovative solutions and outstanding execution by the Cadence team,” said Anirudh Devgan, president and chief executive officer. “We accelerated our Intelligent System Design strategy, introducing over a dozen significant innovative products and making key strategic acquisitions. With generational industry trends continuing to drive robust design activity at both semiconductor and system companies, I excitedly look forward to Cadence driving further customer and shareholder success this year.”

“2021 was another year of continuous improvement at Cadence. Steady growth in our three year revenue growth CAGR continues to drive operating margin expansion, and the quality of those improvements in earnings are showing up in our operating cash, which hit $1.1 billion for the year,” said John Wall, senior vice president and chief financial officer. “I am pleased that we can build on 2021 with a strong outlook for 2022.”

CFO Commentary

Commentary on the fourth quarter and fiscal year 2021 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.

Business Outlook

For the first quarter of 2022, the company expects total revenue in the range of $850 million to $870 million. First quarter GAAP operating margin is expected to be in the range of 30 percent to 31 percent and GAAP net income per diluted share is expected to be in the range of $0.70 to $0.74. Using the non-GAAP measures defined below, operating margin is expected to be in the range of 40 percent to 41 percent and net income per diluted share is expected to be in the range of $1.00 to $1.04.

For fiscal year 2022, the company expects total revenue in the range of $3.32 billion to $3.38 billion. On a GAAP basis, operating margin is expected to be in the range of 27.5 percent to 29 percent and GAAP net income per diluted share for 2022 is expected to be in the range of $2.46 to $2.56. Using the non-GAAP measures defined below, operating margin for 2022 is expected to be in the range of 37.5 percent to 39 percent and net income per diluted share for 2022 is expected to be in the range of $3.70 to $3.80.

The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company’s geographic earnings mix, or other changes to the company’s strategy or business operations. The company expects to use this normalized non-GAAP tax rate through fiscal 2025 but will re-evaluate this rate periodically for significant items that may materially affect its projections.

A schedule showing reconciliations of the business outlook from GAAP operating margin, GAAP net income and GAAP diluted net income per share to non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share, respectively, is included in this release.

Audio Webcast Scheduled

Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the fourth quarter and fiscal year 2021 financial results audio webcast today, February 22, 2022, 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 22, 2022 at 5 p.m. (Pacific) and ending March 18, 2022 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.

About Cadence

Cadence is a pivotal leader in electronic systems design, building upon more than 30 years of computational software expertise. The company applies its underlying Intelligent System Design strategy to deliver software, hardware and IP that turn design concepts into reality. Cadence customers are the world’s most innovative companies, delivering extraordinary products from chips to boards to complete systems for the most dynamic market applications, including hyperscale computing, 5G communications, automotive, mobile, aerospace, consumer, industrial and healthcare. For seven years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at www.cadence.com.

© 2022 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

This document includes forward-looking statements which are based on current expectations and preliminary assumptions 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 highly competitive industries in which it operates; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) change in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence's products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic and industry conditions, including that of the semiconductor and electronics industries, government regulations and trade restrictions; (vi) capital expenditure requirements, legislative or regulatory requirements, changes in tax laws, interest rates, currency exchange rate fluctuations, inflation rates and Cadence’s ability to access capital and debt markets; (vii) the acquisition of other companies or technologies or the failure to successfully integrate and operate them; (viii) events that affect cash flow, liquidity, or reserves, or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (ix) the effects of any litigation, regulatory or other proceedings to which Cadence is or may become a party; and (x) the duration, severity, volatility and effects of the COVID-19 pandemic and containment measures on Cadence, its employees, and its suppliers and customers, which may also have the effect of heightening the other risks described in this paragraph. In addition, the timing and amount of Cadence's repurchase of its common stock under the authorizations will be subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.

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, stock-based compensation expense, acquisition and integration-related costs including retention expenses, investment gains or losses, income or expenses related to Cadence’s non-qualified deferred compensation plan, restructuring, executive severance 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 management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence 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 management, including forecasting and budgeting.

The following tables reconcile the specific items excluded from GAAP operating margin, GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP operating margin, non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:

Operating Margin Reconciliation

 

Three Months Ended

 

 

January 1, 2022

 

January 2, 2021

 

 

(unaudited)

GAAP operating margin as a percent of total revenue

 

25%

 

24%

Reconciling items to non-GAAP operating margin as a percent of total revenue:

 

 

 

 

Stock-based compensation expense

 

7%

 

8%

Amortization of acquired intangibles

 

2%

 

2%

Acquisition and integration-related costs

 

1%

 

1%

Restructuring

 

0%

 

1%

Non-qualified deferred compensation expenses

 

1%

 

1%

Non-GAAP operating margin as a percent of total revenue

 

36%

 

37%

Operating Margin Reconciliation

 

Years Ended

 

 

January 1, 2022

 

January 2, 2021

 

 

(unaudited)

GAAP operating margin as a percent of total revenue

 

26%

 

24%

Reconciling items to non-GAAP operating margin as a percent of total revenue:

 

 

 

 

Stock-based compensation expense

 

7%

 

7%

Amortization of acquired intangibles

 

2%

 

3%

Acquisition and integration-related costs

 

1%

 

1%

Restructuring

 

0%

 

0%

Non-qualified deferred compensation expenses

 

0%

 

0%

Special charges*

 

1%

 

0%

Non-GAAP operating margin as a percent of total revenue

 

37%

 

35%

*

Includes costs related to a voluntary retirement program in the second quarter of 2021.

Net Income Reconciliation

 

Three Months Ended

 

 

January 1, 2022

 

January 2, 2021

(in thousands)

 

(unaudited)

Net income on a GAAP basis

 

$

176,579

 

 

$

173,738

 

Stock-based compensation expense

 

 

54,230

 

 

 

58,545

 

Amortization of acquired intangibles

 

 

16,781

 

 

 

17,168

 

Acquisition and integration-related costs

 

 

5,946

 

 

 

6,556

 

Restructuring

 

 

(80

)

 

 

10,544

 

Non-qualified deferred compensation expenses

 

 

2,205

 

 

 

4,280

 

Other income or expense related to investments and non-qualified deferred compensation plan assets*

 

 

(2,454

)

 

 

(4,860

)

Income tax effect of non-GAAP adjustments

 

 

(25,834

)

 

 

(32,097

)

Net income on a non-GAAP basis

 

$

227,373

 

 

$

233,874

 

*

Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.

 

Net Income Reconciliation

 

Years Ended

 

 

January 1, 2022

 

January 2, 2021

(in thousands)

 

(unaudited)

Net income on a GAAP basis

 

$

695,955

 

 

$

590,644

 

Stock-based compensation expense

 

 

210,090

 

 

 

197,268

 

Amortization of acquired intangibles

 

 

67,216

 

 

 

64,193

 

Acquisition and integration-related costs

 

 

22,413

 

 

 

22,580

 

Restructuring

 

 

(1,048

)

 

 

9,215

 

Non-qualified deferred compensation expenses

 

 

6,163

 

 

 

4,881

 

Special charges*

 

 

26,832

 

 

 

394

 

Other income or expense related to investments and non-qualified deferred compensation plan assets**

 

 

(6,745

)

 

 

(522

)

Income tax effect of non-GAAP adjustments

 

 

(102,456

)

 

 

(106,817

)

Net income on a non-GAAP basis

 

$

918,420

 

 

$

781,836

 

*

Includes costs related to a voluntary retirement program in the second quarter of 2021.

**

Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on 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

 

 

January 1, 2022

 

January 2, 2021

(in thousands, except per share data)

 

(unaudited)

Diluted net income per share on a GAAP basis

 

$

0.63

 

 

$

0.62

 

Stock-based compensation expense

 

 

0.20

 

 

 

0.21

 

Amortization of acquired intangibles

 

 

0.06

 

 

 

0.06

 

Acquisition and integration-related costs

 

 

0.02

 

 

 

0.02

 

Restructuring

 

 

 

 

 

0.04

 

Non-qualified deferred compensation expenses

 

 

0.01

 

 

 

0.01

 

Other income or expense related to investments and non-qualified deferred compensation plan assets*

 

 

(0.01

)

 

 

(0.02

)

Income tax effect of non-GAAP adjustments

 

 

(0.09

)

 

 

(0.11

)

Diluted net income per share on a non-GAAP basis

 

$

0.82

 

 

$

0.83

 

Shares used in calculation of diluted net income per share

 

 

278,253

 

 

 

280,173

 

*

Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.

 

Diluted Net Income Per Share Reconciliation

 

Years Ended

 

 

January 1, 2022

 

January 2, 2021

(in thousands, except per share data)

 

(unaudited)

Diluted net income per share on a GAAP basis

 

$

2.50

 

 

$

2.11

 

Stock-based compensation expense

 

 

0.75

 

 

 

0.71

 

Amortization of acquired intangibles

 

 

0.24

 

 

 

0.23

 

Acquisition and integration-related costs

 

 

0.08

 

 

 

0.08

 

Restructuring

 

 

 

 

 

0.03

 

Non-qualified deferred compensation expenses

 

 

0.02

 

 

 

0.02

 

Special charges*

 

 

0.10

 

 

 

 

Other income or expense related to investments and non-qualified deferred compensation plan assets**

 

 

(0.03

)

 

 

 

Income tax effect of non-GAAP adjustments

 

 

(0.37

)

 

 

(0.38

)

Diluted net income per share on a non-GAAP basis

 

$

3.29

 

 

$

2.80

 

Shares used in calculation of diluted net income per share

 

 

278,858

 

 

 

279,641

 

*

Includes costs related to a voluntary retirement program in the second quarter of 2021.

**

Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.

 

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 18, 2022, 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 Cadence’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 Cadence. 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 Cadence’s first quarter 2022 earnings release is published, which is currently scheduled for April 25, 2022.

 
Cadence Design Systems, Inc.
Condensed Consolidated Balance Sheets
January 1, 2022 and January 2, 2021
(In thousands)
(Unaudited)
 
January 1, 2022 January 2, 2021
 
Current assets:
Cash and cash equivalents

$

1,088,940

$

928,432

Receivables, net

 

337,596

 

338,487

Inventories

 

115,721

 

75,956

Prepaid expenses and other

 

173,512

 

135,712

Total current assets

 

1,715,769

 

1,478,587

 
Property, plant and equipment, net

 

305,911

 

311,125

Goodwill

 

928,358

 

782,087

Acquired intangibles, net

 

233,265

 

210,590

Deferred taxes

 

763,770

 

732,290

Other assets

 

439,226

 

436,106

Total assets

$

4,386,299

$

3,950,785

 
Current liabilities:
Accounts payable and accrued liabilities

$

417,283

$

349,951

Current portion of deferred revenue

 

553,942

 

446,857

Total current liabilities

 

971,225

 

796,808

 
Long-term liabilities:
Long-term portion of deferred revenue

 

101,148

 

107,064

Long-term debt

 

347,588

 

346,793

Other long-term liabilities

 

225,663

 

207,102

Total long-term liabilities

 

674,399

 

660,959

 
Stockholders' equity

 

2,740,675

 

2,493,018

Total liabilities and stockholders' equity

$

4,386,299

$

3,950,785

 
Cadence Design Systems, Inc.
Condensed Consolidated Income Statements
For the Three Months and Years Ended January 1, 2022 and January 2, 2021
(In thousands, except per share amounts)
(Unaudited)
 
Three Months Ended Years Ended
January 1, 2022 January 2, 2021 January 1, 2022 January 2, 2021
 
Revenue:
Product and maintenance

$

719,849

 

$

723,233

 

$

2,812,947

 

$

2,536,617

 

Services

 

53,187

 

 

36,676

 

 

175,297

 

 

146,274

 

 
Total revenue

 

773,036

 

 

759,909

 

 

2,988,244

 

 

2,682,891

 

 
Costs and expenses:
Cost of product and maintenance

 

47,714

 

 

55,111

 

 

222,647

 

 

231,026

 

Cost of services

 

21,979

 

 

18,425

 

 

84,359

 

 

74,472

 

Marketing and sales

 

148,068

 

 

146,502

 

 

560,262

 

 

516,460

 

Research and development

 

288,953

 

 

290,309

 

 

1,134,277

 

 

1,033,732

 

General and administrative

 

65,743

 

 

49,264

 

 

189,018

 

 

154,425

 

Amortization of acquired intangibles

 

4,979

 

 

4,775

 

 

19,640

 

 

18,009

 

Restructuring

 

(80

)

 

10,544

 

 

(1,048

)

 

9,215

 

 
Total costs and expenses

 

577,356

 

 

574,930

 

 

2,209,155

 

 

2,037,339

 

 
Income from operations

 

195,680

 

 

184,979

 

 

779,089

 

 

645,552

 

 
Interest expense

 

(4,251

)

 

(4,873

)

 

(16,980

)

 

(20,749

)

Other income, net

 

2,625

 

 

6,083

 

 

6,326

 

 

7,945

 

 
Income before provision for income taxes

 

194,054

 

 

186,189

 

 

768,435

 

 

632,748

 

 
Provision for income taxes

 

17,475

 

 

12,451

 

 

72,480

 

 

42,104

 

 
Net income

$

176,579

 

$

173,738

 

$

695,955

 

$

590,644

 

 
 
Net income per share - basic

$

0.65

 

$

0.63

 

$

2.54

 

$

2.16

 

 
Net income per share - diluted

$

0.63

 

$

0.62

 

$

2.50

 

$

2.11

 

 
Weighted average common shares outstanding - basic

 

273,066

 

 

273,985

 

 

273,504

 

 

273,728

 

 
Weighted average common shares outstanding - diluted

 

278,253

 

 

280,173

 

 

278,858

 

 

279,641

 

 
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Cash Flows
For the Years Ended January 1, 2022 and January 2, 2021
(In thousands)
(Unaudited)
 
Years Ended
January 1, January 2,

 

2022

 

 

2021

 

 
Cash and cash equivalents at beginning of year

$

928,432

 

$

705,210

 

Cash flows from operating activities:
Net income

 

695,955

 

 

590,644

 

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization

 

142,308

 

 

145,653

 

Amortization of debt discount and fees

 

1,219

 

 

1,053

 

Stock-based compensation

 

210,090

 

 

197,268

 

(Gain) loss on investments, net

 

(580

)

 

4,954

 

Deferred income taxes

 

(43,178

)

 

(26,117

)

Provisions for losses on receivables

 

525

 

 

1,628

 

ROU asset amortization and change in operating lease liabilities

 

(11,606

)

 

4,483

 

Other non-cash items

 

427

 

 

773

 

Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables

 

2,014

 

 

(25,934

)

Inventories

 

(39,027

)

 

(25,685

)

Prepaid expenses and other

 

(34,342

)

 

(31,167

)

Other assets

 

(7,133

)

 

(71,606

)

Accounts payable and accrued liabilities

 

67,356

 

 

18,394

 

Deferred revenue

 

100,731

 

 

110,173

 

Other long-term liabilities

 

16,199

 

 

10,408

 

Net cash provided by operating activities

 

1,100,958

 

 

904,922

 

 
Cash flows from investing activities:
Proceeds from the sale of non-marketable investments

 

128

 

 

217

 

Purchases of property, plant and equipment

 

(65,298

)

 

(94,813

)

Purchases of intangible assets

 

(1,583

)

 

-

 

Cash paid in business combinations, net of cash acquired

 

(226,201

)

 

(197,562

)

Net cash used for investing activities

 

(292,954

)

 

(292,158

)

 
Cash flows from financing activities:
Proceeds from revolving credit facility

 

-

 

 

350,000

 

Payment on revolving credit facility

 

-

 

 

(350,000

)

Payment of debt issuance costs

 

(1,285

)

 

-

 

Proceeds from issuance of common stock

 

87,772

 

 

74,803

 

Stock received for payment of employee taxes on vesting of restricted stock

 

(117,982

)

 

(110,028

)

Payments for repurchases of common stock

 

(612,297

)

 

(380,064

)

Net cash used for financing activities

 

(643,792

)

 

(415,289

)

 
Effect of exchange rate changes on cash and cash equivalents

 

(3,704

)

 

25,747

 

 
Increase in cash and cash equivalents

 

160,508

 

 

223,222

 

 
Cash and cash equivalents at end of year

$

1,088,940

 

$

928,432

 

 
Cadence Design Systems, Inc.
(Unaudited)
 
Revenue Mix by Geography (% of Total Revenue)

2020

 

 

2021

GEOGRAPHY Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
 
Americas

43%

44%

42%

41%

42%

46%

44%

46%

43%

45%

China

13%

12%

17%

17%

15%

12%

14%

13%

12%

13%

Other Asia

18%

19%

19%

18%

18%

18%

19%

18%

21%

19%

Europe, Middle East and Africa

19%

18%

16%

17%

18%

18%

17%

17%

18%

17%

Japan

7%

7%

6%

7%

7%

6%

6%

6%

6%

6%

Total

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

 
 
Revenue Mix by Product Category (% of Total Revenue)

2020

 

 

2021

PRODUCT CATEGORY Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
 
Custom IC Design and Simulation

25%

24%

24%

26%

25%

23%

23%

23%

24%

23%

Digital IC Design and Signoff

29%

28%

27%

31%

29%

27%

28%

29%

29%

29%

Functional Verification, including Emulation and Prototyping Hardware

23%

24%

23%

19%

22%

26%

25%

23%

21%

24%

IP

14%

14%

15%

13%

14%

14%

13%

14%

14%

13%

System Design and Analysis

9%

10%

11%

11%

10%

10%

11%

11%

12%

11%

Total

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

 
Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Operating Margin
As of February 22, 2022
(Unaudited)
 
Three Months Ending Year Ending
April 2, 2022 December 31, 2022
Forecast Forecast
 
GAAP operating margin as a percent of total revenue

30% - 31%

 

27.5% - 29%

 

 

 

Reconciling items to non-GAAP operating margin as a percent of total revenue:

 

 

 

Stock-based compensation expense

7%

 

8%

Amortization of acquired intangibles

2%

 

2%

Acquisition and integration-related costs

1%

 

0%

 

 

 

Non-GAAP operating margin as a percent of total revenue�nbsp;

40% - 41%

 

37.5% - 39%

�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.

 
Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share
As of February 22, 2022
(Unaudited)
 
Three Months Ending Year Ending
April 2, 2022 December 31, 2022
Forecast Forecast
 
Diluted net income per share on a GAAP basis $0.70 to $0.74 $2.46 to $2.56
 
Stock-based compensation expense

0.22

 

0.97

Amortization of acquired intangibles

0.06

 

0.19

Acquisition and integration-related costs

0.01

 

0.03

Income tax effect of non-GAAP adjustments

0.01

 

0.05

 
Diluted net income per share on a non-GAAP basis�nbsp; $1.00 to $1.04 $3.70 to $3.80
 
 
Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Net Income
As of February 22, 2022
(Unaudited)
 
Three Months Ending Year Ending
April 2, 2022 December 31, 2022
($ in millions) Forecast Forecast
 
Net income on a GAAP basis

$193 to $204

 

$685 to $713

 

 

 

Stock-based compensation expense

61

 

268

Amortization of acquired intangibles

17

 

52

Acquisition and integration-related costs

4

 

8

Income tax effect of non-GAAP adjustments

3

 

15

 
Net income on a non-GAAP basis�nbsp; $278 to $289 $1,028 to $1,056
�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.

CDNS-IR

Category: Financial, Featured



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