Cadence Reports 1Q19 Financial Results


Reading time ( words)

Cadence Design Systems, Inc. announced results for the first quarter of 2019. The company reported first quarter 2019 revenue of $577 million, compared to revenue of $517 million reported for the same period in 2018. On a GAAP basis, Cadence achieved operating margin of 22% and recognized net income of $121 million, or $0.43 per share on a diluted basis, in the first quarter of 2019, compared to operating margin of 17% and net income of $73 million, or $0.26 per share on a diluted basis, for the same period in 2018.

Using the non-GAAP measure defined below, operating margin for the first quarter of 2019 was 32% and net income was $152 million, or $0.54 per share on a diluted basis, compared to operating margin of 28% and net income of $113 million, or $0.40 per share on a diluted basis, for the same period in 2018.

“Cadence achieved excellent operating results for the first quarter delivering 11% revenue growth and 32% non-GAAP operating margin. Our business is mission critical to silicon development, which is the cornerstone of all design activity,” said Lip-Bu Tan, chief executive officer. “We announced Clarity™ 3D Solver, our first product in the System Analysis space, as we introduced the next phase of our System Design Enablement strategy to provide more capabilities and value to customers and expand our TAM.”

“I’m pleased with our financial discipline and continued broad-based growth,” said John Wall, senior vice president and chief financial officer. “We are raising our outlook for the year as technology trends like AI and 5G continue to drive strong design activity across all lines of our business.”

Business Outlook

For the second quarter of 2019, the company expects total revenue in the range of $575 million to $585 million. Second quarter GAAP operating margin is expected to be in the range of 21% to 22% and GAAP net income per diluted share is expected to be in the range of $0.34 to $0.36. Using the non-GAAP measure defined below, operating margin is expected to be in the range of 31% to 32% and net income per diluted share is expected to be in the range of $0.52 to $0.54.

For 2019, the company expects total revenue in the range of $2.305 billion to $2.335 billion. On a GAAP basis, operating margin is expected to be approximately 21% and net income per diluted share for 2019 is expected to be in the range of $1.39 to $1.47. Using the non-GAAP measure defined below, operating margin for 2019 is expected to be approximately 31% and net income per diluted share for 2019 is expected to be in the range of $2.04 to $2.12.

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

About Cadence

Cadence enables electronic systems and semiconductor companies to create the innovative end products that are transforming the way people live, work and play. Cadence® software, hardware and semiconductor IP are used by customers to deliver products to market faster. The company’s System Design Enablement strategy helps customers develop differentiated products—from chips to boards to systems—in mobile, consumer, cloud datacenter, automotive, aerospace, IoT, industrial and other market segments. Cadence is listed as one of Fortune Magazine's 100 Best Companies to Work For. Learn more at www.cadence.com.

Share

Print


Suggested Items

PCB Design Is All in the Family With Nicole Pacino

04/18/2019 | Andy Shaughnessy, Design007 Magazine
I shared a flight with Nicole Pacino on the way to Altium Live in Munich, and she mentioned that her father was speaking at the show. I went down the list of speakers, and it turned out that her dad is Mike Creeden of San Diego PCB. In Germany, I asked Nicole to tell us about how she got into this industry, and what we could do to draw more young people into this career.

Words of Advice: What are Your Biggest Design Challenges?

03/11/2019 | Andy Shaughnessy, Design007 Magazine
In a recent survey, we asked the following question: What are your biggest design challenges? Here are just a few of the answers, edited slightly for clarity.

Happy Anniversary, Gerber Format: Looking Ahead to Digital Innovation

01/25/2019 | Patrick McGoff, Mentor, a Siemens business
This year, we celebrate the 55th anniversary of the introduction of the Gerber machine language format. We can thank H. Joseph Gerber, the man who took manual PCB design to the next level with the automated photoplotter, for giving us this format in 1964. Gerber immigrated to the United States in 1940 with his mother following the death of his father during the Holocaust. Gerber started Gerber Scientific Instrument Company in 1948 to commercialize his first patented invention—the variable scale.



Copyright © 2019 I-Connect007. All rights reserved.