Cadence Reports First Quarter 2012 Financial Results

Investors are encouraged to look at the GAAP results as the best measure of financial performance.

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 June 15, 2012, Cadence will observe a Quiet Period during which the business outlook as provided in this press release and the company's 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 to be 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 Second Quarter 2012 Earnings Release is published, which is currently scheduled for July 25, 2012.

                                                                            
                        Cadence Design Systems, Inc.                        
                   Condensed Consolidated Balance Sheets                    
                    March 31, 2012 and December 31, 2011                    
                               (In thousands)                               
                                (Unaudited)                                 
                                                 March 31,    December 31,  
                                                    2012           2011     
                                               -------------  ------------- 
                                                                            
Current Assets:                                                             
  Cash and cash equivalents                    $     659,687  $     601,602 
  Short-term investments                               3,287          3,037 
  Receivables                                         79,997        136,772 
  Inventories                                         41,720         43,243 
  2015 notes hedges                                  257,775        215,113 
  Prepaid expenses and other                          69,178         64,216 
                                               -------------  ------------- 
    Total current assets                           1,111,644      1,063,983 
                                                                            
Property, plant and equipment, net of                                       
 accumulated depreciation of $662,068 and                                   
 $658,990, respectively                              257,743        262,517 
Goodwill                                               192,445                192,125  
Acquired  intangibles,  net  of  accumulated                                                                        
  amortization  of  $82,530  and  $91,542,                                                                              
  respectively                                                                                166,528                173,234  
Long-term  receivables                                                                    7,555                  11,371  
Other  assets                                                                                    58,917                  58,039  
                                                                                              -------------    -------------  
Total  Assets                                                                      $      1,794,832    $      1,761,269  
                                                                                              =============    =============  
                                                                                                                                                        
Current  Liabilities:                                                                                                                
    Convertible  notes                                                        $          297,653    $          294,061  
    2015  notes  embedded  conversion  derivative                    257,775                215,113  
    Accounts  payable  and  accrued  liabilities                      143,760                165,791  
    Current  portion  of  deferred  revenue                                312,238                340,401  
                                                                                              -------------    -------------  
        Total  current  liabilities                                            1,011,426            1,015,366  
                                                                                              -------------    -------------  
                                                                                                                                                        
Long-Term  Liabilities:                                                                                                            
    Long-term  portion  of  deferred  revenue                              62,634                  73,959  
    Convertible  notes                                                                    133,459                131,920  
    Other  long-term  liabilities                                                126,561                128,894  
                                                                                              -------------    -------------  
        Total  long-term  liabilities                                            322,654                334,773  
                                                                                              -------------    -------------  
                                                                                                                                                        
Stockholders'  Equity                                                                  460,752                411,130  
                                                                                              -------------    -------------  
Total  Liabilities  and  Stockholders'  Equity          $      1,794,832    $      1,761,269  
                                                                                              =============    =============  
                                                                                                                                                        
                                            Cadence  Design  Systems,  Inc.                                            
                                Condensed  Consolidated  Income  Statements                                
            For  the  Three  Months  Ended  March  31,  2012  and  April  2,  2011              
                                (In  thousands,  except  per  share  amounts)                                
                                                            (Unaudited)                                                              
                                                                                                                                                
                                                                                                  Three  Months  Ended          
                                                                                          --------------------------  
                                                                                              March  31,            April  2,    
                                                                                                  2012                    2011          
                                                                                          ------------    ------------  
Revenue:                                                                                                                                
    Product                                                                        $        190,024    $        141,819  
    Services                                                                                  29,542                27,805  
    Maintenance                                                                            96,264                96,478  
                                                                                          ------------    ------------  
                                                                                                                                                
        Total  revenue                                                                  315,830              266,102  
                                                                                          ------------    ------------  
                                                                                                                                                
Costs  and  Expenses:                                                                                                          
    Cost  of  product                                                                    15,401                14,194  
    Cost  of  services                                                                  19,374                20,075  
    Cost  of  maintenance                                                            11,811                10,898  
    Marketing  and  sales                                                            83,795                78,372  
    Research  and  development                                                108,594              101,299  
    General  and  administrative                                              27,770                19,302  
    Amortization  of  acquired  intangibles                            3,786                  4,459  
    Restructuring  and  other  charges  (credits)                      (51)                    (41)
                                                                                          ------------    ------------  
                                                                                                                                                
        Total  costs  and  expenses                                            270,480              248,558  
                                                                                          ------------    ------------  
                                                                                                                                                
            Income  from  operations                                              45,350                17,544  
                                                                                                                                                
    Interest  expense                                                                  (8,537)            (10,986)
    Other  income,  net                                                                  2,434                  4,469  
                                                                                          ------------    ------------  
                                                                                                                                                
            Income  before  provision  for  income                                                                
              taxes                                                                              39,247                11,027  
                                                                                                                                                
    Provision  for  income  taxes                                                8,143                  4,704  
                                                                                          ------------    ------------  
                                                                                                                                                
            Net  income                                                          $          31,104    $            6,323  
                                                                                          ============    ============  
                                                                                                                                                
                                                                                                                                                
Basic  net  income  per  share                                      $              0.12    $              0.02  
                                                                                          ============    ============  
                                                                                                                                                
Diluted  net  income  per  share                                  $              0.11    $              0.02  
                                                                                          ============    ============  
                                                                                                                                                
Weighted  average  common  shares  outstanding  -                                                        
  basic                                                                                        267,940              261,533  
                                                                                          ============    ============  
                                                                                                                                                
Weighted  average  common  shares  outstanding  -                                                        
  diluted                                                                                    277,733              268,578  
                                                                                          ============    ============  
                                                                                                                                                
                                                Cadence  Design  Systems,  Inc.                                                
                            Condensed  Consolidated  Statements  of  Cash  Flows                              
                For  the  Three  Months  Ended  March  31,  2012  and  April  2,  2011                  
                                                              (In  thousands)                                                              
                                                                (Unaudited)                                                                  
                                                                                                                                                        
                                                                                                          Three  Months  Ended          
                                                                                                  --------------------------  
                                                                                                      March  31,          April  2,      
                                                                                                          2012                    2011          
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  and  Cash  Equivalents  at  Beginning  of  Period  $        601,602    $        557,409  
                                                                                                  ------------    ------------  
Cash  Flows  from  Operating  Activities:                                                                              
    Net  income                                                                                      31,104                  6,323  
    Adjustments  to  reconcile  net  income  to  net                                                                
      cash  provided  by  operating  activities:                                                                      
        Depreciation  and  amortization                                            21,939                22,907  
        Amortization  of  debt  discount  and  fees                            5,734                  7,263  
        Stock-based  compensation                                                      11,525                  9,357  
        Gain  on  investments,  net                                                      (1,949)              (4,447)
        Non-cash  restructuring  and  other  charges                              63                        65  
        Deferred  income  taxes                                                                  223                        65  
        Provisions  (recoveries)  for  losses  (gains)                                                            
          on  trade  and  installment  contract                                                                            
          receivables,  net                                                                              -                (5,197)
        Other  non-cash  items                                                                    683                      488  
        Changes  in  operating  assets  and  liabilities,                                                        
          net  of  effect  of  acquired  businesses:                                                                    
            Current  and  long-term  receivables                                60,172                37,642  
            Inventories                                                                                (154)              (4,016)
            Prepaid  expenses  and  other                                              (5,545)              (5,456)
            Other  assets                                                                              (577)                1,662  
            Accounts  payable  and  accrued  liabilities                (19,582)            (20,681)
            Deferred  revenue                                                                (39,315)              15,607  
            Other  long-term  liabilities                                            (3,612)              (5,217)
                                                                                                  ------------    ------------  
                Net  cash  provided  by  operating                                                                            
                  activities                                                                        60,709                56,365  
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  Flows  from  Investing  Activities:                                                                              
    Proceeds  from  the  sale  of  available-for-sale                                                            
      securities                                                                                              -                  1,497  
    Proceeds  from  the  sale  of  long-term                                                                              
      investments                                                                                          44                  2,677  
    Purchases  of  property,  plant  and  equipment                      (8,201)              (5,181)
    Investment  in  venture  capital  partnerships  and                                                        
      equity  investments                                                                        (250)                  (608)
    Cash  paid  in  business  combinations  and  asset                                                            
      acquisitions,  net  of  cash  acquired,  and                                                                    
      acquisition  of  intangibles                                                    (1,041)              (2,538)
                                                                                                  ------------    ------------  
                Net  cash  used  for  investing  activities                  (9,448)              (4,153)
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  Flows  from  Financing  Activities:                                                                              
    Principal  payments  on  receivable  sale                                                                          
      financing                                                                                                -                (2,829)
    Tax  effect  related  to  employee  stock                                                                            
      transactions  allocated  to  equity                                          2,842                      160  
    Payment  of  acquisition-related  contingent                                                                  
      consideration                                                                                    (39)                        -  
    Proceeds  from  issuance  of  common  stock                              12,761                  8,897  
    Stock  received  for  payment  of  employee  taxes                                                            
      on  vesting  of  restricted  stock                                            (6,173)              (2,854)
                                                                                                  ------------    ------------  
                Net  cash  provided  by  financing                                                                            
                  activities                                                                          9,391                  3,374  
                                                                                                  ------------    ------------  
                                                                                                                                                        
Effect  of  exchange  rate  changes  on  cash  and  cash                                                        
  equivalents                                                                                      (2,567)                  (787)
                                                                                                  ------------    ------------  
                                                                                                                                                        
Increase  in  cash  and  cash  equivalents                                    58,085                54,799  
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  and  Cash  Equivalents  at  End  of  Period              $        659,687    $        612,208  
                                                                                                  ============    ============  
                                                                                                                                                        
                                                Cadence  Design  Systems,  Inc.                                                
                                                        As  of  April  25,  2012                                                        
    Impact  of  Non-GAAP  Adjustments  on  Forward  Looking  Diluted  Net  Income  Per    
                                                                        Share                                                                      
                                                                  (Unaudited)                                                                
                                                                                                                                                        
                                                                          Three  Months  Ending          Year  Ending        
                                                                                June  30,  2012          December  29,  2012  
                                                                          -------------------  -------------------
                                                                                      Forecast                        Forecast          
                                                                          -------------------  -------------------
                                                                                                                                                        
Diluted  net  income  per  share  on  a                                                                                      
  GAAP  basis                                                          $0.13  to  $0.14            $0.45  to  $0.49    
                                                                                                                                                        
    Amortization  of  acquired                                                                                                    
      intangibles                                                              0.02                                0.09              
    Stock-based  compensation  expense                      0.04                                0.17              
    Non-qualified  deferred                                                                                                        
      compensation  expenses                                            -                                    0.01              
    Integration  and  acquisition-                                                                                            
      related  costs                                                            -                                      -                  
    Amortization  of  debt  discount                            0.02                                0.08              
    Other  income  or  expense  related  to                                                                                
      investments  and  non-qualified                                                                                        
      deferred  compensation  plan                                                                                              
      assets*                                                                        -                                  (0.01)            
    Income  tax  effect  of  non-GAAP                                                                                          
      adjustments                                                            (0.04)                            (0.13)            
                                                                                                                                                        
                                                                          -------------------  -------------------
Diluted  net  income  per  share  on  a                                                                                      
  non-GAAP  basis                                                  $0.17  to  $0.18            $0.66  to  $0.70    
                                                                          ===================  ===================
                                                                                                                                                        
    *  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,  net.                                                                                      
                                                                                                                                                        
                                                Cadence  Design  Systems,  Inc.                                                
                                                        As  of  April  25,  2012                                                        
                Impact  of  Non-GAAP  Adjustments  on  Forward  Looking  Net  Income                
                                                                  (Unaudited)                                                                
                                                                                                                                                        
                                                                          Three  Months  Ending          Year  Ending        
                                                                                June  30,  2012          December  29,  2012  
                                                                          -------------------  -------------------
($  in  Millions)                                                        Forecast                        Forecast          
                                                                          -------------------  -------------------
                                                                                                                                                        
Net  income  on  a  GAAP  basis                                $35  to  $40                  $126  to  $138      
                                                                                                                                                        
    Amortization  of  acquired                                                                                                    
      intangibles                                                                7                                      26                
    Stock-based  compensation  expense                        10                                    49                
    Non-qualified  deferred                                                                                                        
      compensation  expenses                                            -                                      2                  
    Integration  and  acquisition-                                                                                            
      related  costs                                                            -                                      1                  
    Amortization  of  debt  discount                              5                                      21                
    Other  income  or  expense  related  to                                                                                
      investments  and  non-qualified                                                                                        
      deferred  compensation  plan                                                                                              
      assets*                                                                        -                                    (2)                
    Income  tax  effect  of  non-GAAP                                                                                          
      adjustments                                                              (10)                                (37)              
                                                                                                                                                        
                                                                          -------------------  -------------------
Net  income  on  a  non-GAAP  basis                        $47  to  $52                  $186  to  $198      
                                                                          ===================  ===================
                                                                                                                                                        
    *  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,  net.                                                                                      
                                                                                                                                                        
                                                Cadence  Design  Systems,  Inc.                                                
                                                                  (Unaudited)                                                                
                                                                                                                                                        
Revenue  Mix  by  Geography  (%  of  Total  Revenue)                                                              
                                                                                                                                                        
                                                                2010                                          2011                      2012
                                            ------------------------  ------------------------  ----
GEOGRAPHY                            Q1      Q2      Q3      Q4    Year    Q1      Q2      Q3      Q4    Year    Q1  
                                            ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----
                                                                                                                                                        
    Americas                          40%    46%    43%    45%    43%    44%    47%    44%    44%    45%    44%
    Europe                              22%    23%    20%    23%    22%    21%    20%    21%    20%    20%    19%
    Japan                                23%    14%    20%    14%    18%    19%    17%    18%    17%    18%    18%
    Asia                                  15%    17%    17%    18%    17%    16%    16%    17%    19%    17%    19%
Total                                  100%  100%  100%  100%  100%  100%  100%  100%  100%  100%  100%
                                                                                                                                                        
Revenue  Mix  by  Product  Group  (%  of  Total  Revenue)                                                      
                                                                                                                                                        
                                                                2010                                          2011                      2012
                                            ------------------------  ------------------------  ----
PRODUCT  GROUP                    Q1      Q2      Q3      Q4    Year    Q1      Q2      Q3      Q4    Year    Q1  
                                            ----  ----  ----  ----  ----  ----  ----  ----  ----  ----  ----
                                                                                                                                                        
    Functional                                                                                                                                
      Verification  and                                                                                                                  
      Design  IP                      22%    26%    25%    22%    24%    28%    33%    30%    32%    30%    30%
    Digital  IC  Design        21%    21%    23%    26%    23%    24%    21%    22%    21%    22%    23%
    Custom  IC  Design          27%    26%    24%    27%    26%    20%    22%    23%    23%    22%    23%
    Design  for                                                                                                                                
      Manufacturing                9%      6%      8%      7%      7%      8%      6%      6%      6%      7%      7%
    System  Interconnect      9%    10%    10%      8%      9%    10%      8%      9%      8%      9%      8%
    Services  &  Other          12%    11%    10%    10%    11%    10%    10%    10%    10%    10%      9%
Total                                  100%  100%  100%  100%  100%  100%  100%  100%  100%  100%  100%
                                                                                                                                                        
Note:  Product  Group  total  revenue  includes  Product  +  Maintenance                        
                                                                                                                                                        
 

« Previous Page 1 | 2 | 3 | 4  Next Page »



Review Article Be the first to review this article

Featured Video
Editorial
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
Siemens Goes ECAD With Mentor Graphics Acquisition
Jobs
Mechanical Engineer for IDEX Corporation at West Jordan,, UT
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
GIS Analyst II for Air Worldwide at Boston, MA
Senior Structural Engineer for Design Everest at San Francisco, CA
Upcoming Events
Design & Manufacturing, Feb 7 - 9, 2017 Anaheim Convention Center, Anaheim, CA at Anaheim Convention Center Anaheim CA - Feb 7 - 9, 2017
Innorobo 2017 at Docks de Paris Paris France - May 16 - 18, 2017
Display Week 2017 at Los Angeles Convention Center 1201 S Figueroa St Los Angeles CA - May 21 - 26, 2017
SolidCAM: Program your CNCs directly inside your existing CAD system.



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy Advertise