Cadence Reports Fourth Quarter and Fiscal Year 2023 Financial Results
- None.
- None.
Insights
The reported increase in total revenue by 15% and EPS (Earnings Per Share) by over 20% year over year for Cadence Design Systems indicates a robust financial performance. The company's growth is a reflection of strong demand for their services, most likely driven by the need for advanced design systems in the semiconductor and electronics industries. The record backlog of $6.0 billion suggests a healthy pipeline of future revenue, providing visibility and stability to the company's financial outlook. The current remaining performance obligations (cRPO) of $3.2 billion is a critical metric, as it represents the short-term revenue that is expected to be recognized within the next fiscal year, indicating strong ongoing demand for Cadence's offerings.
Investors typically view increases in both GAAP and non-GAAP margins positively, as they suggest improved operational efficiency and profitability. In this case, the improvement in GAAP operating margin from 30% to 31% and non-GAAP from 40% to 42% can be attributed to better cost management or higher-margin products and services. However, it is important to consider the broader market conditions and competitive landscape, as these factors could impact the company's ability to maintain or improve margins in the future.
The electronic design automation (EDA) industry, where Cadence operates, is known for its cyclical nature and sensitivity to the global semiconductor market. The company's growth in revenue and EPS, alongside the significant backlog, suggests that Cadence is outperforming industry norms, which may be due to the adoption of their Intelligent System Design strategy. This strategy likely involves offering more comprehensive solutions that integrate with the clients' needs for complex system design, which is increasingly important as technology products become more sophisticated.
Moreover, the EDA market is expected to grow as the world becomes more reliant on electronic devices and the Internet of Things (IoT) expands. Cadence's financial performance and backlog may indicate that it is well-positioned to capitalize on these trends. However, potential investors and stakeholders should also be aware of the risks associated with the industry, such as rapid technological change and the need for continuous innovation to stay ahead of competitors.
From an economic perspective, Cadence's results may be indicative of broader economic trends, such as increased investment in technology infrastructure and innovation. The company's performance could signal a robust semiconductor and electronics sector, which has broader implications for economic growth and productivity. The substantial increase in backlog and cRPO indicates that Cadence is securing long-term contracts, which could be seen as a positive sign for economic stability within the tech sector.
However, it is crucial to analyze these results in the context of the current macroeconomic environment. Factors such as interest rate changes, trade policies and supply chain disruptions can have significant impacts on companies like Cadence that are heavily dependent on global markets. While the current financials are strong, stakeholders should remain vigilant to external economic forces that could affect future performance.
Fiscal Year 2023 Total Revenue Up
EPS Up Over
Record Backlog of
Fourth Quarter 2023 Financial Highlights
-
Revenue of
$1.06 9 billion$900 million -
GAAP operating margin of
31% , compared to23% in Q4 2022 -
Non-GAAP operating margin of
43% , compared to36% in Q4 2022 -
GAAP diluted net income per share of
$1.19 $0.88 -
Non-GAAP diluted net income per share of
$1.38 $0.96
Fiscal Year 2023 Financial Highlights
-
Revenue of
$4.09 0 billion$3.56 2 billion -
GAAP operating margin of
31% , compared to30% in 2022 -
Non-GAAP operating margin of
42% , compared to40% in 2022 -
GAAP diluted net income per share of
$3.82 $3.09 -
Non-GAAP diluted net income per share of
$5.15 $4.27 -
Year-end backlog was
$6.0 billion $3.2 billion
“Cadence delivered exceptional results for 2023, propelled by our innovative solutions and the successful execution of our Intelligent System Design strategy,” said Anirudh Devgan, president and chief executive officer. “I'm thrilled about the opportunities ahead of us, particularly in AI and 3D-IC. And I look forward to continuing to drive our broad-based business momentum through our technology leadership.”
“We had a strong finish to the year, with growth across all our businesses in 2023,” said John Wall, senior vice president and chief financial officer. “I’m pleased with our record year-end backlog of
CFO Commentary
Commentary on the fourth quarter and fiscal year 2023 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.
Business Outlook
For fiscal year 2024, the company expects:
-
Revenue in the range of
$4.55 billion $4.61 billion -
GAAP operating margin in the range of
32% to33% -
Non-GAAP operating margin in the range of
42% to43% -
GAAP diluted net income per share in the range of
$4.08 $4.18 -
Non-GAAP diluted net income per share in the range of
$5.87 $5.97
For the first quarter of 2024, the company expects:
-
Revenue in the range of
$990 million $1.01 billion -
GAAP operating margin in the range of
24.5% to25.5% -
Non-GAAP operating margin in the range of
36.5% to37.5% -
GAAP diluted net income per share in the range of
$0.74 $0.78 -
Non-GAAP diluted net income per share in the range of
$1.10 $1.14
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 is 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 the current normalized non-GAAP tax rate through fiscal 2025 but will re-evaluate this rate periodically for significant items that may materially affect its projections.
Reconciliations of the financial highlights and 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, are included in this press release.
Business Highlights
- Further broadened Cadence.AI generative AI portfolio with introduction of Voltus™ InsightAI for intelligent power analysis and Celsius™ Studio for AI-driven full system thermal analysis. Accelerating momentum of our Cadence.AI portfolio has led to an almost tenfold increase in the number of customers adopting our GenAI solutions in 2023
-
System Design and Analysis grew
22% year over year in 2023, with strong momentum from the company's multiphysics platform delivering superior results to customers across multiple segments including aerospace and defense and automotive - The Millennium™ Enterprise Multiphysics Platform, which was announced earlier this month, is the industry’s first hardware/software platform combining AI, HPC and digital twin technology delivering 20x energy efficiency and up to 100x design impact
- Expanded long-standing collaborations with strategic partners NVIDIA, Arm and Intel
- 2023 was another record year for Palladium® and Protium™ hardware systems, with an exceptionally strong Q1 2023 hardware quarter when the company expanded production capacity to improve delivery lead times against the backlog
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 2023 financial results audio webcast today, February 12, 2024, 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 12, 2024 at 5 p.m. (Pacific) and ending March 15, 2024 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 nine years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at www.cadence.com.
© 2024 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 press release contains forward-looking statements, including Cadence's outlook on future operating results, strategic objectives, business prospects, technology and product developments, industry trends and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (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, geopolitical and industry conditions, including that of the semiconductor and electronics industries, government regulations and trade restrictions, and rising tensions and conflicts around the world such as in the
For a detailed discussion of these and other cautionary statements related to Cadence’s business, please refer to Cadence’s filings with the
All forward-looking statements in this press release are based on management's expectations as of the date of this press release and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
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 measures contained within this press release with their most directly comparable GAAP 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 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 |
|||||
|
December 31, 2023 |
December 31, 2022 |
||||
|
(unaudited) |
|||||
GAAP operating margin as a percent of total revenue |
31 |
% |
23 |
% |
||
Reconciling items to non-GAAP operating margin as a percent of total revenue: |
|
|
||||
Stock-based compensation expense |
8 |
% |
8 |
% |
||
Amortization of acquired intangibles |
2 |
% |
2 |
% |
||
Acquisition and integration-related costs |
1 |
% |
2 |
% |
||
Restructuring |
0 |
% |
0 |
% |
||
Non-qualified deferred compensation expenses |
1 |
% |
1 |
% |
||
Non-GAAP operating margin as a percent of total revenue |
43 |
% |
36 |
% |
||
Operating Margin Reconciliation |
Years Ended |
|||||
|
December 31, 2023 |
December 31, 2022 |
||||
|
(unaudited) |
|||||
GAAP operating margin as a percent of total revenue |
31 |
% |
30 |
% |
||
Reconciling items to non-GAAP operating margin as a percent of total revenue: |
|
|
||||
Stock-based compensation expense |
8 |
% |
8 |
% |
||
Amortization of acquired intangibles |
2 |
% |
2 |
% |
||
Acquisition and integration-related costs |
1 |
% |
1 |
% |
||
Restructuring |
0 |
% |
0 |
% |
||
Non-qualified deferred compensation expenses (credits) |
0 |
% |
(1 |
)% |
||
Non-GAAP operating margin as a percent of total revenue |
42 |
% |
40 |
% |
||
Net Income Reconciliation |
Three Months Ended |
|||||||
|
December 31, 2023 |
December 31, 2022 |
||||||
(in thousands) |
(unaudited) |
|||||||
Net income on a GAAP basis |
$ |
323,899 |
|
$ |
240,392 |
|
||
Stock-based compensation expense |
|
86,683 |
|
|
73,249 |
|
||
Amortization of acquired intangibles |
|
16,920 |
|
|
15,369 |
|
||
Acquisition and integration-related costs |
|
12,583 |
|
|
17,510 |
|
||
Restructuring |
|
(569 |
) |
|
13 |
|
||
Non-qualified deferred compensation expenses |
|
6,295 |
|
|
3,233 |
|
||
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
(27,966 |
) |
|
(2,584 |
) |
||
Income tax effect of non-GAAP adjustments |
|
(41,638 |
) |
|
(85,397 |
) |
||
Net income on a non-GAAP basis |
$ |
376,207 |
|
$ |
261,785 |
|
||
* |
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 |
|||||||
|
December 31, 2023 |
|
December 31, 2022 |
|||||
(in thousands) |
(unaudited) |
|||||||
Net income on a GAAP basis |
$ |
1,041,144 |
|
$ |
848,952 |
|
||
Stock-based compensation expense |
|
325,611 |
|
|
270,439 |
|
||
Amortization of acquired intangibles |
|
61,970 |
|
|
59,818 |
|
||
Acquisition and integration-related costs |
|
56,542 |
|
|
41,103 |
|
||
Restructuring |
|
11,013 |
|
|
55 |
|
||
Non-qualified deferred compensation expenses (credits) |
|
10,851 |
|
|
(8,744 |
) |
||
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
(45,502 |
) |
|
14,171 |
|
||
Income tax effect of non-GAAP adjustments |
|
(57,139 |
) |
|
(52,475 |
) |
||
Net income on a non-GAAP basis |
$ |
1,404,490 |
|
$ |
1,173,319 |
|
||
* |
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 |
||||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
(in thousands, except per share data) |
|
(unaudited) |
||||||
Diluted net income per share on a GAAP basis |
|
$ |
1.19 |
|
|
$ |
0.88 |
|
Stock-based compensation expense |
|
|
0.32 |
|
|
|
0.27 |
|
Amortization of acquired intangibles |
|
|
0.06 |
|
|
|
0.06 |
|
Acquisition and integration-related costs |
|
|
0.04 |
|
|
|
0.06 |
|
Restructuring |
|
|
— |
|
|
|
— |
|
Non-qualified deferred compensation expenses |
|
|
0.02 |
|
|
|
0.01 |
|
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
|
(0.10 |
) |
|
|
(0.01 |
) |
Income tax effect of non-GAAP adjustments |
|
|
(0.15 |
) |
|
|
(0.31 |
) |
Diluted net income per share on a non-GAAP basis |
|
$ |
1.38 |
|
|
$ |
0.96 |
|
Shares used in calculation of diluted net income per share |
|
|
272,419 |
|
|
|
272,997 |
|
* |
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 |
||||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
(in thousands, except per share data) |
|
(unaudited) |
||||||
Diluted net income per share on a GAAP basis |
|
$ |
3.82 |
|
|
$ |
3.09 |
|
Stock-based compensation expense |
|
|
1.19 |
|
|
|
0.98 |
|
Amortization of acquired intangibles |
|
|
0.23 |
|
|
|
0.22 |
|
Acquisition and integration-related costs |
|
|
0.21 |
|
|
|
0.15 |
|
Restructuring |
|
|
0.04 |
|
|
|
— |
|
Non-qualified deferred compensation expenses (credits) |
|
|
0.04 |
|
|
|
(0.03 |
) |
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
|
(0.17 |
) |
|
|
0.05 |
|
Income tax effect of non-GAAP adjustments |
|
|
(0.21 |
) |
|
|
(0.19 |
) |
Diluted net income per share on a non-GAAP basis |
|
$ |
5.15 |
|
|
$ |
4.27 |
|
Shares used in calculation of diluted net income per share |
|
|
272,748 |
|
|
|
275,011 |
|
* |
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 Design Systems, Inc. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
December 31, 2023 and December 31, 2022 |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
1,008,152 |
$ |
882,325 |
||||
| Receivables, net |
|
489,224 |
|
486,710 |
||||
| Inventories |
|
181,661 |
|
128,005 |
||||
| Prepaid expenses and other |
|
297,180 |
|
209,727 |
||||
| Total current assets |
|
1,976,217 |
|
1,706,767 |
||||
| Property, plant and equipment, net |
|
403,213 |
|
371,451 |
||||
| Goodwill |
|
1,535,845 |
|
1,374,268 |
||||
| Acquired intangibles, net |
|
336,843 |
|
354,617 |
||||
| Deferred taxes |
|
880,001 |
|
853,691 |
||||
| Other assets |
|
537,372 |
|
476,277 |
||||
| Total assets | $ |
5,669,491 |
$ |
5,137,071 |
||||
| Current liabilities: | ||||||||
| Revolving credit facility | $ |
- |
$ |
100,000 |
||||
| Current portion of long-term debt |
|
349,285 |
|
- |
||||
| Accounts payable and accrued liabilities |
|
576,558 |
|
557,158 |
||||
| Current portion of deferred revenue |
|
665,024 |
|
690,538 |
||||
| Total current liabilities |
|
1,590,867 |
|
1,347,696 |
||||
| Long-term liabilities: | ||||||||
| Long-term portion of deferred revenue |
|
98,931 |
|
91,524 |
||||
| Long-term debt |
|
299,771 |
|
648,078 |
||||
| Other long-term liabilities |
|
275,651 |
|
304,660 |
||||
| Total long-term liabilities |
|
674,353 |
|
1,044,262 |
||||
| Stockholders' equity |
|
3,404,271 |
|
2,745,113 |
||||
| Total liabilities and stockholders' equity | $ |
5,669,491 |
$ |
5,137,071 |
||||
Cadence Design Systems, Inc. |
||||||||||||||||
Condensed Consolidated Income Statements |
||||||||||||||||
For the Three Months and Years Ended December 31, 2023 and December 31, 2022 |
||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||
| Revenue: | ||||||||||||||||
| Product and maintenance | $ |
981,987 |
|
$ |
845,880 |
|
$ |
3,834,359 |
|
$ |
3,340,197 |
|
||||
| Services |
|
86,636 |
|
|
53,997 |
|
|
255,627 |
|
|
221,521 |
|
||||
| Total revenue |
|
1,068,623 |
|
|
899,877 |
|
|
4,089,986 |
|
|
3,561,718 |
|
||||
| Costs and expenses: | ||||||||||||||||
| Cost of product and maintenance |
|
71,491 |
|
|
69,702 |
|
|
331,760 |
|
|
273,565 |
|
||||
| Cost of services |
|
32,639 |
|
|
23,813 |
|
|
103,281 |
|
|
98,058 |
|
||||
| Marketing and sales |
|
180,368 |
|
|
171,817 |
|
|
690,319 |
|
|
604,224 |
|
||||
| Research and development |
|
367,443 |
|
|
350,423 |
|
|
1,441,796 |
|
|
1,251,544 |
|
||||
| General and administrative |
|
75,742 |
|
|
68,065 |
|
|
242,430 |
|
|
242,116 |
|
||||
| Amortization of acquired intangibles |
|
4,981 |
|
|
4,927 |
|
|
18,162 |
|
|
18,470 |
|
||||
| Restructuring |
|
(569 |
) |
|
13 |
|
|
11,013 |
|
|
55 |
|
||||
| Total costs and expenses |
|
732,095 |
|
|
688,760 |
|
|
2,838,761 |
|
|
2,488,032 |
|
||||
| Income from operations |
|
336,528 |
|
|
211,117 |
|
|
1,251,225 |
|
|
1,073,686 |
|
||||
| Interest expense |
|
(8,989 |
) |
|
(9,082 |
) |
|
(36,185 |
) |
|
(22,934 |
) |
||||
| Other income (expense), net |
|
34,523 |
|
|
8,490 |
|
|
66,886 |
|
|
(5,389 |
) |
||||
| Income before provision (benefit) for income taxes |
|
362,062 |
|
|
210,525 |
|
|
1,281,926 |
|
|
1,045,363 |
|
||||
| Provision (benefit) for income taxes |
|
38,163 |
|
|
(29,867 |
) |
|
240,782 |
|
|
196,411 |
|
||||
| Net income | $ |
323,899 |
|
$ |
240,392 |
|
$ |
1,041,144 |
|
$ |
848,952 |
|
||||
| Net income per share - basic | $ |
1.20 |
|
$ |
0.89 |
|
$ |
3.86 |
|
$ |
3.13 |
|
||||
| Net income per share - diluted | $ |
1.19 |
|
$ |
0.88 |
|
$ |
3.82 |
|
$ |
3.09 |
|
||||
| Weighted average common shares outstanding - basic |
|
269,088 |
|
|
269,709 |
|
|
269,381 |
|
|
271,198 |
|
||||
| Weighted average common shares outstanding - diluted |
|
272,419 |
|
|
272,997 |
|
|
272,748 |
|
|
275,011 |
|
||||
Cadence Design Systems, Inc. |
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
For the Years Ended December 31, 2023 and December 31, 2022 |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
||||||||
|
|
|
|
|
||||
|
|
Years Ended |
||||||
|
|
December 31, |
|
December 31, |
||||
|
|
|
2023 |
|
|
|
2022 |
|
| Cash and cash equivalents at beginning of year | $ |
882,325 |
|
$ |
1,088,940 |
|
||
| Cash flows from operating activities: | ||||||||
| Net income |
|
1,041,144 |
|
|
848,952 |
|
||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization |
|
145,292 |
|
|
132,088 |
|
||
| Amortization of debt discount and fees |
|
1,262 |
|
|
1,134 |
|
||
| Stock-based compensation |
|
325,611 |
|
|
270,439 |
|
||
| (Gain) loss on investments, net |
|
(34,602 |
) |
|
5,425 |
|
||
| Deferred income taxes |
|
(36,512 |
) |
|
(107,606 |
) |
||
| Provisions for losses on receivables |
|
3,325 |
|
|
204 |
|
||
| ROU asset amortization and change in operating lease liabilities |
|
451 |
|
|
3,342 |
|
||
| Other non-cash items |
|
1,983 |
|
|
371 |
|
||
| Changes in operating assets and liabilities, net of effect of acquired businesses: | ||||||||
| Receivables |
|
(11,748 |
) |
|
(138,471 |
) |
||
| Inventories |
|
(65,895 |
) |
|
(23,073 |
) |
||
| Prepaid expenses and other |
|
39,015 |
|
|
(38,927 |
) |
||
| Other assets |
|
(45,784 |
) |
|
(933 |
) |
||
| Accounts payable and accrued liabilities |
|
5,415 |
|
|
113,945 |
|
||
| Deferred revenue |
|
(21,583 |
) |
|
131,462 |
|
||
| Other long-term liabilities |
|
1,802 |
|
|
43,542 |
|
||
| Net cash provided by operating activities |
|
1,349,176 |
|
|
1,241,894 |
|
||
| Cash flows from investing activities: | ||||||||
| Purchases of investments |
|
(176,170 |
) |
|
(1,000 |
) |
||
| Proceeds from the sale and maturity of investments |
|
64,775 |
|
|
366 |
|
||
| Purchases of property, plant and equipment |
|
(102,337 |
) |
|
(123,215 |
) |
||
| Purchases of intangible assets |
|
(166 |
) |
|
(1,000 |
) |
||
| Cash paid in business combinations, net of cash acquired |
|
(198,351 |
) |
|
(613,785 |
) |
||
| Net cash used for investing activities |
|
(412,249 |
) |
|
(738,634 |
) |
||
| Cash flows from financing activities: | ||||||||
| Proceeds from revolving credit facility |
|
50,000 |
|
|
585,000 |
|
||
| Payments on revolving credit facility |
|
(150,000 |
) |
|
(485,000 |
) |
||
| Proceeds from term loan |
|
- |
|
|
300,000 |
|
||
| Payment of debt issuance costs |
|
- |
|
|
(425 |
) |
||
| Proceeds from issuance of common stock |
|
132,957 |
|
|
105,331 |
|
||
| Stock received for payment of employee taxes on vesting of restricted stock |
|
(136,396 |
) |
|
(111,864 |
) |
||
| Payments for repurchases of common stock |
|
(700,134 |
) |
|
(1,050,091 |
) |
||
| Net cash used for financing activities |
|
(803,573 |
) |
|
(657,049 |
) |
||
| Effect of exchange rate changes on cash and cash equivalents |
|
(7,527 |
) |
|
(52,826 |
) |
||
| Increase (decrease) in cash and cash equivalents |
|
125,827 |
|
|
(206,615 |
) |
||
| Cash and cash equivalents at end of year | $ |
1,008,152 |
|
$ |
882,325 |
|
||
| Cadence Design Systems, Inc. | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| Revenue Mix by Geography (% of Total Revenue) | ||||||||||||||||||||||||||||||
2022 |
|
2023 |
||||||||||||||||||||||||||||
| GEOGRAPHY | Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Year |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Year |
|||||||||||
47 |
% |
45 |
% |
45 |
% |
46 |
% |
46 |
% |
44 |
% |
41 |
% |
43 |
% |
44 |
% |
43 |
% |
|||||||||||
16 |
% |
13 |
% |
17 |
% |
13 |
% |
15 |
% |
17 |
% |
18 |
% |
17 |
% |
15 |
% |
17 |
% |
|||||||||||
| Other |
18 |
% |
18 |
% |
17 |
% |
18 |
% |
18 |
% |
18 |
% |
18 |
% |
19 |
% |
19 |
% |
19 |
% |
||||||||||
14 |
% |
18 |
% |
16 |
% |
17 |
% |
16 |
% |
15 |
% |
17 |
% |
15 |
% |
16 |
% |
16 |
% |
|||||||||||
5 |
% |
6 |
% |
5 |
% |
6 |
% |
5 |
% |
6 |
% |
6 |
% |
6 |
% |
6 |
% |
5 |
% |
|||||||||||
| Total | 100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
||||||||||
| Revenue Mix by Product Category (% of Total Revenue) | ||||||||||||||||||||||||||||||
2022 |
|
2023 |
||||||||||||||||||||||||||||
| PRODUCT CATEGORY | Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Year |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Year |
|||||||||||
| Custom IC Design and Simulation | 22 |
% |
23 |
% |
22 |
% |
22 |
% |
22 |
% |
20 |
% |
22 |
% |
22 |
% |
22 |
% |
22 |
% |
||||||||||
| Digital IC Design and Signoff | 27 |
% |
27 |
% |
29 |
% |
28 |
% |
28 |
% |
25 |
% |
27 |
% |
28 |
% |
29 |
% |
27 |
% |
||||||||||
| Functional Verification, including Emulation and Prototyping Hardware | 28 |
% |
24 |
% |
25 |
% |
25 |
% |
26 |
% |
32 |
% |
27 |
% |
26 |
% |
24 |
% |
27 |
% |
||||||||||
| IP | 13 |
% |
14 |
% |
12 |
% |
12 |
% |
12 |
% |
11 |
% |
11 |
% |
11 |
% |
13 |
% |
12 |
% |
||||||||||
| System Design and Analysis | 10 |
% |
12 |
% |
12 |
% |
13 |
% |
12 |
% |
12 |
% |
13 |
% |
13 |
% |
12 |
% |
12 |
% |
||||||||||
| 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 12, 2024 |
||||
(Unaudited) |
||||
|
|
|
|
|
|
|
Three Months Ending |
|
Year Ending |
|
|
March 31, 2024 |
|
December 31, 2024 |
|
|
Forecast |
|
Forecast |
| GAAP operating margin as a percent of total revenue |
|
|
||
| Reconciling items to non-GAAP operating margin as a percent of total revenue: | ||||
| Stock-based compensation expense |
|
|
||
| Amortization of acquired intangibles |
|
|
||
| Acquisition and integration-related costs |
|
|
||
| Non-GAAP operating margin as a percent of total revenue† |
|
|
||
| †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 12, 2024 | ||||
| (Unaudited) | ||||
Three Months Ending |
|
Year Ending |
||
March 31, 2024 |
|
December 31, 2024 |
||
Forecast |
|
Forecast |
||
| Diluted net income per share on a GAAP basis |
|
|
||
|
|
|||
| Stock-based compensation expense | 0.32 |
1.36 |
||
| Amortization of acquired intangibles | 0.06 |
0.24 |
||
| Acquisition and integration-related costs | 0.04 |
0.14 |
||
| Income tax effect of non-GAAP adjustments | (0.06) |
0.05 |
||
|
||||
| Diluted net income per share on a non-GAAP basis† |
|
|||
Cadence Design Systems, Inc. |
||||
Impact of Non-GAAP Adjustments on Forward Looking Net Income |
||||
As of February 12, 2024 |
||||
(Unaudited) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ending |
|
Year Ending |
|
|
March 31, 2024 |
|
December 31, 2024 |
| ($ in millions) | Forecast |
Forecast |
||
| Net income on a GAAP basis |
|
|
||
|
|
|||
| Stock-based compensation expense | 88 |
370 |
||
| Amortization of acquired intangibles | 16 |
66 |
||
| Acquisition and integration-related costs | 12 |
39 |
||
| Income tax effect of non-GAAP adjustments | (16) |
13 |
||
| Net income on a non-GAAP basis† |
|
|
|
|
| †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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240211761371/en/
Cadence Investor Relations
408-944-7100
investor_relations@cadence.com
Cadence Newsroom
408-944-7039
newsroom@cadence.com
Source: Cadence Design Systems, Inc.
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