January 30, 2013
-- Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced results for the fourth quarter and fiscal year 2012.
Cadence reported fourth quarter 2012 revenue of $346 million, compared to revenue of $308 million reported for the same period in 2011. On a GAAP basis, Cadence recognized net income of $314 million, or $1.10 per share on a diluted basis, in the fourth quarter of 2012, compared to net income of $11 million, or $0.04 per share on a diluted basis, in the same period in 2011. Revenue for 2012 totaled $1.326 billion, compared to revenue of $1.150 billion for 2011. Net income for 2012 was $440 million, or $1.57 per share on a diluted basis, compared to net income of $72 million, or $0.27 per share on a diluted basis, for 2011. GAAP net income for the fourth quarter of 2012 included a $220 million income tax benefit from releasing a valuation allowance against Cadences deferred tax assets and a $37 million income tax benefit related to the settlement of a State of California examination of Cadences state income tax returns for the tax years 2001 through 2003.
“In SoC Realization, we significantly expanded our IP and VIP portfolios and revenue grew over 30 percent.”
Lip-Bu Tan, President and CEO, Cadence
Using Cadences non-GAAP measure, net income in the fourth quarter of 2012 was $58 million, or $0.20 per share on a diluted basis, as compared to net income of $46 million, or $0.17 per share on a diluted basis, in the same period in 2011. For 2012, non-GAAP net income was $217 million, or $0.77 per share on a diluted basis, compared to non-GAAP net income of $138 million or $0.51 per share on a diluted basis, in 2011.
In 2012, we executed on multiple aspects of our strategy, said Lip-Bu Tan, president and chief executive officer. In Silicon Realization, we demonstrated market leading technology for the newest process nodes, multi-core based design, 3DIC, low-power and mixed-signal as well as advanced verification. In SoC Realization, we significantly expanded our IP and VIP portfolios and revenue grew over 30 percent. In System Realization, Palladium XP had record revenue and we strengthened our printed circuit board platform with the acquisition of Sigrity.
Cadence also produced strong financial results in 2012, added Geoff Ribar, senior vice president and chief financial officer. Revenue grew 15 percent, operating profitability improved approximately five percentage points, and operating cash flow increased 31 percent. With $827 million of cash and short term investments at year end, our balance sheet is well positioned to support our strategy and meet our debt obligations.
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
For the first quarter of 2013, the company expects total revenue in the range of $342 million to $352 million. First quarter GAAP net income per diluted share is expected to be in the range of $0.23 to $0.24. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.19 to $0.20.
For 2013, the company expects total revenue in the range of $1.405 billion to $1.445 billion. On a GAAP basis, net income per diluted share for 2013 is expected to be in the range of $0.58 to $0.68. Using the non-GAAP measure defined below, net income per diluted share for 2013 is expected to be in the range of $0.82 to $0.92.
A schedule showing a reconciliation of the business outlook from GAAP net income and diluted net income per share to non-GAAP net income and diluted net income per share is included with this release.
Click here for the Q4 2012 Financial Schedules.
Audio Webcast Scheduled
Lip-Bu Tan, Cadences president and chief executive officer, and Geoff Ribar, Cadences senior vice president and chief financial officer, will host a fourth quarter 2012 financial results audio webcast today, January 30, 2013, 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 January 30, 2013 at 5 p.m. (Pacific) and ending February 13, 2013 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.