SAN JOSE, Calif. , 27 Oct 2010
Click here for the Q3 2010 Financial Schedules.
Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced results for the third quarter of fiscal year 2010.
Cadence reported third quarter 2010 revenue of $238 million, compared to revenue of $216 million reported for the same period in 2009. On a GAAP basis, Cadence recognized net income of $127 million, or $0.48 per share on a diluted basis in the third quarter of 2010, compared to a net loss of $14 million, or $(0.05) per share on a diluted basis, in the same period in 2009. Cadence’s third quarter 2010 net income includes a $148 million income tax benefit related to the settlement of an Internal Revenue Service examination of Cadence’s federal income tax returns for the tax years 2000 through 2002.
Using Cadence’s non-GAAP measure, net income in the third quarter of 2010 was $11 million, or $0.04 per share on a diluted basis, as compared to net income of $7 million, or $0.03 per share on a diluted basis, in the same period in 2009.
"Cadence had a successful third quarter. Momentum for Cadence solutions is building at our key customers, driven by the combination of leading and competitive technology and solid performance from the Cadence team. Revenue and operating margin continue to grow. There is still more work to do, but I am pleased with our results to date," said Lip-Bu Tan, president and chief executive officer.
In addition to using GAAP results to evaluate Cadence's business, management believes it is useful to measure results using a non-GAAP measure of net income or net loss, which excludes, as applicable, amortization of intangible assets, stock-based compensation expense, integration and acquisition-related costs, acquisition-related income tax benefits, shareholder litigation costs, gains or losses and expenses or credits related to non-qualified deferred compensation plan assets, executive severance costs, restructuring charges and credits, amortization of discount on convertible notes, losses on extinguishment of debt, equity in losses or income from investments, write-down of investments, and gains or losses on the sale of investments. Non-GAAP net income or net loss is adjusted by the amount of additional taxes or tax benefit that the company would accrue if it used non-GAAP results instead of GAAP results to calculate the company's tax liability. See "GAAP to non-GAAP Reconciliation" below for further information on the non-GAAP measure.
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
For the fourth quarter of 2010, the company expects total revenue in the range of $230 million to $240 million. Fourth quarter GAAP net loss per diluted share is expected to be in the range of $(0.06) to $(0.04). Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.03 to $0.05.
For the full year 2010, the company expects total revenue in the range of $917 million to $927 million. On a GAAP basis, net income per diluted share for fiscal 2010 is expected to be in the range of $0.55 to $0.57. Using the non-GAAP measure defined below, net income per diluted share for fiscal 2010 is expected to be in the range of $0.16 to $0.18.
A schedule showing a reconciliation of the business outlook from GAAP net income or net loss and diluted net income or net loss per share to non-GAAP net income and diluted net income per share is included with this release.
Audio Webcast Scheduled
Lip-Bu Tan, Cadence's president and chief executive officer, and Kevin S. Palatnik, Cadence’s senior vice president and chief financial officer, will host a third quarter of fiscal year 2010 financial results audio webcast today, October 27, 2010, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the Web site at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting October 27, 2010 at 5 p.m. (Pacific) and ending November 10, 2010 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.
Cadence enables global electronic-design innovation and plays an essential role in the creation of today's integrated circuits and electronics. Customers use Cadence® software and hardware, methodologies, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. Cadence is headquartered in San Jose, Calif., with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about Cadence and its products and services is available at www.cadence.com.