Cadence Announces New Stock Repurchase Program
SAN JOSE, Calif. , 27 Jul 2015 -- Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced results for the second quarter of fiscal year 2015.
Cadence reported second quarter 2015 revenue of $416 million, compared to revenue of $379 million reported for the same period in 2014. On a GAAP basis, Cadence recognized net income of $58 million, or $0.19 per share on a diluted basis, in the second quarter of 2015, compared to net income of $23 million, or $0.08 per share on a diluted basis, for the same period in 2014.
Using the non-GAAP measure defined below, net income in the second quarter of 2015 was $85 million, or $0.27 per share on a diluted basis, as compared to net income of $64 million, or $0.21 per share on a diluted basis, for the same period in 2014.
“The second quarter was highlighted by the introduction of more innovative new products, key wins with market shaping customers and strong financial performance,” said Lip-Bu Tan, president and chief executive officer. “We launched the Genus™ Synthesis Solution, our next-generation RTL physical synthesis engine, and the Indago™ Debug Platform, which uses big data techniques to speed the verification process. Cadence has now introduced more than a dozen innovative new products in the past two years.”
Mr. Tan continued, “We are pleased to announce a new $1.2 billion stock repurchase program, which reflects our ongoing thoughtful review of all aspects of our business and capital structure. We are committed to enhancing shareholder value through a balanced approach that drives growth, invests in innovation and returns capital to our shareholders.”
“Cadence had a strong Q2,” added Geoff Ribar, senior vice president and chief financial officer. “With the announcement of our new stock repurchase program, we continue to allocate capital to the highest return opportunities by investing in profitable growth, maintaining an efficient capital structure that provides necessary flexibility to meet the needs of the business and returning capital to shareholders.”
Cadence’s new $1.2 billion stock repurchase program replaces its existing $450 million program. Cadence expects to repurchase $1.2 billion of its common stock over the next six quarters through the end of fiscal 2016. The actual timing and amount of repurchases will be subject to business and market conditions, corporate and regulatory requirements, acquisition opportunities and other factors. The stock repurchase program may be suspended, modified or discontinued at any time, and will be funded by U.S. cash on hand, future U.S. cash flow and additional debt.
For the third quarter of 2015, the company expects total revenue in the range of $423 million to $433 million. Third quarter GAAP net income per diluted share is expected to be in the range of $0.17 to $0.19. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.25 to $0.27.
For 2015, the company expects total revenue in the range of $1.685 billion to $1.715 billion. On a GAAP basis, net income per diluted share for 2015 is expected to be in the range of $0.63 to $0.69. Using the non-GAAP measure defined below, net income per diluted share for 2015 is expected to be in the range of $1.00 to $1.06.
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 in this release.
Click here for the Q2 2015 Financial Schedules.
Audio Webcast Scheduled
Lip-Bu Tan, president and chief executive officer, and Geoff Ribar, senior vice president and chief financial officer, will host a second quarter 2015 financial results audio webcast today, July 27, 2015, 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 July 27, 2015 at 5 p.m. (Pacific) and ending September 18, 2015 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, hardware, IP, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. The company is headquartered in San Jose, California, with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company and its products and services is available at www.cadence.com.