Cadence Reports First Quarter 2017 Financial Results

SAN JOSE, Calif., Apr. 24, 2017 – Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced results for the first quarter 2017.

Cadence reported first quarter 2017 revenue of $477 million, compared to revenue of $448 million reported for the same period in 2016. On a GAAP basis, Cadence recognized net income of $68 million, or $0.25 per share on a diluted basis, in the first quarter of 2017, compared to net income of $51 million, or $0.17 per share on a diluted basis, for the same period in 2016.

Using the non-GAAP measure defined below, net income in the first quarter of 2017 was $89 million, or $0.32 per share on a diluted basis, as compared to net income of $86 million, or $0.28 per share on a diluted basis, for the same period in 2016.

"Consistent execution enabled Cadence to deliver strong results. Innovation is at the heart of our success and we have introduced three significant new products so far in 2017: Xcelium™ for parallel logic simulation, Protium™ S1 for advanced FPGA-based prototyping and Pegasus™ Verification System, a next generation physical verification solution," said Lip-Bu Tan, president and chief executive officer. "Additionally, our digital and signoff solutions continue to proliferate with market-shaping customers for the most complex designs at the most advanced nodes."

"Cadence met or exceeded its key operating metrics in the first quarter, and we are maintaining our outlook for the fiscal year," said Geoff Ribar, senior vice president and chief financial officer.

CFO Commentary

Commentary on the first quarter 2017 financial results by Geoff Ribar, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.

Business Outlook

For the second quarter of 2017, the company expects total revenue in the range of $470 million to $480 million. Second quarter GAAP net income per diluted share is expected to be in the range of $0.20 to $0.22. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.31 to $0.33.

For 2017, the company expects total revenue in the range of $1.900 billion to $1.950 billion. On a GAAP basis, net income per diluted share for 2017 is expected to be in the range of $0.93 to $1.03. Using the non-GAAP measure defined below, net income per diluted share for 2017 is expected to be in the range of $1.32 to $1.42.

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 Q1 2017 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 first quarter 2017 financial results audio webcast today, April 24, 2017, 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 April 24, 2017 at 5 p.m. (Pacific) and ending June 16, 2017 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.

About Cadence
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.

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