Cadence reports Q1 2010 financial results

SAN JOSE, USA: Cadence Design Systems Inc. has announced results for the first quarter of fiscal year 2010.

Cadence reported first quarter 2010 revenue of $222 million, compared to revenue of $206 million reported for the same period in 2009. On a GAAP basis, Cadence recognized a net loss of $12 million, or $(0.04) per share on a diluted basis, in the first quarter of 2010, compared to a net loss of $63 million, or $(0.25) per share on a diluted basis in the same period in 2009.

Using Cadence's non-GAAP measure, net income in the first quarter of 2010 was $6 million, or $0.02 per share on a diluted basis, as compared to a net loss of $25 million, or $(0.10) per share on a diluted basis, in the same period in 2009.

“Cadence is off to a good start in 2010. The team executed across the board and our focus on customer engagement continues to yield success,” said Lip-Bu Tan, president and chief executive officer. “Business improved in all geographies with strength in Asia and North America, and in all platform areas, especially verification, custom and digital design.”

“We put up another consistent operating performance in the first quarter with our key operating metrics meeting or exceeding our expectations,” said Kevin S. Palatnik, senior vice president and chief financial 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, gains or losses and expenses or credits related to non-qualified deferred compensation plan assets, restructuring charges and credits, amortization of discount on convertible notes, 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.

Business outlook
For the second quarter of 2010, the company expects total revenue in the range of $215 million to $225 million. Second quarter GAAP net loss per diluted share is expected to be in the range of $(0.05) to $(0.03). Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.02 to $0.04.

For the full year 2010, the company expects total revenue in the range of $865 million to $900 million. On a GAAP basis, net loss per diluted share for fiscal 2010 is expected to be in the range of $(0.23) to $(0.13). Using the non-GAAP measure defined below, net income per diluted share for fiscal 2010 is expected to be in the range of $0.05 to $0.15.