Cadence reports Q1 2012 financial results

SAN JOSE, USA: Cadence Design Systems Inc. announced results for the first quarter of fiscal year 2012.

Cadence reported first quarter 2012 revenue of $316 million, compared to revenue of $266 million reported for the same period in 2011. On a GAAP basis, Cadence recognized net income of $31 million, or $0.11 per share on a diluted basis in the first quarter of 2012, compared to net income of $6 million, or $0.02 per share on a diluted basis in the same period in 2011.

Using Cadence’s non-GAAP measure, net income in the first quarter of 2012 was $47 million, or $0.17 per share on a diluted basis, as compared to net income of $23 million, or $0.09 per share on a diluted basis in the same period in 2011.

“Cadence is off to a good start for 2012, with strong operating performance leading to an increase in our outlook,” said Lip-Bu Tan, president and CEO. “We continue to roll out new technology, including the newest release of our Encounter digital design platform targeted at the 20-nanometer node, as well as new design IP products for memory, networking and high-performance computing.”

“Our operating performance in Q1 gives us confidence that we will achieve our long term profitability and growth objectives,” added Geoff Ribar, senior VP and CFO. “I am also pleased by the reduction in DSOs, accounts receivable and deferred revenue, driven by our ongoing efforts to match cash collections with the timing of revenue recognition.”

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 2012, the company expects total revenue in the range of $315 million to $325 million. Second quarter GAAP net income per diluted share is expected to be in the range of $0.13 to $0.14. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.17 to $0.18.

For 2012, the company expects total revenue in the range of $1,270 million to $1,300 million. On a GAAP basis, net income per diluted share for 2012 is expected to be in the range of $0.45 to $0.49. Using the non-GAAP measure defined below, net income per diluted share for 2012 is expected to be in the range of $0.66 to $0.70.