Cadence reports Q3 2010 financial results

SAN JOSE, USA: Cadence Design Systems Inc. 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.

Lip-Bu Tan, president and CEO, said: "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."

Business outlook
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.