Cadence reports Q4 and fiscal year 2010 financial results

SAN JOSE, Cadence Design Systens Inc. has announced results for the fourth quarter and fiscal year 2010.

Cadence reported fourth quarter 2010 revenue of $249 million, compared to revenue of $220 million reported for the same period in 2009. On a GAAP basis, Cadence recognized a net loss of $21 million, or $(0.08) per share on a diluted basis in the fourth quarter of 2010, compared to a net income of $2 million, or $0.01 per share on a diluted basis, in the same period in 2009.

Revenue for fiscal year 2010 totaled $936 million, compared to revenue of $853 million in fiscal year 2009. Net income for fiscal year 2010 was $142 million, or $0.54 per share on a diluted basis, compared to a net loss of $150 million or $(0.58) per share on a diluted basis for fiscal year 2009.

The GAAP net income for fiscal year 2010 included 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 and a $67 million acquisition-related income tax benefit.

Using Cadence’s non-GAAP measure, net income in the fourth quarter of 2010 was $18 million, or $0.07 per share on a diluted basis, as compared to net income of $15 million, or $0.06 per share on a diluted basis, in the same period in 2009. For fiscal year 2010, non-GAAP net income was $53 million, or $0.20 per share on a diluted basis, compared to non-GAAP net loss of $16 million or $(0.06) per share on a diluted basis in fiscal year 2009.

“The Cadence team delivered a strong performance in the fourth quarter. Revenue, operating margin and cash flow all improved in the period and fiscal year 2010. Throughout the year, we strengthened key customer and partner relationships by demonstrating our technology leadership and delivering superior solutions to their complex challenges,” said Lip-Bu Tan, president and CEO.

“We remain laser-focused on executing our strategy and achieving our long-term objectives. We are entering 2011 with good customer momentum, and a strong pipeline of technology across System, SoC, and Silicon Realization that deliver on our EDA360 vision.”

“Cadence capped a successful 2010 with a strong fourth quarter. We made significant improvements in all of our key operating metrics in 2010,” added Geoff Ribar, senior VP and CFO. “As you can see from our outlook, we expect further growth in business levels and improvement in profitability in 2011.”