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Cadence Design Systems (CDNS) Tops Q2 EPS by 1c, Guidance Falls Short; $300M Stock Buyback

July 21, 2014 4:17 PM EDT

Cadence Design Systems (NASDAQ: CDNS) reported Q2 EPS of $0.21, $0.01 better than the analyst estimate of $0.20. Revenue for the quarter came in at $378.9 million versus the consensus estimate of $375.93 million.

Cadence Design Systems sees FY2014 EPS of $0.90-$0.98, versus prior guidance of $0.92-$1.02 and the consensus of $97. Cadence Design Systems sees FY2014 revenue of $1.57-1.59 billion, versus prior guidance of $1.55-1.59 billion and the consensus of $1.57 billion.

For the third quarter of 2014, the company expects total revenue in the range of $390 million to $400 million vs $394.65. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.23 to $0.25 vs consensus of $0.26.

Cadence also announced today that its Board of Directors has approved an increase in the rate of repurchase under its stock repurchase program. Previously, in January of this year, the Board approved the repurchase of up to $50 million of Cadence common stock in each of fiscal years 2014 and 2015 for a total of $100 million, and this plan will be replaced by the new plan. The new plan authorizes the repurchase of $300 million of Cadence common stock over two years. Cadence expects to repurchase approximately $37.5 million of its common stock per quarter under the new plan, beginning with the third quarter of 2014. The Board made its decision based on the underlying strength of the business and a review of the company's capital needs, cash flow and capital structure. The actual timing and amount of repurchases will be based on corporate and regulatory requirements and other factors. The stock repurchase program may be suspended, modified or discontinued at any time.

For earnings history and earnings-related data on Cadence Design Systems (CDNS) click here.



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