Cadence Reports Fourth Quarter and Fiscal Year 2019 Financial Results
SAN JOSE, Calif.--(BUSINESS WIRE)-- Cadence Design Systems, Inc. (Nasdaq: CDNS) today announced results for the fourth quarter and fiscal year 2019.
Cadence reported 2019 revenue of $2.336 billion, compared to revenue of $2.138 billion for 2018. On a GAAP basis, Cadence achieved operating margin of 21 percent and recognized net income of $989 million, or $3.53 per share on a diluted basis, in 2019, compared to operating margin of 19 percent and net income of $346 million, or $1.23 per share on a diluted basis for 2018. Revenue for the fourth quarter of 2019 totaled $600 million, compared to revenue of $570 million for the same period in 2018. Cadence achieved operating margin of 18 percent and recognized net income of $660 million, or $2.36 per share on a diluted basis, in the fourth quarter of 2019, compared to operating margin of 20 percent and net income of $98 million, or $0.35 per share on a diluted basis, for the same period in 2018. GAAP net income for the fourth quarter of 2019 and fiscal 2019 included a one-time non-cash tax benefit of $576 million related to intercompany transfers of certain intellectual property rights to Cadence's Irish subsidiary.
Using the non-GAAP measure defined below, operating margin for 2019 was 32 percent and net income was $618 million, or $2.20 per share on a diluted basis, compared to operating margin of 30 percent and net income of $526 million, or $1.87 per share on a diluted basis, for 2018. For the fourth quarter of 2019, operating margin was 31 percent and net income was $152 million, or $0.54 per share on a diluted basis, compared to operating margin of 31 percent and net income of $147 million, or $0.52 per share on a diluted basis, for the same period in 2018.
“Generational trends such as 5G, AI and hyperscale computing are driving strong design activity and our Intelligent System Design strategy has us very well positioned to maximize the resulting opportunities,” said Lip-Bu Tan, chief executive officer. “We introduced seven significant new products, including two in the System Analysis space, and coupled with strong execution, drove 9% revenue growth and 32% non-GAAP operating margin in 2019, and I look forward to driving further customer and shareholder success this year.”
“We are pleased with our performance in Q4 and for the full year,” said John Wall, senior vice president and chief financial officer. “Thanks to the efforts of the entire Cadence team, we achieved broad based strength across all of our businesses and look forward to building upon our success in 2020.”
CFO Commentary
Commentary on the fourth quarter and fiscal year 2019 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.
Business Outlook
For the first quarter of 2020, the company expects total revenue in the range of $610 million to $620 million. First quarter GAAP operating margin is expected to be approximately 19 percent and GAAP net income per diluted share is expected to be in the range of $0.32 to $0.34. Using the non-GAAP measure defined below, operating margin is expected to be approximately 30 percent and net income per diluted share is expected to be in the range of $0.53 to $0.55.
For 2020, the company expects total revenue in the range of $2.545 billion to $2.585 billion. On a GAAP basis, operating margin is expected to be in the range of 21 percent to 22 percent and net income per diluted share for 2020 is expected to be in the range of $1.46 to $1.56. Using the non-GAAP measure defined below, operating margin for 2020 is expected to be in the range of 32 percent to 33 percent and net income per diluted share for 2020 is expected to be in the range of $2.40 to $2.50.
A schedule showing a reconciliation of the business outlook from GAAP operating margin, GAAP net income and diluted net income per share to non-GAAP operating margin and non-GAAP net income and diluted net income per share is included in this release.
Audio Webcast Scheduled
Lip-Bu Tan, chief executive officer, and John Wall, senior vice president and chief financial officer, will host the fourth quarter and fiscal year 2019 financial results audio webcast today, February 12, 2020, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting February 12, 2020 at 5 p.m. (Pacific) and ending March 13, 2020 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.
About Cadence
Cadence enables electronic systems and semiconductor companies to create the innovative end products that are transforming the way people live, work and play. Cadence's software, hardware and semiconductor IP are used by customers to deliver products to market faster. The company’s Intelligent System Design™ strategy helps customers develop differentiated products—from chips to boards to intelligent systems—in mobile, consumer, cloud, data center, automotive, aerospace, IoT, industrial and other market segments. Cadence is listed as one of Fortune Magazine's 100 Best Companies to Work For. Learn more at www.cadence.com.
© 2020 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.
The statements contained above, as well as the information in the Business Outlook section, are or include forward-looking statements based on current expectations and preliminary assumptions that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, including, among others: (i) Cadence’s ability to compete successfully in the electronic design automation product and the commercial electronic design and methodology services industries; (ii) the success of Cadence’s efforts to improve operational efficiency and growth; (iii) the mix of products and services sold and the timing of significant orders for and delivery of Cadence’s products and services; (iv) change in customer demands that could result in delays in purchases or deliveries of Cadence's products and services, including those resulting from consolidation among Cadence’s customers, restructurings and other efforts to improve operational efficiency of Cadence’s customers, economic conditions, government regulations or trade restrictions; (v) economic and industry conditions and trade restrictions in regions in which Cadence does business; (vi) fluctuations in rates of exchange between the U.S. dollar and the currencies of other countries in which Cadence does business; (vii) capital expenditure requirements, legislative or regulatory requirements, changes in tax laws, interest rates and Cadence’s ability to access capital and debt markets; (viii) the acquisition of other companies or technologies or the failure to successfully integrate and operate these companies or technologies Cadence acquires, including the potential inability to retain customers, key employees or vendors; (ix) the effects of Cadence’s efforts to improve operational efficiency in its business, including strategic, customer and supplier relationships, and its ability to retain key employees; (x) events that affect cash flow, liquidity, reserves or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation or other matters; and (xi) the effects of any litigation or other proceedings to which Cadence is or may become a party. In addition, the timing and amount of Cadence's repurchase of its common stock under the authorizations will be subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.
For a detailed discussion of these and other cautionary statements related to Cadence’s business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, which include Cadence’s most recent reports on Form 10-K and Form 10-Q, including Cadence’s future filings.
GAAP to Non-GAAP Reconciliation
Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with their most directly comparable GAAP financial results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance.
To supplement Cadence’s financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence’s performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, acquisition and integration-related costs including retention expenses, investment gains or losses, income or expenses related to Cadence’s non-qualified deferred compensation plan, restructuring, executive severance and other significant items not directly related to Cadence’s core business operations, including a one-time non-cash tax benefit related to intercompany transfers of certain intellectual property rights, and the income tax effect of non-GAAP pre-tax adjustments.
Cadence management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence management, including forecasting and budgeting.
The following tables reconcile the specific items excluded from GAAP operating margin, GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP operating margin, non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:
Operating Margin Reconciliation |
|
Three Months Ended |
||
|
|
December 28, 2019 |
|
December 29, 2018 |
|
|
(unaudited) |
||
GAAP operating margin as a percent of total revenue |
|
18% |
|
20% |
Reconciling items to non-GAAP operating margin as a percent of total revenue: |
|
|
|
|
Amortization of acquired intangibles |
|
2% |
|
2% |
Stock-based compensation expense |
|
8% |
|
7% |
Non-qualified deferred compensation expenses (credits) |
|
0% |
|
0% |
Restructuring and other charges |
|
2% |
|
2% |
Acquisition and integration-related costs (credits) |
|
1% |
|
0% |
Special charges |
|
0% |
|
0% |
Non-GAAP operating margin as a percent of total revenue |
|
31% |
|
31% |
Operating Margin Reconciliation |
|
Years Ended |
||
|
|
December 28, 2019 |
|
December 29, 2018 |
|
|
(unaudited) |
||
GAAP operating margin as a percent of total revenue |
|
21% |
|
19% |
Reconciling items to non-GAAP operating margin as a percent of total revenue: |
|
|
|
|
Amortization of acquired intangibles |
|
2% |
|
2% |
Stock-based compensation expense |
|
8% |
|
8% |
Non-qualified deferred compensation expenses (credits) |
|
0% |
|
0% |
Restructuring and other charges |
|
1% |
|
0% |
Acquisition and integration-related costs |
|
0% |
|
1% |
Special charges |
|
0% |
|
0% |
Non-GAAP operating margin as a percent of total revenue |
|
32% |
|
30% |
Net Income Reconciliation |
|
Three Months Ended |
||||||
|
|
December 28, 2019 |
|
December 29, 2018 |
||||
|
|
(unaudited) |
||||||
(in thousands) |
|
|
|
|
||||
Net income on a GAAP basis |
|
$ |
659,675 |
|
|
$ |
98,425 |
|
Amortization of acquired intangibles |
|
12,660 |
|
|
12,942 |
|
||
Stock-based compensation expense |
|
46,758 |
|
|
42,594 |
|
||
Non-qualified deferred compensation expenses (credits) |
|
1,948 |
|
|
(3,186 |
) |
||
Restructuring and other charges |
|
9,809 |
|
|
13,699 |
|
||
Acquisition and integration-related costs (credits) |
|
3,466 |
|
|
(1,360 |
) |
||
Special charges |
|
875 |
|
|
— |
|
||
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
(513 |
) |
|
1,356 |
|
||
Income tax benefit related to intercompany transfers of certain intellectual property rights |
|
(575,618 |
) |
|
— |
|
||
Income tax effect of non-GAAP adjustments |
|
(7,500 |
) |
|
(17,737 |
) |
||
Net income on a non-GAAP basis |
|
$ |
151,560 |
|
|
$ |
146,733 |
|
* |
Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. |
Net Income Reconciliation |
|
Years Ended |
||||||
|
|
December 28, 2019 |
|
December 29, 2018 |
||||
|
|
(unaudited) |
||||||
(in thousands) |
|
|
|
|
||||
Net income on a GAAP basis |
|
$ |
988,979 |
|
|
$ |
345,777 |
|
Amortization of acquired intangibles |
|
53,079 |
|
|
53,333 |
|
||
Stock-based compensation expense |
|
181,547 |
|
|
167,715 |
|
||
Non-qualified deferred compensation expenses (credits) |
|
5,402 |
|
|
(1,471 |
) |
||
Restructuring and other charges |
|
8,621 |
|
|
11,089 |
|
||
Acquisition and integration-related costs |
|
8,107 |
|
|
19,858 |
|
||
Special charges |
|
875 |
|
|
— |
|
||
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
(1,314 |
) |
|
(1,278 |
) |
||
Income tax benefit related to intercompany transfers of certain intellectual property rights |
|
(575,618 |
) |
|
— |
|
||
Income tax effect of non-GAAP adjustments |
|
(52,037 |
) |
|
(69,489 |
) |
||
Net income on a non-GAAP basis |
|
$ |
617,641 |
|
|
$ |
525,534 |
|
* |
Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. |
Diluted Net Income Per Share Reconciliation |
|
Three Months Ended |
||||||
|
|
December 28, 2019 |
|
December 29, 2018 |
||||
|
|
(unaudited) |
||||||
(in thousands, except per share data) |
|
|
|
|
||||
Diluted net income per share on a GAAP basis |
|
$ |
2.36 |
|
|
$ |
0.35 |
|
Amortization of acquired intangibles |
|
0.05 |
|
|
0.05 |
|
||
Stock-based compensation expense |
|
0.17 |
|
|
0.15 |
|
||
Non-qualified deferred compensation expenses (credits) |
|
0.01 |
|
|
(0.01 |
) |
||
Restructuring and other charges |
|
0.03 |
|
|
0.05 |
|
||
Acquisition and integration-related costs (credits) |
|
0.01 |
|
|
(0.01 |
) |
||
Special charges |
|
— |
|
|
— |
|
||
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
— |
|
|
— |
|
||
Income tax benefit related to intercompany transfers of certain intellectual property rights |
|
(2.06 |
) |
|
|
— |
|
|
Income tax effect of non-GAAP adjustments |
|
(0.03 |
) |
|
(0.06 |
) |
||
Diluted net income per share on a non-GAAP basis |
|
$ |
0.54 |
|
|
$ |
0.52 |
|
Shares used in calculation of diluted net income per share — GAAP** |
|
279,557 |
|
|
280,321 |
|
||
Shares used in calculation of diluted net income per share — non-GAAP** |
|
279,557 |
|
|
280,321 |
|
||
* |
Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. |
** |
Shares used in the calculation of GAAP net income per share are expected to be the same as shares used in the calculation of non-GAAP net income per share, except when the company reports a GAAP net loss and non-GAAP net income, or GAAP net income and a non-GAAP net loss. |
Diluted Net Income Per Share Reconciliation |
|
Years Ended |
||||||
|
|
December 28, 2019 |
|
December 29, 2018 |
||||
|
|
(unaudited) |
||||||
(in thousands, except per share data) |
|
|
|
|
||||
Diluted net income per share on a GAAP basis |
|
$ |
3.53 |
|
|
$ |
1.23 |
|
Amortization of acquired intangibles |
|
0.19 |
|
|
0.19 |
|
||
Stock-based compensation expense |
|
0.65 |
|
|
0.60 |
|
||
Non-qualified deferred compensation expenses (credits) |
|
0.02 |
|
|
(0.01 |
) |
||
Restructuring and other charges |
|
0.03 |
|
|
0.04 |
|
||
Acquisition and integration-related costs |
|
0.03 |
|
|
0.07 |
|
||
Special charges |
|
— |
|
|
— |
|
||
Other income or expense related to investments and non-qualified deferred compensation plan assets* |
|
(0.01 |
) |
|
— |
|
||
Income tax benefit related to intercompany transfers of certain intellectual property rights |
|
(2.05 |
) |
|
|
— |
|
|
Income tax effect of non-GAAP adjustments |
|
(0.19 |
) |
|
(0.25 |
) |
||
Diluted net income per share on a non-GAAP basis |
|
$ |
2.20 |
|
|
$ |
1.87 |
|
Shares used in calculation of diluted net income per share — GAAP** |
|
280,515 |
|
|
281,144 |
|
||
Shares used in calculation of diluted net income per share — non-GAAP** |
|
280,515 |
|
|
281,144 |
|
||
* |
Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. |
** |
Shares used in the calculation of GAAP net income per share are expected to be the same as shares used in the calculation of non-GAAP net income per share, except when the company reports a GAAP net loss and non-GAAP net income, or GAAP net income and a non-GAAP net loss. |
Cadence expects that its corporate representatives will meet privately during the quarter with investors, the media, investment analysts and others. At these meetings, Cadence may reiterate the business outlook published in this press release. At the same time, Cadence will keep this press release, including the business outlook, publicly available on its website.
Prior to the start of the Quiet Period (described below), the public may continue to rely on the business outlook contained herein as still being Cadence’s current expectations on matters covered unless Cadence publishes a notice stating otherwise.
Beginning March 13, 2020, Cadence will observe a Quiet Period during which the business outlook as provided in this press release and the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q no longer constitute Cadence’s current expectations. During the Quiet Period, the business outlook in these documents should be considered historical, speaking as of prior to the Quiet Period only and not subject to any update by Cadence. During the Quiet Period, Cadence’s representatives will not comment on Cadence’s business outlook, financial results or expectations. The Quiet Period will extend until Cadence’s first quarter 2020 earnings release is published, which is currently scheduled for April 20, 2020.
| Cadence Design Systems, Inc. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| December 28, 2019 and December 29, 2018 | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| December 28, 2019 | December 29, 2018 | |||||
| Current assets: | ||||||
| Cash and cash equivalents | $ |
705,210 |
$ |
533,298 |
||
| Receivables, net |
|
304,546 |
|
297,082 |
||
| Inventories |
|
55,802 |
|
28,162 |
||
| Prepaid expenses and other |
|
103,785 |
|
92,550 |
||
| Total current assets |
|
1,169,343 |
|
951,092 |
||
| Property, plant and equipment, net |
|
275,855 |
|
252,630 |
||
| Goodwill |
|
661,856 |
|
662,272 |
||
| Acquired intangibles, net |
|
172,375 |
|
225,457 |
||
| Deferred taxes |
|
732,367 |
|
154,894 |
||
| Other assets |
|
345,429 |
|
222,309 |
||
| Total assets | $ |
3,357,225 |
$ |
2,468,654 |
||
| Current liabilities: | ||||||
| Revolving credit facility | $ |
- |
$ |
100,000 |
||
| Accounts payable and accrued liabilities |
|
316,908 |
|
256,526 |
||
| Current portion of deferred revenue |
|
355,483 |
|
352,456 |
||
| Total current liabilities |
|
672,391 |
|
708,982 |
||
| Long-term liabilities: | ||||||
| Long-term portion of deferred revenue |
|
73,400 |
|
48,718 |
||
| Long-term debt |
|
346,019 |
|
345,291 |
||
| Other long-term liabilities |
|
162,521 |
|
77,262 |
||
| Total long-term liabilities |
|
581,940 |
|
471,271 |
||
| Stockholders' equity |
|
2,102,894 |
|
1,288,401 |
||
| Total liabilities and stockholders' equity | $ |
3,357,225 |
$ |
2,468,654 |
||
| Cadence Design Systems, Inc. | ||||||||||||
| Condensed Consolidated Income Statements | ||||||||||||
| For the Three Months and Years Ended December 28, 2019 and December 29, 2018 | ||||||||||||
| (In thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Years Ended | |||||||||||
| December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | |||||||||
| Revenue: | ||||||||||||
| Product and maintenance | $ |
564,964 |
$ |
534,418 |
$ |
2,204,615 |
$ |
1,997,887 |
||||
| Services |
|
34,591 |
|
35,432 |
|
131,704 |
|
140,135 |
||||
| Total revenue |
|
599,555 |
|
569,850 |
|
2,336,319 |
|
2,138,022 |
||||
| Costs and expenses: | ||||||||||||
| Cost of product and maintenance |
|
53,521 |
|
54,748 |
|
189,146 |
|
173,011 |
||||
| Cost of services |
|
19,807 |
|
21,376 |
|
77,211 |
|
85,736 |
||||
| Marketing and sales |
|
127,267 |
|
112,613 |
|
481,673 |
|
439,669 |
||||
| Research and development |
|
235,372 |
|
218,271 |
|
935,938 |
|
884,816 |
||||
| General and administrative |
|
42,093 |
|
31,985 |
|
139,806 |
|
133,406 |
||||
| Amortization of acquired intangibles |
|
2,787 |
|
3,468 |
|
12,128 |
|
14,086 |
||||
| Restructuring and other charges |
|
9,809 |
|
13,699 |
|
8,621 |
|
11,089 |
||||
| Total costs and expenses |
|
490,656 |
|
456,160 |
|
1,844,523 |
|
1,741,813 |
||||
| Income from operations |
|
108,899 |
|
113,690 |
|
491,796 |
|
396,209 |
||||
| Interest expense |
|
(4,222) |
|
(4,318) |
|
(18,829) |
|
(23,139) |
||||
| Other income (expense), net |
|
748 |
|
(735) |
|
6,001 |
|
3,320 |
||||
| Income before provision (benefit) for income taxes |
|
105,425 |
|
108,637 |
|
478,968 |
|
376,390 |
||||
| Provision (benefit) for income taxes |
|
(554,250) |
|
10,212 |
|
(510,011) |
|
30,613 |
||||
| Net income | $ |
659,675 |
$ |
98,425 |
$ |
988,979 |
$ |
345,777 |
||||
| Net income per share - basic | $ |
2.41 |
$ |
0.36 |
$ |
3.62 |
$ |
1.26 |
||||
| Net income per share - diluted | $ |
2.36 |
$ |
0.35 |
$ |
3.53 |
$ |
1.23 |
||||
| Weighted average common shares outstanding - basic |
|
273,234 |
|
273,680 |
|
273,239 |
|
273,729 |
||||
| Weighted average common shares outstanding - diluted |
|
279,557 |
|
280,321 |
|
280,515 |
|
281,144 |
||||
| Cadence Design Systems, Inc. | ||||
| Condensed Consolidated Statements of Cash Flows | ||||
| For the Years Ended December 28, 2019 and December 29, 2018 | ||||
| (In thousands) | ||||
| (Unaudited) | ||||
Years Ended |
||||
December 28, |
|
December 29, |
||
2019 |
|
2018 |
||
| Cash and cash equivalents at beginning of year | $ 533,298 |
$ 688,087 |
||
| Cash flows from operating activities: | ||||
| Net income | 988,979 |
345,777 |
||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 122,789 |
118,721 |
||
| Amortization of debt discount and fees | 1,001 |
1,196 |
||
| Stock-based compensation | 181,547 |
167,715 |
||
| (Gain) loss on investments, net | 4,090 |
(2,732) |
||
| Deferred income taxes | (576,738) |
(11,676) |
||
| Provisions for losses on receivables | 632 |
5,102 |
||
| ROU asset amortization and change in operating lease liabilities | 562 |
- |
||
| Other non-cash items | 428 |
2,607 |
||
| Changes in operating assets and liabilities, net of effect of acquired businesses: | ||||
| Receivables | (4,718) |
(87,083) |
||
| Inventories | (33,024) |
752 |
||
| Prepaid expenses and other | (11,031) |
(19,622) |
||
| Other assets | (8,011) |
(14,606) |
||
| Accounts payable and accrued liabilities | 33,915 |
1,553 |
||
| Deferred revenue | 27,498 |
100,696 |
||
| Other long-term liabilities | 1,681 |
(3,649) |
||
| Net cash provided by operating activities | 729,600 |
604,751 |
||
| Cash flows from investing activities: | ||||
| Purchases of non-marketable investments | (33,717) |
(115,839) |
||
| Proceeds from the sale of non-marketable investments | 2,952 |
3,497 |
||
| Purchases of property, plant and equipment | (74,605) |
(61,503) |
||
| Cash paid in business combinations | (338) |
- |
||
| Net cash used for investing activities | (105,708) |
(173,845) |
||
| Cash flows from financing activities: | ||||
| Proceeds from revolving credit facility | 150,000 |
100,000 |
||
| Payment on revolving credit facility | (250,000) |
(85,000) |
||
| Principal payments on term loan | - |
(300,000) |
||
| Proceeds from issuance of common stock | 52,842 |
40,908 |
||
| Stock received for payment of employee taxes on vesting of restricted stock | (90,580) |
(69,921) |
||
| Payments for repurchases of common stock | (306,148) |
(250,059) |
||
| Change in book overdraft | - |
(3,867) |
||
| Net cash used for financing activities | (443,886) |
(567,939) |
||
| Effect of exchange rate changes on cash and cash equivalents | (8,094) |
(17,756) |
||
| Increase (decrease) in cash and cash equivalents | 171,912 |
(154,789) |
||
| Cash and cash equivalents at end of year | $ 705,210 |
$ 533,298 |
||
| Cadence Design Systems, Inc. | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Revenue Mix by Geography (% of Total Revenue) | ||||||||||||||||||||
2018 |
|
2019 |
||||||||||||||||||
| GEOGRAPHY | Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Year |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Year |
|
| Americas | 45% |
46% |
44% |
44% |
45% |
44% |
42% |
44% |
46% |
44% |
||||||||||
| China | 9% |
8% |
9% |
13% |
10% |
10% |
12% |
10% |
9% |
10% |
||||||||||
| Other Asia | 18% |
18% |
20% |
18% |
18% |
19% |
19% |
21% |
20% |
20% |
||||||||||
| Europe, Middle East and Africa | 20% |
20% |
19% |
17% |
19% |
18% |
20% |
18% |
18% |
18% |
||||||||||
| Japan | 8% |
8% |
8% |
8% |
8% |
9% |
7% |
7% |
7% |
8% |
||||||||||
| Total | 100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
||||||||||
| Revenue Mix by Product Group (% of Total Revenue) | ||||||||||||||||||||
2018 |
|
2019 |
||||||||||||||||||
| PRODUCT GROUP | Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Year |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Year |
|
| Functional Verification, including hardware for emulation and prototyping | 26% |
23% |
22% |
25% |
24% |
24% |
22% |
20% |
24% |
23% |
||||||||||
| Digital IC Design and Signoff | 30% |
30% |
30% |
28% |
29% |
30% |
31% |
30% |
29% |
30% |
||||||||||
| Custom IC Design and Simulation | 26% |
26% |
26% |
25% |
26% |
25% |
26% |
26% |
25% |
25% |
||||||||||
| System Interconnect and Analysis | 9% |
9% |
9% |
9% |
9% |
9% |
10% |
9% |
9% |
9% |
||||||||||
| IP | 9% |
12% |
13% |
13% |
12% |
12% |
11% |
15% |
13% |
13% |
||||||||||
| Total | 100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
||||||||||
Cadence Design Systems, Inc. |
||||
Impact of Non-GAAP Adjustments on Forward Looking Operating Margin |
||||
As of February 12, 2020 |
||||
(Unaudited) |
||||
|
|
Three Months Ending |
|
Year Ending |
|
|
March 28, 2020 |
|
January 2, 2021 |
|
|
Forecast |
|
Forecast |
| GAAP operating margin as a percent of total revenue | ~19% |
|
21% - 22% |
|
|
|
|
||
| Reconciling items to non-GAAP operating margin as a percent of total revenue: |
|
|
|
|
| Amortization of acquired intangibles | 2% |
|
2% |
|
| Stock-based compensation expense | 8% |
|
8% |
|
| Acquisition and integration-related costs | 1% |
|
1% |
|
|
|
|
||
| Non-GAAP operating margin as a percent of total revenue† | ~30% |
|
32% - 33% |
|
† |
The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. |
| Cadence Design Systems, Inc. | ||||
| Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share | ||||
| As of February 12, 2020 | ||||
| (Unaudited) | ||||
Three Months Ending |
|
Year Ending |
||
March 28, 2020 |
|
January 2, 2021 |
||
Forecast |
|
Forecast |
||
|
|
|
||
| Diluted net income per share on a GAAP basis | $0.32 to $0.34 |
|
$1.46 to $1.56 |
|
|
|
|
||
| Amortization of acquired intangibles | 0.05 |
|
0.23 |
|
| Stock-based compensation expense | 0.17 |
|
0.71 |
|
| Acquisition and integration-related costs | 0.01 |
|
0.07 |
|
| Other income or expense related to investments and non-qualified deferred compensation plan assets* | 0.01 |
|
0.01 |
|
| Income tax effect of non-GAAP adjustments | (0.03) |
|
(0.08) |
|
|
|
|
||
| Diluted net income per share on a non-GAAP basis† | $0.53 to $0.55 |
|
$2.40 to $2.50 |
|
| Cadence Design Systems, Inc. | ||||
| Impact of Non-GAAP Adjustments on Forward Looking Net Income | ||||
| As of February 12, 2020 | ||||
| (Unaudited) | ||||
Three Months Ending |
|
Year Ending |
||
March 28, 2020 |
|
January 2, 2021 |
||
| ($ in millions) | Forecast |
|
Forecast |
|
|
|
|
||
| Net income on a GAAP basis | $91 to $97 |
|
$410 to $438 |
|
|
|
|
||
| Amortization of acquired intangibles | 15 |
|
65 |
|
| Stock-based compensation expense | 47 |
|
198 |
|
| Acquisition and integration-related costs | 4 |
|
18 |
|
| Other income or expense related to investments and non-qualified deferred compensation plan assets* | 2 |
|
4 |
|
| Income tax effect of non-GAAP adjustments | (10) |
|
(23) |
|
|
|
|
||
| Net income on a non-GAAP basis† | $149 to $155 |
|
$672 to $700 |
|
† |
The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. |
* |
Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. |
CDNS-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20200212005820/en/
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Source: Cadence Design Systems, Inc.