Cadence Design Systems (NASDAQ: CDNS) reported Q2 EPS of $0.66, $0.14 better than the analyst estimate of $0.52. Revenue for the quarter came in at $638 million versus the consensus estimate of $592.79 million.

“Cadence has adapted well to the difficult environment, continuing to innovate and delight customers, while delivering outstanding results for shareholders,” said Lip-Bu Tan, chief executive officer. “While these are uncertain times, design activity remains strong and our Intelligent System Design strategy has us well positioned to take advantage of these opportunities. To ensure business continuity, we are further investing in infrastructure and collaboration platforms to maintain high levels of productivity and innovation.”

“Cadence exceeded all of its key financial metrics for the second quarter and we are raising our outlook for the year to 11% revenue growth and 33% non-GAAP operating margin,” said John Wall, senior vice president and chief financial officer. “Cadence operated from approximately 50 sites across the globe before the pandemic, and we are now operating from a distributed network of more than 8,000 homes. We are blessed to have such a strong and versatile global leadership group. I am very impressed and thankful for how our team is not only rising to the challenge but thriving in this environment.”

GUIDANCE:

Cadence Design Systems sees Q3 2020 EPS of $0.59-$0.61, versus the consensus of $0.63. Cadence Design Systems sees Q3 2020 revenue of $630-650 million, versus the consensus of $647.6 million.

Cadence Design Systems sees FY2020 EPS of $2.50-$2.56, versus the consensus of $2.46. Cadence Design Systems sees FY2020 revenue of $2.585-2.615 billion, versus the consensus of $2.56 billion.

For the third quarter of 2020, the company expects total revenue in the range of $630 million to $650 million. Third quarter GAAP operating margin is expected to be approximately 22 percent and GAAP net income per diluted share is expected to be in the range of $0.49 to $0.51. Using the non-GAAP measure defined below, operating margin is expected to be approximately 32 percent and net income per diluted share is expected to be in the range of $0.59 to $0.61.

For 2020, the company expects total revenue in the range of $2.585 billion to $2.615 billion. On a GAAP basis, operating margin is expected to be approximately 22 percent and GAAP net income per diluted share for 2020 is expected to be in the range of $1.84 to $1.90. Using the non-GAAP measure defined below, operating margin for 2020 is expected to be approximately 33 percent and net income per diluted share for 2020 is expected to be in the range of $2.50 to $2.56.

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