Cadence Design Systems, Inc. announced results for the second quarter of fiscal year 2014.
Cadence reported second quarter 2014 revenue of $379 million, compared to revenue of $362 million reported for the same period in 2013. On a GAAP basis, Cadence recognized net income of $23 million, or $0.08 per share on a diluted basis, in the second quarter of 2014, compared to net income of $9 million, or $0.03 per share on a diluted basis, in the same period in 2013.
Using the non-GAAP measure defined below, net income in the second quarter of 2014 was $64 million, or $0.21 per share on a diluted basis, as compared to net income of $61 million, or $0.21 per share on a diluted basis, in the same period in 2013.
“Cadence continued to drive growth and innovation during the quarter, reflecting the ongoing success of our system design enablement strategy,” said Lip-Bu Tan, president and chief executive officer. “In addition to completing the acquisition of Jasper Design Automation, we won new business in digital and signoff at the most advanced nodes, and made continued progress in IP. Our digital and system design and verification solutions have strong momentum with both systems and semiconductor customers. In addition, we are excited about the new products we recently announced in both system design and verification and signoff.”
“The Cadence team delivered strong results in Q2 with key operating metrics at or above our targets,” added Geoff Ribar, senior vice president and chief financial officer. “We expect strong business levels for the second half of 2014; however, we are reducing our EPS outlook for the year due to lower hardware gross margins and higher diluted share count because of the impact of a higher share price on calculated dilution from our 2015 convertible notes.”
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.
To view an unabridged version of this press release, visit: http://www.cadence.com/cadence/newsroom/press_releases/Pages/pr.aspx?xml=072114_financial
