Cadence Design Systems, Inc. today announced results for the first quarter of fiscal year 2015. Cadence reported first quarter 2015 revenue of $411 million, compared to revenue of $379 million reported for the same period in 2014. On a GAAP basis, Cadence recognized net income of $36 million, or $0.12 per share on a diluted basis, in the first quarter of 2015, compared to net income of $33 million, or $0.11 per share on a diluted basis, for the same period in 2014.
Using the non-GAAP measure defined below, net income in the first quarter of 2015 was $72 million, or $0.23 per share on a diluted basis, as compared to net income of $59 million, or $0.20 per share on a diluted basis, for the same period in 2014.
“Cadence continued its excellent record of innovation and execution in the first quarter,” said Lip-Bu Tan, president and chief executive officer. “We achieved strong financial results, expanded relationships with key customers and ecosystem partners, launched Innovus, our next-generation digital implementation system, to enthusiastic customer support, and Cadence was recognized in FORTUNE Magazine’s 2015 list of '100 Best Companies to Work For.'”
“Successful execution of a sound strategy drives superior results,” added Geoff Ribar, senior vice president and chief financial officer. “With the progress we are making on our strategy and confidence in Cadence’s prospects, we are pleased to announce that we are replacing our existing stock repurchase program with an expanded program to repurchase $450 million over the next two years.”
Cadence expects to repurchase approximately $56.25 million of its common stock per quarter, beginning with the second quarter of 2015. 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.
Business Outlook
For the second quarter of 2015, the company expects total revenue in the range of $410 million to $420 million. Second quarter GAAP net income per diluted share is expected to be in the range of $0.14 to $0.16. 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.
For 2015, the company expects total revenue in the range of $1.680 billion to $1.720 billion. On a GAAP basis, net income per diluted share for 2015 is expected to be in the range of $0.60 to $0.70. Using the non-GAAP measure defined below, net income per diluted share for 2015 is expected to be in the range of $0.96 to $1.06.
A schedule showing a reconciliation of the business outlook from GAAP net income and diluted net income per share to non-GAAP net income and diluted net income per share is included in this release.
