Cadence Design Systems, Inc reported its results under new revenue rules, ASC Topic 606. For the third quarter of 2018, Cadence reported revenue of $532 million, GAAP net income of $99 million, or $0.35 per share on a diluted basis, and non-GAAP net income (as defined below) of $139 million, or $0.49 per share on a diluted basis.
Cadence also reported its results under the old revenue rules, ASC Topic 605, for easier comparison with prior results, all of which were reported under ASC Topic 605.
Under ASC Topic 605, for the third quarter of 2018, Cadence reported revenue of $526 million, compared to revenue of $485 million reported for the same period in 2017. On a GAAP basis, Cadence recognized net income of $95 million, or $0.34 per share on a diluted basis, in the third quarter of 2018, compared to net income of $81 million, or $0.29 per share on a diluted basis for the same period in 2017. Using the non-GAAP measure defined below, net income for the third quarter of 2018 was $137 million, or $0.49 per share on a diluted basis, as compared to non-GAAP net income of $98 million, or $0.35 per share on a diluted basis, for the same period in 2017.
“Broad-based strength across our product lines enabled Cadence to achieve outstanding operating results for the third quarter,” said Lip-Bu Tan, chief executive officer. “We also continued to innovate and launch new products, including the industry’s first silicon-proven, 7-nanometer long-reach 112G SerDes IP and the Tensilica® DNA 100 Processor IP targeted at deep neural-network applications.”
“I am pleased to report that we exceeded all of our key operating metrics for the quarter,” said John Wall, senior vice president and chief financial officer. “We expect strong demand and cash flow to continue into the fourth quarter, and as a result we are raising our outlook for fiscal 2018 and increasing stock repurchases to $75 million for the fourth quarter.”