Cadence Announces Record Revenue; 72% increase in earnings per share fueled by demand for Company's total solutions approach.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--July 23, 1996--Cadence Design Systems, Inc. today announced continued strong growth in revenue and earnings, reporting record revenue and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the second quarter of 1996. Revenue of $177.0 million for the second quarter of 1996 increased 38%, while operating profit of $43.4 million increased 80% compared to the prior year second quarter. Net income and earnings per share for the second quarter of 1996 were $28.6 million and $ .31 respectively, an increase of 68% and 72% over the comparable prior year quarter. For the first half, revenue totaled $340.5 million, an increase of 39% over the comparable prior year period. First half net income of $54.2 million increased 77% over the same prior year period, while earnings per share increased 79% to $.59. Cadence's "total solutions" approach to assisting customers with their electronic product development needs fueled growth in both software product sales and in the Company's professional service offerings. Software product revenue increased by 50% over the second quarter of 1995. From a software product standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the , Cadence cadence, in music, the ending of a phrase or composition. In singing the voice may be raised or lowered, or the singer may execute elaborate variations within the key. reported strong sales in its IC design tools for place-and-route and physical verification Physical verification A procedure auditors use to ensure that inventory recorded in the book is correct by actually checking out the physical inventory. , and in its suite of tools for the timing-driven design process used in deep submicron silicon design. Service revenue increased 57% over the prior year quarter while service margins increased to 30%. Cadence's investment in research and development increased 29% over the prior year second quarter to $29.2 million which represents 17% of revenue. "Cadence's leading edge technology is at the heart of our success, so we continue to make the significant R&D investments necessary to meet the current and future needs of our customers," said Joe Costello A number of people are know by the name Joe Costello
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increased to 25%. "The results of our second quarter demonstrate that the fundamentals we have put in place over the past few years have resulted in consistent growth," said Costello Cos·tel·lo , John Aloysius 1891-1976. Irish prime minister (1948-1951 and 1954-1957) who took Ireland out of the Commonwealth of Nations (1949). . "We are continuing to add capacity and expertise in our service business to keep up with customer demand, and we are proving that our software product technology is ideally suited for today's toughest challenges, such as deep submicron IC design. Together, our results focused approach creates opportunities which leave us well positioned for the future." The Company's total solutions approach to serving customers led to the recent completion of a two-year effort with Motorola (Motorola, Inc., Schaumburg, IL, www.motorola.com) A leading manufacturer of semiconductor devices, electronics, telecommunications and satellite systems. Founded in Chicago in 1928 by Paul V. which reduces the design time of custom microcontrollers from several months to just seven working days. Murray Murray, river, Australia Murray, principal river of Australia, 1,609 mi (2,589 km) long, rising in the Australian Alps, SE New South Wales, and flowing westward to form the New South Wales–Victoria boundary. Goldman Gold·man , Emma 1869-1940. Russian-born American anarchist. Jailed repeatedly for her advocacy of birth control and opposition to military conscription, she was deported to the Soviet Union in 1919. , Motorola Executive Vice President and Assistant General Manager of the Company's semiconductor products sector, cited Cadence for being "instrumental in delivering a world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. design methodology that will benefit our customers." "The results we have been able to achieve with Motorola on this critical project validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data the Cadence approach to helping customers achieve their most important strategic objectives," said Costello. Cadence Design Systems (company) Cadence Design Systems - A company that sells electronic design automation software and services. http://cadence.com/. See also Verilog. , Inc. provides comprehensive services and technology for the product development requirements of the world's leading electronics companies. Cadence is the largest supplier of software tools and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. used to accelerate and manage the design of semiconductors, computer systems, networking and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment, consumer electronics, and a variety of other electronic-based products. With more than 3,000 employees, Cadence has sales offices and research facilities around the world. The Company is headquartered in San Jose, Calif. and traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. . -0-
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Income
For the Quarters Ended June 29, 1996 and July 1, 1995
(in 000's, except per share amounts)
(Unaudited)
1996 1995
PRODUCT REVENUE $ 98,376 $ 65,687 SERVICE REVENUE 26,529 16,895 MAINTENANCE REVENUE 52,121 45,957 TOTAL REVENUE 177,026 128,539 COSTS AND EXPENSES: COST OF PRODUCT 12,885 10,664 COST OF SERVICE 18,605 14,508 COST OF MAINTENANCE 6,275 4,279 MARKETING AND SALES 52,961 42,612 RESEARCH AND DEVELOPMENT 29,221 22,652 GENERAL AND ADMINISTRATIVE 13,646 9,707 TOTAL COSTS AND EXPENSES 133,593 104,422 INCOME FROM OPERATIONS 43,433 24,117 OTHER INCOME (EXPENSE), NET (764) 207 INCOME BEFORE PROVISION FOR INCOME TAXES 42,669 24,324 PROVISION FOR INCOME TAXES 14,081 7,353 NET INCOME $ 28,588 $ 16,971 NET INCOME PER SHARE $ .31 $ .18 WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 91,841 92,880
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Income
For the Six Months Ended June 29, 1996 and July 1, 1995
(in 000's, except per share amounts)
(Unaudited)
June 29, July 1,
1996 1995
PRODUCT REVENUE $ 188,558 $ 127,797 SERVICE REVENUE 49,627 27,372 MAINTENANCE REVENUE 102,271 89,403 TOTAL REVENUE 340,456 244,572 COSTS AND EXPENSES: COST OF PRODUCT 23,772 22,517 COST OF SERVICE 36,202 23,721 COST OF MAINTENANCE 11,430 8,176 SALES AND MARKETING 105,154 84,832 RESEARCH AND DEVELOPMENT 55,234 43,515 GENERAL AND ADMINISTRATIVE 26,658 19,205 TOTAL COSTS AND EXPENSES 258,450 201,966 INCOME FROM OPERATIONS 82,006 42,606 OTHER INCOME (EXPENSE), NET (1,159) (216) INCOME BEFORE PROVISION FOR INCOME TAXES 80,847 42,390 PROVISION FOR INCOME TAXES 26,680 11,869 NET INCOME $ 54,167 $ 30,521 NET INCOME PER SHARE $ .59 $ .33 WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 91,557 93,807
Cadence Design Systems, Inc.
Condensed Consolidated Balance Sheets
(in 000's)
June 29, December 30,
1996 1995
(Unaudited) (Audited)
CASH AND SHORT-TERM INVESTMENTS $ 99,079 $ 96,641 ACCOUNTS RECEIVABLE, NET 93,955 88,503 INVENTORIES 6,726 8,203 OTHER CURRENT ASSETS 21,747 13,576 TOTAL CURRENT ASSETS 221,507 206,923 PROPERTY AND EQUIPMENT, NET 139,117 124,103 SOFTWARE DEVELOPMENT COSTS, NET 24,643 25,793 PURCHASED SOFTWARE & OTHER INTANGIBLES, NET 11,170 8,268 OTHER ASSETS 16,091 8,948 TOTAL ASSETS $ 412,528 $ 374,035 CURRENT PORTION OF LONG-TERM DEBT $ 3,025 $ 1,497 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 95,300 91,999 INCOME TAXES PAYABLE 6,259 14,524 DEFERRED REVENUE 115,139 92,407 TOTAL CURRENT LIABILITIES 219,723 200,427 LONG-TERM DEBT 19,898 1,619 DEFERRED INCOME TAXES 3,809 7,307 MINORITY INTEREST 14,113 12,167 OTHER NONCURRENT LIABILITIES 16,494 18,434 STOCKHOLDERS' EQUITY 138,491 134,081 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 412,528 $ 374,035 CONTACT: Cadence Design Systems Inc. H. Raymond Raymond, town, Canada Raymond, town (1991 pop. 3,130), S Alta., Canada, SE of Lethbridge, in a sugar beet area. Sugar is refined and honey is produced there. A provincial agricultural college is in the town. Bingham Bing·ham , George Caleb 1811-1879. American painter noted for his portraits and genre paintings of the American frontier. , 408/944-7503 |
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