Cadence Design Systems -- Record Revenues and Strong Earnings Growth for Second Quarter of 1995.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 24, 1995--Cadence Design Systems, Inc. today reported revenue of $128.5 million for the second quarter ended July July: see month. 1, 1995 and net income of $17.0 million, or $0.41 per share. Revenues for the second quarter increased 27 percent from $101.0 million reported in the second quarter of 1994. Net income increased 99 percent and earnings per share increased 116 percent from the $8.5 million and $0.19 per share, respectively, reported for the same quarter of 1994, excluding the effect of a litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement insurance credit of $2.1 million or $0.03 per share in 1994. For the six months ended July 1, 1995, revenue was $244.6 million compared to $197.8 million for the same period of the prior year, an increase of 24 percent. Net income for the same six month period of 1995 was $30.5 million or $0.73 per share. This compares to net income of $13.8 million or $0.31 per share for the six month period ended June June: see month. 30, 1994, excluding the effect of the net provision for settlement of litigation of $10.1 million, or $0.17 per share. "Our continued product revenue growth, as well as the introduction of several exciting new technologies in the second quarter, is indicative of the commitment we've we've Contraction of we have. we've have made to advancing our design automation tool portfolio, particularly in those areas where our customers face the most difficult challenges," said Joseph B. 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). , 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. president & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "In addition, the industry's acceptance of our new business model which combines leading-edge technology with professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. is reflected in the revenue growth from our Spectrum Services organization." "As significant as the growth in both the top and bottom lines is," continued Costello, "we achieved this while also continuing to improve many other financial and business metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. . New bookings again exceeded revenues as we maintained a book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can of greater than one. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: climbed to almost 19 percent. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). was reduced to 41 days. And finally, continuing our previously announced share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, we invested almost $70 million in buying 3.2 million Cadence shares through a combination of open market and private purchases, including the exercise of call options covering approximately 2.3 million shares." Cadence Design Systems (company) Cadence Design Systems - A company that sells electronic design automation software and services. http://cadence.com/. See also Verilog. , Inc. is the worldwide leader in the development and marketing of design automation software and services that accelerate and advance the process of designing electronic systems. Cadence combines leading-edge technology with a complementary set of services that enable customers to improve the quality and time-to-market performance of innovative electronic products. Cadence is based in San Jose, CA with research and development, sales and support locations worldwide. The Company is listed 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 Balance Sheets
(in 000's)
July 1, December 31,
1995 1994
(Unaudited) (Audited)
CASH AND SHORT-TERM INVESTMENTS $76,471 96,876 ACCOUNTS RECEIVABLE, NET 59,076 78,629 INVENTORIES 6,501 5,137 OTHER CURRENT ASSETS 14,866 11,293 TOTAL CURRENT ASSETS 156,914 191,935 PROPERTY AND EQUIPMENT, NET 121,892 122,064 SOFTWARE DEVELOPMENT COSTS, NET 27,112 27,832 PURCHASED SOFTWARE & OTHER INTANGIBLES, NET 11,614 10,557 OTHER ASSETS 12,808 8,660 TOTAL ASSETS $330,340 361,048 CURRENT PORTION OF LONG-TERM DEBT $25,754 26,412 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 69,843 68,881 INCOME TAXES PAYABLE 9,705 7,944 DEFERRED REVENUE 74,552 61,205 TOTAL CURRENT LIABILITIES 179,854 164,442 LONG-TERM DEBT 1,781 2,098 LEASE LIABILITIES 7,387 9,040 DEFERRED INCOME TAXES 2,490 904 OTHER NONCURRENT LIABILITIES 9,551 8,501 STOCKHOLDERS' EQUITY 129,277 176,063 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $330,340 361,048
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Income
For the Quarter Ended July 1, 1995 and June 30, 1994
(in 000's, except per share amounts)
(Unaudited)
July 1, June 30,
1995 1994
PRODUCT REVENUE $65,687 56,633 SERVICE REVENUE 16,895 6,052 MAINTENANCE REVENUE 45,957 38,358 TOTAL REVENUE 128,539 101,043 COSTS AND EXPENSES: COST OF PRODUCT 10,664 13,184 COST OF SERVICE 14,508 4,871 COST OF MAINTENANCE 4,279 3,540 SALES AND MARKETING 42,612 39,418 ENGINEERING 22,652 19,273 GENERAL AND ADMINISTRATIVE 9,707 9,807 UNUSUAL ITEMS - - - (2,050) TOTAL COSTS AND EXPENSES 104,422 88,043 INCOME FROM OPERATIONS 24,117 13,000 OTHER INCOME, NET 207 443 INCOME BEFORE PROVISION FOR INCOME TAXES 24,324 13,443 PROVISION FOR INCOME TAXES 7,353 3,361 NET INCOME $16,971 10,082 NET INCOME PER SHARE $.41 .23 WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 41,280 44,576 Certain prior year balances have been reclassified to conform with current year presentation.
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Income
For the Six Months Ended July 1, 1995 and June 30, 1994
(in 000's, except per share amounts)
(Unaudited)
July 1, June 30,
1995 1994
PRODUCT REVENUE $127,797 113,040 SERVICE REVENUE 27,372 10,792 MAINTENANCE REVENUE 89,403 73,989 TOTAL REVENUE 244,572 197,821 COSTS AND EXPENSES: COST OF PRODUCT 22,517 26,943 COST OF SERVICE 23,721 9,435 COST OF MAINTENANCE 8,176 7,533 SALES AND MARKETING 84,832 78,442 ENGINEERING 43,515 37,487 GENERAL AND ADMINISTRATIVE 19,205 20,406 UNUSUAL ITEMS - - - 10,054 TOTAL COSTS AND EXPENSES 201,966 190,300 INCOME FROM OPERATIONS 42,606 7,521 OTHER INCOME (EXPENSE), NET (216) 790 INCOME BEFORE PROVISION FOR INCOME TAXES 42,390 8,311 PROVISION FOR INCOME TAXES 11,869 2,078 NET INCOME $30,521 6,233 NET INCOME PER SHARE $ .73 .14 WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 41,692 44,973 Certain prior year balances have been reclassified to conform with current year presentation. 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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