As AI went from short-term hype to an enduring trend, the world became aware of how important electronic design automation (EDA) software is in 2023. EDA is a type of computer-aided design suite specifically for chips and computing systems. To start 2024, industry leader Cadence Design Systems (CDNS 0.64%) is making an acquisition to double down on its most critical EDA-related services: custom silicon design.The company being acquired is a small engineering team called Invecas, which will be added to Caden ...

In the latest trading session, Cadence Design Systems (CDNS) closed at $268.50, marking a +0.64% move from the previous day. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.02%.Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had lost 1.23% over the past month. This has lagged the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52% in that time.Ma ...

Cadence Design Systems (CDNS) closed the latest trading day at $266.79, indicating a +1.34% change from the previous session's end. This change outpaced the S&P 500's 0.07% loss on the day.The maker of hardware and software products for validating chip designs's shares have seen a decrease of 4.81% over the last month, not keeping up with the Computer and Technology sector's gain of 2.5% and the S&P 500's gain of 3.98%.Analysts and investors alike will be keeping a close eye on the performance of Cadence De ...

Cadence Design Systems (CDNS) recently acquired California-based embedded software and system-level solutions provider Invecas, Inc. Financial terms of the deal were not disclosed. Moreover, the company does not expect the acquisition to materially contribute to total revenues and earnings this year.Cadence highlighted that generational trends reinforced by AI advancements are driving a strong design activity. With the slowing down of Moore’s Law there has been rapid development of technologies like advance ...

SAN JOSE, Calif.--(BUSINESS WIRE)--Cadence Design Systems, Inc. (Nasdaq: CDNS) announced today that it has acquired Invecas, Inc., a leading provider of design engineering, embedded software and system-level solutions, headquartered in Santa Clara, California. The purchase adds a skilled system design engineering team to Cadence, with expertise in providing customers with custom solutions across chip design, product engineering, advanced packaging and embedded software. Accelerating trends such as digita ...

SAN JOSE, Calif.--(BUSINESS WIRE)--Cadence Design Systems, Inc. (Nasdaq: CDNS) will hold its fourth quarter and fiscal year 2023 financial results webcast on Monday, February 12, 2024. Participating in the webcast will be Dr. Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer. The webcast will begin Monday, February 12, 2024 at 2:00 p.m. Pacific Time. An archive of the webcast will be available online from 5:00 p.m. Pacific Time on Feb ...

The most recent trading session ended with Cadence Design Systems (CDNS) standing at $255.92, reflecting a -0.53% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.34%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.56%.Shares of the maker of hardware and software products for validating chip designs have depreciated by 0.16% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.27% and the S& ...

Cadence Design Systems, Inc. (NASDAQ:CDNS) Q3 2023 Earnings Conference Call October 23, 2023 5:00 PM ET Company Participants Richard Gu - Vice President of Investor Relations Anirudh Devgan - President and Chief Executive Officer John Wall - Senior Vice President and Chief Financial Officer Conference Call Participants Charles Shi - Needham Gianmarco Conti - Deutsche Bank Harlan Sur - JPMorgan Gary Mobley - Wells Fargo Jay Vleeschhouwer - Griffin Securities Jason Celino - KeyBanc Capital Markets Vivek Arya ...

Revenue Performance - Revenue for the three months ended September 30, 2023, was $1,023.1 million, a 13% increase from $902.6 million for the same period in 2022[95]. - Recurring revenue represented 85% of total revenue for the three months ended September 30, 2023, compared to 84% for the same period in 2022[93]. - Product and maintenance revenue for the nine months ended September 30, 2023, was $2,852.4 million, reflecting a 14% increase from $2,494.3 million in 2022[95]. - The company experienced a 14% growth in total revenue for the nine months ended September 30, 2023, amounting to $3,021.4 million compared to $2,661.8 million in 2022[95]. - Revenue from the United States increased by $29.4 million (7%) to $421.6 million, while revenue from China grew by $23.7 million (16%) to $172.0 million during the same period[98]. - Revenue recognized over time was 83% for the three months ended September 30, 2023, compared to 81% for the same period in 2022, indicating a growth in recurring revenue[92]. - Recurring revenue accounted for 85% of total revenue for the nine months ended September 30, 2023, compared to 84% for the same period in 2022[93]. - Revenue from emulation and prototyping hardware offerings contributed significantly to growth in China during the nine months ended September 30, 2023[99]. Cost and Expenses - Cost of product and maintenance for the three months ended September 30, 2023, was $85.8 million, up 38% from $62.4 million in the same period last year[102]. - Operating expenses for the three months ended September 30, 2023, totaled $604.4 million, reflecting a 10% increase from $550.2 million in the prior year[112]. - Research and development expenses increased by $46.0 million (14%) to $369.6 million for the three months ended September 30, 2023[112]. - Marketing and sales expenses rose by $23.3 million (15%) to $176.2 million during the same period[112]. - The cost of product and maintenance increased primarily due to higher sales of emulation and prototyping hardware, which saw a cost increase of $20.1 million for the three months ended September 30, 2023[106]. - General and administrative expenses decreased by $15.1 million and $7.4 million for the three and nine months ended September 30, 2023, respectively, compared to the same periods in 2022[117]. - Cost of services for the three months ended September 30, 2023, was $23.8 million, a 6% decrease from $25.2 million in the prior year[102]. Profitability and Margins - Operating margin decreased to 29% and 30% for the three and nine months ended September 30, 2023, down from 29% and 32% in the same periods in 2022[121]. - Total interest expense increased to $9.1 million and $27.2 million for the three and nine months ended September 30, 2023, respectively, compared to $5.5 million and $13.9 million in the same periods in 2022[122]. - Provision for income taxes was $45.6 million and $202.6 million for the three and nine months ended September 30, 2023, with effective tax rates of 15.2% and 22.0%, respectively[123]. Cash Flow and Liquidity - Cash and cash equivalents increased to $962.0 million as of September 30, 2023, from $882.3 million as of December 31, 2022[126]. - Net working capital rose to $560.3 million as of September 30, 2023, compared to $359.1 million as of December 31, 2022[127]. - Cash provided by operating activities was $1,077.1 million for the nine months ended September 30, 2023, an increase of $98.8 million compared to $978.3 million in the same period in 2022[128]. - Cash used for investing activities decreased to $(313.6) million for the nine months ended September 30, 2023, from $(674.5) million in the same period in 2022, primarily due to decreases in cash used for business combinations[130]. - Cash used for financing activities increased to $(666.0) million for the nine months ended September 30, 2023, compared to $(299.9) million for the same period in 2022, a change of $(366.1) million[131]. - Approximately 66% of the company's cash and cash equivalents were held by foreign subsidiaries as of September 30, 2023[126]. - The increase in net working capital as of September 30, 2023, compared to December 31, 2022, was primarily due to the timing of cash receipts from customers and disbursements for operating and financing activities[127]. Strategic Initiatives - The company continues to invest in research and development activities and technical sales support, which is reflected in the growth of revenue from software and emulation and prototyping hardware offerings[90]. - The company has terminated operations in Russia due to geopolitical conflicts, which has not materially impacted its financial results[87]. - The company anticipates limited impact from expanded trade control laws and regulations on its business operations[87]. - The company has not experienced material impacts on its financial condition or liquidity from geopolitical conflicts, including the termination of operations in Russia[87]. - The company expects to continue investing in attracting and retaining talent for both marketing and research and development through hiring and acquisitions[114][115]. - The Board of Directors authorized an additional $1.0 billion for the stock repurchase program, with approximately $1.5 billion remaining available as of September 30, 2023[132]. - The company entered into a $300.0 million three-year senior non-amortizing term loan facility due on September 7, 2025, with compliance to all financial covenants as of September 30, 2023[135]. - The company issued $350.0 million in Senior Notes due October 15, 2024, with net proceeds of $342.4 million, and was in compliance with all covenants associated with these notes as of September 30, 2023[134].

Cadence Design Systems, Inc. (NASDAQ:CDNS) Q2 2023 Earnings Conference Call July 24, 2023 5:00 PM ET Company Participants Richard Gu - Vice President of Investor Relations Anirudh Devgan - President & Chief Executive Officer John Wall - Senior Vice President and Chief Financial Officer Conference Call Participants Jason Celino - KeyBanc Capital Markets Charles Shi - Needham & Company Blake Friedman - Bank of America Jay Vleeschhouwer - Griffin Securities Ruben Roy - Stifel Blair Abernethy - Rosenblatt Secur ...