Core Viewpoint - Cadence Design Systems, Inc. has agreed to plead guilty and pay over $140 million to resolve criminal charges related to violations of export controls, specifically for illegally selling EDA hardware, software, and IP to a Chinese military university listed on the U.S. Entity List [1][2]. Group 1: Case Background and Violations Overview - The case involves Cadence, its Chinese subsidiary Cadence Design Systems Management (Shanghai) Co., Ltd., the Chinese military university NUDT, and a related Chinese chip company [2]. - Cadence committed 61 violations, primarily through its subsidiary Cadence China, which engaged in 56 illegal sales or loans to CSCC, a known alias for NUDT, totaling approximately $45.3 million from September 2015 to September 2020 [3][4]. Group 2: Details of Violations - The core violation involved unauthorized exports to NUDT via CSCC, with a total value of about $45.3 million, including $31.88 million in EDA hardware, $2.62 million in EDA software, and $10.79 million in semiconductor IP [5][6]. - The violations occurred over five years, with the first recorded illegal export shortly after NUDT was placed on the Entity List [6]. - All export activities were initiated by Cadence China, with evidence indicating that the actual use and support occurred at NUDT's campus in Changsha, Hunan Province, China [6][7]. Group 3: Systemic Violations and Other Entities - Cadence was also found to have allowed three other companies on the Entity List to download EDA software due to systemic gaps in its compliance processes [10]. - These violations included unauthorized downloads by JSC Mikron, a Chinese telecommunications giant, and a top Chinese chip manufacturer during various periods from 2016 to 2021 [10]. Group 4: Penalty Decisions - Cadence faces a civil penalty of up to $95.31 million, with an initial payment of $47.66 million due within 30 days of the order, and the remaining amount contingent on fulfilling obligations under the criminal plea agreement [12][14]. - The order mandates comprehensive internal audits of Cadence's export control compliance program, including oversight of its operations in China, with strict timelines for reporting [13][14]. - Future export licenses and privileges for Cadence will be contingent upon compliance with the settlement agreement and timely payment of penalties [14].

Core Viewpoint - Cadence Design Systems reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings and revenues [1][3]. Financial Performance - The company achieved earnings of $1.65 per share, surpassing the Zacks Consensus Estimate of $1.57 per share, and up from $1.28 per share a year ago, representing a year-over-year increase of approximately 28.8% [1][2]. - Revenues for the quarter reached $1.28 billion, exceeding the Zacks Consensus Estimate by 1.33%, and up from $1.06 billion in the same quarter last year, indicating a year-over-year growth of about 20.8% [3]. Earnings Surprises - The earnings surprise for the latest quarter was +5.10%, following a previous surprise of +5.37% in the prior quarter [2]. - Cadence has consistently surpassed consensus EPS estimates over the last four quarters [2][3]. Stock Performance - Since the beginning of the year, Cadence shares have increased by approximately 10.6%, outperforming the S&P 500's gain of 8.6% [4]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.75, with expected revenues of $1.33 billion, and for the current fiscal year, the estimate is $6.77 on $5.2 billion in revenues [8]. - The Zacks Rank for Cadence is currently 4 (Sell), indicating expectations of underperformance in the near future, influenced by unfavorable estimate revisions prior to the earnings release [7]. Industry Context - The Computer - Software industry, to which Cadence belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable environment for stocks within this sector [9].

Financial Data and Key Metrics Changes - Cadence reported total revenue of $1.275 billion for Q2 2025, with a GAAP operating margin of 19% and a non-GAAP operating margin of 42.8% [19] - Non-GAAP EPS grew by 29% year-over-year to $1.65, while GAAP EPS was $0.59 [19] - The company raised its financial outlook for 2025 to 13% revenue growth and 16% EPS growth [7][18] Business Line Data and Key Metrics Changes - Core EDA revenue grew by 16% year-over-year in Q2, with significant adoption of Cadence Cerebras solutions [12] - The IP business saw over 25% year-over-year growth in Q2, driven by demand in AI and HPC use cases [11] - The system design and analysis business delivered 35% year-over-year revenue growth [15] Market Data and Key Metrics Changes - China accounted for 9% of revenue in Q2, down from 11% in Q1, but strength in other regions offset this decline [34] - The company noted robust design activity and customer demand globally, particularly in AI, HPC, and system design workloads [18][35] Company Strategy and Development Direction - Cadence continues to execute its intelligent system design strategy initiated in 2018, focusing on unified EDA, IP, and system analysis [8] - The company is leveraging its AI-driven product portfolio to capitalize on the AI super cycle, enhancing its competitive position [9][17] - Cadence is committed to compliance and has enhanced its processes in response to evolving trade restrictions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for AI technologies and the overall customer environment, indicating a positive outlook for the next few years [30] - The company anticipates a strong second half of 2025, with expectations for revenue growth and a record backlog [87][100] Other Important Information - Cadence reached a settlement with the DOJ and BIS regarding investigations into transactions with customers in China, which will involve a payment of approximately $141 million [19][20] - The enactment of the One Big Beautiful Bill Act is expected to decrease Cadence's U.S. federal tax payments by approximately $140 million for the remainder of fiscal 2025 [20] Q&A Session Summary Question: Impact of physical AI on bookings - Management noted that the optimism surrounding AI is driving increased investment in innovation, which is reflected in strong bookings [25][26] Question: Increase in growth outlook despite China revenue restrictions - Management confirmed that strong demand across all geographies and a robust backlog contributed to the increased growth outlook [34][35] Question: Near and long-term impact of China - Management expressed a cautious but optimistic view on China, expecting slight growth despite previous restrictions [44][46] Question: Contribution of advanced packaging to revenue - Management highlighted that the industry is moving towards chiplet-based architectures, which is positively impacting bookings and revenue [52][56] Question: Recurring revenue percentage and customer behavior - Management indicated that the recurring revenue percentage dipped to 78% due to paused revenue in China, but typically expects it to stabilize around 80% [104][108] Question: Long-term perspective on IP growth - Management expressed increased optimism for IP growth, driven by strong demand in AI and HPC markets [111]

Financial Data and Key Metrics Changes - Cadence reported total revenue of $1.275 billion for Q2 2025, representing a 20% year-over-year growth, with non-GAAP EPS increasing by 29% to $1.65 [18][19] - The company raised its 2025 revenue growth outlook to 13% and EPS growth to 16% [6][17] - GAAP operating margin was reported at 19%, while non-GAAP operating margin was 42.8% [19] Business Line Data and Key Metrics Changes - Core EDA revenue grew by 16% year-over-year in Q2, with significant adoption of Cadence Cerebras solutions [12] - The IP business saw over 25% year-over-year growth in Q2, driven by demand in AI and HPC use cases [11] - System design and analysis business delivered 35% year-over-year revenue growth, with strong uptake of 3D IC technology [15] Market Data and Key Metrics Changes - China accounted for 9% of total revenue in Q2, down from 11% in Q1, but strength in other regions offset this decline [36] - The company noted robust design activity and customer demand globally, particularly in AI, HPC, and system design workloads [36][40] Company Strategy and Development Direction - Cadence continues to execute its intelligent system design strategy initiated in 2018, focusing on unified EDA, IP, and system analysis [7] - The company is leveraging its AI-driven product portfolio to capitalize on the AI super cycle, enhancing its competitive position [6][17] - Cadence is committed to compliance and has enhanced its processes in response to evolving trade restrictions [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for AI technologies and the overall customer environment, indicating a positive outlook for the next few years [30] - The company is focused on innovation and productivity, with expectations for continued growth in the second half of the year [21][40] Other Important Information - Cadence reached a settlement with the US Department of Justice and the Bureau of Industry and Security regarding investigations into transactions with customers in China, totaling approximately $45 million [19][16] - The One Big Beautiful Bill Act is expected to decrease Cadence's US federal tax payments by approximately $140 million for the remainder of fiscal 2025 [20] Q&A Session Summary Question: Impact of physical AI on bookings - Management noted that the optimism surrounding AI is driving increased customer investment in innovation, which is positively impacting bookings [24][25] Question: Increase in growth outlook despite China revenue restrictions - Management confirmed that strong demand across all geographies and a robust backlog contributed to the increased growth outlook, despite a decline in China revenue [34][36] Question: Near and long-term impact of China - Management expressed a cautious but optimistic view on China, indicating that while growth is expected to be slightly up, the rest of the world is performing even better [46][49] Question: Contribution of advanced packaging to revenue - Management highlighted that the industry is moving towards chiplet-based architectures, which is driving demand for Cadence's advanced packaging solutions [52][56] Question: Recurring revenue percentage and customer behavior - Management indicated that the recurring revenue percentage dipped to 78% due to paused revenue in China, but typically expects it to trend towards 80% [103][106] Question: Long-term perspective on IP growth - Management expressed optimism about IP growth, citing increased investment and opportunities from emerging chiplet architectures and advanced node foundries [110][112]

电子设计自动化软件与工程服务厂商铿腾电子（楷登电子/益华电脑股份有限公司）二季度营收12.8亿 美元，分析师预期12.5亿美元。 铿腾电子（CDNS）美股盘后涨5.76%。 二季度调整后EPS为1.65美元，分析师预期1.56美元。 上调全年营收指引至同比增长13%。 预计全年营收52.1亿-52.7亿美元，公司原本预计51.5亿-52.3亿美元。 预计全年调整后EPS为6.85-6.95美元，公司原本预计6.73-6.83美元。 预计三季度营收13.1亿-13.4亿美元，分析师预期13.2亿美元。 预计三季度EPS为1.75-1.81美元，分析师预期1.73美元。 ...

Exhibit 99.02 CADENCE REPORTS SECOND QUARTER 2025 CADENCE DESIGN SYSTEMS, INC. CFO COMMENTARY Q3 2025 Outlook Q2 2025 KEY METRICS FY 2025 Outlook Financial Results Webcast Our Q2 2025 financial results webcast will begin July 28, 2025 at 2:00 p.m. (Pacific). The webcast may be accessed at www.cadence.com/cadence/investor_relations. An archive of the webcast will be available on July 28, 2025 until 5:00 p.m. (Pacific) on September 16, 2025. July 28, 2025 Cadence Q2 2025 Financial Results 1 Key Takeaways • Ex ...

Earnings Reports - Q2 earnings season is ramping up with major companies like Microsoft, Meta Platforms, Apple, and Amazon set to report earnings this week [2][3] - A total of 164 companies in the S&P 500 are expected to release their earnings results by August 1st [3] Federal Reserve Outlook - The Federal Reserve is unlikely to lower interest rates in the upcoming FOMC meeting, maintaining the current rate of +4.25-4.50% [4] - There is only a 2% chance that the Fed will cut rates at this meeting, with a 67% probability of a 25 basis-point cut in September [5] Labor Market Insights - Initial Jobless Claims have decreased to 217K, but the labor market may be weakening as ADP reported a negative -33K jobs filled in June, the first decline in over two years [7] - The BLS report indicated +147K new jobs in June, but only about 70K were outside government hires, which may not be sufficient to offset the retiring workforce [8]

Group 1 - Multiple companies are scheduled to release their earnings reports throughout the week, indicating a busy earnings season [1] - On Monday, companies like 铿腾电子 are set to report their performance [1] - On Tuesday, Stellantis and AstraZeneca will release their earnings before the European market opens [1] Group 2 - Major U.S. companies such as Boeing, UnitedHealth, and Procter & Gamble are expected to report earnings before the U.S. market opens on Tuesday [1] - Following that, Visa, Booking, and Starbucks will report their earnings after the U.S. market closes on Tuesday [1] - On Wednesday, significant tech companies including Microsoft, Meta Platforms, Qualcomm, and Arm Holdings are scheduled to release their earnings after the U.S. market closes [1] Group 3 - Mastercard is set to report its earnings before the U.S. market opens on Thursday [1] - Apple, Amazon, MicroStrategy, Coinbase, and Coherent will report their earnings after the U.S. market closes on Thursday [1] - On Friday, ExxonMobil, Chevron, and Regeneron Pharmaceuticals are expected to release their earnings before the U.S. market opens [1]

Core Insights - Cadence Design Systems, Inc. (CDNS) is set to release its second-quarter 2025 results on July 28, with earnings expected to be $1.57 per share, reflecting a 22.7% increase year-over-year, and revenues estimated at $1.26 billion, indicating an 18.7% growth from the previous year [1][2] Financial Expectations - For Q2 2025, CDNS anticipates revenues between $1.25 billion and $1.27 billion, up from $1.06 billion in the same quarter last year. Non-GAAP EPS is projected to be between $1.55 and $1.61, compared to $1.28 in the prior year [2][8] - The company has a strong earnings surprise history, having beaten the Zacks Consensus Estimate in the last four quarters with an average surprise of 6.7% [2] Stock Performance - CDNS stock has increased by 25.4% over the past year, outperforming the Computer-Software industry, which grew by 21.4%, and the S&P 500 composite, which rose by 22.1% [5] Market Drivers - Robust design activity in sectors such as data centers and automotive is driven by trends in artificial intelligence (AI), hyperscale computing, 5G, and autonomous driving, leading to increased demand for Cadence's solutions [6][10] - The company's ratable software model, strong backlog of $6.4 billion, and high recurring revenue mix are additional positive factors [7][8] Revenue Breakdown - The Core EDA business is expected to generate revenues of $905.6 million, reflecting a 17% year-over-year growth, driven by demand for new hardware systems and digital solutions [11] - The System Design and Analysis division is projected to achieve revenues of $177.5 million, indicating a 19.5% increase year-over-year, supported by demand for AI-powered solutions [12] - The IP business division is anticipated to see revenues rise by 26.5% to $174.5 million year-over-year, bolstered by demand for AI solutions and chiplet use cases [13] Strategic Collaborations - CDNS is collaborating with major tech companies like Qualcomm and NVIDIA on next-generation AI designs, which is expected to enhance its market position [9]

Wall Street analysts forecast that Cadence Design Systems (CDNS) will report quarterly earnings of $1.57 per share in its upcoming release, pointing to a year-over-year increase of 22.7%. It is anticipated that revenues will amount to $1.26 billion, exhibiting an increase of 18.7% compared to the year-ago quarter. Analysts expect 'Revenue- Product and maintenance' to come in at $1.15 billion. The estimate points to a change of +19.6% from the year-ago quarter. The collective assessment of analysts points to ...