Summary of Cadence Design Systems FY Conference Call Company Overview - **Company**: Cadence Design Systems (NasdaqGS:CDNS) - **Industry**: Engineering Software, specifically focused on Electronic Design Automation (EDA) and AI infrastructure Key Points and Arguments Company Positioning and Growth - Cadence is central to the AI infrastructure stack, providing engineering software that is essential for complex AI workloads, leading to exponential growth in demand for its services [3][4][6] - The company has experienced double-digit revenue growth over the past decade, with a recent upward revision of revenue growth guidance from 12% to 14% for the current year, driven by increased complexity in AI workloads [7][4] - Cadence's business model has evolved from being solely an EDA company to incorporating core EDA, IP business, and system design analysis, all of which are now sizable and interrelated [7][8] Record Backlog and Customer Demand - The company ended Q3 with a record backlog, indicating strong demand across all lines of business, particularly in AI and high-performance computing sectors [10][12] - Cadence is seeing significant design activity and new customer acquisition, especially in the automotive sector [12][10] Future Outlook and Visibility - Visibility for 2026 is considered strong, with expectations of continued demand for systems and hardware refresh cycles [18][19] - The company is cautious in its guidance, preferring to maintain a prudent approach to avoid inventory issues while ensuring steady growth [70][72] AI and EDA Market Dynamics - Most growth is expected to come from digital and remote sectors, with AI tools enhancing existing capabilities and driving additional revenue [23][47] - The complexity of designs is increasing, making EDA tools more essential for customers [46][47] Foundry Relationships - Cadence has strong partnerships with key foundries like TSMC, Samsung, and Intel, which are crucial for future customer engagements and design flows [41][42] - The foundry ecosystem is expanding, with Cadence increasingly engaged with companies like Samsung and Intel, which were previously less involved [41][42] Hardware Cycle and Production - The hardware refresh cycle is still in its early stages, with increasing demand for Cadence's products, particularly the Z2 and Z3 systems [55][61] - The company aims to maintain a backlog of orders with a lead time of 8 to 22 weeks, currently positioned in the middle of that range [63][65] Acquisition Strategy - Cadence announced the acquisition of Hexagon's Design and Engineering Business, which is expected to enhance its systems design analysis portfolio and provide new customer opportunities [87][88] - The integration process for acquisitions typically takes 12 to 15 months to realize revenue and cost synergies, with expectations of incremental margins improving over time [101][105] Design IP Focus - Cadence has shifted its stance on design IP, now recognizing its importance and potential for rational growth, particularly in advanced process nodes [167][180] - The company aims to build a robust IP portfolio aligned with market demands, focusing on advanced nodes and customer-driven development [180][206] Market Conditions in China - Demand in China has shown resilience post-restrictions, but the company anticipates a gradual decrease in the percentage of overall business from this region due to limited access to leading technology [260][266] - Growth in China is expected to be slightly below average compared to other regions over the next three to five years [275] Additional Important Insights - Cadence's approach to customer relationships is characterized by long-term partnerships rather than transactional engagements, which differentiates it from competitors like Synopsys [218][220] - The company emphasizes continuous improvement and learning from past acquisition experiences to enhance integration and profitability [136][140] This summary encapsulates the key insights from the Cadence Design Systems FY Conference Call, highlighting the company's strategic positioning, growth drivers, and market dynamics.

NEW YORK, Nov. 17, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Synopsys, Inc. ("Synopsys, Inc." or the "Company") (NASDAQ: SNPS) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Synopsys, Inc. investors who were adversely affected by alleged securities fraud between December 4, 2024 and September 9, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/synopsys-inc ...

Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. for securities fraud following a significant stock drop due to alleged violations of federal securities laws [1][3]. Group 1: Lawsuit Details - Investors have until December 30, 2025, to request to lead the case in the U.S. District Court for the Northern District of California [3]. - The lawsuit claims violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [3]. Group 2: Company Performance - Synopsys provides design automation software and has seen its Design IP segment grow from 25% of revenue in 2022 to 31% in 2024 [4]. - The company reported Q3 2025 results showing a 7.7% year-over-year decline in Design IP revenue to $425.9 million and a 43% year-over-year decline in net income to $242.5 million [6]. Group 3: Market Reaction - Following the Q3 2025 results, Synopsys stock fell nearly 36%, from $604.37 per share to $387.78 per share [6]. - The decline was attributed to customers requiring more customization for IP components, impacting the business model and economics of the Design IP segment [5][6].

Core Viewpoint - A class action securities lawsuit has been filed against Synopsys, Inc. alleging securities fraud that negatively impacted shareholders between December 4, 2024, and September 9, 2025 [2]. Group 1: Lawsuit Details - The lawsuit claims that Synopsys, Inc. made false statements and concealed information regarding the negative impact of its focus on artificial intelligence customers on the economics of its Design IP business [3]. - It is alleged that certain decisions regarding the company's roadmap and resources were unlikely to achieve their intended results, leading to a material negative impact on financial results [3]. - The lawsuit asserts that the positive statements made by the defendants about the company's business and prospects were materially misleading and lacked a reasonable basis [3]. Group 2: Next Steps for Affected Shareholders - Shareholders who suffered losses during the specified timeframe are encouraged to seek information about their rights to recovery, with no cost or obligation to participate [4]. Group 3: Legal Representation - Levi & Korsinsky LLP is highlighted as a nationally-recognized securities litigation firm with a strong track record in securing recoveries for shareholders, having ranked in the Top 50 Report for seven consecutive years [5].

Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. and certain senior executives for securities fraud following a significant stock drop due to potential violations of federal securities laws [1][3]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Northern District of California, captioned Kim v. Synopsys, Inc., et al., No. 3:25-cv-09410 [3]. - Investors have until December 30, 2025, to request to be appointed to lead the case [3]. Group 2: Company Performance - Synopsys provides design automation software products, with its Design IP segment being the fastest-growing, increasing from 25% of revenue in 2022 to 31% in 2024 [4]. - The company reported Q3 2025 results showing a revenue decline of 7.7% year-over-year in its Design IP segment, totaling $425.9 million, and a net income decline of 43% year-over-year, amounting to $242.5 million [6]. Group 3: Market Reaction - Following the release of disappointing financial results, Synopsys stock fell nearly 36%, from $604.37 per share on September 9, 2025, to $387.78 per share on September 10, 2025 [6].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Synopsys, Inc. securities between December 4, 2024, and September 9, 2025, of the December 30, 2025, lead plaintiff deadline for a class action lawsuit [1] Group 1: Class Action Details - Investors who purchased Synopsys securities during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2] - A class action lawsuit has already been filed, and interested parties can join by submitting a form or contacting the law firm [3][6] - The lead plaintiff must file a motion with the Court by December 30, 2025, to represent other class members in the litigation [3] Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified counsel with a successful track record in securities class actions, highlighting its own achievements in this area [4] - The firm has secured significant settlements for investors, including over $438 million in 2019 and has been ranked highly for its performance in securities class action settlements [4] Group 3: Case Allegations - The lawsuit alleges that Synopsys made materially false and misleading statements and failed to disclose adverse facts about its business and operations during the Class Period [5] - Specific claims include the negative impact of Synopsys' focus on artificial intelligence customers on its Design IP business and the misleading nature of the company's positive statements regarding its prospects [5]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Synopsys, Inc. due to allegations of misleading statements and failure to disclose critical information regarding the company's financial performance and business operations [2][5]. Financial Performance - Synopsys reported third quarter 2025 revenue of $1.740 billion, which was below the prior guidance of $1.755 billion to $1.785 billion [6]. - The net income for the quarter was $242.5 million, representing a 43% decline from $425.9 million in the same quarter of 2024 [6]. - The Design IP segment accounted for approximately 25% of total revenue, generating $426.6 million, a 7.7% year-over-year decline [6]. - Management's guidance indicated that Design IP revenues are expected to decline by at least 5% for the full fiscal year 2025 [6]. Stock Market Reaction - Following the release of disappointing financial results, Synopsys's stock price fell by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025, with unusually high trading volume [7]. Legal Context - Investors who purchased securities in Synopsys between December 4, 2024, and September 9, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal options, with a deadline of December 30, 2025, to seek the role of lead plaintiff in a federal securities class action [2][8].

Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. for securities fraud following a significant stock drop due to potential violations of federal securities laws [1][3]. Group 1: Lawsuit Details - Investors have until December 30, 2025, to request to lead the case in the U.S. District Court for the Northern District of California [3]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of Synopsys investors [3]. Group 2: Company Performance - Synopsys provides design automation software and has seen its Design IP segment grow from 25% of revenue in 2022 to 31% in 2024 [4]. - The company reported a revenue of $425.9 million for its Design IP segment in Q3 2025, reflecting a 7.7% year-over-year decline, and a net income of $242.5 million, down 43% year-over-year [6]. Group 3: Market Reaction - Following the release of disappointing Q3 2025 results, Synopsys stock fell nearly 36%, from $604.37 per share to $387.78 per share [6]. - The decline was attributed to customers requiring more customization for IP components, which negatively impacted the business model [5][6].

Core Viewpoint - The launch of the OpenRio high-performance open-source RISC-V processor IP by the RISC-V International Open Source Laboratory (RIOS) marks a significant milestone in the development of domestic semiconductor IP in China, addressing the low localization rate of semiconductor IP and providing a foundation for the domestic operating system ecosystem [1][4]. Group 1: Market Context - China is one of the largest chip consumption markets globally, but the localization rate of semiconductor IP remains low [1]. - The global semiconductor design IP market is projected to reach $8.4916 billion in 2024, a 20.2% increase from $7.0625 billion in 2023, with strong growth in wired interface IP and processor IP, which grew by 23.5% and 22.4% respectively [2]. - The global IP market is highly concentrated, with the top four suppliers (ARM, Synopsys, Cadence, Alphawave) holding approximately 75% of the market share [2]. Group 2: Competitive Landscape - The current global chip IP market is dominated by a few giants, but the landscape is changing due to trends like AI and Chiplet technology [2][3]. - ARM, while leading in mobile device CPU IP, faces challenges from a slowing smartphone market and competition in the AI and high-performance computing sectors from Synopsys and Cadence [2][3]. - RISC-V, as an open-source instruction set architecture, is emerging as a third mainstream architecture alongside x86 and ARM, appealing to global innovators and posing potential challenges to existing giants [3]. Group 3: RIOS and OpenRio - The OpenRio IP core is designed to fill the gaps in ARM's product line and supports domestic operating systems, offering a "zero licensing cost, high-efficiency starting point" for small and medium-sized manufacturers and developers [4]. - RIOS laboratory aims to accelerate the integration of domestic operating systems and chips, providing a common technological foundation for the deep integration of international open-source RISC-V instruction sets and domestic operating systems [5][6]. - OpenRio is a high-reliability IP core that has undergone multiple rounds of verification and is compatible with mainstream EDA tools, making it suitable for key areas such as smart homes, industrial control, and automotive electronics [6]. Group 4: Future Prospects - RIOS plans to build an open-source REPO platform to create a CPU IP open-source foundation, aiming to provide continuous and reliable technological supply for the industry [6]. - The Shenzhen Qianhai area will be the first to pilot the application of OpenRio, with RIOS collaborating with more partners to create a win-win situation through IP licensing, technical cooperation, and scenario co-construction [6].

Core Viewpoint - Synopsys, Inc. is facing a class action lawsuit due to allegations of misleading investors regarding the performance of its IP business, particularly in relation to its focus on artificial intelligence customers and the resulting negative impact on financial results [2][3]. Financial Performance - For the third quarter of 2025, Synopsys reported revenue of $1.740 billion, which was below the prior guidance of $1.755 billion to $1.785 billion [4]. - The net income for the same period was $242.5 million, representing a 43% decline year-over-year from $425.9 million in the third quarter of 2024 [4]. - The Design IP segment accounted for approximately 25% of total revenue, amounting to $426.6 million, which is a 7.7% decline year-over-year [4]. - Management's guidance indicated that Design IP revenues are expected to decline by at least 5% for the full fiscal year 2025 [4]. Stock Market Reaction - Following the release of disappointing financial results, Synopsys's stock price fell by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025 [4].