Core Insights - Cadence Design Systems Inc. (CDNS) is positioned to benefit from increasing demand for its AI-driven solutions amid strong design activity and customer spending on AI initiatives [1] Financial Performance - In Q3, CDNS reported revenues of $1.339 billion, reflecting a year-over-year increase of 10.2% [2][8] - The company generated operating cash flow of $311 million and free cash flow of $277 million [2] - As of September 30, 2025, CDNS had cash and cash equivalents of $2.753 billion and long-term debt of $2.479 billion [2] Growth Strategy - CDNS is pursuing a disciplined inorganic growth strategy, acquiring technologies that enhance organic growth [3] - Recent acquisitions include the Design & Engineering division of Hexagon AB, Artisan foundation IP from Arm Holdings, and Secure-IC [3] Shareholder Returns - CDNS repurchased shares worth $200 million in Q3 and plans to repurchase another $200 million in Q4 [4] - The company intends to use at least 50% of its free cash flow for share buybacks in 2025 [6][8] Future Outlook - The company expects revenues for 2025 to be between $5.262 billion and $5.292 billion, with operating cash flow projected between $1.65 billion and $1.75 billion [6][8] - Trends such as 5G, hyperscale computing, and autonomous driving are anticipated to drive design activity and sustain top-line growth [5]

Core Insights - Keysight Technologies, Inc. is a California-based tech company specializing in electronic design, testing, and measurement solutions across various industries, including telecom, aerospace, automotive, semiconductors, and IoT, with a market cap of $29.1 billion [1] Financial Performance - Analysts anticipate that Keysight will report a profit of $1.65 per share for fiscal Q4, reflecting a 10% increase from $1.50 per share in the same quarter last year [2] - For the current fiscal year, analysts expect an EPS of $6.26, which is a 15.1% increase from $5.44 in fiscal 2024 [3] Stock Performance - Keysight's stock has increased by 10.2% over the past 52 weeks, which is lower than the Technology Select Sector SPDR Fund's 28.1% growth and the S&P 500 Index's 16.9% increase during the same period [4] Market Challenges - The company has faced macroeconomic headwinds, including a recent 5.3% drop in stock price due to U.S. tariff threats against China related to strategic minerals and rare earths, which are crucial for the defense and semiconductor sectors [5] Strategic Actions - Keysight is focusing on operational efficiency and strategic restructuring, complemented by targeted acquisitions, which have positively impacted its share price [6] - The company completed the acquisition of Spirent Communications plc on Oct. 15, enhancing its capabilities in network automation, cybersecurity, and 5G technologies [6] - On Oct. 17, Keysight finalized acquisitions of Synopsys, Inc.'s Optical Solutions Group and ANSYS, Inc.'s PowerArtist, expanding its design engineering and software capabilities, leading to a 1.6% stock gain in the following session [7] Analyst Sentiment - The consensus opinion on Keysight's stock is strongly bullish, with a "Strong Buy" rating from eight out of eleven analysts, one suggesting "Moderate Buy," and two recommending a "Hold" [8] - The average analyst price target for KEYS is $191, indicating a potential upside of 12.7% from current price levels [8]

Core Insights - Cadence Design Systems, Inc. (CDNS) is enhancing its business through strategic acquisitions in the electronic design automation (EDA) space [1] Inorganic Growth Strategy - Inorganic expansion provides valuable tools, technologies, and market access that accelerate organic growth, allowing companies to increase product offerings without starting from scratch [2] - Acquiring firms with strong R&D capabilities speeds up innovation processes and helps achieve synergies, leading to cost reductions and improved operational efficiency [2] Market Demand and Strategic Response - CDNS's M&A strategy is a response to the growing demand for AI-driven custom chips and the convergence of electronic, mechanical, and physical domains in next-generation designs [3] - The transformation in semiconductor and system design driven by AI is integral to CDNS's strategy, supported by secular growth drivers such as 5G, hyperscale computing, and autonomous vehicles [4] Recent Acquisitions - In September 2025, CDNS agreed to acquire the Design & Engineering division of Hexagon AB for €2.7 billion, which includes the MSC Software business [5] - The Hexagon acquisition will enhance Cadence's System Design & Analysis portfolio and expand its presence in the structural analysis market, building on the earlier acquisition of Beta CAE in 2024 [6] - Hexagon's D&E division generated approximately $280 million in 2024 revenues and employs over 1,100 experts in R&D, sales, and support [6] - The acquisition will allow Cadence to reach top-tier aerospace and automotive clients, including Boeing, Lockheed Martin, and Toyota, as industries shift towards electric vehicles and advanced materials [7] Additional Strategic Acquisitions - In April 2025, Cadence signed an agreement to acquire Arm Holdings' Artisan foundation IP business, and in January 2025, it agreed to acquire Secure-IC, enhancing its security solutions capabilities [8] - The acquisition of BETA CAE has broadened Cadence's multiphysics system analysis offerings, while the purchase of OpenEye Scientific Software opened a new vertical in drug discovery [9][10] - Other significant acquisitions include Future Facilities, Pointwise, and NUMECA, which have increased the system analysis portfolio with more CFD solutions [12] Competitive Landscape - Cadence's acquisition strategy is aimed at solidifying its position in the EDA space amid increasing competition from Siemens EDA, Synopsys, Keysight Technologies, and CEVA Inc [14] - The acquisition of ANSYS by Synopsys is expected to intensify competition in the EDA space [15]

Core Insights - VIAVI Solutions Inc. has completed the acquisition of Spirent Communications plc's high-speed ethernet, network security, and channel emulation testing business for $425 million in cash [1][2] - The acquisition is expected to contribute approximately $180 million to VIAVI's Network Service Enablement revenue in the first year and be accretive to non-GAAP EPS within 12 months [2] Financial Details - The acquisition was financed through a senior secured term loan of $600 million from Wells Fargo Bank, maturing in seven years [3] - VIAVI plans to utilize its U.S. net operating losses to reduce the blended non-GAAP tax rate of the combined group [2] Strategic Implications - The acquisition enables VIAVI to enhance its product offerings in high-speed ethernet, network security, and channel emulation testing, providing a complementary and synergistic product portfolio across various verticals [7] - This strategic move positions VIAVI to better serve telecommunications, cloud, and enterprise markets [4]

Core Insights - Keysight Technologies, Inc. has completed the acquisition of Spirent Communications plc, marking a significant milestone for the company [1] Group 1: Acquisition Details - The acquisition combines Keysight's expertise in design, emulation, and testing with Spirent's strengths in satellite emulation, positioning, and network automation [1] - This strategic move aims to expand Keysight's portfolio to better serve its customers [1]

Note: Amounts presented in all slides are on a continuing operations basis unless otherwise noted. Fiscal Q3 2025 Earnings Call Supplementary Slides May 1, 2025 Cautionary Language Concerning Forward-Looking Statements This presentation contains forward-looking statements under Section 27A of the Securities Act of 1934. Forward-looking statements are all statements we make other than those dealing specifically with historical matters. These forward-looking statements include, among other things, financial g ...