Product category:
Design and Development Software
News Release from: Cadence Design Systems
Edited by the Electronicstalk Editorial
Team on 03 February 2006
Cadence maintains steady progress
Cadence Design Systems has reported fourth quarter 2005 revenue of $378 million, an increase of 10% over the $343 million reported for the same period in 2004.
Cadence Design Systems has reported fourth quarter 2005 revenue of $378 million, an increase of 10% over the $343 million reported for the same period in 2004 On a GAAP basis, Cadence recognised net income of $27 million, or $0.08 per share, in the fourth quarter of 2005, compared with $60 million, or $0.20 per share, in the same period in 2004
This article was originally published on Electronicstalk on 20 Nov 2001 at 8.00am (UK)
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Revenues for the fiscal year 2005 totalled $1.33 billion, an increase of 11% over 2004 total revenues of $1.20 billion.
Net income for the fiscal year 2005 was $49 million, or $0.16 per share, compared with net income of $74 million, or $0.25 per share for the year 2004.
Net income for both the fourth quarter and fiscal year 2005 includes incremental tax expense of $30 million, or $0.09 and $0.10 per share respectively for the fourth quarter and full year 2005, associated with the repatriation of foreign earnings.
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In addition to using GAAP results in evaluating Cadence's business, management believes it is useful to measure results using a non-GAAP measure of net income, which excludes, as applicable, amortisation of intangible assets and deferred compensation, in-process research and development charges, integration and other acquisition-related expenses, executive severance payments, restructuring charges and equity in losses (income) from investments.
Non-GAAP net income is adjusted by the amount of additional taxes or tax benefit that the company would accrue if it used non-GAAP results instead of GAAP results to calculate the company's tax liability.
Using this non-GAAP measure, net income in the fourth quarter 2005 was $93 million, or $0.29 per share, on a diluted basis as compared with $80 million, or $0.26 per share, on a diluted basis in the same period in 2004.
For the fiscal year 2005, non-GAAP net income was $258 million, or $0.83 per share, compared with $201 million and $0.66 per share in 2004.
"We had a terrific fourth quarter and finished 2005 with good momentum".
"Our product portfolio is very competitive, our new initiatives such as kits and segmentation are starting to ramp, and our enterprise approach is winning with customers", said Bill Porter, Senior Vice President and Chief Financial Officer.
"Throughout 2005 we delivered on our strategy to grow our core business through technology innovation, to expand into adjacencies such as verification and manufacturability, and to pursue pricing and business models for value", said Mike Fister, President and CEO of Cadence Design Systems "With our success this past year, we've laid the groundwork for growth and market expansion in 2006 and beyond".
For the first quarter of 2006, the company expects total revenue in the range of $315 million to $325 million.
First quarter GAAP earnings per diluted share are expected to be in the range of $0.07 to $0.09.
Diluted earnings per share using the non-GAAP measure are expected to be in the range of $0.19 to $0.21.
For the full year 2006, the company expects total revenue in the range of $1.400 billion to $1.450 billion.
On a GAAP basis, net income per diluted share for fiscal 2006 is expected in the range of $0.47 to $0.55.
Using the non-GAAP measure, diluted earnings per share for fiscal 2006 are expected to be in the range of $0.96 to $1.04.
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