Product category:
Design and Development Software
News Release from: Cadence Design Systems
Edited by the Electronicstalk Editorial
Team on 05 February 2007
Verification and custom businesses lead
growth
Cadence Design Systems has reported fourth quarter 2006 revenue of US $431 million, an increase of 14% over the $378 million reported for the same period in 2005.
Cadence Design Systems has reported fourth quarter 2006 revenue of US $431 million, an increase of 14% over the $378 million reported for the same period in 2005 On a GAAP basis, Cadence recognised net income of $48 million, or $0.16 per share on a diluted basis, in the fourth quarter of 2006, compared with $27 million, or $0.08 per share on a diluted basis, in the same period in 2005
This article was originally published on Electronicstalk on 20 Nov 2001 at 8.00am (UK)
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Revenues for the fiscal year 2006 totaled $1.48 billion, an increase of 12% over 2005 total revenues of $1.33 billion.
Net income for the fiscal year 2006 was $143 million, or $0.46 per share, compared with net income of $49 million, or $0.16 per share for the year 2005.
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, stock-based compensation expense, in-process research and development charges, integration and acquisition-related costs, gains and expenses related to nonqualified deferred compensation plan assets, executive severance payments, restructuring charges, losses on extinguishment of debt, and equity in losses (income) from investments.
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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 of 2006 was $116 million, or $0.38 per share on a diluted basis, as compared with $93 million, or $0.29 per share on a diluted basis, in the same period in 2005.
For the fiscal year 2006, non-GAAP net income was $336 million, or $1.08 per share, compared with $258 million and $0.83 per share in 2005.
"We had outstanding execution across all elements of our business, especially fueled by technology innovation and significant customer engagements in all regions", said Mike Fister, President and CEO of Cadence.
Bill Porter, Executive Vice President and Chief Financial Officer, added: "We had a very good fourth quarter and year led by 20% or better year over year growth in our verification and custom businesses".
For the first quarter of 2007, the company expects total revenue in the range of $355 million to $365 million.
First quarter GAAP earnings per diluted share are expected to be in the range of $0.10 to $0.12.
Diluted earnings per share using the non-GAAP measure defined below are expected to be in the range of $0.23 to $0.25.
For the full year 2007, the company expects total revenue in the range of $1.575 billion to $1.625 billion.
On a GAAP basis, net income per diluted share for fiscal 2007 is expected to be in the range of $0.69 to $0.77.
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