Cadence Reports Second Quarter 2015 Financial Results

Cadence Announces New Stock Repurchase Program

Jul 27, 2015, 16:05 ET from Cadence Design Systems, Inc.

SAN JOSE, Calif., July 27, 2015 /PRNewswire/ -- Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced results for the second quarter of fiscal year 2015.

Cadence reported second quarter 2015 revenue of $416 million, compared to revenue of $379 million reported for the same period in 2014.  On a GAAP basis, Cadence recognized net income of $58 million, or $0.19 per share on a diluted basis, in the second quarter of 2015, compared to net income of $23 million, or $0.08 per share on a diluted basis, for the same period in 2014.

Using the non-GAAP measure defined below, net income in the second quarter of 2015 was $85 million, or $0.27 per share on a diluted basis, as compared to net income of $64 million, or $0.21 per share on a diluted basis, for the same period in 2014.

"The second quarter was highlighted by the introduction of more innovative new products, key wins with market shaping customers and strong financial performance," said Lip-Bu Tan, president and chief executive officer.  "We launched the Genus™ Synthesis Solution, our next-generation RTL physical synthesis engine, and the Indago™ Debug Platform, which uses big data techniques to speed the verification process.  Cadence has now introduced more than a dozen innovative new products in the past two years."

Mr. Tan continued, "We are pleased to announce a new $1.2 billion stock repurchase program, which reflects our ongoing thoughtful review of all aspects of our business and capital structure.  We are committed to enhancing shareholder value through a balanced approach that drives growth, invests in innovation and returns capital to our shareholders."

"Cadence had a strong Q2," added Geoff Ribar, senior vice president and chief financial officer.  "With the announcement of our new stock repurchase program, we continue to allocate capital to the highest return opportunities by investing in profitable growth, maintaining an efficient capital structure that provides necessary flexibility to meet the needs of the business and returning capital to shareholders."

Cadence's new $1.2 billion stock repurchase program replaces its existing $450 million program.  Cadence expects to repurchase $1.2 billion of its common stock over the next six quarters through the end of fiscal 2016.  The actual timing and amount of repurchases will be subject to business and market conditions, corporate and regulatory requirements, acquisition opportunities and other factors.  The stock repurchase program may be suspended, modified or discontinued at any time, and will be funded by U.S. cash on hand, future U.S. cash flow and additional debt.

Business Outlook

For the third quarter of 2015, the company expects total revenue in the range of $423 million to $433 million.  Third quarter GAAP net income per diluted share is expected to be in the range of $0.17 to $0.19.  Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.25 to $0.27.

For 2015, the company expects total revenue in the range of $1.685 billion to $1.715 billion.  On a GAAP basis, net income per diluted share for 2015 is expected to be in the range of $0.63 to $0.69.  Using the non-GAAP measure defined below, net income per diluted share for 2015 is expected to be in the range of $1.00 to $1.06.

A schedule showing a reconciliation of the business outlook from GAAP net income and diluted net income per share to non-GAAP net income and diluted net income per share is included in this release.

Audio Webcast Scheduled

Lip-Bu Tan, president and chief executive officer, and Geoff Ribar, senior vice president and chief financial officer, will host a second quarter 2015 financial results audio webcast today, July 27, 2015, at 2 p.m. (Pacific) / 5 p.m. (Eastern).  Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast.  An archive of the webcast will be available starting July 27, 2015 at 5 p.m. (Pacific) and ending September 18, 2015 at 5 p.m. (Pacific).  Webcast access is available at www.cadence.com/company/investor_relations.

About Cadence

Cadence enables global electronic design innovation and plays an essential role in the creation of today's integrated circuits and electronics.  Customers use Cadence® software, hardware, IP, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems.  The company is headquartered in San Jose, California, with sales offices, design centers, and research facilities around the world to serve the global electronics industry.  More information about the company and its products and services is available at www.cadence.com.

Cadence, the Cadence logo, Genus and Indago are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

The statements contained above regarding Cadence's second quarter 2015 financial results and Cadence's intention to repurchase shares of its common stock under its stock repurchase program, as well as the information in the Business Outlook section and the statements by Lip-Bu Tan and Geoff Ribar, are or include forward-looking statements based on current expectations or beliefs and preliminary assumptions about future events that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.  These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence's control, including, among others: (i) Cadence's ability to compete successfully in the electronic design automation product and the commercial electronic design and methodology services industries; (ii) the success of Cadence's efforts to improve operational efficiency and growth; (iii) the mix of products and services sold and the timing of significant orders for Cadence's products; (iv) change in customer demands, including those resulting from consolidation among Cadence's customers and the possibility that the restructurings and other efforts to improve operational efficiency of Cadence's customers could result in delays in purchases of Cadence's products and services; (v) economic and industry conditions in regions in which Cadence does business; (vi) fluctuations in rates of exchange between the U.S. dollar and the currencies of other countries in which Cadence does business; (vii) capital expenditure requirements, legislative or regulatory requirements, interest rates and Cadence's ability to access capital and debt markets; (viii) the acquisition of other companies or technologies or the failure to successfully integrate and operate these companies or technologies Cadence acquires, including the potential inability to retain customers, key employees or vendors; (ix) the effects of Cadence's efforts to improve operational efficiency in its business, including strategic, customer and supplier relationships, and its ability to retain key employees; (x) events that affect the reserves or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes, litigation or other matters; and (xi) the effects of any litigation or other proceedings to which Cadence is or may become a party.

For a detailed discussion of these and other cautionary statements related to Cadence's business, please refer to Cadence's filings with the Securities and Exchange Commission, which include Cadence's most recent reports on Form 10-K and Form 10-Q, including Cadence's future filings.

GAAP to Non-GAAP Reconciliation

Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP.  Investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with their most directly comparable GAAP financial results.  Investors are also encouraged to look at the GAAP results as the best measure of financial performance.

To supplement Cadence's financial results presented on a generally accepted accounting principles, or GAAP, basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence's performance.  One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets and debt discount related to convertible notes, stock-based compensation expense, acquisition and integration-related costs including changes in fair value of contingent consideration and retention expenses for employees added from our 2013 and 2014 acquisitions, special charges (comprised of costs related to a voluntary retirement program), investment gains or losses, income or expenses related to Cadence's non-qualified deferred compensation plan, restructuring and other significant items not directly related to Cadence's core business operations, and the income tax effect of non-GAAP pre-tax adjustments.  For 2015, Cadence is applying a non-GAAP income tax rate of 23 percent, down from 26 percent used in fiscal 2014, based on forecasted increases in foreign earnings that are expected to lower Cadence's long-term non-GAAP effective income tax rate.

Cadence's management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of the company's core business operations and therefore provides supplemental information to Cadence's management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence's management, including forecasting and budgeting.

The following tables reconcile the specific items excluded from GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:

Net Income Reconciliation

Three Months Ended

July 4, 2015

June 28, 2014

(unaudited)

(in thousands)

Net income on a GAAP basis

$

58,160

$

23,263

Amortization of acquired intangibles

16,224

14,192

Stock-based compensation expense

21,703

19,077

Non-qualified deferred compensation expenses

37

1,047

Restructuring and other charges (credits)

(498)

(26)

Acquisition and integration-related costs

1,681

8,787

Special charges*

10,357

Amortization of debt discount on convertible notes

2,470

4,241

Other income or expense related to investments and non-qualified deferred compensation plan assets**

(311)

(1,480)

Income tax effect of non-GAAP adjustments

(14,091)

(15,849)

Net income on a non-GAAP basis

$

85,375

$

63,609

*

Comprised of costs related to a voluntary retirement program.

**

Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.

 

Diluted Net Income per Share Reconciliation

Three Months Ended

July 4, 2015

June 28, 2014

(unaudited)

(in thousands, except per share data)

Diluted net income per share on a GAAP basis

$

0.19

$

0.08

Amortization of acquired intangibles

0.05

0.05

Stock-based compensation expense

0.07

0.06

Non-qualified deferred compensation expenses

Restructuring and other charges (credits)

Acquisition and integration-related costs

0.03

Special charges*

0.03

Amortization of debt discount on convertible notes

0.01

0.01

Other income or expense related to investments and non-qualified deferred compensation plan assets**

Income tax effect of non-GAAP adjustments

(0.05)

(0.05)

Diluted net income per share on a non-GAAP basis

$

0.27

$

0.21

Shares used in calculation of diluted net income per share — GAAP***

313,665

305,755

Shares used in calculation of diluted net income per share — non-GAAP***

313,665

305,755

*

Comprised of costs related to a voluntary retirement program.

**

Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.

***

Shares used in the calculation of GAAP net income per share are expected to be the same as shares used in the calculation of non-GAAP net income per share, except when the company reports a GAAP net loss and non-GAAP net income, or GAAP net income and a non-GAAP net loss.

Cadence expects that its corporate representatives will meet privately during the quarter with investors, the media, investment analysts and others.  At these meetings, Cadence may reiterate the business outlook published in this press release.  At the same time, Cadence will keep this press release, including the business outlook, publicly available on its website.

Prior to the start of the Quiet Period (described below), the public may continue to rely on the business outlook contained herein as still being Cadence's current expectations on matters covered unless Cadence publishes a notice stating otherwise.

Beginning September 18, 2015, Cadence will observe a Quiet Period during which the business outlook as provided in this press release and the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q no longer constitute the company's current expectations.  During the Quiet Period, the business outlook in these documents should be considered historical, speaking as of prior to the Quiet Period only and not subject to any update by the company.  During the Quiet Period, Cadence's representatives will not comment on Cadence's business outlook, financial results or expectations.  The Quiet Period will extend until the day when Cadence's third quarter 2015 earnings release is published, which is currently scheduled for October 26, 2015.

For more information, please contact:

Investors and Shareholders Alan Lindstrom Cadence Design Systems, Inc. 408-944-7100 investor_relations@cadence.com

Media and Industry Analysts Mark Plungy Cadence Design Systems, Inc. 408-944-7039 publicrelations@cadence.com

 

Cadence Design Systems, Inc.

Condensed Consolidated Balance Sheets

July 4, 2015 and January 3, 2015

(In thousands)

(Unaudited)

July 4, 2015

January 3, 2015

Current assets:

Cash and cash equivalents

$      647,851

$             932,161

Short-term investments

96,560

90,445

Receivables, net

131,325

122,492

Inventories

62,172

56,394

2015 notes hedges

-

523,930

Prepaid expenses and other

129,320

126,313

Total current assets

1,067,228

1,851,735

Property, plant and equipment, net of accumulated

depreciation of $569,202 and $552,551, respectively

229,838

230,112

Goodwill

553,831

553,767

Acquired intangibles, net of accumulated amortization of 

$185,382 and $154,814, respectively

328,338

360,932

Long-term receivables

1,628

3,644

Other assets

199,790

209,366

Total assets

$   2,380,653

$          3,209,556

Current liabilities:

Convertible notes

$                -

$             342,499

2015 notes embedded conversion derivative

-

523,930

Accounts payable and accrued liabilities

202,794

225,375

Current portion of deferred revenue

324,569

301,287

Total current liabilities

527,363

1,393,091

Long-term liabilities:

Long-term portion of deferred revenue

36,402

54,726

Long-term debt

348,733

348,676

Other long-term liabilities

70,940

79,489

Total long-term liabilities

456,075

482,891

Stockholders' equity

1,397,215

1,333,574

Total liabilities and stockholders' equity

$   2,380,653

$          3,209,556

 

Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three and Six Months Ended July 4, 2015 and June 28, 2014

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

July 4, 2015

June 28, 2014

July 4, 2015

June 28, 2014

Revenue:

Product and maintenance

$        384,951

$            354,468

$        768,588

$            711,818

Services

30,932

24,320

58,661

45,520

Total revenue

415,883

378,788

827,249

757,338

Costs and expenses:

Cost of product and maintenance

31,715

37,707

73,774

79,904

Cost of services

20,040

16,706

38,566

31,608

Marketing and sales

96,662

98,611

196,930

196,934

Research and development

157,974

152,672

320,970

299,138

General and administrative

27,467

32,042

55,109

60,786

Amortization of acquired intangibles

6,119

5,579

12,350

10,789

Restructuring and other charges (credits)

(498)

(26)

3,861

370

Total costs and expenses

339,479

343,291

701,560

679,529

Income from operations

76,404

35,497

125,689

77,809

Interest expense

(8,180)

(7,369)

(19,934)

(14,637)

Other income, net

1,347

1,635

6,128

5,017

Income before provision for income taxes

69,571

29,763

111,883

68,189

Provision for income taxes

11,411

6,500

17,464

11,856

Net income 

$          58,160

$              23,263

$          94,419

$              56,333

Net income per share - basic

$              0.20

$                  0.08

$              0.33

$                  0.20

Net income per share - diluted

$              0.19

$                  0.08

$              0.30

$                  0.19

Weighted average common shares outstanding - basic

285,297

283,344

284,910

282,480

Weighted average common shares outstanding - diluted

313,665

305,755

312,756

303,395

 

Cadence Design Systems, Inc. 

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended July 4, 2015 and June 28, 2014

(In thousands)

(Unaudited)

Six Months Ended

July 4,

June 28,

2015

2014

Cash and cash equivalents at beginning of period

$    932,161

$    536,260

Cash flows from operating activities:

   Net income

94,419

56,333

   Adjustments to reconcile net income to net cash provided by operating activities:

      Depreciation and amortization

58,963

53,609

      Amortization of debt discount and fees

8,971

9,814

      Stock-based compensation

43,564

37,941

      Gain on investments, net

(1,590)

(5,128)

      Deferred income taxes

7,097

4,778

      Other non-cash items

1,142

3,694

      Changes in operating assets and liabilities, net of effect of acquired businesses:

         Receivables

(8,078)

5,336

         Inventories

(6,243)

(12,266)

         Prepaid expenses and other

(8,036)

(13,602)

         Other assets

1,117

(1,273)

         Accounts payable and accrued liabilities

(20,653)

(13,550)

         Deferred revenue

5,827

(23,740)

         Other long-term liabilities

(8,058)

(4,983)

            Net cash provided by operating activities

168,442

96,963

Cash flows from investing activities:

  Purchases of available-for-sale securities

(59,516)

(77,490)

  Proceeds from the sale of available-for-sale securities

37,586

54,601

  Proceeds from the maturity of available-for-sale securities

15,600

23,799

  Proceeds from the sale of long-term investments

2,293

-

  Purchases of property, plant and equipment

(24,067)

(17,715)

  Cash paid in business combinations and asset acquisitions, net of cash acquired

-

(163,685)

           Net cash used for investing activities

(28,104)

(180,490)

Cash flows from financing activities:

  Proceeds from revolving credit facility

-

100,000

  Payment of convertible notes

(349,999)

-

  Payment of convertible notes embedded conversion derivative liability

(530,643)

-

  Proceeds from convertible notes hedges

530,643

-

  Payment of acquisition-related contingent consideration

-

(1,835)

  Excess tax benefits from stock-based compensation

10,097

2,642

  Proceeds from issuance of common stock 

38,167

36,482

  Stock received for payment of employee taxes on vesting of restricted stock

(15,814)

(12,292)

  Payments for repurchases of common stock

(93,076)

(25,032)

           Net cash provided by (used for) financing activities

(410,625)

99,965

Effect of exchange rate changes on cash and cash equivalents

(14,023)

4,718

Increase (decrease) in cash and cash equivalents 

(284,310)

21,156

Cash and cash equivalents at end of period

$    647,851

$    557,416

 

Cadence Design Systems, Inc.

(Unaudited)

Revenue Mix by Geography (% of Total Revenue)

2014

2015

GEOGRAPHY

 Q1 

 Q2 

 Q3 

 Q4 

 Year 

 Q1 

 Q2 

 Americas 

45%

44%

46%

47%

45%

47%

48%

 Asia 

23%

23%

22%

22%

23%

24%

23%

 Europe, Middle East and Africa 

20%

22%

21%

21%

21%

19%

20%

 Japan 

12%

11%

11%

10%

11%

10%

9%

Total

100%

100%

100%

100%

100%

100%

100%

Revenue Mix by Product Group (% of Total Revenue)

2014

2015

PRODUCT GROUP

 Q1 

 Q2 

 Q3 

 Q4 

 Year 

 Q1 

 Q2 

 Functional Verification, including Emulation Hardware 

23%

21%

23%

21%

22%

23%

21%

 Digital IC Design and Signoff 

30%

30%

29%

28%

29%

28%

29%

 Custom IC Design 

27%

28%

27%

28%

27%

27%

27%

 System Interconnect and Analysis 

10%

11%

10%

11%

11%

11%

11%

 IP 

10%

10%

11%

12%

11%

11%

12%

Total

100%

100%

100%

100%

100%

100%

100%

 

Cadence Design Systems, Inc.

As of July 27, 2015

Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share

(Unaudited)

Three Months Ending

Year Ending

October 3, 2015

January 2, 2016

Forecast

Forecast

Diluted net income per share on a GAAP basis

 $0.17 to $0.19 

 $0.63 to $0.69 

Amortization of acquired intangibles

0.05

0.21

Stock-based compensation expense

0.08

0.30

Non-qualified deferred compensation expenses

-

-

Restructuring and other charges

-

0.01

Acquisition and integration-related costs

-

0.02

Amortization of debt discount on convertible notes

-

0.02

Other income or expense related to investments and non-qualified deferred compensation plan assets*

-

-

Income tax effect of non-GAAP adjustments

(0.05)

(0.19)

Diluted net income per share on a non-GAAP basis†

 $0.25 to $0.27 

 $1.00 to $1.06 

†The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. 

 * Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. 

 

Cadence Design Systems, Inc.

As of July 27, 2015

Impact of Non-GAAP Adjustments on Forward Looking Net Income 

(Unaudited)

Three Months Ending

Year Ending

October 3, 2015

January 2, 2016

($ in millions)

Forecast

Forecast

Net income on a GAAP basis

 $52 to $58 

 $195 to $214 

Amortization of acquired intangibles

16

64

Stock-based compensation expense

24

93

Non-qualified deferred compensation expenses

-

1

Restructuring and other charges 

-

4

Acquisition and integration-related costs

1

8

Amortization of debt discount on convertible notes

-

7

Other income or expense related to investments and non-qualified deferred compensation plan assets*

-

(2)

Income tax effect of non-GAAP adjustments

(15)

(59)

Net income on a non-GAAP basis†

 $78 to $84 

 $311 to $330 

†The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. 

 * Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense. 

 

Cadence Design Systems, Inc.

Supplemental Reconciliation of Certain GAAP to Non-GAAP Measures

For the Three Months Ended July 4, 2015

(In thousands)

(Unaudited)

Three Months Ended

July 4, 2015

GAAP

Adjustments

Non-GAAP*

Revenue:

Product and maintenance

$               384,951

$                     -

$                384,951

Services

30,932

-

30,932

Total revenue

415,883

-

415,883

Costs and expenses:

Cost of product and maintenance

31,715

(10,660)

 (A) 

21,055

Cost of services

20,040

(810)

 (A) 

19,230

Marketing and sales

96,662

(5,338)

 (A) 

91,324

Research and development

157,974

(12,974)

 (A) 

145,000

General and administrative

27,467

(3,744)

 (A) 

23,723

Amortization of acquired intangibles

6,119

(6,119)

 (A) 

-

Restructuring and other charges (credits)

(498)

498

-

Total costs and expenses

339,479

(39,147)

300,332

Income from operations

76,404

39,147

115,551

Interest expense

(8,180)

2,470

 (B) 

(5,710)

Other income, net

1,347

(311)

(C)

1,036

Income before provision for income taxes

69,571

41,306

110,877

Provision for income taxes

11,411

14,091

(D)

25,502

Net income 

$                 58,160

$             27,215

$                  85,375

* The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.

Notes: 

(A) For the three months ended July 4, 2015, adjustments to GAAP are as follows for the line items specified:

Amortization of acquired intangibles

Stock-based compensation expense

Non-qualified deferred compensation expenses (credits)

Acquisition and integration-related costs

Total adjustments

Cost of product and maintenance

$               10,105

$                558

$                   (3)

$                       -

$          10,660

Cost of services

-

815

(5)

-

810

Marketing and sales

-

5,236

(12)

114

5,338

Research and development

-

11,401

22

1,551

12,974

General and administrative

-

3,693

35

16

3,744

Amortization of acquired intangibles

6,119

-

-

-

6,119

Total

$               16,224

$           21,703

$                   37

$                1,681

$          39,645

(B) Amortization of debt discount related to convertible notes

(C) Other income or expense related to investments and non-qualified deferred compensation plan assets

(D) Income tax effect of non-GAAP adjustments 

 

Cadence Design Systems, Inc.

Supplemental Reconciliation of Certain GAAP to Non-GAAP Measures

For the Three Months Ended June 28, 2014

(In thousands)

(Unaudited)

Three Months Ended

June 28, 2014

GAAP

Adjustments

Non-GAAP*

Revenue:

Product and maintenance

$               354,468

$                     -

$                354,468

Services

24,320

-

24,320

Total revenue

378,788

-

378,788

Costs and expenses:

Cost of product and maintenance

37,707

(9,504)

 (E) 

28,203

Cost of services

16,706

(1,384)

 (E) 

15,322

Marketing and sales

98,611

(6,992)

 (E) 

91,619

Research and development

152,672

(21,177)

 (E) 

131,495

General and administrative

32,042

(8,824)

 (E) 

23,218

Amortization of acquired intangibles

5,579

(5,579)

 (E) 

-

Restructuring and other charges (credits)

(26)

26

-

Total costs and expenses

343,291

(53,434)

289,857

Income from operations

35,497

53,434

88,931

Interest expense

(7,369)

4,241

(F)

(3,128)

Other income, net

1,635

(1,480)

(G)

155

Income before provision for income taxes

29,763

56,195

85,958

Provision for income taxes

6,500

15,849

(H)

22,349

Net income 

$                 23,263

$             40,346

$                  63,609

* The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.

Notes: 

(E) For the three months ended June 28, 2014, adjustments to GAAP are as follows for the line items specified:

Amortization of acquired intangibles

Stock-based compensation expense

Non-qualified deferred compensation expenses

Acquisition and integration- related costs

Special charges (I)

Total adjustments

Cost of product and maintenance

$                 8,613

$                 485

$                     5

$                       -

$          401

$             9,504

Cost of services

-

709

8

-

667

1,384

Marketing and sales

-

4,560

20

499

1,913

6,992

Research and development

-

9,701

642

4,980

5,854

21,177

General and administrative

-

3,622

372

3,308

1,522

8,824

Amortization of acquired intangibles

5,579

-

-

-

-

5,579

Total

$               14,192

$             19,077

$              1,047

$                8,787

$     10,357

$           53,460

(F) Amortization of debt discount related to convertible notes

(G) Other income or expense related to investments and non-qualified deferred compensation plan assets

(H) Income tax effect of non-GAAP adjustments

(I) Comprised of costs related to a voluntary retirement program

 

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SOURCE Cadence Design Systems, Inc.



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