Cadence Design Systems Files 2023 Annual Report on Form 10-K

TL;DR

<b>Cadence Design Systems, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

CADENCE DESIGN SYSTEMS INC (CDNS) filed a Annual Report (10-K) with the SEC on February 14, 2024. Cadence Design Systems Inc. filed its 2023 Form 10-K on February 14, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 2655 Seely Avenue, San Jose, CA. Cadence Design Systems was formerly known as ECAD Inc. /DE/. The SIC code for the company is 7372 (Services-Prepackaged Software).

Why It Matters

For investors and stakeholders tracking CADENCE DESIGN SYSTEMS INC, this filing contains several important signals. The 10-K filing provides a comprehensive overview of Cadence's financial health, operational strategies, and risk factors for investors and stakeholders. This annual report is crucial for understanding the company's performance in the competitive prepackaged software industry and its outlook for the upcoming fiscal year.

Risk Assessment

Risk Level: — CADENCE DESIGN SYSTEMS INC shows moderate risk based on this filing. The filing is a standard annual report and does not contain immediate red flags, indicating a routine disclosure of financial and operational information.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to assess Cadence Design Systems' performance and future prospects.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-14 — Filing Date (FILED AS OF DATE)
• 7372 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• DE — State of Incorporation (STATE OF INCORPORATION)

Key Players & Entities

• CADENCE DESIGN SYSTEMS INC (company) — COMPANY CONFORMED NAME
• CDNS (company) — Ticker Symbol
• ECAD INC /DE/ (company) — FORMER COMPANY
• 2655 SEELY AVENUE (company) — BUSINESS ADDRESS STREET 1
• SAN JOSE (company) — BUSINESS ADDRESS CITY
• CA (company) — BUSINESS ADDRESS STATE
• 95134 (company) — BUSINESS ADDRESS ZIP
• Thomas P. Beckley (person) — Executive Name

FAQ

Industry Context

Cadence Design Systems operates in the prepackaged software industry, providing electronic design automation (EDA) software, hardware, and services.

Regulatory Implications

The filing is a standard 10-K report under the Securities Exchange Act of 1934, requiring public companies to disclose detailed financial and operational information annually.

What Investors Should Do

1. Analyze the financial statements for revenue trends and profitability.
2. Review the business description for strategic initiatives and market positioning.
3. Examine the risk factors section for potential challenges and mitigation strategies.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-14: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $0.01 — nge on which Registered Common Stock, $0.01 par value per share CDNS Nasdaq Global

Filing Documents

• cdns-20231231.htm (10-K) — 2329KB
• ex404cdns12312023.htm (EX-4.04) — 23KB
• ex2101cdns12312023.htm (EX-21.01) — 36KB
• ex2301cdns12312023.htm (EX-23.01) — 3KB
• ex3101cdns12312023.htm (EX-31.01) — 11KB
• ex3102cdns12312023.htm (EX-31.02) — 11KB
• ex3201cdns12312023.htm (EX-32.01) — 6KB
• ex3202cdns12312023.htm (EX-32.02) — 6KB
• ex971cdns12312023.htm (EX-97.01) — 41KB
• cdns-20231231_g1.jpg (GRAPHIC) — 3KB
• cdns-20231231_g2.jpg (GRAPHIC) — 206KB
• cdns-20231231_g3.jpg (GRAPHIC) — 147KB
• 0000813672-24-000034.txt (&nbsp;) — 14437KB
• cdns-20231231.xsd (EX-101.SCH) — 86KB
• cdns-20231231_cal.xml (EX-101.CAL) — 131KB
• cdns-20231231_def.xml (EX-101.DEF) — 489KB
• cdns-20231231_lab.xml (EX-101.LAB) — 1164KB
• cdns-20231231_pre.xml (EX-101.PRE) — 862KB
• cdns-20231231_htm.xml (XML) — 2120KB

Business

Item 1. Business 1

Risk Factors

Item 1A. Risk Factors 12

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 26 Item 1C. Cybersecurity 27

Properties

Item 2. Properties 28

Legal Proceedings

Item 3. Legal Proceedings 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 28 PART II.

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29

[Reserved]

Item 6. [Reserved] 30

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 31

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 44

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 45

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 45

Controls and Procedures

Item 9A. Controls and Procedures 45

Other Information

Item 9B. Other Information 46

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 46 PART III.

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 47

Executive Compensation

Item 11. Executive Compensation 47

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 47

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 47

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 47 PART IV.

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 48

Form 10-K Summary

Item 16. Form 10-K Summary 93

Signatures

Signatures 94 Table of Contents PART I.

Business

Item 1. Business This Annual Report and the documents incorporated by reference in this Annual Report contain statements that are not historical in nature, are predictive, or that depend upon or refer to future events or conditions or contain other forward-looking statements. Statements including, but not limited to, statements regarding the extent, timing and mix of future revenues and customer demand; the deployment of our products and services; the impact of the macroeconomic and geopolitical environment, including but not limited to, expanded trade control laws and regulations, conflicts in and around Ukraine, the Middle East and other areas of the world, volatility in foreign currency exchange rates, inflation and the rise in interest rates; the impact of government actions; future costs, expenses, tax rates and uses of cash; pending legal, administrative and tax proceedings; restructuring actions and associated charges and benefits; pending acquisitions, accounting for acquisitions and integration of acquired businesses; and other statements using words such as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "intends," "may," "plans," "projects," "should," "targets," "will" and "would," and words of similar import and the negatives thereof, constitute forward-looking statements. These statements are predictions based upon our current expectations about future events. Actual results could vary materially as a result of certain factors, including but not limited to those expressed in these statements. Important risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements include, but are not limited to, those identified in the "Proprietary Technology," "Competition," "Risk Factors," "Critical Accounting Estimates," "Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and "Liquidity and Capital Resources" sections contained in this An