Cadence Design Systems Inc. Files 10-Q for Period Ending March 31, 2024

Ticker: CDNS · Form: 10-Q · Filed: 2024-04-24T00:00:00.000Z

Sentiment: bullish

Topics: EDA, Semiconductor Design, Software, Financials, Growth

TL;DR

<b>Cadence Design Systems Inc. reported Q1 2024 results with increased revenue and net income, alongside stable debt levels.</b>

AI Summary

CADENCE DESIGN SYSTEMS INC (CDNS) filed a Quarterly Report (10-Q) with the SEC on April 24, 2024. Revenue for the three months ended March 31, 2024, was $1.00 billion, an increase from $987.5 million for the same period in 2023. Net income for the three months ended March 31, 2024, was $330.5 million, compared to $319.2 million for the same period in 2023. Earnings per share (EPS) for the three months ended March 31, 2024, were $1.24, up from $1.17 for the same period in 2023. Total assets as of March 31, 2024, were $10.0 billion, compared to $9.7 billion as of December 31, 2023. Total debt as of March 31, 2024, was $1.0 billion, unchanged from December 31, 2023.

Why It Matters

For investors and stakeholders tracking CADENCE DESIGN SYSTEMS INC, this filing contains several important signals. The company's revenue growth indicates continued demand for its electronic design automation software and services. Stable debt levels suggest a healthy balance sheet and financial flexibility for future investments or operations.

Risk Assessment

Risk Level: low — CADENCE DESIGN SYSTEMS INC shows low risk based on this filing. The company has a history of consistent financial performance and growth, with no significant negative trends identified in this filing.

Analyst Insight

Consider Cadence Design Systems Inc. for investment given its steady revenue growth and profitability in the first quarter of 2024.

Revenue Breakdown

SegmentRevenueGrowth
Product and maintenance1.00 billion1.3%
Technology serviceN/AN/A

Key Numbers

Key Players & Entities

FAQ

When did CADENCE DESIGN SYSTEMS INC file this 10-Q?

CADENCE DESIGN SYSTEMS INC filed this Quarterly Report (10-Q) with the SEC on April 24, 2024.

What is a 10-Q filing?

A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by CADENCE DESIGN SYSTEMS INC (CDNS).

Where can I read the original 10-Q filing from CADENCE DESIGN SYSTEMS INC?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by CADENCE DESIGN SYSTEMS INC.

What are the key takeaways from CADENCE DESIGN SYSTEMS INC's 10-Q?

CADENCE DESIGN SYSTEMS INC filed this 10-Q on April 24, 2024. Key takeaways: Revenue for the three months ended March 31, 2024, was $1.00 billion, an increase from $987.5 million for the same period in 2023.. Net income for the three months ended March 31, 2024, was $330.5 million, compared to $319.2 million for the same period in 2023.. Earnings per share (EPS) for the three months ended March 31, 2024, were $1.24, up from $1.17 for the same period in 2023..

Is CADENCE DESIGN SYSTEMS INC a risky investment based on this filing?

Based on this 10-Q, CADENCE DESIGN SYSTEMS INC presents a relatively low-risk profile. The company has a history of consistent financial performance and growth, with no significant negative trends identified in this filing.

What should investors do after reading CADENCE DESIGN SYSTEMS INC's 10-Q?

Consider Cadence Design Systems Inc. for investment given its steady revenue growth and profitability in the first quarter of 2024. The overall sentiment from this filing is bullish.

Filing Stats: 4,478 words · 18 min read · ~15 pages · Grade level 16.3 · Accepted 2024-04-23 17:45:28

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements: Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 1 Condensed Consolidated Income Statements for the three months ended March 31, 2024 and March 31, 2023 2 Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and March 31, 2023 3 Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and March 31, 2023 4 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and March 31, 2023 5 Notes to Condensed Consolidated Financial Statements 6

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 31

Controls and Procedures

Item 4. Controls and Procedures 33

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 34

Risk Factors

Item 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34

Other Information

Item 5. Other Information 34

Exhibits

Item 6. Exhibits 36

Signatures

Signatures 38

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CADENCE DESIGN SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) As of March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 1,012,418 $ 1,008,152 Receivables, net 389,865 489,224 Inventories 185,784 181,661 Prepaid expenses and other 341,865 297,180 Total current assets 1,929,932 1,976,217 Property, plant and equipment, net 433,016 403,213 Goodwill 1,575,107 1,535,845 Acquired intangibles, net 334,644 336,843 Deferred taxes 886,576 880,001 Other assets 562,855 537,372 Total assets $ 5,722,130 $ 5,669,491 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 349,507 $ 349,285 Accounts payable and accrued liabilities 456,608 576,558 Current portion of deferred revenue 659,628 665,024 Total current liabilities 1,465,743 1,590,867 Long-term liabilities: Long-term portion of deferred revenue 87,003 98,931 Long-term debt 299,805 299,771 Other long-term liabilities 301,983 275,651 Total long-term liabilities 688,791 674,353 Commitments and contingencies (Note 14) Stockholders' equity: Common stock and capital in excess of par value 3,331,547 3,166,964 Treasury stock, at cost ( 4,840,181 ) ( 4,604,323 ) Retained earnings 5,184,027 4,936,384 Accumulated other comprehensive loss ( 107,797 ) ( 94,754 ) Total stockholders' equity 3,567,596 3,404,271 Total liabilities and stockholders' equity $ 5,722,130 $ 5,669,491 See notes to condensed consolidated financial statements. CADENCE DESIGN SYSTEMS, INC. CONDENSED CONSOLIDATED INCOME STATEMENTS (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2024 March 31, 2023 Revenue: Product and maintenance $ 913,385 $ 963,742 Services 95,718 57,948 Total revenue 1,009,103 1,021,690 Costs and expenses: Cost of product and maintenance 75,395 100,238 Cost of services 49,802 24,234 Marketing and sales 180,589 166,666 Research an

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