Cadence Design Systems (CDNS) Q2 Financial Results

Cadence Design Systems Inc (NASDAQ:CDNS), in its current form, is a result of a merger between Solomon Design Automation (SDA) and ECAD in 1988. Cadence specializes in electronic design automation (EDA). The company uses its intelligent system design to provide hardware and software to transform design models into reality.

The software company recently announced better-than-expected financial results for the second quarter. Cadence reported earnings of 56 cents per share for the three months ended July 3, compared to 47 cents per share in the year-ago period.

Earnings improved to 86 cents per share on an adjusted basis, ahead of the consensus forecast of 76 cents per share. In addition, revenue for the quarter climbed 14.1 percent on a year-over-year basis to $728.29 million, beating analysts’ average estimate of $720.2 million.

Commenting on the quarter, CEO Lip-Bu Tan said, “Cadence delivered outstanding financial results for the second quarter on broad based customer demand as the Cadence team continues to execute exceedingly well. Generational drivers are fueling strong design activity and our ISD strategy coupled with a strong innovation engine that has led to introducing eight significant new products so far this year, positions us extremely well to delight our customers and accelerate growth.”

Cadence also lifted its financial outlook for the full year. It is now expecting adjusted earnings in the range of $3.14 per share to $3.20 per share, up from its previous guidance between $2.99 per share to $3.07 per share. The updated forecast is better than analysts’ average estimate of $3.05 per share.

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