Cadence Design Systems (CDNS) has reported 35 percent jump in profit for the quarter ended Apr. 01, 2017. The company has earned $68.26 million, or $0.25 a share in the quarter, compared with $50.56 million, or $0.17 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $89.06 million, or $0.32 a share compared with $85.63 million or $0.28 a share, a year ago. Revenue during the quarter grew 6.49 percent to $476.91 million from $447.86 million in the previous year period. Gross margin for the quarter expanded 90 basis points over the previous year period to 87.04 percent. Total expenses were 83.31 percent of quarterly revenues, down from 87.04 percent for the same period last year. This has led to an improvement of 373 basis points in operating margin to 16.69 percent.
Operating income for the quarter was $79.60 million, compared with $58.04 million in the previous year period.
“Consistent execution enabled Cadence to deliver strong results. Innovation is at the heart of our success and we have introduced three significant new products so far in 2017: Xcelium™ for parallel logic simulation, Protium™ S1 for advanced FPGA-based prototyping and Pegasus™ Verification System, a next generation physical verification solution,” said Lip-Bu Tan, president and chief executive officer. "Additionally, our digital and signoff solutions continue to proliferate with market-shaping customers for the most complex designs at the most advanced nodes."
For the second-quarter, Cadence Design Systems projects revenue to be in the range of $470 million to $480 million. Cadence Design Systems projects revenue to be in the range of $1,900 million to $1,950 million for financial year 2017. Cadence Design Systems expects net income to be in the range of $56 million to $62 million for the second-quarter. For fiscal year 2017, Cadence Design Systems expects net income to be in the range of $259 million to $287 million. Cadence Design Systems forecasts adjusted net income to be in the range of $87 million to $93 million for the second-quarter. For the fiscal year 2017, Cadence Design Systems forecasts adjusted net income to be in the range of $368 million to $396 million. The company forecasts diluted earnings per share to be in the range of $0.20 to $0.22 for the second-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.93 to $1.03. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.31 to $0.33 for the second-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.32 to $1.42 on adjusted basis.
Operating cash flow improvesCadence Design Systems has generated cash of $92.43 million from operating activities during the quarter, up 11.11 percent or $9.24 million, when compared with the last year period. The company has spent $14.74 million cash to meet investing activities during the quarter as against cash outgo of $13.91 million in the last year period.
The company has spent $0.55 million cash to carry out financing activities during the quarter as against cash inflow of $118.43 million in the last year period.
Cash and cash equivalents stood at $544.13 million as on Apr. 01, 2017, down 32.86 percent or $266.27 million from $810.40 million on Apr. 02, 2016.
Working capital drops significantly
Cadence Design Systems has witnessed a decline in the working capital over the last year. It stood at $224.18 million as at Apr. 01, 2017, down 61.64 percent or $360.17 million from $584.34 million on Apr. 02, 2016. Current ratio was at 1.39 as on Apr. 01, 2017, down from 2.03 on Apr. 02, 2016.
Days sales outstanding went up to 33 days for the quarter compared with 32 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 83 days for the previous year period.
Debt remains almost stable
Total debt of Cadence Design Systems remained almost stable for the quarter at $693.71 million, when compared with the last year period. Total debt was 31.66 percent of total assets as on Apr. 01, 2017, compared with 27.29 percent on Apr. 02, 2016. Debt to equity ratio was at 0.83 as on Apr. 01, 2017, up from 0.56 as on Apr. 02, 2016. Interest coverage ratio improved to 12.29 for the quarter from 10.83 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
