Beyond the Board: What Companies Need to Know Before Entering the MilAero PCB Market
Defense Speak Interpreted: If CHIPS Cuts Back, What Happens to Electronics Packaging Funds?
American Made Advocacy: Where’s the Budget for a Modern Military Run on Microelectronics?
Cadence Reports 1Q19 Financial Results
April 23, 2019 | Cadence Design Systems, Inc.Estimated reading time: 2 minutes
Cadence Design Systems, Inc. announced results for the first quarter of 2019. The company reported first quarter 2019 revenue of $577 million, compared to revenue of $517 million reported for the same period in 2018. On a GAAP basis, Cadence achieved operating margin of 22% and recognized net income of $121 million, or $0.43 per share on a diluted basis, in the first quarter of 2019, compared to operating margin of 17% and net income of $73 million, or $0.26 per share on a diluted basis, for the same period in 2018.
Using the non-GAAP measure defined below, operating margin for the first quarter of 2019 was 32% and net income was $152 million, or $0.54 per share on a diluted basis, compared to operating margin of 28% and net income of $113 million, or $0.40 per share on a diluted basis, for the same period in 2018.
“Cadence achieved excellent operating results for the first quarter delivering 11% revenue growth and 32% non-GAAP operating margin. Our business is mission critical to silicon development, which is the cornerstone of all design activity,” said Lip-Bu Tan, chief executive officer. “We announced Clarity™ 3D Solver, our first product in the System Analysis space, as we introduced the next phase of our System Design Enablement strategy to provide more capabilities and value to customers and expand our TAM.”
“I’m pleased with our financial discipline and continued broad-based growth,” said John Wall, senior vice president and chief financial officer. “We are raising our outlook for the year as technology trends like AI and 5G continue to drive strong design activity across all lines of our business.”
Business Outlook
For the second quarter of 2019, the company expects total revenue in the range of $575 million to $585 million. Second quarter GAAP operating margin is expected to be in the range of 21% to 22% and GAAP net income per diluted share is expected to be in the range of $0.34 to $0.36. Using the non-GAAP measure defined below, operating margin is expected to be in the range of 31% to 32% and net income per diluted share is expected to be in the range of $0.52 to $0.54.
For 2019, the company expects total revenue in the range of $2.305 billion to $2.335 billion. On a GAAP basis, operating margin is expected to be approximately 21% and net income per diluted share for 2019 is expected to be in the range of $1.39 to $1.47. Using the non-GAAP measure defined below, operating margin for 2019 is expected to be approximately 31% and net income per diluted share for 2019 is expected to be in the range of $2.04 to $2.12.
A schedule showing a reconciliation of the business outlook from GAAP operating margin, GAAP net income and diluted net income per share to non-GAAP operating margin and non-GAAP net income and diluted net income per share is included in this release.
About Cadence
Cadence enables electronic systems and semiconductor companies to create the innovative end products that are transforming the way people live, work and play. Cadence® software, hardware and semiconductor IP are used by customers to deliver products to market faster. The company’s System Design Enablement strategy helps customers develop differentiated products—from chips to boards to systems—in mobile, consumer, cloud datacenter, automotive, aerospace, IoT, industrial and other market segments. Cadence is listed as one of Fortune Magazine's 100 Best Companies to Work For. Learn more at www.cadence.com.
Share on:
Testimonial
"We’re proud to call I-Connect007 a trusted partner. Their innovative approach and industry insight made our podcast collaboration a success by connecting us with the right audience and delivering real results."
Julia McCaffrey - NCAB GroupSuggested Items
Nortech Systems Achieves Enhanced Fiber Optic Performance
09/16/2025 | Nortech SystemsNortech Systems Incorporated, a leading provider of design and manufacturing solutions for complex electromedical devices and electromechanical systems, announced significant advancements in its fiber optic capabilities.
Altair, Wichita State University’s NIAR Sign MoU to Accelerate Aerospace Innovation
09/16/2025 | AltairAltair, a global leader in computational intelligence, and Wichita State University’s (WSU) National Institute for Aviation Research (NIAR), one of the world’s leading aerospace research institutions, have signed a memorandum of understanding (MoU) to advance innovation across the aerospace and defense industries.
India’s Aerospace and Defence Engineered for Power, Driven by Electronics
09/16/2025 | Gaurab Majumdar, Global Electronics AssociationWith a defence budget of $82.05 billion (2025–26) and a massive $223 billion earmarked for aerospace and defence spending over the next decade, India is rapidly positioning itself as a major player in the global defence and aerospace market.
Honeywell-Led Consortium Receives UK Government Funding to Revolutionize Aerospace Manufacturing
09/02/2025 | HoneywellA consortium led by Honeywell has received UK Government funding for a project that aims to revolutionize how critical aerospace technologies are manufactured in the UK through the use of AI and additive manufacturing.
Coherent Announces Agreement to Sell Aerospace and Defense Business to Advent for $400 Million
08/15/2025 | AdventCoherent Corp., a global leader in photonics, today announced that it has entered into a definitive agreement to sell its Aerospace and Defense business to Advent, a leading global private equity investor, for $400 million. Proceeds will be used to reduce debt, which will be immediately accretive to Coherent’s EPS.