SAN JOSE, Calif., Feb. 1, 2017 /PRNewswire/ -- Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced results for the fourth quarter and fiscal year 2016.

Cadence reported fourth quarter 2016 revenue of $469 million, compared to revenue of $441 million reported for the same period in 2015. On a GAAP basis, Cadence recognized net income of $38 million, or $0.14 per share on a diluted basis, in the fourth quarter of 2016, compared to net income of $80 million, or $0.26 per share on a diluted basis, for the same period in 2015. Revenue for 2016 totaled $1.816 billion, compared to revenue of $1.702 billion for 2015. Net income for 2016 was $203 million, or $0.70 per share on a diluted basis, compared to net income of $252 million, or $0.81 per share on a diluted basis for 2015.

Using the non-GAAP measure defined below, net income in the fourth quarter of 2016 was $95 million, or $0.34 per share on a diluted basis, as compared to net income of $95 million, or $0.31 per share on a diluted basis, for the same period in 2015. For 2016, non-GAAP net income was $351 million, or $1.21 per share on a diluted basis, compared to non-GAAP net income of $341 million, or $1.09 per share on a diluted basis, in 2015.

"Through focus on innovation and execution, Cadence again delivered strong results for both the fourth quarter and fiscal 2016. Core EDA is foundational to our System Design Enablement (SDE) strategy, and digital and signoff revenue grew 9 percent for the year on strong customer adoption, while in System Integration, Palladium(®) Z1 had a phenomenal year with hardware revenue surging to a record high," said Lip-Bu Tan, president and chief executive officer. "SDE is expanding our reach with systems companies and into segments like automotive, aerospace and defense, where we had key wins with important customers in 2016."

"Cadence continued to deliver consistent, predictable financial results in 2016 with operating cash flow generation a standout at $445 million, up 18 percent over 2015," said Geoff Ribar, senior vice president and chief financial officer. "I am especially proud of the quality of our balance sheet. In the fourth quarter we completed our $1.2 billion stock repurchase program, cumulatively repurchasing 52 million shares representing approximately 18 percent of shares outstanding as of July 4, 2015. This week, we replaced our December 2012 senior credit facility, increasing our borrowing capacity and extending the term; and we maintain an investment grade rating for our outstanding public debt."

On January 30, 2017, Cadence entered into a new $350 million five year senior unsecured revolving credit facility with a group of lenders, which replaces the December 2012 senior credit facility.

On January 30, 2017, the Board of Directors of Cadence authorized the repurchase of $525 million of Cadence common stock. The actual timing and amount of repurchases will be subject to business and market conditions, corporate and regulatory requirements, acquisition opportunities and other factors.

CFO Commentary

Commentary on the fourth quarter and fiscal year 2016 financial results by Geoff Ribar, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.

Business Outlook

For the first quarter of 2017, the company expects total revenue in the range of $470 million to $480 million. First quarter GAAP net income per diluted share is expected to be in the range of $0.19 to $0.21. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.30 to $0.32.

For 2017, the company expects total revenue in the range of $1.900 billion to $1.950 billion. On a GAAP basis, net income per diluted share for 2017 is expected to be in the range of $0.89 to $0.99. Using the non-GAAP measure defined below, net income per diluted share for 2017 is expected to be in the range of $1.32 to $1.42.

A schedule showing a reconciliation of the business outlook from GAAP net income and diluted net income per share to non-GAAP net income and diluted net income per share is included in this release.

Audio Webcast Scheduled

Lip-Bu Tan, president and chief executive officer, and Geoff Ribar, senior vice president and chief financial officer, will host a fourth quarter and fiscal year 2016 financial results audio webcast today, February 1, 2017, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting February 1, 2017 at 5 p.m. (Pacific) and ending March 17, 2017 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.

About Cadence

Cadence enables global electronic design innovation and plays an essential role in the creation of today's integrated circuits and electronics. Customers use Cadence(®) software, hardware, IP, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. The company is headquartered in San Jose, California, with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company and its products and services is available at www.cadence.com.

Cadence, the Cadence logo and Palladium are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

The statements contained above regarding Cadence's fourth quarter and fiscal year 2016 financial results and authorization to repurchase shares of its common stock, as well as the information in the Business Outlook section, are or include forward-looking statements based on current expectations or beliefs and preliminary assumptions about future events that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence's control, including, among others: (i) Cadence's ability to compete successfully in the electronic design automation product and the commercial electronic design and methodology services industries; (ii) the success of Cadence's efforts to improve operational efficiency and growth; (iii) the mix of products and services sold and the timing of significant orders for Cadence's products; (iv) change in customer demands, including those resulting from consolidation among Cadence's customers and the possibility that the restructurings and other efforts to improve operational efficiency of Cadence's customers could result in delays in purchases of Cadence's products and services; (v) economic and industry conditions in regions in which Cadence does business; (vi) fluctuations in rates of exchange between the U.S. dollar and the currencies of other countries in which Cadence does business; (vii) capital expenditure requirements, legislative or regulatory requirements, interest rates and Cadence's ability to access capital and debt markets; (viii) the acquisition of other companies or technologies or the failure to successfully integrate and operate these companies or technologies Cadence acquires, including the potential inability to retain customers, key employees or vendors; (ix) the effects of Cadence's efforts to improve operational efficiency in its business, including strategic, customer and supplier relationships, and its ability to retain key employees; (x) events that affect the reserves or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes, litigation or other matters; and (xi) the effects of any litigation or other proceedings to which Cadence is or may become a party.

For a detailed discussion of these and other cautionary statements related to Cadence's business, please refer to Cadence's filings with the U.S. Securities and Exchange Commission, which include Cadence's most recent reports on Form 10-K and Form 10-Q, including Cadence's future filings.

GAAP to Non-GAAP Reconciliation

Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with their most directly comparable GAAP financial results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance.

To supplement Cadence's financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence's performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets and debt discount related to convertible notes, stock-based compensation expense, acquisition and integration-related costs including retention expenses, special charges (comprised of executive severance costs), investment gains or losses, income or expenses related to Cadence's non-qualified deferred compensation plan, restructuring and other significant items not directly related to Cadence's core business operations, and the income tax effect of non-GAAP pre-tax adjustments.

Cadence's management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of the company's core business operations and therefore provides supplemental information to Cadence's management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence's management, including forecasting and budgeting.

The following tables reconcile the specific items excluded from GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:



    Net Income Reconciliation                Three Months Ended

                                December 31, 2016               January 2, 2016
                                -----------------               ---------------

                                                 (unaudited)

    (in thousands)

    Net income on a GAAP basis                        $38,477                             $80,374

    Amortization of acquired
     intangibles                           14,474                                  15,826

    Stock-based compensation
     expense                               29,231                                  24,660

    Non-qualified deferred
     compensation expenses                    544                                     575

    Restructuring and other
     charges                               26,342                                     347

    Acquisition and
     integration-related costs              1,433                                   1,596

    Special charges*                            -                                    916

    Other income or expense
     related to investments and
     non-qualified deferred
     compensation plan assets**             (655)                                  (579)

    Income tax effect of non-
     GAAP adjustments                    (14,672)                               (28,627)
                                          -------                                 -------

    Net income on a non-GAAP
     basis                                            $95,174                             $95,088
                                                      =======                             =======


    *              Comprised of executive severance
                   costs.


    **             Includes, as applicable, equity in
                   losses or income from
                   investments, write-down of
                   investments, gains or losses on
                   sale of investments and gains or
                   losses on non-qualified deferred
                   compensation plan assets recorded
                   in other income or expense.



    Net Income Reconciliation                    Years Ended

                                December 31, 2016              January 2, 2016
                                -----------------              ---------------

                                                 (unaudited)

    (in thousands)

    Net income on a GAAP basis                        $203,086                           $252,417

    Amortization of acquired
     intangibles                           60,482                                 64,248

    Stock-based compensation
     expense                              109,217                                 92,341

    Non-qualified deferred
     compensation expenses
     (credits)                              1,741                                  (369)

    Restructuring and other
     charges                               40,955                                  4,511

    Acquisition and
     integration-related costs             11,268                                  7,975

    Special charges*                            -                                   916

    Amortization of debt
     discount on convertible
     notes                                      -                                 7,496

    Other income or expense
     related to investments and
     non-qualified deferred
     compensation plan assets**           (4,672)                               (1,979)

    Income tax effect of non-
     GAAP adjustments                    (70,847)                              (86,650)
                                          -------                                -------

    Net income on a non-GAAP
     basis                                            $351,230                           $340,906
                                                      ========                           ========


    *              Comprised of executive severance
                   costs.


    **             Includes, as applicable, equity in
                   losses or income from
                   investments, write-down of
                   investments, gains or losses on
                   sale of investments and gains or
                   losses on non-qualified deferred
                   compensation plan assets recorded
                   in other income or expense.



    Diluted
     Net
     Income
     per
     Share
     Reconciliation                      Three Months Ended

                             December 31, 2016              January 2, 2016
                             -----------------              ---------------

                                             (unaudited)

    (in
     thousands,
     except
     per
     share
     data)

    Diluted
     net
     income
     per
     share on
     a GAAP
     basis                                          $0.14                           $0.26

     Amortization
     of
     acquired
     intangibles                          0.05                                 0.05

    Stock-
     based
     compensation
     expense                              0.10                                 0.08

    Non-
     qualified
     deferred
     compensation
     expenses                                -                                   -

     Restructuring
     and
     other
     charges                              0.09                                    -

     Acquisition
     and
     integration-
     related
     costs                                0.01                                 0.01

    Special
     charges*                                -                                   -

    Other
     income         plan
     or             assets**
     expense
     related
     to
     investments
     and non-
     qualified
     deferred
     compensation                            -                                   -

    Income
     tax
     effect
     of non-
     GAAP
     adjustments                        (0.05)                              (0.09)
                                         -----                                -----

    Diluted
     net
     income
     per
     share on
     a non-
     GAAP
     basis                                          $0.34                           $0.31
                                                    =====                           =====

    Shares
     used in
     calculation
     of
     diluted
     net
     income
     per
     share -
     GAAP***                           278,917                              310,512

    Shares
     used in
     calculation
     of
     diluted
     net
     income
     per
     share -
     non-
     GAAP***                           278,917                              310,512


    *               Comprised of executive severance
                    costs.


    **              Includes, as applicable, equity in
                    losses or income from
                    investments, write-down of
                    investments, gains or losses on
                    sale of investments and gains or
                    losses on non-qualified deferred
                    compensation plan assets recorded
                    in other income or expense.


    ***             Shares used in the calculation of
                    GAAP net income per share are
                    expected to be the same as shares
                    used in the calculation of non-
                    GAAP net income per share, except
                    when the company reports a GAAP
                    net loss and non-GAAP net
                    income, or GAAP net income and a
                    non-GAAP net loss.



    Diluted Net
     Income per
     Share
     Reconciliation                 Years Ended

                    December 31, 2016            January 2, 2016
                    -----------------            ---------------

                                    (unaudited)

    (in
     thousands,
     except per
     share
     data)

    Diluted net
     income per
     share on a
     GAAP basis                            $0.70                         $0.81

     Amortization
     of
     acquired
     intangibles                 0.21                               0.21

    Stock-
     based
     compensation
     expense                     0.37                               0.30

    Non-
     qualified
     deferred
     compensation
     expenses
     (credits)                   0.01                                  -

     Restructuring
     and other
     charges                     0.14                               0.01

    Acquisition
     and
     integration-
     related
     costs                       0.04                               0.03

    Special
     charges*                       -                                 -

     Amortization
     of debt
     discount
     on
     convertible
     notes                          -                              0.02

    Other
     income or
     expense
     related to
     investments
     and non-
     qualified
     deferred
     compensation
     plan
     assets**                  (0.02)                            (0.01)

    Income tax
     effect of
     non-GAAP
     adjustments               (0.24)                            (0.28)
                                -----                              -----

    Diluted net
     income per
     share on a
     non-GAAP
     basis                                 $1.21                         $1.09
                                           =====                         =====

    Shares used
     in
     calculation
     of diluted
     net income
     per share
     -GAAP***                 291,256                            312,302

    Shares used
     in
     calculation
     of diluted
     net income
     per share
     - non-
     GAAP***                  291,256                            312,302


    *               Comprised of executive severance
                    costs.


    **              Includes, as applicable, equity in
                    losses or income from
                    investments, write-down of
                    investments, gains or losses on
                    sale of investments and gains or
                    losses on non-qualified deferred
                    compensation plan assets recorded
                    in other income or expense.


    ***             Shares used in the calculation of
                    GAAP net income per share are
                    expected to be the same as shares
                    used in the calculation of non-
                    GAAP net income per share, except
                    when the company reports a GAAP
                    net loss and non-GAAP net
                    income, or GAAP net income and a
                    non-GAAP net loss.

Cadence expects that its corporate representatives will meet privately during the quarter with investors, the media, investment analysts and others. At these meetings, Cadence may reiterate the business outlook published in this press release. At the same time, Cadence will keep this press release, including the business outlook, publicly available on its website.

Prior to the start of the Quiet Period (described below), the public may continue to rely on the business outlook contained herein as still being Cadence's current expectations on matters covered unless Cadence publishes a notice stating otherwise.

Beginning March 17, 2017, Cadence will observe a Quiet Period during which the business outlook as provided in this press release and the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q no longer constitute the company's current expectations. During the Quiet Period, the business outlook in these documents should be considered historical, speaking as of prior to the Quiet Period only and not subject to any update by the company. During the Quiet Period, Cadence's representatives will not comment on Cadence's business outlook, financial results or expectations. The Quiet Period will extend until the day when Cadence's first quarter 2017 earnings release is published, which is currently scheduled for April 24, 2017.

For more information, please contact:

Investors and Shareholders
Alan Lindstrom
Cadence Design Systems, Inc.
408-944-7100
investor_relations@cadence.com

Media and Industry Analysts
Craig Cochran
Cadence Design Systems, Inc.
408-944-7039
newsroom@cadence.com



                                                                                       Cadence Design Systems, Inc.

                                                                                  Condensed Consolidated Balance Sheets

                                                                                  December 31, 2016 and January 2, 2016

                                                                                              (In thousands)

                                                                                               (Unaudited)


                                                                                                                        December 31, 2016              January 2, 2016
                                                                                                                        -----------------              ---------------


    Current assets:

                                       Cash and cash equivalents                                                                              $465,232                     $616,686

                                       Short-term investments                                                                                    3,057                       94,498

                                       Receivables, net                                                                                        157,171                      164,848

                                       Inventories                                                                                              39,475                       56,762

                                       Prepaid expenses and other                                                                               37,099                       31,441
                                       -------------------

                                       Total current assets                                                                                    702,034                      964,235


    Property, plant and equipment, net of accumulated

                                        depreciation of $612,961 and $581,345,
                                        respectively                                                                                           238,607                      228,599

    Goodwill                                                                                                                                 572,764                      551,772

    Acquired intangibles, net of accumulated amortization of

                                                                                $267,723 and $216,589, respectively                            258,814                      296,482

    Long-term receivables                                                                                                                     12,949                        4,498

    Other assets                                                                                                                             311,740                      299,929
                                                                                                                                             -------

    Total assets                                                                                                                          $2,096,908                   $2,345,515
                                                                                                                                          ==========                   ==========


    Current liabilities:

                                       Revolving credit facility                                                                               $50,000     $                      -

                                       Accounts payable and accrued liabilities                                                                239,496                      238,022

                                       Current portion of deferred revenue                                                                     296,066                      298,285
                                       -------------------

                                       Total current liabilities                                                                               585,562                      536,307
                                                                                                                                               -------                      -------


    Long-term liabilities:

                                       Long-term portion of deferred revenue                                                                    66,769                       30,209

                                       Long-term debt                                                                                          643,493                      343,288

                                       Other long-term liabilities                                                                              59,314                       59,596

                                       Total long-term liabilities                                                                             769,576                      433,093
                                                                                                                                               -------                      -------


    Stockholders' equity                                                                                                                     741,770                    1,376,115

    Total liabilities and stockholders' equity                                                                                            $2,096,908                   $2,345,515
                                                                                                                                          ==========                   ==========


                                                                                                               Cadence Design Systems, Inc.

                                                                                                         Condensed Consolidated Income Statements

                                                                                        For the Three Months and Years Ended December 31, 2016 and January 2, 2016

                                                                                                         (In thousands, except per share amounts)

                                                                                                                        (Unaudited)



                                                                      Three Months Ended                                              Years Ended
                                                                      ------------------                                              -----------

                                                                         December 31,                                                 January 2,                              December 31,                        January 2,
                                                                                                    2016                                                     2016                                2016                              2016
                                                                                                    ----                                                     ----                                ----                              ----


    Revenue:

                        Product and
                        maintenance                          $436,694                                       $413,489                                               $1,683,771                          $1,578,944

                       Services                                32,286                                         27,590                                                  132,312                             123,147
                                                             ------


                       Total revenue                          468,980                                        441,079                                                1,816,083                           1,702,091
                                                              -------                                        -------                                                ---------                           ---------


    Costs and expenses:

                        Cost of product
                        and maintenance                        57,410                                         40,679                                                  183,291                             155,659

                       Cost of services                        18,638                                         20,223                                                   73,201                              82,794

                        Marketing and
                        sales                                  98,091                                        103,552                                                  395,194                             402,432

                        Research and
                        development                           181,516                                        161,970                                                  735,340                             637,567

                        General and
                        administrative                         29,977                                         26,789                                                  125,106                             109,982

                        Amortization of
                        acquired
                        intangibles                             3,889                                          5,679                                                   18,095                              23,716

                        Restructuring and
                        other charges                          26,342                                            347                                                   40,955                               4,511
                                                             ------


                        Total costs
                        and expenses                          415,863                                        359,239                                                1,571,182                           1,416,661
                                                              -------                                        -------                                                ---------                           ---------


                                          Income from operations                                  53,117                                                   81,840                             244,901                           285,430


                       Interest expense                       (6,364)                                       (4,200)                                                (23,670)                           (28,311)

                       Other income, net                        5,481                                          2,510                                                   15,922                              10,477
                                                              -----


                                           Income before provision
                                           (benefit) for income taxes                             52,234                                                   80,150                             237,153                           267,596


                        Provision
                        (benefit) for
                        income taxes                           13,757                                          (224)                                                  34,067                              15,179
                                                             ------


                                          Net income                                             $38,477                                                  $80,374                            $203,086                          $252,417
                                                                                                 =======                                                  =======                            ========                          ========



    Net income per share - basic                                                                $0.14                                                    $0.27                               $0.71                             $0.88
                                                                                                =====                                                    =====                               =====                             =====


    Net income per share - diluted                                                              $0.14                                                    $0.26                               $0.70                             $0.81
                                                                                                =====                                                    =====                               =====                             =====


    Weighted average common shares
     outstanding -basic                                                                       272,578                                                  297,433                             284,502                           288,018
                                                                                              =======                                                  =======                             =======                           =======


    Weighted average common shares
     outstanding -diluted                                                                     278,917                                                  310,512                             291,256                           312,302
                                                                                              =======                                                  =======                             =======                           =======

                                                     Cadence Design Systems, Inc.

                                            Condensed Consolidated Statements of Cash Flows

                                       For the Years Ended December 31, 2016 and January 2, 2016

                                                            (In thousands)

                                                              (Unaudited)



                                                                Years Ended
                                                                -----------

                                                                December 31,                     January 2,

                                                                                     2016                         2016
                                                                                     ----                         ----


    Cash and cash equivalents
     at beginning of year                                                        $616,686                     $932,161

    Cash flows from operating
     activities:

       Net income                                                                 203,086                      252,417

       Adjustments to reconcile
        net income to net cash
        provided by operating
        activities:

          Depreciation and
           amortization                                                           119,588                      118,165

          Amortization of debt
           discount and fees                                                        1,069                        9,402

          Stock-based compensation                                                109,217                       92,341

          Gain on investments, net                                                (4,725)                     (2,124)

          Gain on sale of property,
           plant and equipment                                                      (923)                           -

          Deferred income taxes                                                   (4,869)                    (13,148)

          Other non-cash items                                                      4,027                          646

          Changes in operating assets
           and liabilities, net of
           effect of acquired
           businesses:

             Receivables                                                          (3,299)                    (44,732)

             Inventories                                                            4,934                      (1,120)

             Prepaid expenses and other                                           (6,903)                     (1,380)

             Other assets                                                         (6,566)                     (1,558)

             Accounts payable and
              accrued liabilities                                                   2,655                       15,321

             Deferred revenue                                                      30,742                     (27,019)

             Other long-term
              liabilities                                                         (3,154)                    (19,011)

                Net cash provided by
                 operating activities                                             444,879                      378,200
                                                                                  -------                      -------


    Cash flows from investing
     activities:

      Purchases of available-
       for-sale securities                                                       (20,525)                    (96,531)

      Proceeds from the sale of
       available-for-sale
       securities                                                                  55,619                       60,949

      Proceeds from the maturity
       of available-for-sale
       securities                                                                  57,762                       31,316

      Proceeds from the sale of
       long-term investments                                                        2,917                        4,570

      Proceeds from the sale of
       property, plant and
       equipment                                                                      923                            -

      Purchases of property,
       plant and equipment                                                       (53,712)                    (44,808)

      Cash paid in business
       combinations and asset
       acquisitions, net of cash
       acquired                                                                  (41,627)                           -

               Net cash provided by (used
                for) investing activities                                           1,357                     (44,504)
                                                                                    -----                      -------


    Cash flows from financing
     activities:

      Proceeds from term loan                                                     300,000                            -

      Proceeds from revolving
       credit facility                                                            115,000                            -

      Payment on revolving credit
       facility                                                                  (65,000)                           -

      Payment of debt issuance
       costs                                                                        (622)                           -

      Payment of convertible
       notes                                                                            -                   (349,999)

      Payment of convertible
       notes embedded conversion
       derivative liability                                                             -                   (530,643)

      Proceeds from convertible
       notes hedges                                                                     -                     530,643

      Excess tax benefits from
       stock-based compensation                                                         -                      15,591

      Proceeds from issuance of
       common stock                                                                55,440                       74,938

      Stock received for payment
       of employee taxes on
       vesting of restricted
       stock                                                                     (37,226)                    (33,651)

      Payments for repurchases of
       common stock                                                             (960,289)                   (333,189)

               Net cash used for financing
                activities                                                      (592,697)                   (626,310)
                                                                                 --------                     --------


    Effect of exchange rate
     changes on cash and cash
     equivalents                                                                  (4,993)                    (22,861)
                                                                                   ------                      -------


    Decrease in cash and cash
     equivalents                                                                (151,454)                   (315,475)
                                                                                 --------                     --------


    Cash and cash equivalents
     at end of year                                                              $465,232                     $616,686
                                                                                 ========                     ========

                                                        Cadence Design Systems, Inc.

                                                                 (Unaudited)




    Revenue Mix by Geography (%
     of Total Revenue)

                                                 2015                               2016
                                                 ----                               ----

    GEOGRAPHY                        Q1       Q2            Q3                  Q4        Year       Q1       Q2       Q3       Q4      Year
    ---------                       ---      ---           ---                 ---        ----      ---      ---      ---      ---      ----


     Americas                            47%        48%           48%                 48%       47%      49%      47%      46%      48%       48%

     Asia                                24%        23%           25%                 25%       24%      22%      24%      27%      25%       24%

     Europe, Middle East and
      Africa                             19%        20%           18%                 17%       19%      19%      20%      19%      19%       19%

     Japan                               10%         9%            9%                 10%       10%      10%       9%       8%       8%        9%

    Total                               100%       100%          100%                100%      100%     100%     100%     100%     100%      100%





    Revenue Mix by Product Group
     (% of Total Revenue)

                                                 2015                               2016
                                                 ----                               ----

    PRODUCT GROUP                    Q1       Q2            Q3                  Q4        Year       Q1       Q2       Q3       Q4      Year
    -------------                   ---      ---           ---                 ---        ----      ---      ---      ---      ---      ----


      Functional Verification,
       including Emulation and
       Prototyping Hardware              23%        21%           23%                 25%       23%      26%      27%      24%      25%       25%

      Digital IC Design and Signoff      28%        29%           28%                 28%       28%      30%      27%      28%      30%       29%

      Custom IC Design                   27%        27%           26%                 25%       26%      25%      26%      27%      25%       25%

      System Interconnect and
       Analysis                          11%        11%           10%                 10%       11%       9%      10%      10%       9%       10%

      IP                                 11%        12%           13%                 12%       12%      10%      10%      11%      11%       11%

    Total                               100%       100%          100%                100%      100%     100%     100%     100%     100%      100%

                                         Cadence Design Systems, Inc.

                                            As of February 1, 2017

                Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share

                                                  (Unaudited)



                                          Three Months Ending                                     Year Ending

                                             April 1, 2017                                     December 30, 2017

                                               Forecast                                             Forecast
                                               --------                                             --------


    Diluted net income per
     share on a GAAP basis                            $0.19 to $0.21                              $0.89 to $0.99


                                   Amortization of acquired
                                   intangibles                                           0.05                       0.20

                                  Stock-based compensation expense                       0.11                       0.47

                                   Acquisition and integration-
                                   related costs                                         0.01                       0.01

                                   Income tax effect of non-GAAP
                                   adjustments                                         (0.06)                    (0.25)


    Diluted net income per
     share on a non-GAAP
     basis**                                           $0.30 to $0.32                              $1.32 to $1.42
                                                      ==============                              ==============





                                         Cadence Design Systems, Inc.

                                            As of February 1, 2017

                         Impact of Non-GAAP Adjustments on Forward Looking Net Income

                                                  (Unaudited)



                                          Three Months Ending                                     Year Ending

                                             April 1, 2017                                     December 30, 2017

    ($ in millions)                            Forecast                                             Forecast
                                               --------                                             --------


    Net income on a GAAP basis                            $53 to $59                                $248 to $276


                                   Amortization of acquired
                                   intangibles                                             14                         56

                                  Stock-based compensation expense                         31                        132

                                   Acquisition and integration-
                                   related costs                                            1                          3

                                   Income tax effect of non-GAAP
                                   adjustments                                           (16)                      (71)


    Net income on a non-GAAP
     basis**                                               $83 to $89                                $368 to $396
                                                          ==========                                ============


    **The non-GAAP measures presented
     in the table above should not be
     considered a substitute for
     financial results and measures
     determined or calculated in
     accordance with GAAP.

SOURCE CDNS-IR

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cadence-reports-fourth-quarter-and-fiscal-year-2016-financial-results-300400700.html

SOURCE Cadence Design Systems, Inc.