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LONDON, November 4, 2014 — (PRNewswire) —Investor-Edge.com has issued free post-earnings coverage on Cadence Design Systems Inc. (NASDAQ: CDNS). On October 20, 2014, the company reported its financial results for Q3 FY14 (period ended September 27, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Cadence Design Systems Inc. (Cadence Design). During Q3 FY14, the company's non-GAAP net income increased by $17 million on a Y-o-Y basis and non-GAAP diluted EPS was up by $0.05 from the preceding year quarter. Our free coverage report can be accessed at:
www.investor-edge.com/register
Earnings Overview
During Q3 FY14, Cadence Design reported revenue of $400.50 million compared to $366.65 million in the same period last year. The company's revenue during the reported quarter came slightly above Bloomberg analysts' forecast of $396.18 million. On a GAAP basis, the company's Q3 FY14 operating income increased to $54.05 million from $47.93 million in the prior-year quarter. Further, the company recognized GAAP net income of $37.54 million, or $0.12 per diluted share, in Q3 FY14 compared to $38.50 million, or $0.13 per diluted share, in the year-ago quarter. The free research on CDNS can be downloaded as in PDF format at:
www.Investor-Edge.com/CDNSFreeReport
On a non-GAAP basis, the company's net income increased to $79.55 million, or $0.26 per diluted share, in Q3 FY14, from $63.40 million, or $0.21 per diluted share, in the same quarter last year. Analysts from Bloomberg had expected the company to report non-GAAP net income of $72.90 million, or $0.24 per diluted share, in Q3 FY14.
Lip-Bu Tan, President and CEO of Cadence Design, stated that the company continued to drive growth in Q3, with wins in core EDA and its expanding systems business. He further added that the company won significant new business in digital and signoff at the most advanced nodes, its Incisive® simulation business is at the highest level in years, and IP had a record quarter. Mr. Tan noted that the company continues to invest in innovation, and it announced two new products in Q3 FY14. Sign up and read the free analyst's notes on CDNS at:
www.Investor-Edge.com/CDNS-04112014
Geoff Ribar, SVP and CFO of Cadence Design, affirmed that the company delivered strong Q3 results with revenue and other key operating metrics exceeding targets. He stated that consistent performance has enabled the company to issue $350 million in investment-grade bonds that will strengthen the company's capital structure and fund its continued investment in innovation.
In its guidance for Q4 FY14, the company expects total revenue in the range of $417 million to $427 million. Further, GAAP diluted EPS is estimated to be in the range of $0.16 to $0.18 and non-GAAP diluted EPS is expected to be in the range of $0.26 to $0.28. For FY14, the company projects total revenue to be in the range of $1.575 billion to $1.585 billion. Additionally, GAAP diluted EPS is expected to be in the range of $0.46 to $0.48 and non-GAAP diluted EPS is anticipated to be in the range of $0.92 to $0.94. Visit Investor-Edge and access the latest research on CDNS at:
www.Investor-Edge.com/CDNSEarningsCoverage
Stock Performance
On the following day of the earnings release, October 21, 2014, Cadence Design's stock ended the session at $16.59, down 0.18%. The stock witnessed mostly a positive momentum since then. On the last close, Monday, November 03, 2014, it finished at $18.17, 1.23% above its previous day's closing price, after vacillating between $17.89 and $18.34. A total of 3.51 million shares were traded, which was above its three months average volume of 3.12 million shares. Over the previous three trading sessions and last one month, the company's shares have advanced 3.89% and 4.73%, respectively. Also, the stock has gained 29.60% from the beginning of 2014. Shares in Cadence Design closed above their 50-day and 200-day moving averages of $17.31 and $16.27, respectively. Furthermore, the stock traded at a PE ratio of 33.38 and has a Relative Strength Index (RSI) of 64.88.
Sneak Peek to Corporate Insider Trading
In the last one month Cadence Design has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on CDNS is available at:
www.Investor-Edge.com/CDNSInsiderTrading
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