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Cadence Design Systems, Inc. | ||||||||
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Supplemental Reconciliation of Certain GAAP to Non-GAAP Measures | ||||||||
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For the Three Months Ended July 4, 2015 | ||||||||
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(In thousands) | ||||||||
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(Unaudited) | ||||||||
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Three Months Ended | ||||
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July 4, 2015 |
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GAAP |
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Adjustments |
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Non-GAAP* |
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Revenue: |
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Product and maintenance |
$ 384,951 |
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$ - |
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$ 384,951 | ||
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Services |
30,932 |
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- |
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30,932 | ||
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Total revenue |
415,883 |
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- |
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415,883 | |
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Costs and expenses: |
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Cost of product and maintenance |
31,715 |
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(10,660) |
(A) |
21,055 | ||
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Cost of services |
20,040 |
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(810) |
(A) |
19,230 | ||
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Marketing and sales |
96,662 |
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(5,338) |
(A) |
91,324 | ||
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Research and development |
157,974 |
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(12,974) |
(A) |
145,000 | ||
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General and administrative |
27,467 |
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(3,744) |
(A) |
23,723 | ||
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Amortization of acquired intangibles |
6,119 |
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(6,119) |
(A) |
- | ||
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Restructuring and other charges (credits) |
(498) |
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498 |
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- | ||
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Total costs and expenses |
339,479 |
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(39,147) |
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300,332 | |
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Income from operations |
76,404 |
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39,147 |
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115,551 |
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Interest expense |
(8,180) |
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2,470 |
(B) |
(5,710) | ||
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Other income, net |
1,347 |
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(311) |
(C) |
1,036 | ||
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Income before provision for income taxes |
69,571 |
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41,306 |
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110,877 |
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Provision for income taxes |
11,411 |
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14,091 |
(D) |
25,502 | ||
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Net income |
$ 58,160 |
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$ 27,215 |
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$ 85,375 |
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* 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. | |||||||||
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Notes: |
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(A) For the three months ended July 4, 2015, adjustments to GAAP are as follows for the line items specified: | |||||||||
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Amortization of
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Stock-based
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Non-qualified
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Acquisition and
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Total
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Cost of product and maintenance |
$ 10,105 |
$ 558 |
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$ (3) |
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$ - |
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$ 10,660 | |
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Cost of services |
- |
815 |
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(5) |
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- |
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810 | |
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Marketing and sales |
- |
5,236 |
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(12) |
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114 |
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5,338 | |
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Research and development |
- |
11,401 |
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22 |
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1,551 |
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12,974 | |
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General and administrative |
- |
3,693 |
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35 |
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16 |
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3,744 | |
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Amortization of acquired intangibles |
6,119 |
- |
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- |
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- |
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6,119 | |
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Total |
$ 16,224 |
$ 21,703 |
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$ 37 |
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$ 1,681 |
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$ 39,645 |
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(B) Amortization of debt discount related to convertible notes | |||||||||
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(C) Other income or expense related to investments and non-qualified deferred compensation plan assets | |||||||||
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(D) Income tax effect of non-GAAP adjustments | |||||||||
