Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three and Six Months Ended July 1, 2017 and July 2, 2016

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

July 1, 2017

July 2, 2016

July 1, 2017

July 2, 2016

Revenue:

Product and maintenance

$      443,847

$      419,963

$      895,254

$      831,707

Services

35,154

33,058

60,658

69,176

Total revenue

479,001

453,021

955,912

900,883

Costs and expenses:

Cost of product and maintenance

38,829

42,960

82,546

87,141

Cost of services

22,003

18,823

40,078

36,696

Marketing and sales

103,897

101,110

207,244

200,310

Research and development

195,901

182,371

394,187

362,277

General and administrative

32,774

36,388

64,590

64,688

Amortization of acquired intangibles

3,836

4,537

7,692

10,317

Restructuring and other charges (credits)

(929)

(74)

(2,717)

14,512

Total costs and expenses

396,311

386,115

793,620

775,941

Income from operations

82,690

66,906

162,292

124,942

Interest expense

(6,248)

(5,896)

(12,727)

(11,253)

Other income, net

924

2,842

1,983

7,605

Income before provision for income taxes

77,366

63,852

151,548

121,294

Provision for income taxes

8,239

14,517

14,162

21,397

Net income 

$        69,127

$        49,335

$      137,386

$        99,897

Net income per share - basic

$            0.25

$            0.17

$            0.51

$            0.34

Net income per share - diluted

$            0.25

$            0.17

$            0.49

$            0.33

Weighted average common shares outstanding - basic

271,887

288,191

271,030

292,403

Weighted average common shares outstanding - diluted

279,526

295,201

278,631

299,318