Cadence's management believes that non-GAAP net income or net loss provides useful supplemental information to Cadence's management and investors regarding the performance of the company's business operations and facilitates comparisons to the company's historical operating results. Cadence's management also uses this information internally for forecasting and budgeting. Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Investors and potential 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.
The following tables reconcile the specific items excluded from GAAP net loss and GAAP net loss per diluted share in the calculation of non-GAAP net income or net loss and non-GAAP net income or net loss per diluted share for the periods shown below:
Net Income (Loss) Reconciliation Three Months Ended
------------------------------
April 3, 2010 April 4, 2009
-------------- --------------
(unaudited)
(in thousands)
Net loss on a GAAP basis $ (11,785) $ (63,257)
Amortization of acquired intangibles 4,356 6,339
Stock-based compensation expense 10,372 12,728
Non-qualified deferred compensation
expenses (credits) 1,171 (6,262)
Restructuring and other charges
(credits) (1,074) (520)
Integration and acquisition-related
costs 114 195
Amortization of debt discount 5,045 4,627
Other income or expense related to
investments and non-qualified deferred
compensation plan assets* (5,564) 10,507
Income tax effect of non-GAAP
adjustments 3,021 10,484
-------------- --------------
Net income (loss) on a non-GAAP basis $ 5,656 $ (25,159)
============== ==============
* 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 (expense), net.
Diluted Net Income (Loss) per Share
Reconciliation Three Months Ended
------------------------------
April 3, 2010 April 4, 2009
-------------- --------------
(unaudited)
(in thousands, except per share data)
Diluted net loss per share on a GAAP basis $ (0.04) $ (0.25)
Amortization of acquired intangibles 0.01 0.02
Stock-based compensation expense 0.04 0.05
Non-qualified deferred compensation
expenses (credits) - (0.02)
Restructuring and other charges
(credits) - -
Integration and acquisition-related
costs - -
Amortization of debt discount 0.02 0.02
Other income or expense related to
investments and non-qualified deferred
compensation plan assets* (0.02) 0.04
Income tax effect of non-GAAP
adjustments 0.01 0.04
-------------- --------------
Diluted net income (loss) per share on a
non-GAAP basis $ 0.02 $ (0.10)
============== ==============
Shares used in calculation of diluted net
loss per share -- GAAP** 262,597 254,302
Shares used in calculation of diluted net
income (loss) per share -- non-GAAP** 266,101 254,302
* 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 (expense), net.
** Shares used in the calculation of GAAP net income (loss) per share are
expected to be the same as shares used in the calculation of non-GAAP
net income (loss) 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.
