8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 FORM 8-K

CURRENT REPORT PURSUANT TO

SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): April 25, 2022

CADENCE DESIGN SYSTEMS, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware	000-15867	00-0000000
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

2655 Seely Avenue, San Jose, California 95134

(Address of Principal Executive Offices) (Zip Code)

(408) 943-1234

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	CDNS	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On April 25, 2022, Cadence Design Systems, Inc. ("Cadence") issued a press release announcing its financial results for the quarter ended April 2, 2022.

A copy of the press release is attached hereto as Exhibit 99.01 and a copy of the commentary by the Chief Financial Officer of Cadence regarding Cadence's financial results for the quarter ended April 2, 2022 is attached hereto as Exhibit 99.02, and the press release and the commentary are incorporated herein by reference.

The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits

Exhibit No.	Description
99.01	Press Release issued by Cadence Design Systems, Inc. on April 25, 2022.
99.02	CFO Commentary on Results of Quarter Ended April 2, 2022.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 25, 2022

CADENCE DESIGN SYSTEMS, INC.
By:	/s/ John M. Wall
	John M. Wall
	Senior Vice President and Chief Financial Officer

EX-99.01

Exhibit 99.01

Cadence Reports First Quarter 2022 Financial Results

SAN JOSE, Calif. — April 25, 2022 — Cadence Design Systems, Inc. (Nasdaq: CDNS) today announced results for the first quarter of 2022.

Cadence reported first quarter 2022 revenue of $902 million, compared to revenue of $736 million for the same period in 2021.On a GAAP basis, Cadence achieved operating margin of 35 percent and recognized net income of $235 million, or $0.85 per share on a diluted basis, in the first quarter of 2022, compared to operating margin of 28 percent and net income of $187 million, or $0.67 per share on a diluted basis, for the same period in 2021.

Using the non-GAAP measures defined below, operating margin for the first quarter of 2022 was 44 percent and net income was $324 million, or $1.17 per share on a diluted basis, compared to operating margin of 38 percent and net income of $231 million, or $0.83 per share on a diluted basis, for the same period in 2021.

“Q1 was a strong start of the year for Cadence, as we delivered outstanding results driven by broad-based strength across our diverse product portfolio,” said Anirudh Devgan, president and chief executive officer. “Our Intelligent System Design strategy aligns well with the generational secular trends that are fueling robust design activity, and our innovative solutions are accelerating growth in both our core and our new systems businesses across a rapidly expanding customer base.”

“Q1 results reflect the success we have with our customers and partners, as well as the solid execution from the Cadence team. We benefited from strong demand for our technologies,” said John Wall, senior vice president and chief financial officer. “We exceeded all key operating metrics for the quarter and are raising our full year guidance.”

CFO Commentary

Commentary on the first quarter 2022 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.

Business Outlook

For the second quarter of 2022, the company expects total revenue in the range of $825 million to $845 million. Second quarter GAAP operating margin is expected to be in the range of 29 percent to 30 percent and GAAP net income per diluted share is expected to be in the range of $0.59 to $0.63. Using the non-GAAP measures defined below, operating margin is expected to be in the range of 39 percent to 40 percent and net income per diluted share is expected to be in the range of $0.95 to $0.99.

For fiscal year 2022, the company expects total revenue in the range of $3.395 billion to $3.435 billion. On a GAAP basis, operating margin is expected to be in the range of 28.5 percent to 30 percent and GAAP net income per diluted share for 2022 is expected to be in the range of $2.51 to $2.59. Using the non-GAAP measures defined below, operating margin for 2022 is expected to be in the range of 38.5 percent to 40 percent and net income per diluted share for 2022 is expected to be in the range of $3.89 to $3.97.

The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company’s geographic earnings mix, or other changes to the company’s strategy or business operations. The company expects to use this normalized non-GAAP tax rate through fiscal 2025 but will re-evaluate this rate periodically for significant items that may materially affect its projections.

A schedule showing reconciliations of the business outlook from GAAP operating margin, GAAP net income and GAAP diluted net income per share to non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share, respectively, is included in this release.

Audio Webcast Scheduled

Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the first quarter 2022 financial results audio webcast today, April 25, 2022, 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 April 25, 2022 at 5 p.m. (Pacific) and ending June 17, 2022 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.

About Cadence

Cadence is a pivotal leader in electronic systems design, building upon more than 30 years of computational software expertise. The company applies its underlying Intelligent System Design strategy to deliver software, hardware and IP that turn design concepts into reality. Cadence customers are the world’s most innovative companies, delivering extraordinary products from chips to boards to complete systems for the most dynamic market applications, including hyperscale computing, 5G communications, automotive, mobile, aerospace, consumer, industrial and healthcare. For eight years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at www.cadence.com.

© 2022 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

This document includes forward-looking statements which are based on current expectations and preliminary assumptions 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 highly competitive industries in which it operates; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) change in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence's products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic and industry conditions, including that of the semiconductor and electronics industries, government regulations and trade restrictions; (vi) capital expenditure requirements, legislative or regulatory requirements, changes in tax laws, interest rates, currency exchange rate fluctuations, inflation rates and Cadence’s ability to access capital and debt markets; (vii) the acquisition of other companies or technologies or the failure to successfully integrate and operate them; (viii) events that affect cash flow, liquidity, or reserves, or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (ix) the effects of any litigation, regulatory or other proceedings to which Cadence is or may become a party; and (x) the duration, severity, volatility and effects of the COVID-19 pandemic and containment measures on Cadence, its employees, and its suppliers and customers, which may also have the effect of heightening the other risks described in this paragraph. In addition, the timing and amount of Cadence's repurchase of its common stock under the authorizations will be subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.

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, stock-based compensation expense, acquisition and integration-related costs including retention expenses, 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 management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence 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 management, including forecasting and budgeting.

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

Operating Margin Reconciliation	Three Months Ended
	April 2, 2022	April 3, 2021
	(unaudited)
GAAP operating margin as a percent of total revenue	35%	28%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense	7%	7%
Amortization of acquired intangibles	2%	2%
Acquisition and integration-related costs	0%	1%
Restructuring	0%	0%
Non-qualified deferred compensation expenses (credits)	0%	0%
Non-GAAP operating margin as a percent of total revenue	44%	38%

Net Income Reconciliation	Three Months Ended
	April 2, 2022		April 3, 2021
(in thousands)	(unaudited)
Net income on a GAAP basis	$	235,335	$	187,169
Stock-based compensation expense	59,469		52,596
Amortization of acquired intangibles	16,935		16,399
Acquisition and integration-related costs	3,897		5,510
Restructuring	12		(277)
Non-qualified deferred compensation expenses (credits)	(2,568)		1,898
Other income or expense related to investments and non-qualified deferred compensation plan assets*	4,606		(3,332)
Income tax effect of non-GAAP adjustments	5,938		(28,782)
Net income on a non-GAAP basis	$	323,624	$	231,181

* Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on 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
	April 2, 2022		April 3, 2021
(in thousands, except per share data)	(unaudited)
Diluted net income per share on a GAAP basis	$	0.85	$	0.67
Stock-based compensation expense	0.22		0.19
Amortization of acquired intangibles	0.06		0.06
Acquisition and integration-related costs	0.01		0.02
Restructuring	—		—
Non-qualified deferred compensation expenses (credits)	(0.01)		—
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	0.02		(0.10)
Diluted net income per share on a non-GAAP basis	$	1.17	$	0.83
Shares used in calculation of diluted net income per share	276,918		280,140

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

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 June 17, 2022, 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 Cadence’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 Cadence. 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 Cadence’s second quarter 2022 earnings release is published, which is currently scheduled for July 25, 2022.

For more information, please contact:

Cadence Investor Relations

408-944-7100

investor_relations@cadence.com

Cadence Newsroom

408-944-7039

newsroom@cadence.com

Cadence Design Systems, Inc.

Condensed Consolidated Balance Sheets

April 2, 2022 and January 1, 2022

(In thousands)

(Unaudited)

	April 2, 2022		January 1, 2022
Current assets:
Cash and cash equivalents	$	1,134,752	$	1,088,940
Receivables, net	361,789		337,596
Inventories	110,213		115,721
Prepaid expenses and other	128,143		173,512
Total current assets	1,734,897		1,715,769
Property, plant and equipment, net	310,690		305,911
Goodwill	923,719		928,358
Acquired intangibles, net	219,110		233,265
Deferred taxes	787,111		763,770
Other assets	419,540		439,226
Total assets	$	4,395,067	$	4,386,299
Current liabilities:
Accounts payable and accrued liabilities	$	360,547	$	417,283
Current portion of deferred revenue	600,279		553,942
Total current liabilities	960,826		971,225
Long-term liabilities:
Long-term portion of deferred revenue	106,838		101,148
Long-term debt	347,792		347,588
Other long-term liabilities	219,428		225,663
Total long-term liabilities	674,058		674,399
Stockholders’ equity	2,760,183		2,740,675
Total liabilities and stockholders’ equity	$	4,395,067	$	4,386,299

Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three Months Ended April 2, 2022 and April 3, 2021

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended
	April 2, 2022		April 3, 2021
Revenue:
Product and maintenance	$	846,244	$	699,054
Services	55,522		36,974
Total revenue	901,766		736,028
Costs and expenses:
Cost of product and maintenance	72,795		64,906
Cost of services	25,048		19,061
Marketing and sales	140,186		132,826
Research and development	290,895		270,992
General and administrative	48,937		39,952
Amortization of acquired intangibles	4,964		4,631
Restructuring	12		(277)
Total costs and expenses	582,837		532,091
Income from operations	318,929		203,937
Interest expense	(4,108)		(4,217)
Other income (expense), net	(4,900)		2,701
Income before provision for income taxes	309,921		202,421
Provision for income taxes	74,586		15,252
Net income	$	235,335	$	187,169
Net income per share - basic	$	0.86	$	0.68
Net income per share - diluted	$	0.85	$	0.67
Weighted average common shares outstanding - basic	272,431		274,021
Weighted average common shares outstanding - diluted	276,918		280,140

Cadence Design Systems, Inc.

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended April 2, 2022 and April 3, 2021

(In thousands)

(Unaudited)

	Three Months Ended
	April 2, 2022		April 3, 2021
Cash and cash equivalents at beginning of period	$	1,088,940	$	928,432
Cash flows from operating activities:
Net income	235,335		187,169
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	34,825		36,218
Amortization of debt discount and fees	268		264
Stock-based compensation	59,469		52,596
(Gain) loss on investments, net	2,038		(1,433)
Deferred income taxes	(24,920)		2,710
Provisions for losses (recoveries) on receivables	(344)		77
ROU asset amortization and change in operating lease liabilities	926		(2,136)
Other non-cash items	88		302
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables	(28,426)		(45,927)
Inventories	4,580		(669)
Prepaid expenses and other	44,419		(3,014)
Other assets	11,588		6,260
Accounts payable and accrued liabilities	(58,203)		(80,769)
Deferred revenue	56,225		59,166
Other long-term liabilities	(1,260)		(2,372)
Net cash provided by operating activities	336,608		208,442
Cash flows from investing activities:
Purchases of non-marketable investments	(1,000)		—
Purchases of property, plant and equipment	(18,130)		(16,968)
Purchases of intangible assets	(750)		—
Cash paid in business combinations, net of cash acquired	—		(189,262)
Net cash used for investing activities	(19,880)		(206,230)
Cash flows from financing activities:
Proceeds from issuance of common stock	45,673		46,384
Stock received for payment of employee taxes on vesting of restricted stock	(56,343)		(56,385)
Payments for repurchases of common stock	(250,016)		(172,267)
Net cash used for financing activities	(260,686)		(182,268)
Effect of exchange rate changes on cash and cash equivalents	(10,230)		(5,395)
Increase (decrease) in cash and cash equivalents	45,812		(185,451)
Cash and cash equivalents at end of period	$	1,134,752	$	742,981

Cadence Design Systems, Inc.

(Unaudited)

Revenue Mix by Geography (% of Total Revenue)

	2021										2022
GEOGRAPHY	Q1		Q2		Q3		Q4		Year		Q1
Americas	46	%	44	%	46	%	43	%	45	%	47	%
China	12	%	14	%	13	%	12	%	13	%	16	%
Other Asia	18	%	19	%	18	%	21	%	19	%	18	%
Europe, Middle East and Africa	18	%	17	%	17	%	18	%	17	%	14	%
Japan	6	%	6	%	6	%	6	%	6	%	5	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

Revenue Mix by Product Category (% of Total Revenue)

	2021										2022
PRODUCT CATEGORY	Q1		Q2		Q3		Q4		Year		Q1
Custom IC Design and Simulation	23	%	23	%	23	%	24	%	23	%	22	%
Digital IC Design and Signoff	27	%	28	%	29	%	29	%	29	%	27	%
Functional Verification, including Emulation and Prototyping Hardware	26	%	25	%	23	%	21	%	24	%	28	%
IP	14	%	13	%	14	%	14	%	13	%	13	%
System Design and Analysis	10	%	11	%	11	%	12	%	11	%	10	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

Cadence Design Systems, Inc.

Impact of Non-GAAP Adjustments on Forward Looking Operating Margin

As of April 25, 2022

(Unaudited)

	Three Months Ending July 2, 2022	Year Ending December 31, 2022
	Forecast	Forecast
GAAP operating margin as a percent of total revenue	29% - 30%	28.5% - 30%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense	8%	8%
Amortization of acquired intangibles	2%	2%
Acquisition and integration-related costs	0%	0%
Non-qualified deferred compensation credits	0%	0%
Non-GAAP operating margin as a percent of total revenue†	39% - 40%	38.5% - 40%

† 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.

Cadence Design Systems, Inc.

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

As of April 25, 2022

(Unaudited)

	Three Months Ending July 2, 2022	Year Ending December 31, 2022
	Forecast	Forecast
Diluted net income per share on a GAAP basis	$0.59 to $0.63	$2.51 to $2.59
Stock-based compensation expense	0.23	0.98
Amortization of acquired intangibles	0.05	0.19
Acquisition and integration-related costs	0.01	0.03
Non-qualified deferred compensation credits	—	(0.01)
Other income or expense related to investments and non-qualified deferred compensation plan assets*	—	0.02
Income tax effect of non-GAAP adjustments	0.07	0.17
Diluted net income per share on a non-GAAP basis†	$0.95 to $0.99	$3.89 to $3.97

Cadence Design Systems, Inc.

Impact of Non-GAAP Adjustments on Forward Looking Net Income

As of April 25, 2022

(Unaudited)

	Three Months Ending July 2, 2022	Year Ending December 31, 2022
($ in millions)	Forecast	Forecast
Net income on a GAAP basis	$164 to $175	$697 to $719
Stock-based compensation expense	64	272
Amortization of acquired intangibles	15	52
Acquisition and integration-related costs	1	8
Non-qualified deferred compensation credits	—	(3)
Other income or expense related to investments and non-qualified deferred compensation plan assets*	—	5
Income tax effect of non-GAAP adjustments	19	49
Net income on a non-GAAP basis†	$263 to $274	$1,080 to $1,102

†
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.

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

EX-99.02

Exhibit 99.02

CADENCE REPORTS FIRST QUARTER 2022
CADENCE DESIGN SYSTEMS, INC.
CFO COMMENTARY
Key Takeaways • Q1 results exceeded expectations for key financial metrics, with backlog > $5 billion. • Raising FY 2022 outlook; expect revenue growth and non-GAAP operating margin to exceed 14% and 39%, respectively, for FY 2022. • As a result, 3-year revenue CAGR projected to exceed 13% and on track to achieve non-GAAP incremental margin of > 50% for the sixth year in a row.	Q2 2022 Outlook • Revenue : $825 - $845 million. • GAAP operating margin: 29% - 30%. • Non-GAAP operating margin: 39% - 40%. • GAAP EPS: $0.59 - $0.63 • Non-GAAP EPS: $0.95 - $0.99 • Expect to repurchase at least $125 million of Cadence shares in Q2.	Q1 2022 KEY METRICS
		• Revenue $902 million • GAAP operating margin 35% • Non-GAAP operating margin 44% • GAAP EPS $0.85 • Non-GAAP EPS $1.17 • Operating cash flow $337 million
FY 2022 Outlook • Revenue: $3.395 - $3.435 billion. • GAAP operating margin: 28.5% - 30%. • Non-GAAP operating margin: 38.5% - 40%. • GAAP EPS: $2.51 - $2.59 • Non-GAAP EPS $3.89 - $3.97 • Operating cash flow: $1.19 - $1.29 billion. • Expect to use at least 50% of free cash flow to repurchase Cadence shares for the year.	Financial Results Webcast
	Our Q1 2022 financial results webcast will begin April 25, 2022 at 2:00 p.m. (Pacific). The webcast may be accessed at www.cadence.com/cadence/investor_relations. An archive of the webcast will be available on April 25, 2022 until 5:00 p.m. (Pacific) on June 17, 2022.

April 25, 2022 Cadence Q1 2022 Financial Results 1

Cadence Design Systems, Inc.

Financial Metrics

(In Millions, except per share data)	2016		2017*		2018		2019		2020*		2021		2022E
Revenue	$	1,816	$	1,943	$	2,138	$	2,336	$	2,683	$	2,988	$3,395- $3,435
Revenue growth*	7%		7%		10%		9%		15%		11%		14% - 15%
3-year CAGR	8%		7%		8%		9%		11%		12%		~13%
3-year CAGR without 53rd week impact			8%						11%
GAAP operating expenses	$	1,571	$	1,619	$	1,742	$	1,845	$	2,037	$	2,209	~$2,404
Non-GAAP operating expenses	$	1,348	$	1,409	$	1,491	$	1,587	$	1,739	$	1,877	~$2,075
Non-GAAP operating expense growth			5%		6%		6%		10%		8%		~11%
GAAP operating margin	13%		17%		19%		21%		24%		26%
Implied GAAP operating margin**													29.25%
Non-GAAP operating margin	26%		28%		30%		32%		35%		37%
Implied Non-GAAP operating margin**													39.25%
GAAP earnings per share	$	0.70	$	0.73	$	1.23	$	3.53	$	2.11	$	2.50	$2.51 - $2.59
Non-GAAP earning per share	$	1.21	$	1.40	$	1.87	$	2.20	$	2.80	$	3.29	$3.89 - $3.97
Weighted average shares diluted outstanding	291.3		280.2		281.1		280.5		279.6		278.9		276 - 279
Cash flow from operations	445		471		605		730		905		1,101		$1,190 - $1,290
Capital expenditures	54		58		62		75		95		65		~$115

* Fiscal 2014 and 2020 were 53-week years, compared to all other years which are 52 week years. 2020 included approximately $45 million revenue impact for the extra week. 2014 revenue (which impacts the 3 year CAGR in 2017) included approximately $27 million revenue impact for the extra week.

** At midpoint of guidance.

Profitability Trends

(In Millions)	2016		2017		2018		2019		2020		2021		2022E
Revenue	$	1,816	$	1,943	$	2,138	$	2,336	$	2,683	$	2,988	$	3,415
Revenue Growth	7%		7%		10%		9%		15%		11%		~14%
3-Year Revenue Growth CAGR	8%		7%		8%		9%		11%		12%		~13%
Non-GAAP operating margin	26%		28%		30%		32%		35%		37%		38.5% - 40%
Stock-based compensation	(6)%		(7)%		(8)%		(8)%		(7)%		(7)%		~(8)%
Non-GAAP operating margin adjusted for stock-based compensation	20%		21%		22%		24%		28%		30%		30.5% - 32%
Non-GAAP operating income	$	469	$	534	$	647	$	749	$	944	$	1,111	$	1,340
Non-GAAP operating income adjusted for stock-based compensation	$	360	$	404	$	479	$	567	$	747	$	901	$	1,068

April 25, 2022 Cadence Q1 2022 Financial Results 2

Cadence Design Systems, Inc.

Second Quarter 2022 Financial Outlook

	Q2 2021		Q1 2022		Q2 2022E
Total Revenue ($ Millions)	$	728	$	902	$825 - $845
Q/Q Growth			17%		(9)% - (6)%
Y/Y Growth			23%		13% - 16%
GAAP Operating Margin	25%		35%		29% - 30%
Non-GAAP Operating Margin	39%		44%		39% - 40%
GAAP EPS	$	0.56	$	0.85	$0.59 - $0.63
Non-GAAP EPS	$	0.86	$	1.17	$0.95 - $0.99
Q/Q Growth			43%		(19)% -(15)%
Y/Y Growth			41%		10% -15%

Fiscal Year 2022 Financial Outlook

			Previous	Current
	FY 2021		FY 2022E	FY 2022E
Recurring Revenue	85% - 90%		85% - 90%	85% - 90%
Total Revenue ($ Millions)	$	2,988	$3,320 - $3,380	$3,395 - $3,435
Y/Y Growth	11%		11% - 13%	14% - 15%
Revenue from Beginning Backlog	~70%		~75%	~75%
GAAP Operating Margin	26.1%		27.5% - 29%	28.5% - 30%
Non-GAAP Operating Margin	37.2%		37.5% - 39%	38.5% - 40%
GAAP Other Income & Expense ($ Millions)	$	(11)	$(15) - $(23)	$(21) - $(27)
Non-GAAP Other Income & Expense ($ Millions)	$	(17)	$(15) - $(23)	$(16) - $(22)
GAAP Tax Rate	9%		~25%	~28%
Non-GAAP Tax Rate	16%		17.5%	17.5%
Weighted Average Diluted Shares Outstanding (Millions)	278.9		277 - 279	276 - 279
GAAP EPS	$	2.50	$2.46 - $2.56	$2.51 - $2.59
Non-GAAP EPS	$	3.29	$3.70 - $3.80	$3.89 - $3.97
Y/Y Growth	18%		12% - 16%	18% - 21%
Cash Flow from Operations ($ Millions)	$	1,101	$1,150 - $1,250	$1,190 - $1,290
DSO	40		~45	~45
Capital Expenditures ($ Millions)	$	65	~$125	~$115

April 25, 2022 Cadence Q1 2022 Financial Results 3

Cadence Design Systems, Inc.

First Quarter Financial Results

Backlog

(In Billions)	2018		2019		2020		2021		Q1 2022
Backlog	$	3.0	$	3.6	$	3.9	$	4.4	$	5.1

Revenue

(In Millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
Product and Maintenance	$	699	$	688	$	706	$	720	$	846
Services	37		40		45		53		56
Total Revenue	$	736	$	728	$	751	$	773	$	902

Recurring and Up-Front Revenue

	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
Revenue recognized over time	82	%	84	%	86	%	88	%	81	%
Revenue from arrangements with non-cancelable commitments	4	%	3	%	3	%	3	%	2	%
Recurring Revenue	86	%	87	%	89	%	91	%	83	%
Up-Front Revenue	14	%	13	%	11	%	9	%	17	%
Total	100	%	100	%	100	%	100	%	100	%

Trailing Twelve Months Recurring and Up-Front Revenue

	Trailing Twelve Months Ended
	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
Recurring Revenue	87	%	87	%	87	%	88	%	87	%
Up-Front Revenue	13	%	13	%	13	%	12	%	13	%
Total	100	%	100	%	100	%	100	%	100	%

Revenue Mix by Geography

(% of Total Revenue)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
Americas	46	%	44	%	46	%	43	%	47	%
China	12	%	14	%	13	%	12	%	16	%
Other Asia	18	%	19	%	18	%	21	%	18	%
Europe, Middle East and Africa	18	%	17	%	17	%	18	%	14	%
Japan	6	%	6	%	6	%	6	%	5	%
Total	100	%	100	%	100	%	100	%	100	%

Revenue Mix by Product Category

(% of Total Revenue)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
Custom IC Design and Simulation	23	%	23	%	23	%	24	%	22	%
Digital IC Design and Signoff	27	%	28	%	29	%	29	%	27	%
Functional Verification	26	%	25	%	23	%	21	%	28	%
IP	14	%	13	%	14	%	14	%	13	%
System Design and Analysis	10	%	11	%	11	%	12	%	10	%
Total	100	%	100	%	100	%	100	%	100	%

April 25, 2022 Cadence Q1 2022 Financial Results 4

Cadence Design Systems, Inc.

Gross Margin

	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
GAAP Gross Margin	88.6	%	89.5	%	89.8	%	91.0	%	89.1	%
Non-GAAP Gross Margin	90.4	%	91.8	%	91.6	%	92.7	%	90.7	%

Total Costs and Expenses

(In Millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
Total GAAP Costs and Expenses	$	532	$	543	$	557	$	577	$	583
Total Non-GAAP Costs and Expenses	$	456	$	441	$	483	$	498	$	505

Operating Margin

	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
GAAP Operating Margin	27.7	%	25.5	%	25.8	%	25.3	%	35.4	%
Non-GAAP Operating Margin	38.1	%	39.5	%	35.7	%	35.5	%	44.0	%

Earnings Per Share

	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
GAAP Net Income Per Share	$	0.67	$	0.56	$	0.63	$	0.63	$	0.85
Non-GAAP Net Income Per Share	$	0.83	$	0.86	$	0.80	$	0.82	$	1.17

Total DSO

	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
DSO	48	49	40	40	37

Balance Sheet and Cash Review

Free Cash Flow

(In Millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
Net Cash from Operating Activities	$	208	$	380	$	296	$	216	$	337
Capital Expenditures	17		14		19		15		18
Free Cash Flow	$	191	$	366	$	277	$	201	$	319

Cash and Cash Equivalents

(In Millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
Cash and Cash Equivalents	$	743	$	847	$	1,014	$	1,089	$	1,135

•Approximately 37 percent of our cash and cash equivalents were in the U.S. at quarter-end.

Share Repurchase

(In Millions, Except Share Price)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
Share Repurchase	$	172	$	220	$	110	$	110	$	250
Number of Shares	1.323		1.720		0.723		0.635		1.566
Average Share Price	$	130.01	$	127.91	$	152.14	$	173.22	$	159.64

Employees

	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Headcount	8,990	9,092	9,257	9,298	9,411

April 25, 2022 Cadence Q1 2022 Financial Results 5

Cadence Design Systems, Inc.

Forward Looking Statements

The statements in this CFO Commentary contain forward-looking statements which are based on current expectations and preliminary assumptions 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 highly competitive industries in which it operates; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) change in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence's products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic and industry conditions, including that of the semiconductor and electronics industries, government regulations and trade restrictions; (vi) capital expenditure requirements, legislative or regulatory requirements, changes in tax laws, interest rates, currency exchange rate fluctuations, inflation rates and Cadence’s ability to access capital and debt markets; (vii) the acquisition of other companies or technologies or the failure to successfully integrate and operate them; (viii) events that affect cash flow, liquidity, or reserves, or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (ix) the effects of any litigation, regulatory or other proceedings to which Cadence is or may become a party; and (x) the duration, severity, volatility and effects of the COVID-19 pandemic and containment measures on Cadence, its employees, and its suppliers and customers, which may also have the effect of heightening the other risks described in this paragraph. In addition, the timing and amount of Cadence's repurchase of its common stock under the authorizations will be subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.

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 GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this CFO Commentary 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. See our earnings press release issued today for further discussion of our non-GAAP financial measures, as well as the reconciliation provided in the Appendix to this CFO Commentary.

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.

© 2022 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

April 25, 2022 Cadence Q1 2022 Financial Results 6

Cadence Design Systems, Inc.

APPENDIX I

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)

Reconciliation of GAAP Total Expenses to Non-GAAP Total Expenses

(In Millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022
GAAP total costs and expenses	$	532	$	543	$	557	$	577	$	583
Reconciling items to non-GAAP total costs and expenses
Stock-based compensation expense	(53)		(50)		(53)		(54)		(59)
Amortization of acquired intangibles	(16)		(17)		(17)		(17)		(17)
Acquisition and integration-related costs	(5)		(6)		(5)		(6)		(4)
Restructuring	—		—		—		—		—
Non-qualified deferred compensation (expenses) credits	(2)		(2)		1		(2)		2
Special charges*	—		(27)		—		—		—
Non-GAAP total costs and expenses †	$	456	$	441	$	483	$	498	$	505

* Q2 2021 includes costs related to a voluntary retirement program.

† 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.

Reconciliation of GAAP Total Expenses to Non-GAAP Total Expenses

(In Millions)	2016		2017		2018		2019		2020*		2021		2022E
GAAP total costs and expenses	$	1,571	$	1,619	$	1,742	$	1,845	$	2,037	$	2,209	$	2,404
Reconciling items to non-GAAP total costs and expenses
Stock-based compensation expense	(109)		(130)		(168)		(182)		(197)		(210)		(272)
Amortization of acquired intangibles	(60)		(57)		(53)		(53)		(64)		(67)		(52)
Acquisition and integration-related costs	(11)		(8)		(20)		(8)		(23)		(23)		(8)
Restructuring	(41)		(9)		(11)		(9)		(9)		1		—
Non-qualified deferred compensation (expenses) credits	(2)		(6)		1		(5)		(5)		(6)		3
Special charges **	—		—		—		(1)		—		(27)		—
Non-GAAP total costs and expenses †	$	1,348	$	1,409	$	1,491	$	1,587	$	1,739	$	1,877	$	2,075

* Fiscal 2020 was a 53-week year.

** 2021 includes costs related to a voluntary retirement program.

† 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.

April 25, 2022 Cadence Q1 2022 Financial Results 7

Cadence Design Systems, Inc.

Reconciliation of GAAP Gross Margin as a Percent of Total Revenue to Non-GAAP Gross Margin as a Percent of Total Revenue

	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
GAAP gross margin as a percent of total revenue	88.6%	89.5%	89.8%	91.0%	89.1%
Reconciling items to non-GAAP gross margin as a percent of total revenue
Stock-based compensation expense	0.2%	0.2%	0.3%	0.2%	0.2%
Amortization of acquired intangibles	1.6%	1.7%	1.5%	1.5%	1.4%
Non-qualified deferred compensation expenses (credits)	0.0%	0.0%	0.0%	0.0%	0.0%
Special charges *	0.0%	0.4%	0.0%	0.0%	0.0%
Non-GAAP gross margin as a percent of total revenue †	90.4%	91.8%	91.6%	92.7%	90.7%

* Q2 2021 includes costs related to a voluntary retirement program.

† 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.

April 25, 2022 Cadence Q1 2022 Financial Results 8

Cadence Design Systems, Inc.

Reconciliation of GAAP Operating Margin as a Percent of Total Revenue to Non-GAAP Operating Margin as a Percent of Total Revenue

	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022E
GAAP operating margin as a percent of total revenue	28%	25%	26%	25%	35%	29% - 30%
Reconciling items to non-GAAP operating margin as a percent of total revenue
Stock-based compensation expense	7%	7%	7%	7%	7%	8%
Amortization of acquired intangibles	2%	2%	2%	2%	2%	2%
Acquisition and integration-related costs	1%	1%	1%	1%	0%	0%
Restructuring	0%	0%	0%	0%	0%	0%
Non-qualified deferred compensation expenses (credits)	0%	0%	0%	1%	0%	0%
Special charges *	0%	4%	0%	0%	0%	0%
Non-GAAP operating margin as a percent of total revenue †	38%	39%	36%	36%	44%	39% - 40%

* Q2 2021 includes costs related to a voluntary retirement program.

† 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.

	2016	2017	2018	2019	2020	2021	2022E
GAAP operating margin as a percent of total revenue	13%	17%	19%	21%	24%	26%	28.5% - 30%
Reconciling items to non-GAAP operating margin as a percent of total revenue
Stock-based compensation expense	6%	7%	8%	8%	7%	7%	8%
Amortization of acquired intangibles	4%	3%	2%	2%	3%	2%	2%
Acquisition and integration-related costs	1%	0%	1%	0%	1%	1%	0%
Restructuring	2%	1%	0%	1%	0%	0%	0%
Non-qualified deferred compensation expenses (credits)	0%	0%	0%	0%	0%	0%	0%
Special charges *	0%	0%	0%	0%	0%	1%	0%
Non-GAAP operating margin as a percent of total revenue †	26%	28%	30%	32%	35%	37%	38.5% - 40%

* 2021 includes costs related to a voluntary retirement program.

† 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.

April 25, 2022 Cadence Q1 2022 Financial Results 9

Cadence Design Systems, Inc.

Reconciliation of GAAP Diluted Net Income Per Share to Non-GAAP Diluted Net Income Per Share

(In Thousands, Except Per Share Data)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022E
Diluted net income per share on a GAAP basis	$	0.67	$	0.56	$	0.63	$	0.63	$	0.85	$0.59 - $0.63
Stock-based compensation expense	0.19		0.18		0.19		0.20		0.22		0.23
Amortization of acquired intangibles	0.06		0.06		0.06		0.06		0.06		0.05
Acquisition and integration-related costs	0.02		0.02		0.02		0.02		0.01		0.01
Restructuring	—		—		—		—		—		—
Non-qualified deferred compensation expenses (credits)	—		0.01		—		0.01		(0.01)		—
Special charges *	—		0.10		—		—		—		—
Other income or expense related to investments and non-qualified deferred compensation plan assets **	(0.01)		(0.01)		—		(0.01)		0.02		—
Income tax effect of non-GAAP adjustments	(0.10)		(0.06)		(0.10)		(0.09)		0.02		0.07
Diluted net income per share on a non-GAAP basis †	$	0.83	$	0.86	$	0.80	$	0.82	$	1.17	$0.95 - $0.99
Shares used in calculation of diluted net income per share	280,140		278,558		278,311		278,253		276,918

† 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.

* Q2 2021 includes costs related to a voluntary retirement program.

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

April 25, 2022 Cadence Q1 2022 Financial Results 10

Cadence Design Systems, Inc.

Reconciliation of GAAP Diluted Net Income Per Share to Non-GAAP Diluted Net Income Per Share

(In Thousands, Except Per Share Data)	2016		2017		2018		2019		2020		2021		2022E
Diluted net income per share on a GAAP basis	$	0.70	$	0.73	$	1.23	$	3.53	$	2.11	$	2.50	$2.51 - $2.59
Stock-based compensation expense	0.37		0.46		0.60		0.65		0.71		0.75		0.98
Amortization of acquired intangibles	0.21		0.20		0.19		0.19		0.23		0.24		0.19
Acquisition and integration-related costs	0.04		0.03		0.07		0.03		0.08		0.08		0.03
Restructuring	0.14		0.03		0.04		0.03		0.03		—		—
Non-qualified deferred compensation expenses (credits)	0.01		0.02		(0.01)		0.02		0.02		0.02		(0.01)
Special charges*	—		—		—		—		—		0.10		—
Other income or expense related to investments and non-qualified deferred compensation plan assets**	(0.02)		(0.05)		—		(0.01)		—		(0.03)		0.02
Income tax benefit related to intercompany transfers of certain intellectual property rights	—		—		—		(2.05)		—		—		—
Income tax related to transition tax	—		0.24		—		—		—		—		—
Income tax related to tax rate change	—		0.09		—		—		—		—		—
Income tax effect of non-GAAP adjustments	(0.24)		(0.35)		(0.25)		(0.19)		(0.38)		(0.37)		0.17
Diluted net income per share on a non-GAAP basis †	$	1.21	$	1.40	$	1.87	$	2.20	$	2.80	$	3.29	$3.89 - $3.97
Shares used in calculation of diluted net income per share	291,256		280,221		281,144		280,515		279,641		278,858		276 - 279M

† 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.

* 2021 includes costs related to a voluntary retirement program.

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

April 25, 2022 Cadence Q1 2022 Financial Results 11

Cadence Design Systems, Inc.

Reconciliation of GAAP Total Other Income and Expense to Non-GAAP Total Other Income and Expense

(In Millions)	FY 2020		FY 2021		FY 2022E
GAAP total other income and expense	$	(12.8)	$	(10.7)	$(21) - $(27)
Reconciling items to non-GAAP total income and expense
Other income or expense related to investments and non-qualified deferred compensation plan assets*	(0.5)		(6.7)		5
Non-GAAP total other income and expense†	$	(13.3)	$	(17.4)	$(16) - $(22)

† 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.

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

April 25, 2022 Cadence Q1 2022 Financial Results 12

XML

Document and Entity Information	Apr. 25, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Apr. 25, 2022
Entity Registrant Name	CADENCE DESIGN SYSTEMS, INC.
Entity Incorporation, State or Country Code	DE
Entity File Number	000-15867
Entity Tax Identification Number	00-0000000
Entity Address, Address Line One	2655 Seely Avenue,
Entity Address, City or Town	San Jose,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134
City Area Code	(408)
Local Phone Number	943-1234
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	CDNS
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0000813672
Amendment Flag	false