Cadence Design Systems, Inc. (CDNS) has reported 16.63 percent fall in profit for the quarter ended Oct. 01, 2016. The company has earned $64.71 million, or $0.23 a share in the quarter, compared with $77.62 million, or $0.25 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $84.82 million, or $0.30 a share compared with $88.85 million or $0.28 a share, a year ago. Revenue during the quarter went up marginally by 2.87 percent to $446.22 million from $433.76 million in the previous year period. Gross margin for the quarter expanded 235 basis points over the previous year period to 87.31 percent. Total expenses were 85.02 percent of quarterly revenues, up from 82.04 percent for the same period last year. That has resulted in a contraction of 298 basis points in operating margin to 14.98 percent.
Operating income for the quarter was $66.84 million, compared with $77.90 million in the previous year period.
“We continued to make progress on our System Design Enablement strategy in the third quarter, which resulted in solid financial results,” said Lip-Bu Tan, president and chief executive officer. “Our digital and signoff solutions maintained their momentum with market-shaping customers; five new systems customers, including a major aerospace company, adopted our Palladium Z1 emulation platform; and we increased our expansion into automotive functional safety verification.”
For the fourth-quarter, Cadence Design Systems, Inc. forecasts revenue to be in the range of $463 million to $473 million. Cadence Design Systems forecasts revenue to be in the range of $1,810 million to $1,820 million for fiscal year 2016. The company expects diluted earnings per share to be in the range of $0.18 to $0.20 for the fourth-quarter. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $0.74 to $0.76. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.32 to $0.34 for the fourth-quarter. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $1.19 to $1.21 on adjusted basis.
Operating cash flow falls marginally
Cadence Design Systems, Inc. has generated cash of $248.02 million from operating activities during the nine month period, down 2.87 percent or $7.33 million, when compared with the last year period. Cash flow from investing activities was $6.57 million for the nine month period as against cash outgo of $34.53 million in the last year period.
The company has spent $356.06 million cash to carry out financing activities during the nine month period as against cash outgo of $518.54 million in the last year period.
Cash and cash equivalents stood at $524.33 million as on Oct. 01, 2016, down 14.89 percent or $91.76 million from $616.09 million on Oct. 03, 2015.
Working capital drops significantly
Cadence Design Systems, Inc. has witnessed a decline in the working capital over the last year. It stood at $260.97 million as at Oct. 01, 2016, down 50.99 percent or $271.47 million from $532.44 million on Oct. 03, 2015. Current ratio was at 1.49 as on Oct. 01, 2016, down from 2.04 on Oct. 03, 2015.
Days sales outstanding went down to 14 days for the quarter compared with 28 days for the same period last year.
Debt increases substantially
Cadence Design Systems, Inc. has witnessed an increase in total debt over the last one year. It stood at $693.28 million as on Oct. 01, 2016, up 98.78 percent or $344.52 million from $348.76 million on Oct. 03, 2015. Short-term debt stood at $50 million as on Oct. 01, 2016. Total debt was 31.60 percent of total assets as on Oct. 01, 2016, compared with 14.96 percent on Oct. 03, 2015. Debt to equity ratio was at 0.75 as on Oct. 01, 2016, up from 0.25 as on Oct. 03, 2015. Interest coverage ratio deteriorated to 11.04 for the quarter from 18.65 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
