Cadence Design Systems has announced results for the third quarter of fiscal year 2011.

Using Cadence’s non-GAAP measure, net income in the third quarter of 2011 was $37 million, or $0.14 per share on a diluted basis, as compared to net income of $11 million, or $0.04 per share on a diluted basis in the same period in 2010.

“Strong design activity in multiple market segments continues to drive demand for our products and solutions,” said Lip-Bu Tan, president and chief executive officer. “In response to customer requirements, we have established our readiness for 20-nanometer design and demonstrated product leadership for the design of SoCs using advanced multi-core processors.”

“Cadence again posted strong results as operating profitability continues to improve,” added Geoff Ribar, senior vice president and chief financial officer. “Given the risks in the world economy we looked at our prospective Q4 business very closely but still see good demand for products and services as reflected in our increased outlook.”

In addition to using GAAP results to evaluate Cadence's business, management believes it is useful to measure results using a non-GAAP measure of net income, which excludes, as applicable, amortization of intangible assets, stock-based compensation expense, integration and acquisition-related costs including changes in the fair value of contingent consideration related to prior acquisitions, acquisition-related income tax benefits, income tax benefits related to the settlement of IRS examinations, shareholder litigation costs and charges, gains or losses and expenses or credits related to non-qualified deferred compensation plan assets, executive and other employee severance costs, restructuring charges and credits, amortization of discount on convertible notes, losses on extinguishment of debt, equity in losses or income from investments, write-down of investments, and gains or losses on the sale of investments. Non-GAAP net income is adjusted by the amount of additional taxes or tax benefit that the company would accrue if it used non-GAAP results instead of GAAP results to calculate the company's tax liability. See GAAP to non-GAAP Reconciliation below for further information on the non-GAAP measure.

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

Business Outlook
For the fourth quarter of 2011, the company expects total revenue in the range of $295 million to $305 million. Fourth quarter GAAP net income per diluted share is expected to be in the range of $0.08 to $0.10. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.14 to $0.16.

For 2011, the company expects total revenue in the range of $1,135 million to $1,145 million. On a GAAP basis, net income per diluted share for 2011 is expected to be in the range of $0.31 to $0.33. Using the non-GAAP measure defined below, net income per diluted share for 2011 is expected to be in the range of $0.48 to $0.50.

A schedule showing a reconciliation of the business outlook from GAAP net income and diluted net income per share to non-GAAP net income and diluted net income per share is included with this release.