Cadence Reports Q2 2010 Financial Results

Using Cadence’s non-GAAP measure, net income in the second quarter of 2010 was $18 million, or $0.07 per share on a diluted basis, including the reversal of $10 million in bad debt reserves, as compared to a net loss of $13 million, or $(0.05) per share on a diluted basis, in the same period in 2009.



“The Cadence team executed and delivered solid results in the second quarter,” said Lip-Bu Tan, president and chief executive officer. “The combination of our strong technology portfolio with the closer collaboration of our sales and R&D teams is yielding results.”



“Business improved for us in all geographies, and the combination of stronger business performance and a lower expense base helped improve our top and bottom lines,” said Kevin S. Palatnik, senior vice president and chief financial officer.



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 or net loss, which excludes, as applicable, amortization of intangible assets, stock-based compensation expense, integration and acquisition-related costs, acquisition-related income tax benefits, shareholder litigation costs, gains or losses and expenses or credits related to non-qualified deferred compensation plan assets, 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 or net loss 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.