Cadence Design Systems, Inc. (CDNS) experienced a significant price drop of $16.34, representing a 4.86% decrease from the previous close. Trading volume surged to $2.57 million, 94.36% above the average, indicating heightened investor activity.
In the latest quarterly earnings report released on April 26th, CDNS reported earnings per share (EPS) of $1.91, in line with consensus estimates.
CDNS generated a free cash flow of $512.45 million, with notable activities including issuing $7.83 million in common stock and repurchasing $200 million. The net change in cash stood at $248 million, ending the period with $3 billion in cash reserves.
Revenues reached $1.44 billion, yielding a gross profit of $1.25 billion. Operating income totaled $465.23 million, leading to a net income of $388.14 million. Earnings per share (EPS) and diluted EPS were reported at $1.43 and $1.42, respectively.
Key financial ratios for CDNS include a net profit margin of 26.95%, return on equity of 7.09%, and a price-to-earnings ratio of 54.55. Notably, the company maintains a healthy quick ratio of 2.67 and a gross profit margin of 86.9%.
CDNS holds $3 billion in cash and cash equivalents, with total assets amounting to $10.15 billion. Total liabilities stand at $4.68 billion, resulting in a net debt position of -$521.17 million.
This comprehensive financial snapshot reveals the current challenges and opportunities facing CDNS in the market.
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus logic synthesis and Joules RTL power solutions, as well as Modus software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for silicon manufacturing. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP and memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company serves 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile, consumer, and hyperscale computing markets. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.