Cadence Design Systems Inc (NASDAQ:CDNS) stock fell 2.06% (As on April 23, 11:28:12 AM UTC-4, Source: Google Finance) after the company posted mixed results for the first quarter of FY 24. The Quarter-end backlog was $6.0 billion and current remaining performance obligations (“cRPO”), contract revenue expected to be recognized as revenue in the next 12 months, was $3.1 billion. The non-GAAP operating margin was of 38%, slightly down from 42% the previous year. Last week the company had launched the third generation Dynamic Duo – the Palladium Z3 emulation and Protium X3 prototyping platforms, to address the insatiable demand for higher performance and increased capacity hardware accelerated verification solutions. CDNS has also introduced the Cadence Reality Digital Twin Platform which virtualizes the entire data center and uses AI, high-performance computing and physics-based simulation to significantly improve data center energy efficiency by up to 30%. Additionally, Cadence’s cloud-native molecular design platform Orion will be supercharged with NVIDIA’s BioNeMo and NVIDIA microservices for drug discovery, to broaden therapeutic design capabilities and shorten time to trusted results.

Further, the company has announced a collaboration with Arm to develop a chiplet-based reference design and software development platform to accelerate software-defined vehicle innovation. The company has also further extended our strategic partnership with Dassault Systemes, integrating our AI driven PCB solutions with Dassault’s 3DEXPERIENCE Works portfolio, enabling up to a 5x reduction in design turnaround time for SOLIDWORKS customers.

CDNS in the first quarter of FY 24 has reported the adjusted earnings per share of $1.17, beating the analysts’ estimates for the adjusted earnings per share of $1.13, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $1.01 billion in the first quarter of FY 24, missing the analysts’ estimates for revenue by 0.49%.

For fiscal year 2024, the company expects revenue to be in the range of $4.56 billion to $4.62 billion, Non-GAAP operating margin in the range of 42% to 43% and Non-GAAP diluted net income per share to be in the range of $5.88 to $5.98. For the second quarter of 2024, the company expects revenue to be in the range of $1.03 billion to $1.05 billion, Non-GAAP operating margin in the range of 38.5% to 39.5% and Non-GAAP diluted net income per share to be in the range of $1.20 to $1.24.