Cadence Design Systems Inc (NASDAQ: CDNS) stock surged over 11% on 22nd October, 2018 after hours session(Source: Google finance) after the company posted better than expected results for the third quarter of FY 18. CDNS has unveiled the industry’s first silicon-proven, long-reach 112G SerDes IP in 7nm. The Cadence 7nm 112G PAM-4 SerDes IP delivers industry-leading power, performance and area (PPA) efficiency required to build high-port density networking products for next-generation cloud-scale and telco datacenters. Cadence has been working closely with early adopter customers, who have expressed strong interest in this innovative technology. Cadence is now ready to engage broadly with customers to enable their next-generation high-performance computing (HPC) ASICs, machine learning accelerators, and switch fabric SoCs.
Moreover, CDNS has announced that it is collaborating with Arm to enable high-performance computing (HPC) customers to execute bare metal pre-silicon verification compliance tests through the Arm Server Base System Architecture (SBSA) Compliance Suite using the Palladium Z1 Enterprise Emulation Platform andPerspec System Verifier from the Cadence Verification Suite. Through the collaboration, customers can now perform compliance testing on Arm-based server systems-on-chip (SoCs) up to three months prior to Linux bring-up, shortening time-to-silicon and reducing system integration risk.
CDNS in the third quarter of FY 18 has reported the adjusted earnings per share of 49 cents, beating the analysts’ estimates for the adjusted earnings per share of 41 cents, as per analysts polled by Thomson Reuters. The company had reported the adjusted revenue of $532.5 million in the third quarter of FY 18, beating the analysts’ estimates for revenue of $516.45 million. On a non-GAAP basis, net income for the third quarter of 2018 was $137 million as compared to non-GAAP net income of $98 million for the same period in 2017.
For the fourth quarter, the company expects revenue to be in the range of $545 million to $555 million and adjusted earnings to be in the range of $0.46 to $0.48 per share. Analysts currently expect earnings of $0.42 per share and revenues of $529.63 million.
For the full year 2018, the company now expects revenues of $2.113 billion to $2.123 billion and adjusted earnings of $1.80 to $1.82 per share. Analysts currently expect earnings of $1.68 per share and revenues of $2.08 billion. Earlier, the company expected earnings of $1.64 to $1.70 per share and revenues of $2.070 to $2.090 billion.