Cadence Design Systems Inc (NASDAQ:CDNS) stock fell 3.87% (As on February 13, 11:27:49 AM UTC-4, Source: Google Finance) after the company beats the market’s expectations for the fourth quarter of FY 23. Year-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 $3.2 billion. System Design and Analysis, a key segment for Cadence, grew 22% year over year in 2023, driven by the company’s multiphysics platform. The Millennium Enterprise Multiphysics Platform, combining AI, HPC, and digital twin technology, is expected to further enhance the company’s competitive edge. Collaborations with strategic partners like NVIDIA, Arm, and Intel have expanded, and the company’s hardware systems, Palladium and Protium, recorded another year of strong performance, with Q1 2023 being particularly notable.

CDNS in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.38, beating the analysts’ estimates for the adjusted earnings per share of $1.34. The company had reported the adjusted revenue to $1.07 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $1.06 billion. Non-GAAP operating margin of 43%, compared to 36% in Q4 2022.

Cadence Design Systems sees FY 2024 EPS of $5.87-$5.97, versus the consensus of $5.89. Cadence Design Systems sees FY 2024 revenue of $4.55-4.61 billion, versus the consensus of $4.583 billion. Non-GAAP operating margin is expected to be in the range of 42% to 43%.GAAP diluted net income per share in the range of $4.08 to $4.18.

For the first quarter of 2024, the company expects revenue to be in the range of $990 million to $1.01 billion, Non-GAAP operating margin in the range of 36.5% to 37.5% and Non-GAAP diluted net income per share to be in the range of $1.10 to $1.14

Meanwhile, CDNS and Dassault Systèmes announced at 3DEXPERIENCE World that they have extended their ongoing strategic partnership by integrating the AI-driven Cadence OrCAD X and Allegro X with Dassault Systèmes’ extended 3DEXPERIENCE Works Portfolio, for SOLIDWORKS existing and future customers. This enables best-in-class collaboration for continuous development across PCB, 3D mechanical design and simulation. The cloud-enabled integration offers joint customers an easy-to-use, end-to-end solution for next-generation product development, enabling an up-to-5X reduction in design turnaround time. The joint solution will be available in the second quarter of 2024. The new integration offers a seamless and scalable experience to customers of different sizes, from startups to enterprises.