Cadence Design Systems Inc (NASDAQ:CDNS) stock rose 5.85% (As on February 14, 11:09:07 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. In Q4, GUC successfully delivered an advanced HPC design and a CPU design using the digital full flow and Cadence Cerebrus on TSMC N5 process technology, delivering 8% reduced power and a 9% area improvement while significantly improving engineering productivity.  The verification business grew 28% year-over-year, fueled by secular trend for hardware, which had another record year. The custom IC revenue grew 13% year-over-year in 2022, with Virtuoso growth spurred by demand in advanced nodes, heterogeneous integration and the emerging silicon photonics segment. The company has added 200 new Virtuoso logos and more than 150 logos for Spectre, with Spectre FX making strong headway in fast-paced memory applications. Increasing usage of preconfigured IP blocks to reduce risk and time to market, coupled with the STAR IP portfolio, led to a strong year for our IP business, which grew 12% year-over-year in 2022. Demand was particularly strong in HPC, 5G and automotive segment with the silicon proven, high-performance PCIe Gen 5, LPDDR5 and Ethernet interfaces helping secure key wins in advanced node designs. The Tensilica DSP portfolio continued expanding its footprint in smart speakers and true wireless stereo headsets, imaging and machine learning applications. System Design & Analysis business that is expanding our TAM beyond EDA continued its strong momentum, delivering 27% year-over-year growth.

CDNS in the fourth quarter of FY 22 has reported the adjusted earnings per share of 96 cents, beating the analysts’ estimates for the adjusted earnings per share of 91 cents. The company had reported the adjusted revenue growth of 19 percent to $899.9 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $880.6 million. Operating cash flow in the fourth quarter was $264 million.

For the current quarter ending in March, Cadence expects its per-share earnings to range from $1.23 to $1.27. The company expects revenue to be in the range of $1 billion to $1.02 billion for the fiscal first quarter.

Cadence expects full-year earnings to be in the range of $4.90 to $5 per share, with revenue ranging from $4 billion to $4.06 billion. For 2023, the company expect non-GAAP operating margin of 40.5% to 42% and operating cash flow to be in the range of $1.3 billion to $1.4 billion.