Cadence Design Systems Inc (NASDAQ:CDNS) stock rose 3.21% (As on Oct 26, 11:33:41 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 21. Digital and Signoff, had another strong quarter with 18% year-over-year revenue growth. The company is very pleased with the growing momentum of our transformative Cadence Cerebrus solution, that incorporates unique reinforcement learning AI / ML technology, to deliver significant PPA, power, performance, and area and productivity gains. Verification business had a strong quarter with 13% year-over-year revenue growth. Growing system design complexity and need to get first time right silicon, continues to drive strong demand for our Verification Suite, which provides a comprehensive solution across IP, SoC and system verification, hardware/software regressions, and early software development. In Verification software, Xcelium-ML, the company’s machine learning optimized logic simulator delivered up to 5 times faster regressions, was adopted by marquee customers in North America and Asia. The company had launched the Helium Virtual and Hybrid Studio, a new platform that accelerates the creation of hybrid and virtual prototypes of complex systems, enabling early software bring up. System Design & Analysis, continues to deliver strong, double digit growth, increasing revenue by 17% year-over-year, as the company grew the footprint in several verticals including Aerospace & Defense and 5G communications.

CDNS in the third quarter of FY 21 has reported the adjusted earnings per share of 80 cents, beating the analysts’ estimates for the adjusted earnings per share of 75 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $750.9 million in the third quarter of FY 21, beating the analysts’ estimates for revenue of $739.6 million. Overall, cash totaled $1.014 billion at quarter end while the principal value of debt outstanding was $350 million, operating cash flow was $296 million, DSOs were 40 days, and the company repurchased $110 million of Cadence shares during the quarter.

For the fourth quarter ending in December, Cadence expects its per-share earnings to range from 76 cents to 80 cents. The company said it expects revenue to be in the range of $745 million to $765 million for the fiscal fourth quarter. Fourth quarter operating margin is expected to be approximately 35 percent.

Cadence expects full-year earnings to be in the range of $3.24 to $3.28 per share, with revenue ranging from $2.96 billion to $2.98 billion. The operating margin for 2021 is expected to be approximately 37 percent.