Cadence Design Systems Inc (NASDAQ: CDNS) stock rose over 0.8% on July 24th, 2018 (Source: Google finance) after the company reported better than expected results for the second quarter 2018. The company has reported the net income for the second quarter of 2018 of $124 million, as compared to non-GAAP net income of $94 million for the same period in 2017. Further, the company had notable wins in Aerospace & Defense and introduced Cadence Cloud, which is the industry’s first broad cloud portfolio for the development of electronic systems and semiconductors. The company’s system design enablement strategy is perfectly positioned to enable the data-driven economy and the multiple key technology waves driving it. CDNS is increasing the footprint with systems companies and tailoring the solutions to vertical market segments.
CDNS in the second quarter of FY 18 has reported the adjusted earnings per share of 45 cents, beating the analysts’ estimates for the adjusted earnings per share of 40 cents. The company had reported the adjusted revenue growth of 35.9 percent to $518.4 million in the second quarter of FY 18, beating the analysts’ estimates for revenue of $515.3 million. In the second quarter, CDNS has repurchased $50 million of Cadence shares.
For the third quarter 2018, CDNS expects its per-share earnings to be in the range of 40 cents to 42 cents. The company expects the revenue in the range of $510 million to $520 million for the fiscal third quarter. Non-GAAP operating margin is expected to be in the range of 27% to 28%.
CDNS expects full-year 2018 earnings in the range of $1.64 to $1.70 per share, and the revenue is expected to be in the range of $2.07 billion to $2.09 billion. Cash flow especially strong, has raised outlook to midpoint of $550 million for 2018, which would be growth of 17% over 2017. For 2018, the company is forecasting a non-GAAP income tax rate of 16 percent, down from 23 percent used in 2017, primarily due to the tax rate reduction. The company expect to repurchase $50 million of CDNS shares per quarter in 2018.
On the other hand, CDNS has enhanced the Cadence Voltus IC Power Integrity Solution with an extensively parallel (XP) algorithm option employing distributed processing technology for power grid signoff at advanced-node process technologies. This new algorithm, which provides performance improvements up to 5X and works on giga-scale designs, enhances the Voltus solution’s massively parallel execution with more efficient near-linear performance scalability on thousands of CPUs and hundreds of machines, and is also cloud ready.