CDNS Cadence Design Systems

Cadence Design Systems, Inc., headquartered in San Jose, California, is an American multinational computational software company, founded in 1988 by the merger of SDA Systems and ECAD, Inc. The company produces software, hardware and silicon structures for designing integrated circuits, systems on chips and printed circuit boards. Cadence Design Systems began as an electronic design automation company, formed by the 1988 merger of Solomon Design Automation , co-founded in 1983 by Richard Newton, Alberto Sangiovanni-Vincentelli and James Solomon, and ECAD, a public company co-founded by Glen Antle and Paul Huang in 1982. SDA's CEO Joseph Costello was appointed as CEO of the newly combined company.
Company profile
Ticker
CDNS
Exchange
Website
CEO
Lip-Bu Tan
Employees
Incorporated
Location
Fiscal year end
Sector
Industry (SIC)
Microsoft • Oracle • Activision Blizzard • BlackBerry • NortonLifeLock • Adobe • Vmware • Ceridian HCM Holding • McAfee • SolarWinds ...
SEC CIK
Corporate docs
IRS number
770148231
CDNS stock data
()
News
RBC Capital Maintains Outperform on Cadence Design Systems, Raises Price Target to $160
23 Feb 21
Credit Suisse Maintains Neutral on Cadence Design Systems, Raises Price Target to $155
23 Feb 21
Needham Maintains Buy on Cadence Design Systems, Raises Price Target to $145
23 Feb 21
12 Stocks Moving In Monday's After-Hours Session
22 Feb 21
Recap: Cadence Design Systems Q4 Earnings
22 Feb 21
Press releases
Cadence's Nimish Modi to Present at Berenberg Conference
2 Mar 21
Cadence Completes Acquisition of NUMECA
24 Feb 21
Cadence Reports Fourth Quarter and Fiscal Year 2020 Financial Results
22 Feb 21
Cadence Announces $5M Endowment at Massachusetts Institute of Technology
2 Feb 21
Cadence to Acquire NUMECA to Expand System Analysis Capabilities With Computational Fluid Dynamics
20 Jan 21
Calendar
22 Feb 21
7 Mar 21
2 Jan 22
Financial summary
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Jan 21 | Dec 19 | Dec 18 | Dec 17 | |
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Financial data from company earnings reports.
Cash burn rate (estimated) | Burn method: Change in cash | Burn method: Operating income/loss | Burn method: FCF (opex + capex) | Last Q | Avg 4Q | Last Q | Avg 4Q | Last Q | Avg 4Q |
---|---|---|---|---|---|---|
Cash on hand (at last report) | 928.43M | 928.43M | 928.43M | 928.43M | 928.43M | 928.43M |
Cash burn (monthly) | 126.04M | (positive/no burn) | (positive/no burn) | (positive/no burn) | (positive/no burn) | (positive/no burn) |
Cash used (since last report) | 274.78M | n/a | n/a | n/a | n/a | n/a |
Cash remaining | 653.65M | n/a | n/a | n/a | n/a | n/a |
Runway (months of cash) | 5.2 | n/a | n/a | n/a | n/a | n/a |
Recent insider trades
Date | Owner | Security | Transaction | Code | Indirect | 10b5-1 | $Price | #Shares | $Value | #Remaining |
---|---|---|---|---|---|---|---|---|---|---|
4 Mar 21 | Chin-chi Teng | Common Stock | Payment of exercise | Dispose F | No | No | 128.81 | 1,151 | 148.26K | 178,051 |
2 Mar 21 | Mandava Surendra Babu | Common Stock | Sell | Dispose S | No | No | 142.88 | 60,000 | 8.57M | 242,334 |
2 Mar 21 | Mandava Surendra Babu | Common Stock | Option exercise | Aquire M | No | No | 30.1 | 60,000 | 1.81M | 302,334 |
2 Mar 21 | Mandava Surendra Babu | Non- Qualified Stock Option Common Stock | Option exercise | Dispose M | No | No | 30.1 | 60,000 | 1.81M | 25,000 |
26 Feb 21 | Chin-chi Teng | Common Stock | Sell | Dispose S | No | Yes | 142.34 | 50 | 7.12K | 179,202 |
26 Feb 21 | Chin-chi Teng | Common Stock | Sell | Dispose S | No | Yes | 141.68 | 1,065 | 150.89K | 179,252 |
26 Feb 21 | Chin-chi Teng | Common Stock | Sell | Dispose S | No | Yes | 140.72 | 900 | 126.65K | 180,317 |
26 Feb 21 | Chin-chi Teng | Common Stock | Sell | Dispose S | No | Yes | 139.49 | 2,985 | 416.38K | 181,217 |
25 Feb 21 | Zaman Aneel | Common Stock | Grant | Aquire A | No | No | 0 | 3,108 | 0 | 180,331 |
25 Feb 21 | Zaman Aneel | Common Stock | Grant | Aquire A | No | No | 0 | 11,238 | 0 | 177,223 |
Institutional ownership Q4 2020
85.9% owned by funds/institutions
13F holders |
Current |
---|---|
Total holders | 665 |
Opened positions | 110 |
Closed positions | 72 |
Increased positions | 251 |
Reduced positions | 231 |
13F shares |
Current |
---|---|
Total value | 32.7B |
Total shares | 239.71M |
Total puts | 736.5K |
Total calls | 741.3K |
Total put/call ratio | 1.0 |
Largest owners |
Shares | Value |
---|---|---|
BLK Blackrock | 32.27M | $4.4B |
Vanguard | 31.83M | $4.34B |
Massachusetts Financial Services | 24.66M | $3.36B |
STT State Street | 11.89M | $1.62B |
Parnassus Investments | 6.98M | $952.07M |
FMR | 6.2M | $845.8M |
Alkeon Capital Management | 5.62M | $766.2M |
Geode Capital Management | 4.99M | $679.71M |
Pictet Asset Management | 4.84M | $660.19M |
NTRS Northern Trust | 3.22M | $439.04M |
Financial report summary
?Risks
- The ongoing COVID-19 pandemic could continue to adversely affect our business, results of operations and financial condition.
- We have experienced varied operating results, and our operating results for any particular fiscal period are affected by the timing of revenue recognition, particularly for our emulation and prototyping hardware and IP products.
- We have acquired and expect to acquire other companies and businesses and may not realize the expected benefits of these acquisitions.
- We make and expect to make strategic investments and may not realize the expected benefits of these investments.
- Failure to obtain export licenses or restrictions on trade imposed by the United States or other countries could harm our business by rendering us unable to sell or ship products and transfer our technology outside of the United States.
- The effect of foreign exchange rate fluctuations may adversely impact our revenue, expenses, cash flows and financial condition.
- We could suffer serious harm to our business because of the infringement of our intellectual property rights by third parties or because of our infringement of the intellectual property rights of third parties, as well as any associated efforts to enforce such rights, including through intellectual property litigation.
- If our security measures are breached or vulnerabilities are discovered in our products and services, and an unauthorized party obtains access to customer data, financial data or assets or our proprietary business information, our information systems and products and services may be perceived as being unsecure, we could experience business or financial harm, and our business and reputation could be harmed.
- Risks associated with our international operations could adversely impact our financial condition.
- We depend upon our management team and key employees, and our failure to attract, train, motivate and retain management and key employees may make us less competitive and therefore harm our results of operations.
- We rely on our proprietary technology, as well as software and other intellectual property rights licensed to us by third parties, and we cannot assure that the precautions taken to protect our rights will be adequate or that we will continue to be able to adequately secure such intellectual property rights from third parties.
- We have substantial cash requirements in the United States, but a significant portion of our cash is held and generated outside of the United States, and if our cash available in the United States is insufficient to meet our operating expenses and debt repayment obligations in the United States, then we may be required to raise cash in ways that could negatively affect our financial condition, results of operations and the market price of our common stock.
- The long sales cycle of our products and services may cause our operating results to fluctuate unexpectedly.
- Our restructuring plans incur substantial costs and may not result in the benefits we have anticipated, possibly having a negative effect on our future operating results.
- The investment of our cash is subject to risks that may cause losses and affect the liquidity of these investments.
- Our business is subject to the risk of earthquakes and other catastrophic events.
- Customer consolidation could affect our operating results.
- Our failure to respond quickly to technological developments or customers’ increasing technological requirements and to continue to develop or acquire technological capabilities could make our products uncompetitive and obsolete and impede our ability to address the requirements in technology segments that are expected to contribute to our growth.
- Our operating results and revenue could be adversely affected by customer payment delays, customer bankruptcies and defaults or modifications of licenses.
- Competitive pressures may require us to reduce our pricing, which could have an adverse effect on our results of operations.
- The competition in our industries is substantial, and we may not be able to continue to compete successfully in our industries.
- Our future revenue is dependent in part upon our installed customer base continuing to license or buy products and purchase services.
- We depend on a single supplier or a limited number of suppliers for certain hardware components and contract manufacturers for production of our emulation and prototyping hardware products, making us vulnerable to supply disruption and price fluctuation.
- Our results could be adversely affected by an increase in our effective tax rate as a result of U.S. and foreign tax law changes, outcomes of current or future tax examinations, or by material differences between our forecasted and actual effective tax rates.
- Litigation could adversely affect our financial condition or operations.
- Errors or defects in our products and services could expose us to liability and harm our business.
- If we become subject to unfair hiring claims, we could be prevented from hiring needed employees, incur liability for damages and incur substantial costs in defending ourselves.
- We are subject to evolving corporate governance and public disclosure expectations and regulations that impact compliance costs and risks of noncompliance.
- Our stock price has been subject to fluctuations and may continue to be subject to fluctuations.
- Our debt obligations expose us to risks that could adversely affect our business, operating results or financial condition, and could prevent us from fulfilling our obligations under such indebtedness.
- At the option of the holders of our outstanding notes, we may, under certain circumstances, be required to repurchase such notes.
- The terms of the agreement governing our revolving credit facility and the indenture governing our 2024 Notes restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
- Despite our current level of indebtedness, we and our subsidiaries may incur substantially more debt. This could further exacerbate the risks to our financial condition described above.
- Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.
- Various factors could increase our future borrowing costs or reduce our access to capital, including a lowering or withdrawal of the ratings assigned to our 2024 Notes by credit rating agencies.
Management Discussion
- Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
- We enable our customers to develop electronic products. Our products and services are designed to give our customers a competitive edge in their development of ICs, SoCs, and increasingly sophisticated electronic devices and systems. Our products and services do this by optimizing performance, minimizing power consumption, shortening the time to bring our customers’ products to market, improving engineering productivity and reducing their design, development and manufacturing costs. We offer software, hardware, services and reusable IC design blocks, which are commonly referred to as IP.
- Our strategy, which we call Intelligent System Design™, is to provide the technology necessary for our customers to develop electronic products across a variety of vertical markets including consumer, hyperscale computing, 5G communications, automotive, aerospace and defense, industrial and healthcare. Our products and services enable our customers to develop complex and innovative electronic products, so demand for our technology is driven by our customers’ investment in new designs and products. Historically, the industry that provided the tools used by IC engineers was referred to as EDA. Today, our offerings include and extend beyond EDA.
Content analysis
?
Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Avg
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New words:
alinka, anxiety, Australia, banning, baseline, belief, Black, Bribery, brightest, brought, candidate, career, CFD, charitable, coaching, Colorado, combat, convenience, COVID, cybersecurity, deeply, dialogue, domain, drop, dynamic, easy, EM, emotional, Empyrean, EMX, endeavor, ESG, extraordinary, FDTD, fertility, fifteen, finite, flaminia, fluid, footprint, foster, GDPR, gender, hereto, Hispanic, home, Huada, immersion, inclined, inextricably, inspire, job, judgement, laboratory, Latinx, leader, leave, LGBTQ, lifted, link, linked, macroeconomic, meaningful, Mellanox, mental, mentorship, mesh, message, Microsemi, notice, NSBE, NUMECA, Numerical, NVIDIA, outreach, pandemic, paramount, parent, Planar, pool, portal, precautionary, preliminary, privacy, racial, remediate, reoccur, repaid, rewarding, SA, safe, SHPE, simple, society, SoftBank, speculation, standing, strive, succeed, surrogacy, SWE, talent, Tech, telecommuting, tenet, timeline, traditional, transgender, Transient, tuition, uncollectible, undergoing, user, vast, volunteer, VR, webinar, week, women, Xpeedic, Yale
Removed:
adversity, AG, aid, analyzing, Asia, Assistant, Bulletin, cancelable, cancellation, children, classification, compare, conform, creating, datacenter, derecognition, disclaim, Duke, extreme, focusing, hybrid, illegal, infringed, interacting, interpretative, Korea, meant, minimum, modernize, occasionally, owed, pecuniary, permanent, precluded, preferential, prepared, proceed, programmable, propose, pursued, reclassification, recused, Republic, retrospectively, Roger, securing, Siboni, source, standardize, Stanford, taxed, untaxed, volume, wife
Financial reports
10-K
2020 FY
Annual report
22 Feb 21
10-Q
2020 Q3
Quarterly report
19 Oct 20
10-Q
2020 Q2
Quarterly report
20 Jul 20
10-Q
2020 Q1
Quarterly report
20 Apr 20
10-K
2019 FY
Annual report
24 Feb 20
10-Q
2019 Q3
Quarterly report
21 Oct 19
10-Q
2019 Q2
Quarterly report
22 Jul 19
10-Q
2019 Q1
Quarterly report
22 Apr 19
10-K
2018 FY
Annual report
27 Feb 19
10-Q
2018 Q3
Quarterly report
22 Oct 18
Current reports
8-K
Departure of Directors or Certain Officers
5 Mar 21
8-K
Results of Operations and Financial Condition
22 Feb 21
8-K
Amendments to Articles of Incorporation or Bylaws
12 Feb 21
8-K
Departure of Directors or Certain Officers
1 Dec 20
8-K
Results of Operations and Financial Condition
19 Oct 20
8-K
Results of Operations and Financial Condition
20 Jul 20
8-K
Departure of Directors or Certain Officers
1 May 20
8-K
Results of Operations and Financial Condition
20 Apr 20
8-K
Departure of Directors or Certain Officers
16 Mar 20
8-K
Changes in Registrant's Certifying Accountant
3 Mar 20
Registration and prospectus
S-8
Registration of securities for employees
3 Aug 20
S-8
Registration of securities for employees
22 Jul 19
S-8
Registration of securities for employees
23 Jul 18
S-8
Registration of securities for employees
23 Jul 18
S-8
Registration of securities for employees
23 Jul 18
S-8
Registration of securities for employees
23 Jul 17
S-8
Registration of securities for employees
24 Jul 16
S-3ASR
Automatic shelf registration
26 Jul 15
S-8
Registration of securities for employees
17 May 15
424B5
Prospectus supplement for primary offering
6 Oct 14
Proxies
DEFA14A
Additional proxy soliciting materials
15 Apr 20
DEFA14A
Additional proxy soliciting materials
20 Mar 20
DEF 14A
Definitive proxy
20 Mar 20
DEFA14A
Additional proxy soliciting materials
22 Mar 19
DEF 14A
Definitive proxy
22 Mar 19
PRE 14A
Preliminary proxy
12 Mar 19
DEF 14A
Definitive proxy
22 Mar 18
DEFA14A
Additional proxy soliciting materials
22 Mar 18
DEF 14A
Definitive proxy
22 Mar 17
DEFA14A
Additional proxy soliciting materials
22 Mar 17
Other
SD
Conflict minerals disclosure
1 Jun 20
SD
Conflict minerals disclosure
31 May 19
SD
Conflict minerals disclosure
31 May 18
SD
Conflict minerals disclosure
30 May 17
SD
Conflict minerals disclosure
30 May 16
UPLOAD
Letter from SEC
18 Aug 15
CORRESP
Correspondence with SEC
16 Aug 15
UPLOAD
Letter from SEC
2 Aug 15
CORRESP
Correspondence with SEC
9 Jul 15
UPLOAD
Letter from SEC
28 Jun 15
Ownership
4
CADENCE DESIGN SYSTEMS / CHIN-CHI TENG ownership change
5 Mar 21
4
CADENCE DESIGN SYSTEMS / SURENDRA BABU MANDAVA ownership change
4 Mar 21
4
CADENCE DESIGN SYSTEMS / JOHN B SHOVEN ownership change
1 Mar 21
4
CADENCE DESIGN SYSTEMS / Ita M Brennan ownership change
1 Mar 21
4
CADENCE DESIGN SYSTEMS / LEWIS CHEW ownership change
1 Mar 21
4
CADENCE DESIGN SYSTEMS / Julia Liuson ownership change
1 Mar 21
4
CADENCE DESIGN SYSTEMS / Mark Adams ownership change
1 Mar 21
4
CADENCE DESIGN SYSTEMS / SUSAN L BOSTROM ownership change
1 Mar 21
4
CADENCE DESIGN SYSTEMS / JAMES D PLUMMER ownership change
1 Mar 21
4
CADENCE DESIGN SYSTEMS / VINCENTELLI ALBERTO SANGIOVANNI ownership change
1 Mar 21
Patents
GRANT
Utility
Analyzing waveform data generated for simulated circuit design
2 Mar 21
Various embodiments provide for analyzing (e.g., debugging) waveform data generated for a simulated circuit design, which can be used as part of electronic design automation (EDA).
GRANT
Utility
Unified improvement scoring calculation for rebuffering an integrated circuit design
2 Mar 21
Aspects of the present disclosure address improved systems and methods for rebuffering an integrated circuit (IC) design using a unified improvement scoring algorithm.
GRANT
Utility
Runtime efficient circuit placement search location selection
2 Mar 21
Aspects of the present disclosure address improved systems and methods for runtime efficient circuit placement location selection as described herein.
GRANT
Utility
Generating routing structure for clock network based on edge intersection detection
23 Feb 21
Various embodiments provide for generating a routing structure for a clock network based on edge interaction detection, which can facilitate detection/consideration of overuse of routing resources to a balanced routing structure and which may be part of electronic design automation (EDA) of a circuit design.
GRANT
Utility
Circuit modification for efficient electro-static discharge analysis of integrated circuits
16 Feb 21
The present embodiments relate to electrostatic discharge (ESD) simulation of integrated circuit designs.
Transcripts
2020 Q4
Earnings call transcript
23 Feb 21
2020 Q3
Earnings call transcript
20 Oct 20
2020 Q2
Earnings call transcript
20 Jul 20
2020 Q1
Earnings call transcript
20 Apr 20
2019 Q4
Earnings call transcript
12 Feb 20
2019 Q3
Earnings call transcript
21 Oct 19
2019 Q2
Earnings call transcript
22 Jul 19
2019 Q1
Earnings call transcript
22 Apr 19
2018 Q4
Earnings call transcript
19 Feb 19
2018 Q3
Earnings call transcript
22 Oct 18
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