Cadence Design Systems Inc. Q2 FY2023 results: revenue $977 million, up 13.9% on the year

Cadence Design Systems Inc. (CDNS) reported revenue of $977 million for Q2 FY2023, the quarter ended 30 June 2023, up 13.9% on the same quarter a year earlier. Net income was $221 million, up 18.3% on the year, and diluted earnings per share $0.81. The figures are the company's own, from the 10-Q it filed with the SEC on 24 July 2023.

Revenue$977 millionup 13.9%

Net income$221 millionup 18.3%

Diluted EPS$0.81

QuarterQ2 FY2023ended 30 June 2023

The quarter, against the one before and a year earlier

Line	Q2 FY2023	Quarter before	A year earlier	Change on the year
Revenue	977	n/a	n/a	n/a
Research and development	354	n/a	n/a	n/a
Operating income	299	n/a	n/a	n/a
Operating margin	30.7%	n/a	n/a
Interest expense	8.9	n/a	n/a	n/a
Pre-tax income	298	n/a	n/a	n/a
Income tax	77.3	n/a	n/a	n/a
Effective tax rate	25.9%	n/a	n/a
Net income	221	n/a	n/a	n/a
Net margin	22.6%	n/a	n/a
Diluted EPS	$0.81	n/a	n/a	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2023	Quarter before	A year earlier	Change on the year
Operating cash flow	414	n/a	n/a	n/a
Capital expenditure	19.9	n/a	n/a	n/a
Free cash flow	394	n/a	n/a	n/a
Free cash flow margin	40.3%	n/a	n/a
Depreciation and amortisation	36.0	n/a	n/a	n/a
Share-based compensation	76.6	n/a	n/a	n/a
Buybacks	325	n/a	n/a	n/a
Diluted shares, weighted	273m	n/a	n/a	n/a
Shares outstanding at period end	272m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2023	Quarter before	A year earlier	Change on the year
Total assets	5,155	n/a	n/a	n/a
Cash and equivalents	874	n/a	n/a	n/a
Receivables	441	n/a	n/a	n/a
Inventory	140	n/a	n/a	n/a
Goodwill	1,429	n/a	n/a	n/a
Borrowings, as the company tags them	649	n/a	n/a	n/a
Shareholders' equity	2,908	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026
Revenue	977	1,023	1,069	1,009	1,061	1,215	1,356	1,242	1,275	1,339	1,440	1,474
R&D	354	370	n/a	379	371	407	n/a	439	442	423	n/a	508
Operating income	299	293	337	250	294	350	457	362	242	425	463	431
Operating margin	31%	29%	31%	25%	28%	29%	34%	29%	19%	32%	32%	29%
Interest expense	8.9	9.1	9.0	8.7	12.9	24.5	29.9	29.1	28.9	29.0	29.4	31.6
Pre-tax income	298	300	362	310	316	333	437	356	281	393	493	428
Tax rate	26%	15%	11%	20%	27%	29%	22%	23%	43%	27%	21%	22%
Net income	221	254	324	248	230	238	340	274	160	287	388	336
Net margin	23%	25%	30%	25%	22%	20%	25%	22%	13%	21%	27%	23%
Diluted EPS	$0.81	$0.93	$1.19	$0.91	$0.84	$0.87	$1.23	$1.00	$0.59	$1.05	$1.42	$1.23
Operating cash flow	414	396	272	253	156	410	441	487	378	311	553	356
Capital expenditure	19.9	22.0	33.7	49.6	29.2	26.5	37.2	23.1	44.1	33.7	41.0	48.8
Free cash flow	394	374	238	204	127	383	404	464	334	277	512	307
Buybacks	325	125	125	125	125	150	150	350	175	200	200	200
Shares outstanding	272m	272m	272m	272m	274m	274m	274m	273m	272m	272m	272m	276m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2023, filed 24 July 2023, accession 0000813672-23-000041: the filing on EDGAR. All of Cadence Design Systems Inc.'s filings: EDGAR company page.

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