SAN FRANCISCO—Cadence Design Systems Inc. Thursday (July 28) adjusted its sales target for 2011 after reporting sales for the second quarter that beat consensus analysts' expectations.
Cadence (San Jose, Calif.) reported second quarter revenue of $283 million, up 8 percent from the previous quarter and up 25 percent compared with the second quarter of 2010. Cadence recognized a net income in accordance with generally accepted accounting principles (GAAP) of $27 million, or 10 cents per share, up 2 percent from the previous quarter but down 45 percent compared with the second quarter of 2010 (when Cadence recognized $67 million in acquisition-related tax benefits).
On a non-GAAP basis, excluding charges, Cadence reported a net income of $32 million, or 12 cents per diluted share, compared to $18 million, or 7 cents per share, in the second quarter of 2010.
Consensus analysts' expectations called for Cadence to report second quarte sales of $276 million and a non-GAAP net income of 10 cents per share, according to Yahoo Finance.
"Demand for our products and services in the second quarter continued to be strong with run rates on renewals increasing," said Lip-Bu Tan, Cadence president and CEO, in a statement. "We saw acceleration in adoption of our end-to-end digital solution at advanced nodes and very positive response to our new Cadence System Development Suite."
For the third quarter, Cadence said it expects revenue of between $280 million and $290 million. The company expects to report a GAAP net income for the quarter of 4 to 6 cents per share.
Cadence said it adjusted its 2011 guidance upward to reflect ongoing the ongoing strength in the company's business. The company said it now expects to record sales of $1.12 billion to $1.14 billion. The company expects to report a GAAP net income for the year of between 20 and 26 cents per share.
Cadence previously said it expected 2011 sales to be between $1.08 billion and $1.12 billion, with a GAAP net income of 11 to 19 cents per share.