SAN FRANCISCOóCadence Design Systems Inc. said Wednesday (Feb. 1) that the company's sales for 2011 topped $1 billion for the first time since 2008, as fourth quarter sales and profit beat analysts' expectations.
"In addition to outstanding financial results, our accomplishments included introduction of new products for hardware-software co-design, leadership for 20-nanometer and advanced multi-core processor design, and deeper collaboration with industry leaders," said Lip-Bu Tan, president and CEO, in a statement.
Cadence (San Jose, Calif.) reported fourth quarter sales of $308 million, up 5 percent compared to the previous quarter and up 24 percent compared to the fourth quarter of 2010. The company recognized a net income in accordance with generally accepted accounting principles (GAAP) of $11 million, or 4 cents per diluted share, down 61 percent from the third quarter and compared to a net loss in the year-ago quarter.
On a non-GAAP basis, excluding charges, Cadence reported a net income of $46 million, or 17 cents per share, up from $18 million, or 7 cents per share, in the same period of 2010.
Cadence's fourth quarter results exceeded consensus analysts' expectations, which forecasted sales of $300 million and non-GAAP earnings of 15 cents per share, according to Yahoo Finance.
"Our financial position also strengthened in 2011 as we were able to add to our cash position even after funding acquisitions, increased investment in R&D, and the retirement of $150 million of convertible notes," said Geoff Ribar, Cadence senior vice president and chief financial officer.
For the full year, Cadence reported sales of $1.15 billion, up 23 percent from 2010. The company reported a net income for the year of $72 million, or 27 cents per diluted share, down 43 percent from 2010. But the net income for 2010 was boosted by a $148 million one-time tax benefit and a $67 million acquisition-related income tax benefit, Cadence noted.
Cadence said it expects sales for the first quarter of this year to be between $305 million and $315 million. The company said it expects to report a GAAP net income for the quarter of 8 to 10 cents per share.
For the full year 2012, Cadence said it expects sales to grow to between $1.24 billion and $1.28 billion. The company expects to report a GAAP net income for the year of 39 to 49 cents per share.