Cadence Reports First Quarter 2016 Financial Results

GAAP to Non-GAAP Reconciliation

Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP.  Investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with their most directly comparable GAAP financial results.  Investors are also encouraged to look at the GAAP results as the best measure of financial performance.

To supplement Cadence's financial results presented on a generally accepted accounting principles, or GAAP, basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence's performance.  One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets and debt discount related to convertible notes, stock-based compensation expense, acquisition and integration-related costs including retention expenses, special charges, investment gains or losses, income or expenses related to Cadence's non-qualified deferred compensation plan, restructuring and other significant items not directly related to Cadence's core business operations, and the income tax effect of non-GAAP pre-tax adjustments.

Cadence's management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of the company's core business operations and therefore provides supplemental information to Cadence's management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence's management, including forecasting and budgeting.

The following tables reconcile the specific items excluded from GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:

Net Income Reconciliation


Three Months Ended



April 2, 2016


April 4, 2015



(unaudited)

(in thousands)





Net income on a GAAP basis


$

50,562


$

36,259

Amortization of acquired intangibles


16,443


16,404

Stock-based compensation expense


24,632


21,861

Non-qualified deferred compensation expenses (credits)



(83)


527

Restructuring and other charges


14,586


4,359

Acquisition and integration-related costs


804


3,750

Amortization of debt discount on convertible notes



5,026

Other income or expense related to investments and non-qualified deferred compensation plan assets*


(2,617)


(1,263)

Income tax effect of non-GAAP adjustments


(18,698)


(15,331)

Net income on a non-GAAP basis


$

85,629


$

71,592



*

Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.

 

Diluted Net Income per Share Reconciliation


Three Months Ended



April 2, 2016


 

April 4, 2015



(unaudited)

(in thousands, except per share data)





Diluted net income per share on a GAAP basis


$

0.17


$

0.12

Amortization of acquired intangibles


0.05


0.05

Stock-based compensation expense


0.08


0.07

Non-qualified deferred compensation expenses (credits)



Restructuring and other charges


0.05


0.01

Acquisition and integration-related costs



0.01

Amortization of debt discount on convertible notes



0.02

Other income or expense related to investments and non-qualified deferred compensation plan assets*


(0.01)


Income tax effect of non-GAAP adjustments


(0.06)


(0.05)

Diluted net income per share on a non-GAAP basis


$

0.28


$

0.23

Shares used in calculation of diluted net income per share — GAAP**


303,434


311,847

Shares used in calculation of diluted net income per share — non-GAAP**


303,434


311,847



*

Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.



**

Shares used in the calculation of GAAP net income per share are expected to be the same as shares used in the calculation of non-GAAP net income per share, except when the company reports a GAAP net loss and non-GAAP net income, or GAAP net income and a non-GAAP net loss.


« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8  Next Page »



Review Article Be the first to review this article
Featured Video
Latest Blog Posts
The Open Geospatial Consortium BlogThe OGC Blog
by The Open Geospatial Consortium Blog
Sponsorship Opportunities for the OGC Climate Change Services 2022 Pilot
Jobs
Assistant Professor in Applied GIS for University of San Diego at San Diego, California
GIS Specialist for Schneider Geospatial at Indianapolis, Indiana
Director, Industrial Machinery Solutions- SISW PLM for Siemens AG at Livonia, Michigan
ASIC Architects and Hardware Engineers at D. E. Shaw Research for D. E. Shaw Research at New York, New York
Senior Highway Engineer for RS&H at Jacksonville, Florida
Product Design Engineer - Softgoods for Apple Inc at Cupertino, California
Upcoming Events
GIS-Pro 2021: URISA's 59th Annual Conference at 701 Lee St #960 Des Plaines IL - Oct 3 - 6, 2021
Autodesk University 2021 | Free digital conference at United States - Oct 5 - 14, 2021
IEC 61850 Week 2021 at United Kingdom - Oct 18 - 22, 2021
Geospatial World Forum 2021 at Amsterdam Netherlands - Oct 20 - 22, 2021



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise