-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ATt78zotbOSI3yq2ATUJUJeCHgBW3KjFVUdgZ0N8rciexjjFVGJ3IVS1Jw5c5Qzz txX+/hpZ+ZTvZ5eZGUuGmg== 0000950134-04-010729.txt : 20040728 0000950134-04-010729.hdr.sgml : 20040728 20040728145803 ACCESSION NUMBER: 0000950134-04-010729 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040728 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CADENCE DESIGN SYSTEMS INC CENTRAL INDEX KEY: 0000813672 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 770148231 STATE OF INCORPORATION: DE FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10606 FILM NUMBER: 04935823 BUSINESS ADDRESS: STREET 1: 2655 SEELY ROAD BLDG 5 CITY: SAN JOSE STATE: CA ZIP: 95134 BUSINESS PHONE: 4089431234 MAIL ADDRESS: STREET 1: 555 RIVER OAKS PARKWAY CITY: SAN JOSE STATE: CA ZIP: 95134 FORMER COMPANY: FORMER CONFORMED NAME: ECAD INC /DE/ DATE OF NAME CHANGE: 19880609 8-K 1 f00594e8vk.htm FORM 8-K e8vk
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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): July 28, 2004

CADENCE DESIGN SYSTEMS, INC.

(Exact Name of Registrant as Specified in its Charter)
         
DELAWARE   1-10606   77-0148231
  		 
  		 
 
(State or Other Jurisdiction of
Incorporation) 		  (Commission File Number)   (IRS Employer Identification No.)

2655 SEELY AVENUE, BUILDING 5
SAN JOSE, CALIFORNIA 95134

(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (408) 943-1234

 

TABLE OF CONTENTS

Item 5. Other Events and Required FD Disclosure.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
SIGNATURE
EXHIBIT INDEX
EXHIBIT 99.1

Table of Contents

Item 5. Other Events and Required FD Disclosure.

     The financial results of Cadence Design Systems, Inc. (“Cadence”) for the quarter ended July 3, 2004 are provided in Exhibit 99.1 and incorporated by reference herein.

     The presentation of Cadence’s second quarter 2004 financial results included in this Current Report on Form 8-K is qualified by a detailed discussion of associated material risks set forth in Cadence’s filings with the Securities and Exchange Commission. These include Cadence’s Annual Report on Form 10-K for the year ended January 3, 2004 and Quarterly Report on Form 10-Q for the quarter ended April 3, 2004.

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

     (a) Financial Statements of Business Acquired.

     Not applicable.

     (b) Pro Forma Financial Information.

     Not applicable.

     (c) Exhibits.

     The following exhibits are filed as part of this report:

     
Exhibit    
No.
   Description
99.1
  Cadence Design Systems, Inc. Financial Results for the Quarter ended July 3, 2004.

 

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

     Dated as of July 28, 2004
         
  CADENCE DESIGN SYSTEMS, INC.
 		  
  By:   /s/ William Porter    
    William Porter   
    Senior Vice President and Chief Financial Officer   
 

 

Table of Contents

EXHIBIT INDEX

     
Exhibit    
No.
   Description
99.1
  Cadence Design Systems, Inc. Financial Results for the Quarter ended July 3, 2004.

 

EX-99.1 2 f00594exv99w1.txt EXHIBIT 99.1 EXHIBIT 99.1 CADENCE DESIGN SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS JULY 3, 2004 AND JANUARY 3, 2004 (IN THOUSANDS)
JULY 3, 2004 JANUARY 3, 2004 ------------ --------------- (UNAUDITED) Current Assets: Cash and cash equivalents $ 389,721 $ 384,525 Short-term investments 21,989 33,898 Receivables, net of allowance for doubtful accounts of $9,328 and $9,067, respectively 347,631 348,680 Inventories 24,144 16,926 Prepaid expenses and other 71,227 58,212 ------------ --------------- Total current assets 854,712 842,241 Property, plant and equipment, net 398,535 403,847 Goodwill 984,690 922,797 Acquired intangibles, net 244,503 237,508 Installment contract receivables, net 74,354 121,627 Other assets 239,059 289,882 ------------ --------------- Total Assets $ 2,795,853 $ 2,817,902 ============ =============== Current Liabilities: Accounts payable and accrued liabilities 261,516 243,450 Current portion of deferred revenue 242,580 238,478 ------------ --------------- Total current liabilities 504,096 481,928 ------------ --------------- Long-term Liabilities: Long-term portion of deferred revenue 14,588 16,287 Convertible notes 420,000 420,000 Other long-term liabilities 290,050 327,406 ------------ --------------- Total long-term liabilities 724,638 763,693 ------------ --------------- Stockholders' Equity 1,567,119 1,572,281 ------------ --------------- Total Liabilities and Stockholders' Equity $ 2,795,853 $ 2,817,902 ============ ===============
CADENCE DESIGN SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE QUARTERS AND SIX MONTHS ENDED JULY 3, 2004 AND JUNE 28, 2003 (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
QUARTERS ENDED SIX MONTHS ENDED ---------------------------- ---------------------------- JULY 3, 2004 JUNE 28, 2003 JULY 3, 2004 JUNE 28, 2003 ------------ ------------- ------------ ------------- Revenue: Product $ 165,286 $ 160,774 $ 320,023 $ 309,232 Services 37,253 34,801 69,617 67,189 Maintenance 84,540 81,006 163,163 163,212 ------------ ------------- ------------ ------------- Total revenue 287,079 276,581 552,803 539,633 ------------ ------------- ------------ ------------- Costs and Expenses: Cost of product 15,043 16,881 33,557 34,245 Cost of services 23,295 24,456 46,394 48,851 Cost of maintenance 13,465 14,533 27,170 30,133 Marketing and sales 80,172 82,620 161,395 166,235 Research and development 91,090 88,376 178,241 173,498 General and administrative 20,205 20,107 39,973 46,784 Amortization of acquired intangibles 16,021 15,066 31,931 29,906 Amortization of deferred stock compensation 8,194 7,851 16,152 13,932 Restructuring and other charges 2,929 1,352 8,364 1,352 Write-off of acquired in-process technology 7,000 3,800 7,000 5,500 ------------ ------------- ------------ ------------- Total costs and expenses 277,414 275,042 550,177 550,436 ------------ ------------- ------------ ------------- Income (loss) from operations 9,665 1,539 2,626 (10,803) Interest expense (1,699) (640) (3,256) (1,314) Other expense, net (3,215) (7,898) (5,844) (11,407) ------------ ------------- ------------ ------------- Income (loss) before provision (benefit) for income taxes 4,751 (6,999) (6,474) (23,524) Provision (benefit) for income taxes 948 (1,695) (1,522) (5,182) ------------ ------------- ------------ ------------- Net income (loss) $ 3,803 $ (5,304) $ (4,952) $ (18,342) ============ ============= ============ ============= Basic net income (loss) per share $ 0.01 $ (0.02) $ (0.02) $ (0.07) ============ ============= ============ ============= Diluted net income (loss) per share $ 0.01 $ (0.02) $ (0.02) $ (0.07) ============ ============= ============ ============= Weighted average common shares outstanding 272,362 267,887 272,210 268,128 ============ ============= ============ ============= Weighted average common and potential common shares outstanding - assuming dilution 278,645 267,887 272,210 268,128 ============ ============= ============ =============
CADENCE DESIGN SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JULY 3, 2004 AND JUNE 28, 2003 (IN THOUSANDS) (UNAUDITED)
SIX MONTHS ENDED ---------------------- JULY 3, JUNE 28, 2004 2003 --------- --------- Cash and Cash Equivalents at Beginning of Period $ 384,525 $ 371,327 --------- --------- Cash Flows from Operating Activities: Net Loss (4,952) (18,342) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 92,870 95,215 Amortization of deferred stock compensation 16,152 13,932 Equity in loss from investments, net 11,150 5,382 Gain on sale of investments (7,297) -- Write-off of investment securities 1,924 4,460 Write-off of acquired in-process technology 7,000 5,500 Proceeds from sale of receivables 5,149 27,880 Provisions for losses on trade accounts receivable and sales returns 14 13,582 Other non-cash items (263) 3,249 Changes in operating assets and liabilities, net of effect of acquired and disposed businesses: Receivables 1,080 (5,078) Inventories (7,218) (1,663) Prepaid expenses and other (5,968) (2,859) Installment contract receivables 43,741 (33,529) Other assets 1,050 20,953 Accounts payable and accrued liabilities (11,569) (89,712) Deferred revenue 1,885 (6,802) Other long-term liabilities 16,272 8,393 --------- --------- Net cash provided by operating activities 161,020 40,561 --------- --------- Cash Flows from Investing Activities: Proceeds from sale and maturities of short-term investments - available-for-sale 3,557 -- Proceeds from the sale of long-term investments 6,942 -- Proceeds from sale of equipment 3,625 -- Purchases of property, plant and equipment (33,688) (40,105) Purchases of software licenses (650) (2,282) Investment in venture capital partnerships and equity investments (13,417) (9,402) Net cash paid in business combinations (96,803) (102,353) --------- --------- Net cash used for investing activities (130,434) (154,142) --------- --------- Cash Flows from Financing Activities: Proceeds from credit facility -- 45,000 Principal payments on credit facility and capital leases (321) (63,247) Payment of convertible notes issuance costs (1,920) -- Proceeds from issuance of common stock 45,866 28,796 Purchases of treasury stock (69,846) (61,964) --------- --------- Net cash used for financing activities (26,221) (51,415) --------- --------- --------- --------- Effect of exchange rate changes on cash 831 882 --------- --------- --------- --------- Net increase (decrease) in cash and cash equivalents 5,196 (164,114) --------- --------- --------- --------- Cash and Cash Equivalents at End of Period $ 389,721 $ 207,213 ========= =========
CADENCE DESIGN SYSTEMS, INC. (UNAUDITED) REVENUE MIX BY GEOGRAPHY (% OF TOTAL REVENUE)
2003 2004 ------------------------------------ ------------ GEOGRAPHY Q1 Q2 Q3 Q4 YEAR Q1 Q2 ---- ---- ---- ---- ---- ---- ---- North America 55% 54% 59% 64% 58% 53% 57% Europe 17% 15% 19% 16% 17% 16% 19% Japan 20% 22% 13% 13% 17% 22% 14% Asia 8% 9% 9% 7% 8% 9% 10% TOTAL 100% 100% 100% 100% 100% 100% 100%
REVENUE MIX BY PRODUCT GROUP (% OF TOTAL REVENUE)
2003 2004 ------------------------------------ ------------ PRODUCT GROUP Q1 Q2 Q3 Q4 YEAR Q1 Q2 ---- ---- ---- ---- ---- ---- ---- Functional Verification 20% 18% 18% 20% 19% 20% 20% Digital IC Design 24% 22% 27% 20% 23% 25% 21% Custom IC Design 27% 28% 27% 27% 27% 27% 24% Design for Manufacturing 9% 10% 7% 13% 10% 6% 9% System Interconnect 8% 9% 8% 10% 9% 10% 9% Services & Other 12% 13% 13% 10% 12% 12% 17% TOTAL 100% 100% 100% 100% 100% 100% 100%
Note: Product Group total revenue includes Product + Maintenance -----END PRIVACY-ENHANCED MESSAGE-----