-----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, GwBuHhAWf/1BMgz5zdMjo0OGcdJkKtkoSygD/+IZb4GJ6Oz1JtmokuVUqtxp7om5 aQ7H1WvAYtea4xjA7YK1CA== 0000950134-04-015337.txt : 20041020 0000950134-04-015337.hdr.sgml : 20041020 20041020164844 ACCESSION NUMBER: 0000950134-04-015337 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041020 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041020 DATE AS OF CHANGE: 20041020 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: 041087882 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 f02492e8vk.htm FORM 8-K e8vk
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UNITED STATES
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): October 20, 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)   (I.R.S. Employer
Identification Number)
     
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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition.
Item 9.01. Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1

Table of Contents

Item 2.02. Results of Operations and Financial Condition.

     The financial results of Cadence Design Systems, Inc. (“Cadence”) for the quarter ended October 2, 2004 are provided in Exhibit 99.1 and incorporated by reference herein.

     The presentation of Cadence’s third 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 July 3, 2004.

     The information in this report shall be deemed incorporated by reference into any registration statement heretofore or hereafter filed under the Securities Act of 1933, as amended, except to the extent that such information is superceded by information as of a subsequent date that is included in or incorporated by reference into such registration statement. The information in this report shall be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

Item 9.01. Financial Statements and Exhibits.

     (c) Exhibits

     
Exhibit    
No.
   Description
99.1
  Cadence Design Systems, Inc. financial results for the quarter ended October 2, 2004. This exhibit shall be deemed incorporated by reference into any registration statement heretofore or hereafter filed under the Securities Act of 1933, as amended, except to the extent that such information is superceded by information as of a subsequent date that is included in or incorporated by reference into such registration statement. The information in this report shall be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

 

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SIGNATURES

     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: October 20, 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 October 2, 2004.

 

EX-99.1 2 f02492exv99w1.txt EXHIBIT 99.1 EXHIBIT 99.1 CADENCE DESIGN SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS OCTOBER 2, 2004 AND JANUARY 3, 2004 (IN THOUSANDS)
OCTOBER 2, JANUARY 3, 2004 2004 ---------- ---------- (UNAUDITED) Current Assets: Cash and cash equivalents $ 423,557 $ 384,525 Short-term investments 28,943 33,898 Receivables, net of allowance for doubtful accounts of $9,832 and $9,067, respectively 355,692 348,680 Inventories 20,293 16,926 Prepaid expenses and other 67,725 58,212 ---------- ---------- Total current assets 896,210 842,241 Property, plant and equipment, net 394,723 403,847 Goodwill 988,919 922,797 Acquired intangibles, net 218,869 237,508 Installment contract receivables, net 85,986 121,627 Other assets 235,259 289,882 ---------- ---------- Total Assets $2,819,966 $2,817,902 ========== ========== Current Liabilities: Accounts payable and accrued liabilities 244,820 243,450 Current portion of deferred revenue 250,559 238,478 ---------- ---------- Total current liabilities 495,379 481,928 ---------- ---------- Long-term Liabilities: Long-term portion of deferred revenue 18,019 16,287 Convertible notes 420,000 420,000 Other long-term liabilities 292,490 327,406 ---------- ---------- Total long-term liabilities 730,509 763,693 ---------- ---------- Stockholders' Equity 1,594,078 1,572,281 ---------- ---------- Total Liabilities and Stockholders' Equity $2,819,966 $2,817,902 ========== ==========
CADENCE DESIGN SYSTEMS, INC. Condensed Consolidated Statements of Operations For the Quarters and Nine Months Ended October 2, 2004 and September 27, 2003 (In thousands, except per share amounts) (Unaudited)
QUARTERS ENDED NINE MONTHS ENDED -------------------------- --------------------------- October 2, September 27, October 2, September 27, 2004 2003 2004 2003 --------- ------------- --------- ------------- Revenue: Product $ 183,030 $ 151,962 $ 503,053 $ 461,194 Services 34,447 33,773 104,064 100,962 Maintenance 84,104 83,025 247,267 246,237 --------- --------- --------- --------- Total revenue 301,581 268,760 854,384 808,393 --------- --------- --------- --------- Costs and Expenses: Cost of product 25,033 15,418 58,590 49,663 Cost of services 23,132 22,678 69,526 71,529 Cost of maintenance 12,643 13,266 39,813 43,399 Marketing and sales 76,736 80,758 238,131 246,993 Research and development 85,300 84,179 263,541 257,677 General and administrative 22,917 18,814 62,890 65,598 Amortization of acquired intangibles 12,741 16,357 44,672 46,263 Amortization of deferred stock compensation 5,772 11,626 21,924 25,558 Legal settlements -- (14,500) -- (14,500) Restructuring and other charges 1,036 62,874 9,400 64,226 Write-off of acquired in-process technology 2,000 2,000 9,000 7,500 --------- --------- --------- --------- Total costs and expenses 267,310 313,470 817,487 863,906 --------- --------- --------- --------- Income (loss) from operations 34,271 (44,710) 36,897 (55,513) Interest expense (1,564) (2,392) (4,820) (3,706) Other income (expense), net (4,172) 1,208 (10,016) (10,199) --------- --------- --------- --------- Income (loss) before provision (benefit) for income taxes 28,535 (45,894) 22,061 (69,418) Provision (benefit) for income taxes 8,904 (31,438) 7,382 (36,620) --------- --------- --------- --------- Net income (loss) $ 19,631 $ (14,456) $ 14,679 $ (32,798) ========= ========= ========= ========= Basic net income (loss) per share $ 0.07 $ (0.05) $ 0.05 $ (0.12) ========= ========= ========= ========= Diluted net income (loss) per share $ 0.07 $ (0.05) $ 0.05 $ (0.12) ========= ========= ========= ========= Weighted average common shares outstanding 270,509 266,755 271,514 267,605 ========= ========= ========= ========= Weighted average common and potential common shares outstanding - assuming dilution 274,877 266,755 280,050 267,605 ========= ========= ========= =========
CADENCE DESIGN SYSTEMS, INC. Condensed Consolidated Statements of Cash Flows For the Nine Months Ended October 2, 2004 and September 27, 2003 (In thousands) (Unaudited)
NINE MONTHS ENDED --------------------------- OCTOBER 2, SEPTEMBER 27, 2004 2003 --------- ------------- Cash and Cash Equivalents at Beginning of Period $ 384,525 $ 371,327 --------- --------- Cash Flows from Operating Activities: Net Income (loss) 14,679 (32,798) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 138,510 143,347 Amortization of deferred stock compensation 23,078 25,558 Equity in loss from investments, net 16,867 7,059 Gain on sale of investments (7,297) -- Write-off of investment securities 3,028 4,785 Write-off of acquired in-process technology 9,000 7,500 Non-cash restructuring and other charges -- 19,035 Proceeds from sale of receivables 15,198 33,661 Provisions for losses on trade accounts receivable and sales returns 2,168 16,598 Other non-cash items 1,008 3,309 Changes in operating assets and liabilities, net of effect of acquired and disposed businesses: Receivables 6,411 69,414 Inventories (3,367) (5,527) Prepaid expenses and other (4,470) (11,357) Installment contract receivables 6,514 (74,949) Other assets 8,301 20,842 Accounts payable and accrued liabilities (24,700) (74,741) Deferred revenue 13,295 (19,668) Other long-term liabilities 15,721 (21,102) --------- --------- Net cash provided by operating activities 233,944 110,966 --------- --------- 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 9,147 Purchases of property, plant and equipment (46,788) (54,998) Purchases of software licenses (757) (2,282) Investment in venture capital partnerships and equity investments (17,353) (34,341) Net cash paid in business combinations (115,170) (140,854) --------- --------- Net cash used for investing activities (165,944) (223,328) --------- --------- Cash Flows from Financing Activities: Proceeds from credit facility -- 45,000 Principal payments on credit facility and capital leases (354) (98,424) Proceeds from issuance of convertible notes -- 420,000 Payment of convertible notes issuance costs (1,920) (11,463) Proceeds from sale of common stock warrants -- 56,441 Purchase of call options -- (134,637) Proceeds from issuance of common stock 65,842 54,323 Purchases of treasury stock (94,103) (210,952) --------- --------- Net cash provided by (used for) financing activities (30,535) 120,288 --------- --------- Effect of exchange rate changes on cash 1,567 14,950 --------- --------- Net increase in cash and cash equivalents 39,032 22,876 --------- --------- Cash and Cash Equivalents at End of Period $ 423,557 $ 394,203 ========= =========
CADENCE DESIGN SYSTEMS, INC. (UNAUDITED) REVENUE MIX BY GEOGRAPHY (% OF TOTAL REVENUE)
2003 2004 ----------------------------------------------- ----------------------------- GEOGRAPHY Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 - --------- ----------------------------------------------- ----------------------------- North America 55% 54% 59% 64% 58% 53% 57% 56% Europe 17% 15% 19% 16% 17% 16% 19% 20% Japan 20% 22% 13% 13% 17% 22% 14% 15% Asia 8% 9% 9% 7% 8% 9% 10% 9% TOTAL 100% 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 Q3 - ------------- ----------------------------------------------- ----------------------------- Functional Verification 20% 18% 18% 20% 19% 20% 20% 18% Digital IC Design 24% 22% 27% 20% 23% 25% 21% 24% Custom IC Design 27% 28% 27% 27% 27% 27% 24% 27% Design for Manufacturing 9% 10% 7% 13% 10% 6% 9% 12% System Interconnect 8% 9% 8% 10% 9% 10% 9% 8% Services & Other 12% 13% 13% 10% 12% 12% 17% 11% TOTAL 100% 100% 100% 100% 100% 100% 100% 100%
Note: Product Group total revenue includes Product + Maintenance -----END PRIVACY-ENHANCED MESSAGE-----