SAN JOSE – Cadence Design Systems reported fiscal third quarter revenue of $339 million, up 16.1% year-over-year.

The printed circuit board and semiconductor design software developer said net income rose 111% to $59 million, including $15 million in acquisition-related income tax benefit.

"Demand for our technology was strong across the board in the third quarter, with ongoing strength in emulation and increasing demand for verification solutions," said Lip-Bu Tan, president and CEO.

On a conference call with analysts, Tan said the company's PCB and IC packaging product lines continue to see "good growth." The integration of Sigrity into Cadence's Allegro platform is going well, he added.

The company guided for fourth quarter revenue in the range of $335 million to $345 million, and full-year 2012 revenue between $1.315 billion and $1.325 billion. Tan said Cadence is concerned about "deteriorating" semiconductor business conditions and the impact it could have on R&D expenditures.

Tan also noted that deployment of 3D-IC packaging has been slower at the foundry level due to cost, with more customers moving to 2.5D designs.

Cadence is the world's third-largest supplier of PCB design software in terms of annual revenue, according to PCD&F sources.

Follow us on Twitter: @mikebuetow