IRVINE, CA – Cadence Design Systems reported revenue for the third quarter up 8.3% year-over-year to $433.8 million.

Earnings for the period were $88.9 million, up 11.7% year-over-year.

 The design software company's System Interconnect Business, which includes PCB, security system analysis and IC packaging tools, saw revenue grow 9% year-over-year. The firm added that its Allegro system-in-package technology now supports TSMC's Integrated Fan-Out packaging technology, also known as InFO.

"Cadence continued to deliver strong operating results in the environment that remains challenging," said CEO Lip-Bu Tan. "The System Design Enablement strategy is bringing more innovation and an increased vertical focus to our business and solutions. In digital and signoff, we saw continuous innovation, adoptions and proliferation of our new products. We are steadily introducing new products and gaining customers in IP."

Senior vice president and CFO Geoff Ribar added consolidation among semiconductor companies leads to greater verticalization at system OEMs and thus greater opportunity for Cadence, which is in line with its product positioning strategy.

"I think the consolidation that increased in the system OEMs, the system company, those are great opportunity for us, because we have a whole suite of product offerings that is major requirement. [O]ur PCB security system analysis, hardware, software co-design, co-verification, so we kind of call it system design enablement that we provide ... will be a very welcome solution from the system company. They want to look at the higher set is either tool beside IP and also the software, so that types of market will be critical success for them and we have a key solution."

The firm expects fourth quarter revenue of $434 million to $444 million.