SAN JOSE -- Cadence Design Systems today reported third quarter revenue at its PCB design software unit rose 9% year-over-year to $52.2 million.
Overall revenue for the period ended Sept. 28 was $580 million, up 9% from $532 million in 2018. The GAAP operating margin was up 200 basis points to 21%. Net income rose 3% to $102 million.
Non-GAAP operating margin was 32%, flat with last year, and net income was up 9.9% to $153 million. “Major industry trends led by AI and data analytics are driving strong design activity, which coupled with innovation and outstanding execution by Cadence, again led to strong operating results, as Cadence delivered 9% year-over-year revenue growth,” said Lip-Bu Tan, chief executive, Cadence. “Our Intelligent System Design strategy enables us to provide more capabilities and value to our customers, while also expanding our total addressable market.”
“I am pleased with our third quarter results and outlook,” said John Wall, senior vice president and chief financial officer. “We are raising our outlook for revenue, operating margin, earnings and cash from operations for the year while we continue to invest in proliferation opportunities with market-shaping customers.”
Cadence guided for fourth quarter total revenue in the range of $590 million to $600 million. Fourth quarter GAAP operating margin is expected to be approximately 20%. For 2019, the company expects total revenue of $2.327 billion to $2.337 billion, and operating margins of 21.3% to 21.8%.
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