SAN JOSE – Cadence Design Systems reported fourth quarter revenue of $600 million, up 5.3% year-over-year. Net income was $660 million, up 574% compared to the fourth quarter of 2018. GAAP net income for the quarter included a one-time non-cash tax benefit of $576 million related to intercompany transfers of certain IP rights to Cadence's Irish subsidiary.

The System Interconnect division had sales of $54 million in the quarter. The division includes sales of software for designing printed circuit boards.

Total 2019 revenue was $2.3 billion, up 9.3% year-over-year. On a GAAP basis, Cadence achieved net income of $989 million, an increase of 186% compared to 2018. System Interconnect sales for 2019 totaled $207 million.

“Generational trends such as 5G, AI and hyperscale computing are driving strong design activity, and our intelligent system design strategy has us very well positioned to maximize the resulting opportunities,” said CEO Lip-Bu Tan. “We introduced seven significant new products, including two in the system analysis space, and coupled with strong execution, drove 9% revenue growth and 32% non-GAAP operating margin in 2019, and I look forward to driving further customer and shareholder success this year.”

For the first quarter of 2020, the company expects revenue in the range of $610 million to $620 million. For 2020, Cadence expects revenue in the range of $2.545 billion to $2.585 billion.