SAN JOSE, CA – Cadence Design Systems reported third quarter revenue of $667 million, an increase of 15% year-over-year.

On a GAAP basis, Cadence recognized net income of $162 million, up 58.8% compared to the same period in 2019.

During the third quarter, System Design & Analysis accounted for 11% of revenue, compared to 9% in the same quarter last year.

“Cadence delivered outstanding results in the third quarter by continuing to innovate and delight customers,” said CEO Lip-Bu Tan. “System and semiconductor design activity remains strong, and our intelligent system design strategy uniquely positions us to enable our customers to realize their cutting-edge designs. In the third quarter we expanded the scale and scope of our relationship with a global marquee company, and I am especially pleased with the momentum of our new systems products.”

“We are raising our 2020 revenue and earnings guidance primarily due to higher second half hardware and IP sales activity in China and continuing progress in our System Design and Analysis business,” said John Wall, senior VP and CFO.

During the third quarter, Cadence repurchased $75 million of its common stock, and the board of directors has increased the previously announced authorization by an additional $750 million. As of the end of the third quarter, approximately $869 million remained available under the authorization to repurchase Cadence common stock.

For the nine months ended Sept. 26, total revenue was $1.92 billion, up 10.7% year-over-year.

For the fourth quarter, the company expects total revenue in the range of $720 million to $740 million.

For 2020, the company expects total revenue in the range of $2.643 billion to $2.663 billion.