SAN JOSE – Cadence Design Systems reported sales from its System Design and Analysis business, which includes printed circuit board design software, jumped 64% to $83.6 million in the period ended Jan. 2. The segment accounted for 11% of fourth quarter revenue, compared to 9% during the same period in 2019.
Overall fourth quarter revenue was $759.9 million, an increase of 26.7% year-over-year. Net income was $173.7 million, down 73.7% compared to the same quarter in 2019. Income from operations was $185 million, an increase of 70%.
Cadence reported 2020 revenue of $2.68 billion, an increase of 14.8% year-over-year. The System Design and Analysis segment accounted for 10% of overall sales, compared to 9% in the previous year.
Net income for the year was $590.6 million, down 40.3% compared to 2019. Income from operations was $645.6 million, up 31.3%.
“I am very pleased that against the backdrop of an unprecedented year, Cadence delivered outstanding results for 2020, driven by our highly innovative solutions and strong execution,” said CEO Lip-Bu Tan. “Generational industry drivers continue to fuel robust design activity, and I am especially excited by the momentum in our system design and analysis segment as we further our intelligent system design strategy with the pending acquisition of Numeca.”
“Many unique factors contributed to Cadence’s solid 2020 results of 15% revenue growth, 35% non-GAAP operating margin and over $900 million of operating cash flow. I am pleased that we can follow-up on 2020 with a strong outlook for 2021,” said John Wall, senior vice president and CFO.
For the first quarter, the company expects total revenue in the range of $710 million to $730 million. For 2021, Cadence expects revenue in the range of $2.86 billion to $2.92 billion.
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