SAN JOSE -- Cadence Design Systems reported first quarter revenue of $121.1 million at its System Design and Analysis segment, falling $1.5 million from a year ago for the period ended Mar. 31.

The segment includes the software giant's printed circuit board and electronics design and analysis products.

Overall revenue fell to $1.01 billion, down 1.23% from $1.022 billion in Q1 2023. The GAAP operating margin slipped seven percentage points to 25%, while the non-GAAP operating margin dropped four points to 38%.

122.6 121.1 Backlogs at quarter's end were a record $6 billion and contract revenue expected to be recognized as revenue in the next 12 months was $3.1 billion.

Americas was the largest region, at 46% of sales, up two points from last year.

“Q1 was a strong start to the year for Cadence as we delivered solid Q1 results,” said Anirudh Devgan, president and chief executive, Cadence. “I’m pleased with our record Q1 backlog that reflects our broad-based strength and product leadership. We’re thrilled with the momentum of our Cadence.AI portfolio which is providing customers with the most comprehensive and impactful chip-to-systems design capabilities and are excited about the launch of our innovative third generation Dynamic Duo hardware platforms that further expands our leadership."

“Our strong Q1 results reflect our continued technology leadership supporting our customers and partners, and solid execution from the Cadence team,” said John Wall, senior vice president and chief financial officer. “I am pleased that we delivered record Q1 bookings and achieved record Q1 backlog of approximately $6.0 billion.”

Cadence guided for fiscal 2024 revenue of $4.56 billion to $4.62 billion, GAAP operating margin of 31% to 32%, and non-GAAP operating margin of 42% to 43%. The outlook does not include the impact of its pending acquisition of BETA CAE, the company’s expectations for which are largely unchanged from announcement.

For the second quarter of 2024, the company expects revenue of $1.03 billion to $1.05 billion, GAAP operating margin of 26.5% to 27.5% and non-GAAP operating margin of 38.5% to 39.5%.

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