Cadence Design Systems Q4 Profit Matches Estimates; Guides Q1 & FY14

(RTTNews) - Cadence Design Systems, Inc. (CDNS) reported fourth-quarter net income of $37.71 million, or $0.13 per share, compared to $313.87 million, or $1.10 per share, last year. GAAP net income for the fourth quarter of 2012 included a $220 million income tax benefit from releasing a valuation allowance against Cadence's deferred tax assets and a $37 million income tax benefit related to the settlement of a State of California examination of Cadence's state income tax returns for the tax years 2001 through 2003. Non-GAAP net income was $67 million, or $0.23 per share, compared to $58 million, or $0.20 per share, a year ago.

On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $0.23 for the quarter. Analysts' estimates typically exclude special items.

Revenue was $376.72 million, compared to $345.59 million, a year ago. Analysts expected revenue of $375.62 million for the quarter.

For the first quarter of 2014, the company expects total revenue in the range of $373 million to $383 million. First quarter GAAP net income per share is expected to be in the range of $0.08 to $0.10. Non-GAAP net income per share is expected to be in the range of $0.18 to $0.20. Analysts expect the company to report first-quarter profit per share of $0.22 on revenue of $374.63 million.

For 2014, the company expects total revenue in the range of $1.550 billion to $1.585 billion. On a GAAP basis, net income per share is expected to be in the range of $0.55 to $0.65. Non-GAAP net income per share is expected to be in the range of $0.92 to $1.02. Analysts expect the company to report fiscal 2014 earnings per share of $0.98 on revenue of $1.56 billion.

Cadence also announced its Board has approved the repurchase of up to $100 million of its common stock under its stock repurchase program, and Cadence expects to repurchase up to $50 million of its common stock during each of fiscal years 2014 and 2015.