Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three Months and Years Ended January 3, 2015 and December 28, 2013

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Years Ended

January 3,
2015

December 28,
2013

January 3,
2015

December 28,
2013

Revenue:

Product and maintenance

$      393,223

$      350,079

$  1,479,151

$  1,357,934

Services

29,875

26,643

101,781

102,182

Total revenue

423,098

376,722

1,580,932

1,460,116

Costs and expenses:

Cost of product and maintenance

39,475

41,757

156,333

132,245

Cost of services

18,640

17,274

67,373

67,956

Marketing and sales

102,367

94,384

399,688

378,157

Research and development

155,124

135,465

603,006

534,022

General and administrative

26,939

29,481

113,619

121,314

Amortization of acquired intangibles

6,912

5,157

24,017

19,416

Restructuring and other charges (credits)

(1,145)

15,405

10,252

17,999

Total costs and expenses

348,312

338,923

1,374,288

1,271,109

Income from operations

74,786

37,799

206,644

189,007

Interest expense

(11,961)

(9,208)

(34,121)

(37,581)

Other income, net

3,879

842

8,479

7,570

Income before provision (benefit) for income taxes

66,704

29,433

181,002

158,996

Provision (benefit) for income taxes

1,674

(8,272)

22,104

(5,247)

Net income 

$        65,030

$        37,705

$     158,898

$     164,243

Net income per share - basic

$            0.23

$            0.13

$           0.56

$           0.59

Net income per share - diluted

$            0.21

$            0.13

$           0.52

$           0.56

Weighted average common shares outstanding - basic

283,928

280,083

283,349

277,796

Weighted average common shares outstanding - diluted

310,273

294,663

306,775

294,564