Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three Months and Years Ended January 2, 2016 and January 3, 2015

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Years Ended

January 2, 2016

January 3, 2015

January 2, 2016

January 3, 2015

Revenue:

Product and maintenance

$             413,489

$             393,223

$          1,578,944

$          1,479,151

Services

27,590

29,875

123,147

101,781

Total revenue

441,079

423,098

1,702,091

1,580,932

Costs and expenses:

Cost of product and maintenance

40,679

39,475

155,659

156,333

Cost of services

20,223

18,640

82,794

67,373

Marketing and sales

103,552

102,367

402,432

399,688

Research and development

161,970

155,124

637,567

603,006

General and administrative

26,789

26,939

109,982

113,619

Amortization of acquired intangibles

5,679

6,912

23,716

24,017

Restructuring and other charges (credits)

347

(1,145)

4,511

10,252

Total costs and expenses

359,239

348,312

1,416,661

1,374,288

Income from operations

81,840

74,786

285,430

206,644

Interest expense

(4,200)

(11,961)

(28,311)

(34,121)

Other income, net

2,510

3,879

10,477

8,479

Income before provision (benefit) for income taxes

80,150

66,704

267,596

181,002

Provision (benefit) for income taxes

(224)

1,674

15,179

22,104

Net income 

$               80,374

$               65,030

$             252,417

$             158,898

Net income per share - basic

$                   0.27

$                   0.23

$                   0.88

$                   0.56

Net income per share - diluted

$                   0.26

$                   0.21

$                   0.81

$                   0.52

Weighted average common shares outstanding - basic

297,433

283,928

288,018

283,349

Weighted average common shares outstanding - diluted

310,512

310,273

312,302

306,775