Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three and Six Months Ended July 2, 2016 and July 4, 2015

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

July 2, 2016

July 4, 2015

July 2, 2016

July 4, 2015

Revenue:

Product and maintenance

$           419,963

$           384,951

$           831,707

$           768,588

Services

33,058

30,932

69,176

58,661

Total revenue

453,021

415,883

900,883

827,249

Costs and expenses:

Cost of product and maintenance

42,960

31,715

87,141

73,774

Cost of services

18,823

20,040

36,696

38,566

Marketing and sales

101,110

96,662

200,310

196,930

Research and development

182,371

157,974

362,277

320,970

General and administrative

36,388

27,467

64,688

55,109

Amortization of acquired intangibles

4,537

6,119

10,317

12,350

Restructuring and other charges (credits)

(74)

(498)

14,512

3,861

Total costs and expenses

386,115

339,479

775,941

701,560

Income from operations

66,906

76,404

124,942

125,689

Interest expense

(5,896)

(8,180)

(11,253)

(19,934)

Other income, net

2,842

1,347

7,605

6,128

Income before provision for income taxes

63,852

69,571

121,294

111,883

Provision for income taxes

14,517

11,411

21,397

17,464

Net income 

$             49,335

$             58,160

$             99,897

$             94,419

Net income per share - basic

$                 0.17

$                 0.20

$                 0.34

$                 0.33

Net income per share - diluted

$                 0.17

$                 0.19

$                 0.33

$                 0.30

Weighted average common shares outstanding - basic

288,191

285,297

292,403

284,910

Weighted average common shares outstanding - diluted

295,201

313,665

299,318

312,756