Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three and Nine Months Ended October 1, 2016 and October 3, 2015

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Nine Months Ended

October 1,
2016

October 3,
2015

October 1,
2016

October 3,
2015

Revenue:

Product and maintenance

$           415,370

$           396,867

$        1,247,077

$        1,165,455

Services

30,850

36,896

100,026

95,557

Total revenue

446,220

433,763

1,347,103

1,261,012

Costs and expenses:

Cost of product and maintenance

38,740

41,206

125,881

114,980

Cost of services

17,867

24,005

54,563

62,571

Marketing and sales

96,793

101,950

297,103

298,880

Research and development

191,547

154,627

553,824

475,597

General and administrative

30,441

28,084

95,129

83,193

Amortization of acquired intangibles

3,889

5,687

14,206

18,037

Restructuring and other charges 

101

303

14,613

4,164

Total costs and expenses

379,378

355,862

1,155,319

1,057,422

Income from operations

66,842

77,901

191,784

203,590

Interest expense

(6,053)

(4,177)

(17,306)

(24,111)

Other income, net

2,836

1,839

10,441

7,967

Income before provision (benefit) for income taxes

63,625

75,563

184,919

187,446

Provision (benefit) for income taxes

(1,087)

(2,061)

20,310

15,403

Net income 

$             64,712

$             77,624

$           164,609

$           172,043

Net income per share - basic

$                  0.23

$                  0.27

$                  0.57

$                  0.60

Net income per share - diluted

$                  0.23

$                  0.25

$                  0.56

$                  0.55

Weighted average common shares outstanding - basic

280,622

284,818

288,476

284,880

Weighted average common shares outstanding - diluted

287,473

313,186

295,369

312,899