Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three Months and Years Ended December 31, 2016 and January 2, 2016

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Years Ended

December 31,
2016

January 2,
2016

December 31,
2016

January 2,
2016

Revenue:

Product and maintenance

$                   436,694

$             413,489

$                1,683,771

$          1,578,944

Services

32,286

27,590

132,312

123,147

Total revenue

468,980

441,079

1,816,083

1,702,091

Costs and expenses:

Cost of product and maintenance

57,410

40,679

183,291

155,659

Cost of services

18,638

20,223

73,201

82,794

Marketing and sales

98,091

103,552

395,194

402,432

Research and development

181,516

161,970

735,340

637,567

General and administrative

29,977

26,789

125,106

109,982

Amortization of acquired intangibles

3,889

5,679

18,095

23,716

Restructuring and other charges 

26,342

347

40,955

4,511

Total costs and expenses

415,863

359,239

1,571,182

1,416,661

Income from operations

53,117

81,840

244,901

285,430

Interest expense

(6,364)

(4,200)

(23,670)

(28,311)

Other income, net

5,481

2,510

15,922

10,477

Income before provision (benefit) for income taxes

52,234

80,150

237,153

267,596

Provision (benefit) for income taxes

13,757

(224)

34,067

15,179

Net income 

$                     38,477

$               80,374

$                   203,086

$             252,417

Net income per share - basic

$                         0.14

$                   0.27

$                         0.71

$                   0.88

Net income per share - diluted

$                         0.14

$                   0.26

$                         0.70

$                   0.81

Weighted average common shares outstanding - basic

272,578

297,433

284,502

288,018

Weighted average common shares outstanding - diluted

278,917

310,512

291,256

312,302