EXHIBIT 99.1
CADENCE DESIGN SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
APRIL 3, 2004 AND JANUARY 3, 2004
(IN THOUSANDS)
APRIL 3, 2004 JANUARY 3, 2004
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(UNAUDITED)
Current Assets:
Cash and cash equivalents $ 466,900 $ 384,525
Short-term investments 27,233 33,898
Receivables, net 354,878 348,680
Inventories 26,040 16,926
Prepaid expenses and other 64,356 58,212
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Total current assets 939,407 842,241
Property, plant and equipment, net 403,478 403,847
Goodwill 928,623 922,797
Acquired intangibles, net 212,585 237,508
Installment contract receivables, net 80,770 121,627
Other assets 280,639 289,882
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Total Assets $ 2,845,502 $ 2,817,902
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Current Liabilities:
Current portion of capital lease obligations $ 183 $ 388
Accounts payable and accrued liabilities 251,415 243,062
Current portion of deferred revenue 240,908 238,478
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Total current liabilities 492,506 481,928
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Long-term Liabilities:
Long-term portion of capital lease obligations 54 61
Long-term portion of deferred revenue 14,857 16,287
Convertible notes 420,000 420,000
Other long-term liabilities 297,720 327,345
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Total long-term liabilities 732,631 763,693
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Stockholders' Equity 1,620,365 1,572,281
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Total Liabilities and Stockholders' Equity $ 2,845,502 $ 2,817,902
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CADENCE DESIGN SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED APRIL 3, 2004 AND MARCH 29, 2003
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
QUARTERS ENDED
RESTATED
---------------------------------
APRIL 3, 2004 MARCH 29, 2003
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Revenue:
Product $ 154,737 $ 148,458
Services 32,364 32,388
Maintenance 78,623 82,206
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Total revenue 265,724 263,052
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Costs and Expenses:
Cost of product 18,514 17,364
Cost of services 23,099 24,395
Cost of maintenance 13,705 15,600
Marketing and sales 81,223 83,615
Research and development 87,151 85,122
General and administrative 19,768 26,677
Amortization of acquired intangibles 15,910 14,840
Amortization of deferred stock compensation 7,958 6,081
Restructuring and other charges 5,435 -
Write-off of acquired in-process technology - 1,700
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Total costs and expenses 272,763 275,394
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Loss from operations (7,039) (12,342)
Interest expense (1,557) (674)
Other loss, net (2,629) (3,509)
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Loss before benefit for income taxes (11,225) (16,525)
Benefit for income taxes (2,470) (3,487)
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Net loss $ (8,755) $ (13,038)
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Basic net loss per share $ (0.03) $ (0.05)
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Diluted net loss per share $ (0.03) $ (0.05)
============= ==============
Weighted average common shares outstanding 271,477 268,358
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Weighted average common and potential common shares
outstanding - assuming dilution 271,477 268,358
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CADENCE DESIGN SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE QUARTERS ENDED APRIL 3, 2004 AND MARCH 29, 2003
(IN THOUSANDS)
(UNAUDITED)
QUARTER ENDED
-----------------------
RESTATED
APRIL 3, MARCH 29,
2004 2003
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Cash and Cash Equivalents at Beginning of Period $ 384,525 $ 371,327
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Cash Flows from Operating Activities:
Net loss (8,755) (13,038)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Depreciation and amortization 45,359 47,437
Amortization of deferred stock compensation 7,958 6,081
Equity in loss from investments, net 6,263 1,834
Gain on sale of investments (4,608) -
Write-off of investment securities 1,924 1,476
Write-off of acquired in-process technology - 1,700
Provisions for losses on trade accounts receivable and sales returns 1,000 289
Other non-cash items 1,111 -
Changes in operating assets and liabilities, net of effect of acquired and disposed
businesses:
Receivables 8,316 (5,397)
Proceeds from the sale of receivables 5,149 20,053
Inventories (9,114) 854
Prepaid expenses and other (2,024) 943
Installment contract receivables 20,194 14,796
Other assets 5,309 17,356
Accounts payable and accrued liabilities (14,554) (95,849)
Deferred revenue 1,000 (13,967)
Other long-term liabilities (4,868) 16,467
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Net cash provided by operating activities 59,660 1,035
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Cash Flows from Investing Activities:
Proceeds from sale and maturities of short-term investments - available-for-sale 3,557 -
Proceeds from the sale of long-term investments 3,328 -
Purchases of property, plant and equipment (17,829) (17,180)
Purchases of software licenses (650) (1,750)
Investment in venture capital partnerships and equity investments (5,653) (5,569)
Net cash paid in business combinations - (24,682)
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Net cash used for investing activities (17,247) (49,181)
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Cash Flows from Financing Activities:
Proceeds from credit facility - 10,000
Principal payments on credit facility and capital leases (212) (52,594)
Payment of convertible notes issuance costs (2,081) -
Proceeds from issuance of common stock 40,361 21,890
Purchases of treasury stock - (61,964)
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Net cash provided by (used for) financing activities 38,068 (82,668)
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Effect of exchange rate changes on cash 1,894 (1,118)
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Net increase (decrease) in cash and cash equivalents 82,375 (131,932)
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Cash and Cash Equivalents at End of Period $ 466,900 $ 239,395
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CADENCE DESIGN SYSTEMS, INC.
(UNAUDITED)
REVENUE MIX BY GEOGRAPHY (% OF TOTAL REVENUE)
2003 2004
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GEOGRAPHY Q1 Q2 Q3 Q4 YEAR Q1
- -------------- ------- ------- ------- ------- ------- -------
North America 55% 54% 59% 64% 58% 53%
Europe 17% 15% 19% 16% 17% 16%
Japan 20% 22% 13% 13% 17% 22%
Asia 8% 9% 9% 7% 8% 9%
TOTAL 100% 100% 100% 100% 100% 100%
REVENUE MIX BY PRODUCT GROUP (% OF TOTAL REVENUE)
2003 2004
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PRODUCT GROUP Q1 Q2 Q3 Q4 YEAR Q1
- ------------------------- ------- ------- ------- ------- ------- -------
Functional Verification 20% 18% 18% 20% 19% 20%
Digital IC Design 24% 22% 27% 20% 23% 25%
Custom IC Design 27% 28% 27% 27% 27% 27%
Design for Manufacturing 9% 10% 7% 13% 10% 6%
System Interconnect 8% 9% 8% 10% 9% 10%
Services 12% 13% 13% 10% 12% 12%
TOTAL 100% 100% 100% 100% 100% 100%
Note: Product Group total revenue includes Product + Maintenance