<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
CADENCE DESIGN SYSTEMS, INC.'S ANNUAL REPORT ON FORM 10-K FOR THE
FISCAL YEAR ENDED JANUARY 3, 1998.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JAN-03-1998
<PERIOD-START>                             DEC-29-1996
<PERIOD-END>                               JAN-03-1998
<CASH>                                         207,024
<SECURITIES>                                    97,180
<RECEIVABLES>                                  205,006
<ALLOWANCES>                                    21,200
<INVENTORY>                                          0
<CURRENT-ASSETS>                               609,059
<PP&E>                                         334,646
<DEPRECIATION>                                 137,225
<TOTAL-ASSETS>                               1,023,850
<CURRENT-LIABILITIES>                          268,795
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       405,317
<OTHER-SE>                                     321,780
<TOTAL-LIABILITY-AND-EQUITY>                 1,023,850
<SALES>                                        915,893
<TOTAL-REVENUES>                               915,893
<CGS>                                          183,096
<TOTAL-COSTS>                                  183,096
<OTHER-EXPENSES>                               498,790
<LOSS-PROVISION>                                   438
<INTEREST-EXPENSE>                               2,508
<INCOME-PRETAX>                                259,631
<INCOME-TAX>                                    77,889
<INCOME-CONTINUING>                            181,742
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                       12,276
<NET-INCOME>                                   169,466
<EPS-PRIMARY>                                     0.87
<EPS-DILUTED>                                     0.77