CDNS - Earnings call transcript Q1 2019 | Cadence Design Systems, Inc.

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Operator

Good afternoon. My name is Chanelle and I will be your conference operator today. At this time, I would like to welcome everyone to the Cadence First Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator turn of over Investor now Senior Alan Group Director Relations the will to call Lindstrom, I for Cadence. ahead. go Please

Alan Lindstrom

Thank Lip-Bu available available remarks website, June note through CFO. Tan, copy XXXX. The like through would our and will John first our conclusion also conference And of VP everyone CEO; I Chanelle. the and XX, Senior call. made will that contain Please prepared archived by be forward-looking our earnings that of of quarter will be this materially differ statements to joined expectations. A cadence.com may from on am webcast discussion call. at and Wall, website to XXXX and today’s today’s results you, those welcome actual I today’s call is

including on could These For refer please And the earnings and our issued few our on factors quarter ago. cautionary a we information comments Cadence's XX-Q, the include press we release a future in most today. the forward-looking XX-K Exchange Q statements regarding difference in the results, cause reports the filed our filings the Form way, Securities minutes just Commission. first and with Form filings by Company's and to that recent

So, it's now available.

are financial certain I our at the GAAP investors and using it review reconciliations results non-GAAP Relations measures to on to XXXX related for are comparable their and today. financial The results. evaluating measures. financial XXXX, the Copies with In available non-GAAP encouraged over press Generally believes CFO we now, certain of reconciliation tables the release present to in of also financial turn financial direct Investors cadence.com. XX, Accepted to most the in results addition can Lip-Bu. accordance to prepared are in useful our with will GAAP GAAP, Cadence call addition also ended website. Accounting using review also quarter XX, April Principles And today's potential of be will or non-GAAP March results that business, the Investor dated financial section measures Commentary available management

Lip-Bu Tan

and first results XXXX, our year-over-year everyone, margin XX% across of you non-GAAP us delivering excellent the revenue for afternoon, thank with today. for broad-based operating quarter growth achieved XX% Cadence product Good and joining operating line. strength

As a will and the provide for increasing details are outlook shortly. our John result, we more year,

are continuing strong there that While some overall confident uncertainty trends drive is macro we the to in activity. are multiple the environment, about design

AI companies being XG, In specific industries fueled silicon, computing, automotive, transformation is of other and as startups new industrial workload applications. and technology and addition design like digital activity such trends, medical by system to building aerospace, custom silicon

critical mission design cornerstone to development, of silicon is business our which Our activity. is

be SDE core enablement companies into verticals, and strategy system expansion or have and adjacent reach business, areas. As our broadens design EDA targeted growth newer and We our our our in we IP stated, phase, drives business. and delivering in system Intelligent guides via this on core we’re The foundation to this strategy System its want well of Design. I design which next EDA highlight strategy. executed today calling IP continues to And excellence our

algorithm into will In apply to pervasive and core software new where business and computational knowhow two core specific areas, upon addition, building our and into are we where we system competency we verticals. to intelligence are expand our expanding innovation system in AI new our domains;

the embedded the we highlight from total some space, innovation Hills Design addressable to capabilities in expanding market strategy and to new will years. $X System about estimated our current customers, partnership recent to our value security provide Software, our opens with next Intelligent activities estimated $XX Our announced five billion over the billion $XX this while us QX Green billion system also which a of space. more earlier field safety the next introducing in solution of enable entered -- system, and To more a opportunities some up compromising than and to in ClarityXD strategic which distributed month, And first this simulation. while has billion performance on-premise been optimized Solver, virtually total and technology, market of computing, market making our distributed electromagnetic XXx it addressable the generation delivers the system we product Clarity multiprocessing for simulation endorsed Clarity XD analysis Teradyne, unlimited an HiSilicon. faster a by $X.X state cloud uniquely is true opportunity Solver, and by uses without capacity accuracy. art for estimated

core our Turning business. to

and Digital revenue -- than year-over-year customers, new X-nanometer and existing underway as more nodes. input date, by XXX X-nanometer our To proliferation our by solutions digital strong taped-out have achieved business advanced driven solutions, customers digital multiple well. growth, XX% Signoff using designs Our using are designs and adoption by at

two important of an quarter. emulation products, including added verification another our verification Palladium designs new part learning machine are that SambaNova hardware-assisted customers flagship Our doing platform, suite, ZX, our Systems. had good

XX had expansions, including which repeat Amazon Annapurna an was one also We of three Company. orders, Labs, significant at

platform received Palladium development, its continued steady Cloud made Protium repeat new also momentum, and seven several of which which have enables repeat than orders. two early customers, has orders. SX software prototyping XX now added Our customers, more and

space, adding the year-over-year. machine applications surveillance industry’s design in and adopted double continued Our learning, digit win and SerDes new marquee solution. was the IP Tensilica for to consumer showed vision in company, a IP automotive, business quarter. segments, semiconductor long-reach complete silicon-proven the IP our eight and launched customers by also In XXX audio LPDDRX we first sockets new gig growth the

companies earlier, system said targeted our reach in verticals. our I and strategy As broadens

and a node most aerospace EDA, tape-outs. are our we cycle announced with targeted Grumman, verticals Northrop supported and development One where where that is working of advanced solutions defense, product we IP have our successful recently shortened

productivity, Barefoot enables serving environments peak with Lastly, It is and I CloudBurst to which cloud provides to used latest Cadence flexibility compelling on to by and that leadership to ideal With John Tempus chips. highlight easy to benefits. X-nanometer Cadence and Cadence Cloud provides for or environments. financial XXx new very portfolio will over CloudBurst either cloud in their demand. want updated networking extends Solution was running a the Networks design now cloud tools EDA and addition our results Platform, Signoff fast Timing I the the review improvement scalability access call outlook. turn to provide It our achieve in customers AWS pre-installed hybrid productivity the Azure and our

John Wall

afternoon everyone. expectations. a hardware achieved business, our demand overall Revenue, Thanks have during growth across original mix the in of become now strong recurring of all IP our operations in as our high larger Lip-Bu, and from margin with broad-based part good and exceeding were IP and all hardware operating and our and QX business revenue is lines QX, XXs. Cadence for cash percentage

XX%. Now Non-GAAP let’s was was key operating revenue margin Total $X.XX, Non-GAAP $XXX for EPS the and go the through quarter results million. $X.XX. EPS  P&L. was the first with GAAP starting was

and of quarter-end, to DSOs during cash the Cadence was flow. while XX debt shares. At Turning million $XX totaled And QX, million principal days. we million. cash QX outstanding were of sheet $XXX the repurchased was $XXX value cash flow Operating $XXX balance for million.

Now, I will updated our guidance. provide

the $XXX $.XXX. margin the expect EPS to and we million; to range For to $X.XX the operating in $.XXX range $XXX non-GAAP non-GAAP in range range $X.XX; following of results: the in of EPS of XX% XX%; QX, of to Revenue the in GAAP

EPS for Our in $X.XX of range $XXX to repurchase margin to updated of to million; to and XXXX $X.XXX range $X.XX the cash use range of $X.XX; $X.XX; in EPS flow guidance expect the operating year, the Cadence of $X.XXX approximately cash XX% billion; the range in is we to to stock. operating free fiscal $XXX XX%; approximately for of follows: million flow GAAP Revenue non-GAAP non-GAAP billion the of in

flowing cash of in solid XXXX and a the find our pleased the year. Commentary year, pleased like by outlook XX% to non-GAAP operating And the year. $XXX customers, items We’d through the throughout revenue further see cash of progress in margin illustrated operator, highlighted You We our I’m with operating operating revised basis, for a cash as our well for at XX% income and on generation course you our of increase consistently with our guidance guidance QX. updating our year-over-year by thank the to in we’ll for start to employees, flow analysis the our I’m to as achieved website. growth, improvements in questions. strong that, the for will to we performance partners looking results, million take and on In additional quarter. available o operating look And CFO in forward now summary, as operating on

Operator

Your Needham Instructions] & first of question [Operator from Rich comes Valera Company.

Rich Valera

I guess, portfolio obviously that that electromagnetic-based potentially there foray market. there your [Technical roll And you analysis But obviously have started could for with the into many difficulty] system there complete a on to are solver. solvers you out market. comments an

how your wondering that you of solvers? Just aspirations just after mechanical go sort market. that it, to well Will So, aggressively after more real as go electronic-centric sense as side of static market? the any and you the sort of plan of Thanks. in

Lip-Bu Tan

our also can distributed that we And analysis. and packaging drive truly us that to working XD delighted. have we clarify something times And Yes. up some then our so unique to look that next have solution is of EDA I background And your and this our we can One, next is analysis about is This other that Rich, so uniquely clearly, the our the enabled, offer. opportunity simulations. the is we why generation And question, this XD up. in product, clearly, Lip-Bu disruptive; and we're stay development. product to software, the a market. going it’s and we have. of we and our to for XD, products we're is first computational the performance. coming guess the here. cloud system what system truly from, things. that's And combination provide in for have very on-premise Solver computing, and but very XX this gives tuned, the the excited have optimized core Solver generation, unique [Clarity] really on competency the That entry hear next of we we And more generation did first first our field electromagnetic in not a that cloud that's (sic) portion really We're And we and we’re because couple to announced. is to then entry that a claim technology a first that at

Rich Valera

Great. for to customer. up ramping aggressively circle you your referenced last just And that. a where mentioned support this back semiconductor could marquee hiring were win with AE major you earnings pretty your customer, Thank a if you I you call that to

side year expense your the So, that there like this given on to expect for that customer, you've some of when say given us could it’d willing revenue from or give about be this incremental year, you’re Thank customer, next to kind generate color expectations, whether all any at you that? you. might is hint anything revenue on you

Lip-Bu Tan

Yes.

excited I company. marquee this semiconductor about think, we're U.S.

customer overall, a and earnings wide-ranging excited we the with R&D early customer to everything And we very our proliferate built year. it’s our tools. out at and last build are mentioned call, I support guidance As our we is this important And a But requirements. engagement. it’s all have excited; of are to partnering to it. very to across breakthrough of already for expand support It’s really the across clearly And clearly, about different into know and AE the days our win. breadth we the

Operator

question The Suisse. Credit from of comes John Pitzer next

John Pitzer

to first a than that's sense some comments it this makes of you to the did uncertainty up. can trend? to of to sense, which the what Maybe pockets some customers beat-and-raise, there maybe I'm be us in you trends to talk new of think your offsetting some business to kind what just were prepared better help curious, of out win guys just you your that nontraditional continue you expected seem you why Lip-Bu, customers? out you. in ability these about your semi In traditional you bucking the extent as is do given environment large about putting buck there? give the address Is this? just your that's it uncertainty allowing us Is to do

Lip-Bu Tan

question. a very good it's John,

about let So, just uncertainty. talk this me

on data know big marketplace, that all the call some and couple and XG the the all and it, the industry geopolitical also excited and automotive But, we the industrial especially of in slowdown autonomous we data about. drivers, that’s into, I driving, others. think, And passionate also and are edge, of moving then I'm like it's something data and AI, environment, about because very analytics. segments some we're and I of from

in of requirements for way, new So, semiconductor. it’s driving the a lot a

the place domain purpose now, I one, But So, workloads that's general workload GPU, mentioned for process specific it you CPU, right them. have computing, changed. call about specific or the a good

that’s So there's and we it there's a memory, some the storage. And workload lot not clearly also the about exciting also call -- a of computing related. on innovation more driving memory; -- more just application a new the new a innovation specific, of

that’s in And part some massive, able to that the need of massive about required the disaggregation disaggregate and have and and the storage, hyperscale. scale speed because other of the heard to then -- also NVME controller, the be speeds network. it, the the connectivity you storage data high And you that is connectivity the

be are to strong of middle driving very the it. is going and all So, in activity, a we design this

capture I from think increased point is the well our that's -- And the are of We design why substantially. positioned view, to activity that.

We supporting to of are our excited customers embark of about opportunities. on really some these to some

John Pitzer

That's the a large what points about you some Can and margins quarter second year new you rising follow-up be It’s throughout have more expense on North down the first customer? the the to nothing onboarding just going revenue? fiscal year. American talk full helpful. of the then, other the and a margin that going as downtick might maybe guidance, the that in for what's And takes put op than slight of both op fiscal up fiscal Is from quarter. on the just fiscal John,

John Wall

year, Sure, the John, is at increase the looking great in annual merit to effect question. mean, year, July. for I our going

course, shaping say of all with I our proliferation the not the resources for it's So support customer. R&D customers the And that one of And investing the impacts second market we're course in and of half year, over of to year. one, customers. field plural, solutions

Operator

next Markets. Capital comes Your of question RBC from Mitch Steves

Mitch Steves

I have for Thanks guys. question. taking Hey, the two.

you commentary of there geography. breaking So, long-term may to be mean, that I the years? talked to And provide of on China And volatility. wondering I'm kind But go guys is the December, you then, are sort guys out you that now of five margin kind above in prepared quarters of high are have guys noticed more a your as first And then I historically seems think where target. the I could to there revenue operating on X% one level back secondly, it if in three now in XX%. XX%. commentary like three you know for separate row. down numbers it used in guys to a lot but was XX%; you it’s

separate why you bit now could maybe a disclosing So, you guys little a as talk are China geography. about

John Wall

we're like lumpy generally you than always CFO how over in is percentage part and by revenue separately, rest our to Commentary mean, not probably operating geography right question, of Hi, our revenue if over revenue Mitch. the out three targets hardware lumpiness That to China three second And the really the mind. I'll that in I will why the of out next take ready mentioned, of don't XX-Q. Generally, the our by first more not business. and the -- in is IP see calling at businesses. -- table hardware any We're gains to performance. first, now. in And caused relation long-term our that improve terms put yes, years question and you of you'll looking years. next in IP in we're your than the getting

our to in let's over period current our a years. perspective guidance look a got a compare XXXX, business and been results, you've the say longer we’ve for on scale take you able XXXX time If recent

Lip-Bu Tan

Yes.

Just to talking John the add is China on to about what side.

above If you year X%; X%; look year and XXXX, historical is under about and about then, is and XXXX, last XX%. XX% at this

Asia other very And well I industry. progress. So domestic want And we committed they're positioned not China great overall, clearly, the them. in have we China. globally for making trusted places. well partner China, is build to the in support done and to to be mean And And just we are semiconductor

Operator

of Securities. question Your line next Jay from comes of Griffin Vleeschhouwer

Jay Vleeschhouwer

technology and extensible tool how on digital, Good System now, of The you number the in new your Intelligent what System years, Design meantime, the first your for insert parallel some evening. Intelligent or that's pursue a is is additional pursue done, obviously architecture well? last or to into the target, question is you that For read you platform the you you’re important particularly have there across the the And is, a work portfolio that. data the portfolio, as regarding in something you digital called you. Lip-Bu, you’ve for further to over Design to and rework Thank question most could what respect integrate new doing additional perhaps with the or And model with side. Genus, strategy. that you've have thing question some integrate years helped is, the is architecture that common to of containment technology or in to last Innovus leverageable to number case any new the opportunity better example, you tools? do on strategy

Lip-Bu Tan

question, Good Jay. Yes.

your Let me to answer try questions.

three pieces. core our think system I One EDA design excellence, it that down design, So, intelligence IP. that and is breaks into and is the

tool laser-focused, inspire foundations category, we we're sure very that's do. solid, to every are what our we’re in that So, best of make the and

moving some node, of we're in the we signoff of XX%. in the in X most we're customer the now quarter to the seven on, current then customers advance five, continuing some in nanometer. the in proliferation succeed that delighted on so And to last on new and digital Clearly, grew we're the right sector and

went I to our scale really and that we to earlier, excited core the we're continuing I think excited. that we a And level. it soul -- our why searching, to that's in and that system and can moving domains. we be digital implementation computational system system to about that. found into And software, then using competency and we're we drive move the the so as the have, that on And innovation then, And is mentioned

very with think security to first this, basically is that embedded safety with that on it, Hills; Green in into we're I mover, the strategic system, partnership space that. embark I is the So, the call and delighted

analysis electro-magnetic to about $X space, about. starting move billion that we're thing we and we're space that development looking that we’re market next is it. if whole into had as it is and the that’s that system a this recall, call field excited Then, So, the billion And technology, at EM able and the and apply, to about Solver, customers time to XD you that investing we and space also scalable cloud some on and have market, billion that’s apply to PCB simulations and provide to the really using a also $X.X in the that love about provide our have we -- beginning solution and because innovation that strength business $X.X stay continued it's we so into tuned, the can and area. it’s this enabled XD and big

going and the And that we inside we're productivity, improvement lines to the basically, with we improvement performance AI the our we’re performance our and we excited outside. And potential to AI, then, about I that apply that's using can and learning, learning, call we’re that. and too EDA machine the and and Inside, we going to really product customer And feedback endorse already And into, significant machine working using our so our far of the the customer, using deep finally, flow drive other methodology, from finally, of approach. approach use applications. machine leading it. and are it, so benefit optimize kind then all And customers, AI the in pervasive the see highlight then, drive terms to also on and learning, see performance intelligence and learning performance improvement, of that across and our tools. basically to initial and the

Jay Vleeschhouwer

interesting else? was in you you've for Lastly, lost Japan, some geographically. trends you, now There's for as improvement Japan a or question is, and and the therefore seen sequential years, that XX in and few total your both sustain of to been AE are a with Japan growth EDA. quarters which quite and year-over-year But in row investments redirect you The weak terms either share of sales know, in in anything on improvement quarterly in beginning grow or trailing Japan basis. or

Lip-Bu Tan

Good Yes. question.

is important strong, a is few. Japan and I’ll couple market us. think, areas A for very just Japan name I

to edge automotive, controller of microcontroller. the are Now, the also, And of up I excited IoT, then, earlier can strong. team them. in they machine a lot very role whole very, we're it. that industrial data, the really And couple AI very and consumer that Japan there's surveillance, areas, video play with And in learning and key mentioned related also, collecting prayer a

I now, very partner nicely. is think, be right key want this we then, to customer that couple then And a so, that important heavily of with a trusted And recovering they engaging going are and we’re forward. market, very

Operator

of Your comes Sterling from next JP question Morgan. Auty

Jackson Ader

on questions guys. for is Ader Hey, Jackson side. Sterling from our tonight. Couple This of

in it's areas the that hardware, coming you areas more at seems The called outperformance are for quarter, the first the volatile which like looking would two be, from revenue. the two IP and here it so typically out,

in what raise or that pipeline time-based year confidence to is of than you full building the giving quarter's So, what just licenses you is the something Is then you thought what ahead came upside? better guide there this thought? in above the

Lip-Bu Tan

me start fill then, first, Jackson, John think, in. and I let

even excited though, also that part interconnect level. about us then also custom well. this the of we area First is analysis we I and highlighted growth lines. the for part IP, exciting custom and has our highlight highlight been that And very a -- of then we’re other very we growth strength And this whole areas the we doing the is highlight in analog all, that why broad-based hardware, of digital kind also the And system system above connect product is it's the system across nice are investing X%. is And XXX%.

I And products that want say -- already guidance and into we for new think across some of also board so, overall, and it’s the our newly built to year. developed then I that the the

John Wall

pleasing IP, performance course lumpy for and IP benefits XXXX. the is against QX but very had of probably better against compare we Yes, QX

the now visibility we hardware better the On be our pickup in difficult functional with our are modest verification grew QX we hardware saw and in year-over-year. continue you that and the demand into the last were if you, in our XXXX. flat we functional a despite functional expect verification into to spoke side, in hardware pipeline, verification expecting us expecting segments, to recall, in We revenue we growth time high-teens products And QX. compare. revenue for behind to QX approximately in With the XXXX

Jackson Ader

Okay, Follow-up two-parter. of great. That's question helpful. a is kind

competitors What obviously to see Clarity you you. weeks Solver for main the that as who this couple from next you few expansion Clarity secondly, being, over of announced the Thank And this So, part TAM you've say $XX Lip-Bu, right, mentioned, What I in kind XX the billion years, the past. and currently then, you guess I XD you would first billion going the Solver? of guess, do of the XX? address of the be the seen as main or a XD incremental see was the would is you've that ago.

Lip-Bu Tan

of focus And That's this Cadence. very Good TAM we're for expansion. one important question. the about excited

foundation And this drive the all, of we why system EDA with excellent, to System Design. is part, starting have on that the in address -- our to -- first terms and our second to Intelligent to that's it strategy also company so, to drive company differentiation. design we semiconductor we’re continued of continue growth innovation. clearly, the And address begin think tools all I then And, call grow system

whole clearly And the system, system embedded system of so, opportunity move very And in X.X billion above to our into is market Green the and then, clearly, analysis analysis X and starting safety our the strategy. important of about part analysis with and about security, -- -- Hills embedded we're now, space, billion. is is front then space, is a partnership this us

so, on we then solutions. we're be I -- couple the are to we're side, think overall, the of quite are known system time, going them, analysis, And clearly, we have. for over to of forward, be tuned, success there on -- stay to I going the And highlight that you continue think some and competition well matching have the time some approach design on larger play needs increase simulation, more distributing multi-processing expertise method and into and complexity, capability. that algorithm, doing legacy and over solution will more require system terms that our higher require And the also and and strength will that And less ship then and more customers capacity also of in performance.

to play find a or unique have I market. in qualification so, And that this unique we think those are we really opportunity the things

Operator

question The Instructions] next from of Celino comes [Operator Jason KeyBanc.

Jason Celino

my hear taking you for thanks right? me guys, Can all Hey, questions.

Lip-Bu Tan

well. very Yes,

Jason Celino

Yes.

So, good raise to the full.

how I the First for guidance kind XXXX? XX.X% for of is appreciate conservative on guidance But, kind kind assumes half. the the hardware half XXXX growth, of still X.X% decelerates and to of of outlook. then comments your updated second

John Wall

we in Hi, John. This is Everything Jason. know is guidance. our

look of flat QX both and products. the kind includes that's into right, a the that's for quite is functional demand QX mainly software half visibility comparable. good. And first compared You're because to very our second lumpy, and hardware does verification, tough half. But, of which looks

Jason Celino

how I we think did about whole you Okay. strong as as the quarter. for growth quarter, IP And for guys wise revenue mean, mean, I IP far a post should as then the full-year?

John Wall

but the IP results from a our QX guiding relatively We're We're not easy in in individual QX. with IP benefits with IP QX with very results our the for compare pleased first very XXXX. quarter. pleased we're But our product versus groups,

Lip-Bu Tan

adoption the X we’re the proliferation Yes, and also positive We things about a Tensilica, audio, of automotive learning, vision, a consumer added surveillance. couple for of is customers. kind machine new

of On and are And and design the this tuned, hyperscale for gig to the have it have and marquee is reach the IP side, and beginning for companies we must more SerDes are come XXX semiconductor have just and it, we the a stay infrastructure. adopt delighted, we updates long you. we'll clearly, IP, at more

Operator

comes Berenberg. Gal question last Your Munda from of

Gal Munda

thanks my for taking guys, question. Hi,

is out. versus the guidance, revenue a over one delta hardware main first perhaps? it’s XX% that of guidance, it’s XX% you’ve of that new just, reasons saying the demand that to is maybe clarify QX the products, changed to The turn is of in is Is John kind estimated way time, the that ratable that’s of seen kind revenue that come XX% around one in thing has it's terms previous recognized kind the the

Lip-Bu Tan

Gal. Yes,

hardware comes upfront the Our growth expectation mix. of from to better We're high-XXs main directly expecting sources, the for predominantly our revenue of functional for outlook The revenue verification group. XXXX. for now functional verification our part revision that IP two recurring and leads

Gal Munda

linked do And start the just kind mix the past, especially your you of can liked they're be in you being processes. the managed customers the parts my different And cloud, question side? of the change cloud, easily or terms still vendors to your design second potentially then, to as when can question that into expect requirements? workflows, and that the is, And to does not more not, in if be matched tools previously sticky any tools of is offering. match you cloud And doing as when in mean move way

John Wall

in just business any Cadence customers our tools. their our Cadence optimize how We're tools. expecting another customers investment it way difference not Cloud to does So use our in model, our not really offers change

Lip-Bu Tan

and address the and way, cloud, productivity our that we tremendous to server try cloud is the to load the unlimited infrastructure customers. provides in that the can so And customers that the our for and to to by some moving performance you you parallel value the distributor can drive peak

Gal Munda

that. companies the the adoption future? will portion you for the that that of even customer, invest their larger when customers just the cloud you Would on you And the like for follow-up are expect existing of in system it own a less infrastructure, adoption the coming adverse a that you as seeing or will new capacity, mentioned would majority that say of from potentially account think do you in future, or startups in the

Lip-Bu Tan

depends with want all some can on we the customers. open they from to and be the the cloud cloud, And the really peak want hybrid, use that. also they It to of address on-premise, load startup, are or scratch, they to using

we I to they main make lot want secure supporting option available and customer, and using that think managed for managed, have customer Palladium our productivity the is basically or our drive they we Cadence different either them is a make and make driver them models. sure So using to whatever for sure then that it of chose basically there are are and And Cloud. and the performance cloud and can

Operator

to We closing Lip-Bu turn Tan, for the will now over call remarks.

Lip-Bu Tan

is Thank and us afternoon. multiple cornerstone you of Through technology design are is all customers. for all joining to further solutions waves a this business summary, of our our we strategy, which silicon broader capitalizing on the development, with mission critical In our base proliferating activity.

addressable of like support. an market. and shareholders, innovation strategy, our Design, Intelligent employees phase continued expanded for excellence, all and partners, their and of to closing, brings In hardworking Directors system total the intelligence, would Next new and in our pervasive customers Board thank System our I opportunities design

Operator

for participating call. call. This you earnings in today’s XXXX Thank Cadence quarter today’s first conference concludes

may now disconnect. You

Cadence Design Systems (CDNS) 22 Apr 192019 Q1 Earnings call transcript