Cadence Design Systems Q1 Adj. Profit Tops View; Lifts FY14 GAAP EPS Outlook

(RTTNews) - Cadence Design Systems, Inc. (CDNS) reported first-quarter net income of $33.1 million, or $0.11 per share, compared to $78.6 million, or $0.27 per share in the comparable quarter last year.

Adjusted net income was $59.4 million, or $0.20 per share, compared to $60.6 million, or $0.21 per share, a year ago.

On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $0.19 for the quarter. Analysts' estimates typically exclude special items.

Revenue was $378.55 million, compared to $354.27 million, a year ago, while ten analysts expected revenue of $376.80 million for the quarter.

For the second quarter of 2014, the company expects GAAP net income per share to be in the range of $0.10 to $0.12, non-GAAP net income per share in the range of $0.19 to $0.21 and total revenue in the range of $370 million to $380 million. Analysts expect the company to report second-quarter profit per share of $0.23 on revenue of $372.17 million.

For 2014, the company now expects GAAP net income per share to be in the range of $0.56 to $0.66 and total revenue in the range of $1.550 billion to $1.590 billion.

Earlier, the company expected GAAP net income per share to be in the range of $0.55 to $0.65 and total revenue in the range of $1.550 billion to $1.585 billion.

The company continues to expect non-GAAP net income per share to be in the range of $0.92 to $1.02. Analysts expect the company to report fiscal 2014 earnings per share of $0.97 on revenue of $1.57 billion.

Separately, Cadence announced that it has entered into a definitive agreement to acquire Jasper Design Automation, Inc., for about $170 million in cash.

Commenting on Jasper Design Automation, the company said it is a market and technology leader in the fast-growing formal analysis sector, providing multiple verification solutions, built on the JasperGold platform.

Cadence said it intends to finance the transaction with available cash and an existing revolving credit facility. The transaction is expected to close in the second quarter of fiscal 2014. Cadence expects the transaction to be accretive to its adjusted earnings per share in fiscal 2015 after the impact of merger-related accounting.