Delaware | 000-15867 | 77-0148231 | ||
(State or Other Jurisdiction | (Commission File Number) | (I.R.S. Employer | ||
of Incorporation) | Identification No.) |
2655 Seely Avenue, Building 5 | ||
San Jose, California | 95134 | |
(Address of Principal Executive Offices) | (Zip Code) |
| In the Condensed Consolidated Balance Sheets as of July 3, 2010: |
| The actual amount of Prepaid expenses and other is $71,448 instead of $62,308, and the actual amount of Goodwill is $158,227 instead of $167,367, but Total Assets remains unchanged at $1,695,755. | ||
| The actual amount of Accounts payable and accrued liabilities is $153,982 instead of $153,220, and the actual amount of Accumulated deficit is $1,215,391 instead of $1,214,629, but Total liabilities and stockholders equity remains unchanged at $1,695,755. |
| In the Condensed Consolidated Statements of Operations for the three months ended July 3, 2010, the actual amount of Research and development expense is $91,880 instead of $91,118, and the actual amount of Net income is $48,607 instead of $49,369. Diluted net income per share for the same period is decreased because of the $762 in additional Research and development expense, which reduces Diluted net income per share by $0.003, which, with rounding, results in Diluted net income per share of $0.18 instead of $0.19. | ||
| In the Condensed Consolidated Statements of Cash Flows for the three months ended July 3, 2010, the actual amount of Net income is $48,607 instead of $49,369, the actual amount of Change in Prepaid expenses and other is $(12,260) instead of $(3,120), the actual amount of Change in Accounts payable and accrued liabilities is $5,101 instead of $4,339, and the actual amount of Cash paid in business combinations and asset acquisitions, net of cash acquired is $(253,951) instead of $(263,091), but Cash and cash equivalents remained unchanged at $475,603. |
July 3, 2010 | Adjustments | July 3, 2010 | ||||||||||
As reflected in | As updated on | |||||||||||
financial statement | August 4, 2010 | |||||||||||
schedules dated | ||||||||||||
July 28, 2010 | ||||||||||||
Current Assets: |
||||||||||||
Cash and cash equivalents |
$ | 475,603 | $ | | $ | 475,603 | ||||||
Short-term investments |
2,860 | | 2,860 | |||||||||
Receivables, net of allowances of $11,194 |
191,291 | | 191,291 | |||||||||
Inventories |
23,874 | | 23,874 | |||||||||
Prepaid expenses and other |
62,308 | 9,140 | 71,448 | |||||||||
Total current assets |
755,936 | 9,140 | 765,076 | |||||||||
Property, plant and equipment, net of accumulated
depreciation of $652,965 |
295,073 | | 295,073 | |||||||||
Goodwill |
167,367 | (9,140 | ) | 158,227 | ||||||||
Acquired intangibles, net of accumulated amortization
of
$90,983 |
192,422 | | 192,422 | |||||||||
Installment contract receivables |
40,296 | | 40,296 | |||||||||
Other assets |
244,661 | | 244,661 | |||||||||
Total Assets |
$ | 1,695,755 | $ | | $ | 1,695,755 | ||||||
Current Liabilities: |
||||||||||||
Accounts payable and accrued liabilities |
$ | 153,220 | $ | 762 | $ | 153,982 | ||||||
Current portion of deferred revenue |
290,105 | | 290,105 | |||||||||
Total current liabilities |
443,325 | 762 | 444,087 | |||||||||
Long-Term Liabilities: |
||||||||||||
Long-term portion of deferred revenue |
92,477 | | 92,477 | |||||||||
Convertible notes |
541,767 | | 541,767 | |||||||||
Other long-term liabilities |
454,744 | | 454,744 | |||||||||
Total long-term liabilities |
1,088,988 | | 1,088,988 | |||||||||
Stockholders Equity: |
||||||||||||
Common stock and capital in excess of par value |
1,708,610 | | 1,708,610 | |||||||||
Treasury stock, at cost |
(370,700 | ) | | (370,700 | ) | |||||||
Accumulated deficit |
(1,214,629 | ) | (762 | ) | (1,215,391 | ) | ||||||
Accumulated other comprehensive income |
40,161 | | 40,161 | |||||||||
Total stockholders equity |
163,442 | (762 | ) | 162,680 | ||||||||
Total liabilities and stockholders equity |
$ | 1,695,755 | $ | | $ | 1,695,755 | ||||||
Three Months Ended | ||||||||||||
July 3, 2010 | Adjustments | July 3, 2010 | ||||||||||
As reflected in | As updated on | |||||||||||
financial | August 4, 2010 | |||||||||||
statement | ||||||||||||
schedules dated | ||||||||||||
July 28, 2010 | ||||||||||||
Revenue: |
||||||||||||
Product |
$ | 117,066 | | $ | 117,066 | |||||||
Services |
25,258 | | 25,258 | |||||||||
Maintenance |
84,740 | | 84,740 | |||||||||
Total revenue |
227,064 | | 227,064 | |||||||||
Costs and Expenses: |
||||||||||||
Cost of product |
7,123 | | 7,123 | |||||||||
Cost of services |
21,556 | | 21,556 | |||||||||
Cost of maintenance |
10,481 | | 10,481 | |||||||||
Marketing and sales |
71,513 | | 71,513 | |||||||||
Research and development |
91,118 | 762 | 91,880 | |||||||||
General and administrative |
17,058 | | 17,058 | |||||||||
Amortization of acquired intangibles |
2,551 | | 2,551 | |||||||||
Restructuring and other charges (credits) |
(317 | ) | | (317 | ) | |||||||
Total costs and expenses |
221,083 | 762 | 221,845 | |||||||||
Income from operations |
5,981 | (762 | ) | 5,219 | ||||||||
Interest expense |
(7,972 | ) | | (7,972 | ) | |||||||
Other expense, net |
(3,100 | ) | | (3,100 | ) | |||||||
Loss before benefit for income taxes |
(5,091 | ) | (762 | ) | (5,853 | ) | ||||||
Benefit for income taxes |
(54,460 | ) | | (54,460 | ) | |||||||
Net income |
$ | 49,369 | $ | (762 | ) | $ | 48,607 | |||||
Basic net income per share |
$ | 0.19 | $ | 0.19 | ||||||||
Diluted net income per share * |
$ | 0.19 | $ | 0.18 | ||||||||
Weighted average common shares outstanding
basic |
262,163 | 262,163 | ||||||||||
Weighted average common shares outstanding
diluted |
266,423 | 266,423 | ||||||||||
* | The actual Diluted net income per share is reduced because of the $762 in additional Research and development expense, which reduces Diluted net income per share by $0.003, which, with rounding, reduces Diluted net income per share to $0.18 instead of $0.19. |
Three Months Ended | Three Months Ended | |||||||||||
July 3, 2010 | Adjustments | July 3, 2010 | ||||||||||
As reflected in | As updated on | |||||||||||
financial statement schedules dated July 28, 2010 |
August 4, 2010 | |||||||||||
Cash and Cash Equivalents at Beginning of Period |
$ | 619,303 | $ | | $ | 619,303 | ||||||
Cash Flows from Operating Activities: |
||||||||||||
Net income |
49,369 | (762 | ) | 48,607 | ||||||||
Adjustments to reconcile net income to net cash provided by
operating activities: |
||||||||||||
Depreciation and amortization |
19,868 | | 19,868 | |||||||||
Amortization of debt discounts and fees |
5,778 | | 5,778 | |||||||||
Loss on extinguishment of debt |
5,321 | | 5,321 | |||||||||
Stock-based compensation |
10,435 | | 10,435 | |||||||||
Loss on equity method investments |
46 | | 46 | |||||||||
Gain on investments, net |
(1,344 | ) | | (1,344 | ) | |||||||
Write-down of investment securities |
1,500 | | 1,500 | |||||||||
Impairment of property, plant and equipment |
263 | | 263 | |||||||||
Deferred income taxes |
(67,560 | ) | | (67,560 | ) | |||||||
Provisions (recoveries) for losses (gains) on trade and installment contract receivables |
(10,385 | ) | | (10,385 | ) | |||||||
Other non-cash items |
2,400 | | 2,400 | |||||||||
Changes in operating assets and liabilities, net of effect of
acquired businesses: |
||||||||||||
Receivables |
(1,395 | ) | | (1,395 | ) | |||||||
Installment contract receivables |
12,710 | | 12,710 | |||||||||
Inventories |
(4,876 | ) | | (4,876 | ) | |||||||
Prepaid expenses and other |
(3,120 | ) | (9,140 | ) | (12,260 | ) | ||||||
Other assets |
(1,788 | ) | | (1,788 | ) | |||||||
Accounts payable and accrued liabilities |
4,339 | 762 | 5,101 | |||||||||
Deferred revenue |
28,069 | | 28,069 | |||||||||
Other long-term liabilities |
8,508 | | 8,508 | |||||||||
Net cash provided by operating activities |
58,138 | (9,140 | ) | 48,998 | ||||||||
Cash Flows from Investing Activities: |
||||||||||||
Proceeds from the sale of long-term investments |
1,169 | | 1,169 | |||||||||
Purchases of property, plant and equipment |
(8,866 | ) | | (8,866 | ) | |||||||
Purchases of software licenses |
(2,030 | ) | | (2,030 | ) | |||||||
Investment in venture capital partnerships and equity investments |
(500 | ) | | (500 | ) | |||||||
Cash paid in business combinations and asset acquisitions, net of cash acquired |
(263,091 | ) | 9,140 | (253,951 | ) | |||||||
Net cash used for investing activities |
(273,318 | ) | 9,140 | (264,178 | ) | |||||||
Cash Flows from Financing Activities: |
||||||||||||
Proceeds from issuance of 2015 Notes |
350,000 | | 350,000 | |||||||||
Payment of Convertible Senior Notes |
(187,150 | ) | | (187,150 | ) | |||||||
Payment of 2015 Notes issuance costs |
(9,800 | ) | | (9,800 | ) | |||||||
Purchase of 2015 Notes Hedges |
(76,635 | ) | | (76,635 | ) | |||||||
Proceeds from termination of Convertible Senior Notes Hedges |
280 | | 280 | |||||||||
Proceeds from sale of 2015 Warrants |
37,450 | | 37,450 | |||||||||
Tax benefit from employee stock transactions |
29 | | 29 | |||||||||
Proceeds from issuance of common stock |
75 | | 75 | |||||||||
Stock received for payment of employee taxes on vesting of restricted stock |
(2,035 | ) | | (2,035 | ) | |||||||
Purchases of treasury stock |
(39,997 | ) | | (39,997 | ) | |||||||
Net cash provided by financing activities |
72,217 | | 72,217 | |||||||||
Effect of exchange rate changes on cash and cash equivalents |
(737 | ) | | (737 | ) | |||||||
Decrease in cash and cash equivalents |
(143,700 | ) | | (143,700 | ) | |||||||
Cash and Cash Equivalents at End of Period |
$ | 475,603 | $ | | $ | 475,603 | ||||||
Three Months Ending | Three Months Ending | Year Ending | Year Ending | |||||||||||||
October 2, 2010 | October 2, 2010 | January 1, 2011 | January 1, 2011 | |||||||||||||
Forecast | Forecast | Forecast | Forecast | |||||||||||||
As reflected in | As updated on | As reflected in | As updated on | |||||||||||||
financial statement | August 4, 2010 | financial statement | August 4, 2010 | |||||||||||||
schedules dated | schedules dated | |||||||||||||||
July 28, 2010 | July 28, 2010 | |||||||||||||||
Diluted net income (loss) per share on a GAAP basis |
$(0.08) to $(0.06) | $(0.10) to $(0.08) | $(0.01) to $0.03 | $(0.04) to $(0.00) | ||||||||||||
Amortization of acquired intangibles |
0.03 | 0.03 | 0.08 | 0.08 | ||||||||||||
Stock-based compensation expense |
0.04 | 0.04 | 0.16 | 0.16 | ||||||||||||
Non-qualified deferred compensation expenses |
| | 0.01 | 0.01 | ||||||||||||
Restructuring and other charges (credits) |
| | (0.01 | ) | (0.01 | ) | ||||||||||
Shareholder litigation costs |
| | 0.01 | 0.01 | ||||||||||||
Integration and acquisition-related costs |
| 0.02 | 0.01 | 0.04 | ||||||||||||
Other income or expense related to investments and non-qualified
deferred compensation plan assets* |
| | (0.02 | ) | (0.02 | ) | ||||||||||
Loss on extinguishment of debt |
| | 0.02 | 0.02 | ||||||||||||
Amortization of debt discount |
0.02 | 0.02 | 0.09 | 0.09 | ||||||||||||
Acquisition-related income tax benefit |
| | (0.25 | ) | (0.25 | ) | ||||||||||
Income tax effect of non-GAAP adjustments |
| | 0.03 | 0.03 | ||||||||||||
Diluted net income per share on a non-GAAP basis |
$0.01 to $0.03 | $0.01 to $0.03 | $0.12 to $0.16 | $0.12 to $0.16 | ||||||||||||
* | Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in Other income (expense), net. |
Three Months Ending | Three Months Ending | Year Ending | Year Ending | |||||||||||||
October 2, 2010 | October 2, 2010 | January 1, 2011 | January 1, 2011 | |||||||||||||
Forecast | Forecast | Forecast | Forecast | |||||||||||||
As reflected in | As updated on | As reflected in | As updated on | |||||||||||||
financial statement | August 4, 2010 | financial statement | August 4, 2010 | |||||||||||||
schedules dated | schedules dated | |||||||||||||||
($ in Millions) | July 28, 2010 | July 28, 2010 | ||||||||||||||
Net income (loss) on a GAAP basis |
$(22) to $(16) | $(26) to $(20) | $(2) to $8 | $(11) to $(1) | ||||||||||||
Amortization of acquired intangibles |
7 | 7 | 21 | 21 | ||||||||||||
Stock-based compensation expense |
12 | 12 | 43 | 43 | ||||||||||||
Non-qualified deferred compensation expenses |
| | 2 | 2 | ||||||||||||
Restructuring and other charges (credits) |
| | (1 | ) | (1 | ) | ||||||||||
Shareholder litigation costs |
| | 3 | 3 | ||||||||||||
Integration and acquisition-related costs |
1 | 5 | 3 | 12 | ||||||||||||
Other income or expense related to investments and non-qualified
deferred compensation plan assets* |
| | (5 | ) | (5 | ) | ||||||||||
Loss on extinguishment of debt |
| | 5 | 5 | ||||||||||||
Amortization of debt discount |
6 | 6 | 23 | 23 | ||||||||||||
Acquisition-related income tax benefit |
| | (67 | ) | (67 | ) | ||||||||||
Income tax effect of non-GAAP adjustments |
(1 | ) | (1 | ) | 7 | 7 | ||||||||||
Net income on a non-GAAP basis |
$3 to $9 | $3 to $9 | $32 to $42 | $32 to $42 | ||||||||||||
* | Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on sale of investments and gains or losses on non-qualified deferred compensation plan assets recorded in Other income (expense), net. |
CADENCE DESIGN SYSTEMS, INC. |
||||
By: | /s/ Kevin S. Palatnik | |||
Kevin S. Palatnik | ||||
Senior Vice President and Chief Financial Officer | ||||