Overview
- Cadence Design Systems reported Q3 earnings of $254.3 million and $1.02 billion revenue, outperforming Wall Street estimates.
- Despite beating estimates, the company's Q4 forecast is weaker than expected, due to a slow chip industry recovery and increasing costs.
- Cadence's share price has increased by 51% in the past year, reaching $239.59.
- The company's R&D expenses have increased by 13.8% in Q3 because of investments in integrating AI capabilities into its software tools.
- Cadence, which derived 15% of its total revenue from China in 2022, could be negatively impacted by US export controls on high-end chip technology.