Cadence Design Systems, Inc.
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Cadence Design Systems, Inc. Financial Snapshot
Operating Performance
Fast Facts
2655 Seely Avenue, San Jose, The company reported revenue of US$935.95 million
Headquarters Address
95134,United States of America during the fiscal year 2010 (2010). The company's
revenue declined at a compounded rate of -10.88%
Telephone + 1 408 9431234
during 2006–2010, with an annual growth of 9.77%
over 2009. In 2010, the company recorded an
Fax + 1 408 4285001 operating margin of -3.86%, as against -15.11% in
2009.
Website www.cadence.com
Ticker Symbol, Stock Exchange CDNS, NASDAQ Revenue and Margins
Number of Employees 4,600
Fiscal Year End January
Revenue (in US$ million) 935.95
SWOT Analysis
Strengths Weaknesses
Return on Equity
Market Presence Declining Market Share in Sector
The company recorded a return on equity (ROE) of
45.74% for 2010, as compared to its peers,
Strong Product Development Platforms Limited Liquidity Position Synopsys, Inc. (Ticker: SNPS), ANSYS, Inc. (Ticker:
ANSS) and Mentor Graphics Corporation (Ticker:
Strong Research and Development
Poor Operating Performance MENT), which recorded ROEs of 11.29%, 10.01%
Activities
and -3.42% respectively. The company reported an
operating margin of -3.86% in 2010.
Opportunities Threats
Acquisition of Denali Intense Competition Return on Equity
Growth in Semiconductor Market Rapid Changes in Technology
Shortage of Raw materials
Liquidity Position
The company reported a current ratio of 1.26 in 2010,
as compared to its peers, Synopsys, Inc., ANSYS,
Inc. and Mentor Graphics Corporation, which
recorded current ratios of 1.35, 2.30 and 1.20
respectively. As of January 2010, the company
recorded cash and short-term investments of worth
US$570.12 million, against US$143.26 million current
debt. The company reported a debt to equity ratio of
1.99 in 2010 as compared to its peers, Synopsys,
Inc., ANSYS, Inc. and Mentor Graphics Corporation,
which recorded debt to equity ratios of 0.00, 0.10 and
0.35 respectively.
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Cadence Design Systems, Inc. - SWOT Profile Page 1
Cadence Design Systems, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Operational Efficiency ......................................................................................................................................12
2.2.4 Solvency ..........................................................................................................................................................13
2.3 Competitive Benchmarking ..................................................................................................................................14
2.3.1 Efficiency ..........................................................................................................................................................14
2.3.2 Capital Expenditure ..........................................................................................................................................15
2.3.3 Turnover – Inventory and Asset .......................................................................................................................16
3 Recent Developments ........................................................................................................................... 17
4 SWOT Analysis ...................................................................................................................................... 20
4.1 SWOT Analysis - Overview ..................................................................................................................................20
4.2 Strengths ..............................................................................................................................................................20
4.3 Weaknesses .........................................................................................................................................................20
4.4 Opportunities ........................................................................................................................................................21
4.5 Threats .................................................................................................................................................................21
5 Cadence Design Systems, Inc. - Company Statement ........................................................................ 23
6 History .................................................................................................................................................... 24
7 Cadence Design Systems, Inc. - Key Employees ................................................................................ 25
8 Key Employee Biographies................................................................................................................... 26
9 Locations and Subsidiaries .............................................