Cadence Design Systems Inc broke through the billion dollar revenue barrier yesterday, posting strong fourth quarter and year-end results. Fourth quarter revenues reached $345m, up 22% from last year’s 283m, and $1.2bn for the year, up 33% from last year. The San Jose, California-based firm saw profits of $51.6m for the quarter, compared with $48.6m last year, although the figures include a $45m restructuring charge aimed at improving the profitability of its services business. Revenues from electronic design automation software products were up 31% for the year to $695m, while revenues from services rose 59% to $256m. Gross margins for services during the fourth quarter rose to 31% from 26% in the same period last year. The year included a $339m for acquired in-process research and development, an amount which once again might be subject to revision following recent SEC rulings. Those acquisitions included wireless communications design services groups Symbionics Group Ltd and Excellent Design Inc, simulation and verification developer and consultant Bell Labs Integrated Circuit Design Automation Group and, most strategically, Ambit Design Systems Inc, a developer of next-generation synthesis tools for system-on-a-chip designs.
