About Cadence Design Systems, Inc.

Cadence Design Systems helps engineers pick up the development tempo. A leader in the market for electronic design automation (EDA) software, Cadence sells and leases software and hardware products used to design integrated circuits (ICs), printed circuit boards (PCBs), and other electronic systems. Semiconductor and electronics systems manufacturers use its products to build components for wireless devices, networking equipment, and other applications. The company also provides maintenance and support, and offers design and methodology consulting services. Customers have included Pegatron, Silicon Labs, and Texas Instruments. Cadence gets more than half of its sales from customers outside the US.


Cadence's products and maintenance account for 94% of its revenue with services bringing in the other 6%.

Geographic Reach

With its main headquarters in the US, Cadence Design has regional headquarters near customers in China, India, and Japan. It has about 56 other sales offices, design centers, and research and development facilities, most outside the US.

The US is its largest single market, accounting for almost 45% of sales. Customers in Asia (where most of the world’s electronics are made) account for 34% of sales, and Europe makes up rest.

Sales and Marketing

Cadence Design Systems primarily uses a direct sales force, but certain products, such as its OrCAD or Incisive series, are sold by resellers. Due to the complex nature of EDA products and the electronic design process, the company’s sales cycle is generally long, averaging three to six months or more.

Customers include Fujitsu, Polycom, Cavium, STM, Ricoh, VIA Telecom, and Faraday Technology.

Financial Performance

Since two sub-billion years (2010 and 2011), Cadence has been rebuilding its revenue. It rose 8% to $1.6 billion in 2014 from $1.46 billion in 2013. Increased levels of business and incremental contributions from acquisition fueled the growth. Net income, however, dropped about 5% to $159 million in 2014 from 2013. Cadence increased research and development spending 13% in 2014 and posted other higher operating costs related to acquisitions made in 2013 and 2014. Cash flow from operations was $316.7 million in 2014, a decrease from $367.6 million in 2013.


The company's product strategy is focused around design activities that include functional verification, digital IC design, custom IC design, and system interconnect. Cadence products include Incisive (functional verification), Encounter (digital IC design), Virtuoso (custom design), and Allegro (system interconnect platforms).

Mergers and Acquisitions

Cadence acquired Jasper Design Automation Inc., a privately held provider of formal analysis software, for $139 million in 2014. Jasper's technology complements Cadence’s system design and verification platforms. The company made two other deals, for Forte Design Systems and the assets of TransSwitch, in 2014 for a total of $27.5 million.

In 2013 the company made three acquisitions. It bought India-based Cosmic Circuits, a provider of analog and mixed signal IP cores, the IP business of Polish firm Evatronix, and California-based Tensilica, a provider of intellectual property cores for dataplane processing, for $380 million.

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Cadence Design Systems, Inc.

2655 Seely Ave Bldg 5
San Jose, CA 95134-1931
Phone: 1 (408) 943-1234
Fax: 1 (408) 944-0747


  • Employer Type: Public
  • Stock Symbol: CDNS
  • Stock Exchange: NASDAQ
  • President, CEO, and Director: Lip-Bu Tan
  • Chairman: John B. Shoven
  • President, CEO, and Director: Lip-Bu Tan

Major Office Locations

  • San Jose, CA

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