Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results

14% Revenue Growth and ~45% Non-GAAP Operating Margin for 2025 Record Backlog of $7.8 Billion Cadence (Nasdaq: CDNS) today announced results for the fourth quarter and fiscal year 2025. Fourth Quarter 2025 Financial Results Revenue of $1.440 billion, compared to revenue of $1.356 billion in Q4 2024GAAP operating margin of 32.2%, compared to 33.7% in Q4 2024Non-GAAP operating margin of 45.8%, compared to 46.0% in Q4 2024GAAP diluted net income per share of $1.42, compared to $1.24 in Q4 2024Non-GAAP diluted net income per share of $1.99, compared to $1.88 in Q4 2024 Fiscal Year 2025 Financial Results Revenue of $5.297 billion, compared to revenue of $4.641 billion in 2024GAAP operating margin of 28.2%, compared to 29.1% in 2024Non-GAAP operating margin of 44.6%, compared to 42.5% in 2024GAAP diluted net income per share of $4.06, compared to $3.85 in 2024Non-GAAP diluted net income per share of $7.14, compared to $5.97 in 2024Year-end backlog was $7.8 billion and revenue expected to be recognized in the next 12 months from remaining performance obligations was $3.8 billion “Cadence delivered excellent results for the fourth quarter, closing an outstanding 2025 with over 14% revenue growth and 20% non-GAAP EPS growth,” said Anirudh Devgan, president and chief executive officer. “Strong customer demand for our expanding AI-driven product portfolio and the essential nature of Cadence's engineering software position us well to capture the massive opportunities in the AI era.” “Cadence closed 2025 with a strong finish and broad-based strength across the business,” said John Wall, senior vice president and chief financial officer. “We delivered a 44.6% non-GAAP operating margin, reflecting continued productivity-driven profitability improvement. With strong Q4 bookings, we began 2026 with a record backlog of $7.8 billion and excellent momentum.” CFO Commentary Commentary on the fourth quarter and fiscal year 2025 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations. Business Outlook Cadence's outlook does not include the impact of its pending acquisition of Hexagon's design and engineering business. For fiscal year 2026, the company expects: Revenue in the range of $5.9 billion to $6.0 billionGAAP operating margin in the range of 31.75% to 32.75%Non-GAAP operating margin in the range of 44.75% to 45.75%GAAP diluted net income per share in the range of $4.95 to $5.05Non-GAAP diluted net income per share in the range of $8.05 to $8.15 The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company’s geographic earnings mix, or other changes to the company’s strategy or business operations. The company expects to use the current normalized non-GAAP tax rate through fiscal 2026 but will re-evaluate this rate periodically for significant items that may materially affect its projections. Reconciliations of the financial results and business outlook from GAAP operating margin, GAAP net income and GAAP diluted net income per share to non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share, respectively, are included in this press release. Business Highlights The Cadence.ai portfolio continued gaining momentum with market shaping customers. Cadence introduced ChipStack, a groundbreaking agentic AI Super Agent for chip design and verification, built upon Cadence's foundational EDA platform. By leveraging intelligent agents that autonomously call the underlying Cadence tools, ChipStack is enabling faster design convergence and significantly improved engineering productivityCadence’s Core EDA business grew 13% in 2025 driven by broad hyperscaler adoption, expanding digital full-flow deployments, and growing proliferation of its AI-driven productsHardware delivered another record year, adding more than 30 new customers, with seven of the top ten customers purchasing both Palladium Z3 and Protium X3 systems, reflecting strong AI and hyperscale demandCadence’s IP business grew nearly 25% year-over-year in 2025, driven by the superior performance and expanding adoption of its IP portfolio, including HBM, UCIe, PCIe, DDR, and SerDesThe System Design and Analysis business grew 13% in 2025, supported by strong demand for Cadence’s 3D‑IC platform and simulation solutions that are increasingly critical for AI infrastructure, high‑performance computing, and advanced mobile applications Audio Webcast Scheduled Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the fourth quarter and fiscal year 2025 financial results audio webcast today, February 17, 2026, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting February 17, 2026 at 5 p.m. (Pacific) and ending March 17, 2026 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations. About Cadence Cadence is a market leader in AI and digital twins, pioneering the application of computational software to accelerate innovation in the engineering design of silicon to systems. Our design solutions, based on Cadence’s Intelligent System Design™ strategy, are essential for the world’s leading semiconductor and systems companies to build their next-generation products from chips to full electromechanical systems that serve a wide range of markets, including hyperscale computing, mobile communications, automotive, aerospace, industrial, life sciences and robotics. In 2024, Cadence was recognized by the Wall Street Journal as one of the world’s top 100 best-managed companies. Cadence solutions offer limitless opportunities—learn more at www.cadence.com. © 2026 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners. This press release contains forward-looking statements, including Cadence’s outlook on future operating results, financial condition, strategic objectives, business model and prospects, technology and product developments, strategic relationships, pending acquisition of Hexagon's design and engineering ("D&E") business, backlog, industry trends, market growth, tax rates and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) changes in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence’s products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic, geopolitical and industry conditions, including export controls, tariffs, other trade restrictions and other government regulations, as well as rising tensions and armed conflicts around the world; (vi) changes in tax laws, interest rate and currency exchange rate fluctuations, inflation rates, Cadence’s increased debt levels and obligations and Cadence’s ability to access capital and debt markets in the future; (vii) legislative or regulatory requirements; (viii) Cadence’s pending acquisitions, the acquisition of other companies, businesses or technologies or the failure to successfully integrate and operate them; (ix) potential harm caused by compromises in cybersecurity and cybersecurity attacks; (x) capital expenditure requirements and events that affect cash flow, liquidity or reserves, or estimates Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (xi) the effects of any litigation, regulatory, tax or other proceedings to which Cadence is or may become a party or to which Cadence or its products, services, technologies or properties are subject, including Cadence’s ongoing compliance, cooperation, audit and other obligations under its July 2025 settlement agreements with the U.S. Department of Justice (“DOJ”) and Bureau of Industry and Security (“BIS”), any further inquiries or adverse actions by the DOJ, BIS or other U.S. or foreign governmental authorities and any impact of the settlements on Cadence’s operations and business dealings in China, U.S. government contracting business and other customer relationships; and (xii) Cadence’s ability to successfully meet any environmental, social and governance targets and practices. Cadence’s pending D&E acquisition remains subject to certain closing conditions, which may not be satisfied in a timely manner or at all. Cadence may not successfully integrate the D&E business or realize the anticipated benefits of the acquisition. The acquisition and its effects on Cadence are subject to additional risks and uncertainties including fluctuations in the trading price of Cadence shares and in currency exchange and interest rates; Cadence’s ability to repay debt incurred to fund the acquisition; Cadence’s ability to motivate and retain key personnel; and the acquisition’s impact on relationships with third parties, including customers, partners and governmental authorities. In addition, the timing and amount of Cadence’s repurchases of its common stock are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. For a detailed discussion of these and other cautionary statements related to Cadence and its business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, including its most recent report on Form 10-K, subsequent reports on Form 10-Q and future filings. All forward-looking statements in this press release are based on management's expectations as of the date of this press release and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. GAAP to Non-GAAP Reconciliation Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures contained within this press release with their most directly comparable GAAP results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance. To supplement Cadence’s financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence’s performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, acquisition and integration-related costs including retention expenses, income or expenses related to foreign currency forward exchange contract associated with a pending acquisition, investments, divestitures and Cadence’s non-qualified deferred compensation plan, restructuring, loss related to contingent liability and other significant items not directly related to Cadence’s core business operations, and the income tax effect of non-GAAP pre-tax adjustments. Cadence management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence management, including forecasting and budgeting. The following tables reconcile the specific items excluded from GAAP operating margin, GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP operating margin, non-GAAP net income and non-GAAP net income per diluted share for the periods shown below: Operating Margin Reconciliation Three Months Ended December 31, 2025 December 31, 2024 (unaudited) GAAP operating margin as a percent of total revenue 32.2 % 33.7 % Reconciling items to non-GAAP operating margin as a percent of total revenue: Stock-based compensation expense 7.9 % 7.9 % Amortization of acquired intangibles 2.1 % 2.0 % Acquisition and integration-related costs 3.4 % 1.7 % Restructuring 0.1 % (0.1 )% Non-qualified deferred compensation expenses 0.1 % 0.0 % Special charges 0.0 % 0.2 % Loss related to contingent liability* 0.0 % 0.6 % Non-GAAP operating margin as a percent of total revenue 45.8 % 46.0 % * Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. Operating Margin Reconciliation Years Ended December 31, 2025 December 31, 2024 (unaudited) GAAP operating margin as a percent of total revenue 28.2 % 29.1 % Reconciling items to non-GAAP operating margin as a percent of total revenue: Stock-based compensation expense 8.6 % 8.4 % Amortization of acquired intangibles 2.0 % 2.0 % Acquisition and integration-related costs 2.5 % 2.1 % Restructuring 0.6 % 0.5 % Non-qualified deferred compensation expenses 0.3 % 0.2 % Special charges 0.0 % 0.0 % Loss related to contingent liability* 2.4 % 0.2 % Non-GAAP operating margin as a percent of total revenue 44.6 % 42.5 % * Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. Net Income Reconciliation Three Months Ended December 31, 2025 December 31, 2024 (in thousands) (unaudited) Net income on a GAAP basis $ 388,136 $ 340,210 Stock-based compensation expense 113,164 106,508 Amortization of acquired intangibles 30,229 26,776 Acquisition and integration-related costs 48,652 23,477 Restructuring 1,862 (1,020 ) Non-qualified deferred compensation expenses 2,064 293 Special charges — 1,902 Loss related to contingent liability* — 8,322 Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition 10,666 — Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets (49,111 ) 14,654 Income tax effect of non-GAAP adjustments (2,505 ) (5,456 ) Net income on a non-GAAP basis $ 543,157 $ 515,666 * Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. Net Income Reconciliation Years Ended December 31, 2025 December 31, 2024 (in thousands) (unaudited) Net income on a GAAP basis $ 1,108,888 $ 1,055,484 Stock-based compensation expense 455,175 391,219 Amortization of acquired intangibles 105,332 90,449 Acquisition and integration-related costs 135,073 95,562 Restructuring 29,194 23,765 Non-qualified deferred compensation expenses 14,029 11,145 Special charges 1,988 3,135 Loss related to contingent liability* 128,545 8,322 Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition 29,227 — Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets (83,286 ) (60,798 ) Income tax effect of non-GAAP adjustments 27,497 17,162 Net income on a non-GAAP basis $ 1,951,662 $ 1,635,445 * Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. Diluted Net Income Per Share Reconciliation Three Months Ended December 31, 2025 December 31, 2024 (in thousands, except per share data) (unaudited) Diluted net income per share on a GAAP basis $ 1.42 $ 1.24 Stock-based compensation expense 0.41 0.39 Amortization of acquired intangibles 0.11 0.10 Acquisition and integration-related costs 0.18 0.08 Restructuring 0.01 — Non-qualified deferred compensation expenses 0.01 — Special charges — 0.01 Loss related to contingent liability* — 0.03 Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition 0.04 — Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets (0.18 ) 0.05 Income tax effect of non-GAAP adjustments (0.01 ) (0.02 ) Diluted net income per share on a non-GAAP basis $ 1.99 $ 1.88 Shares used in calculation of diluted net income per share 272,932 274,292 * Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. Diluted Net Income Per Share Reconciliation Years Ended December 31, 2025 December 31, 2024 (in thousands, except per share data) (unaudited) Diluted net income per share on a GAAP basis $ 4.06 $ 3.85 Stock-based compensation expense 1.67 1.43 Amortization of acquired intangibles 0.38 0.33 Acquisition and integration-related costs 0.49 0.35 Restructuring 0.11 0.09 Non-qualified deferred compensation expenses 0.05 0.04 Special charges 0.01 0.01 Loss related to contingent liability* 0.47 0.03 Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition 0.11 — Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets (0.31 ) (0.22 ) Income tax effect of non-GAAP adjustments 0.10 0.06 Diluted net income per share on a non-GAAP basis $ 7.14 $ 5.97 Shares used in calculation of diluted net income per share 273,312 273,833 * Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. Cadence Design Systems, Inc.Condensed Consolidated Balance SheetsDecember 31, 2025 and December 31, 2024(In thousands)(Unaudited)December 31, 2025December 31, 2024Current assets:Cash and cash equivalents $ 3,001,317 $ 2,644,030 Receivables, net 944,939 680,460 Inventories 303,545 257,711 Prepaid expenses and other 419,872 433,878 Total current assets 4,669,673 4,016,079 Property, plant and equipment, net 517,004 458,200 Goodwill 2,749,143 2,378,671 Acquired intangibles, net 718,223 594,734 Deferred taxes 917,733 982,057 Other assets 581,372 544,741 Total assets $ 10,153,148 $ 8,974,482 Current liabilities:Accounts payable and accrued liabilities $ 856,856 $ 632,692 Current portion of deferred revenue 778,435 737,413 Total current liabilities 1,635,291 1,370,105 Long-term liabilities:Long-term portion of deferred revenue 155,997 115,168 Long-term debt 2,480,150 2,476,183 Other long-term liabilities 407,529 339,448 Total long-term liabilities 3,043,676 2,930,799 Stockholders' equity 5,474,181 4,673,578 Total liabilities and stockholders' equity $ 10,153,148 $ 8,974,482 Cadence Design Systems, Inc.Condensed Consolidated Income StatementsFor the Three Months and Years Ended December 31, 2025 and December 31, 2024(In thousands, except per share amounts)(Unaudited)Three Months EndedYears EndedDecember 31, 2025December 31, 2024December 31, 2025December 31, 2024Revenue:Product and maintenance $ 1,332,526 $ 1,239,287 $ 4,821,589 $ 4,213,509 Services 107,588 116,694 475,170 427,755 Total revenue 1,440,114 1,355,981 5,296,759 4,641,264 Costs and expenses:Cost of product and maintenance 144,001 157,249 518,673 436,600 Cost of services 44,753 62,742 203,576 210,902 Marketing and sales 206,778 200,406 802,633 757,483 Research and development 464,582 392,026 1,768,772 1,549,093 General and administrative 103,225 70,228 313,387 273,961 Amortization of acquired intangibles 11,578 9,153 39,937 30,375 Loss related to contingent liability - 8,322 128,545 8,322 Restructuring 1,862 (1,020 ) 29,194 23,765 Total costs and expenses 976,779 899,106 3,804,717 3,290,501 Income from operations 463,335 456,875 1,492,042 1,350,763 Interest expense (29,440 ) (29,907 ) (116,541 ) (75,999 ) Other income, net 59,066 9,684 146,542 121,055 Income before provision for income taxes 492,961 436,652 1,522,043 1,395,819 Provision for income taxes 104,825 96,442 413,155 340,335 Net income $ 388,136 $ 340,210 $ 1,108,888 $ 1,055,484 Net income per share - basic $ 1.43 $ 1.25 $ 4.09 $ 3.89 Net income per share - diluted $ 1.42 $ 1.24 $ 4.06 $ 3.85 Weighted average common shares outstanding - basic 270,924 272,069 271,333 271,212 Weighted average common shares outstanding - diluted 272,932 274,292 273,312 273,833 Cadence Design Systems, Inc.Condensed Consolidated Statements of Cash FlowsFor the Years Ended December 31, 2025 and December 31, 2024(In thousands)(Unaudited)Years Ended December 31, December 31, 2025 2024 Cash and cash equivalents at beginning of year $ 2,644,030 $ 1,008,152 Cash flows from operating activities:Net income 1,108,888 1,055,484 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 227,828 196,935 Stock-based compensation 455,175 391,219 Gain on divestitures and investments, net (69,089 ) (49,593 ) Deferred income taxes 66,048 (128,737 ) ROU asset amortization and change in operating lease liabilities 6,016 (1,920 ) Other non-cash items 7,166 6,138 Changes in operating assets and liabilities, net of effect of acquired businesses:Receivables (274,894 ) (180,287 ) Inventories (91,029 ) (82,771 ) Prepaid expenses and other 43,382 (81,529 ) Other assets (18,569 ) 11,866 Accounts payable and accrued liabilities 184,897 33,676 Deferred revenue 69,411 66,478 Other long-term liabilities 13,551 23,592 Net cash provided by operating activities 1,728,781 1,260,551 Cash flows from investing activities:Purchases of investments (40,895 ) (4,982 ) Proceeds from the sale and maturity of investments 140,281 47,980 Proceeds from the sale of IP and other assets 11,500 - Purchases of property, plant and equipment (141,871 ) (142,542 ) Cash paid in business combinations, net of cash acquired (429,538 ) (737,574 ) Net cash used for investing activities (460,523 ) (837,118 ) Cash flows from financing activities:Proceeds from issuance of debt - 3,196,595 Payments of debt - (1,350,000 ) Payments of debt issuance costs - (23,828 ) Proceeds from issuance of common stock 145,901 204,237 Stock received for payment of employee taxes on vesting of restricted stock (169,842 ) (237,737 ) Payments for repurchases of common stock (925,034 ) (550,026 ) Net cash provided by (used for) financing activities (948,975 ) 1,239,241 Effect of exchange rate changes on cash and cash equivalents 38,004 (26,796 ) Increase in cash and cash equivalents 357,287 1,635,878 Cash and cash equivalents at end of year $ 3,001,317 $ 2,644,030 Cadence Design Systems, Inc.(Unaudited)Revenue Mix by Geography (% of Total Revenue) 2024 2025 GEOGRAPHYQ1Q2Q3Q4YearQ1Q2Q3Q4YearAmericas 46% 49% 50% 49% 49% 48% 49% 43% 47% 47% China 12% 12% 13% 13% 12% 11% 9% 18% 12% 13% Other Asia 20% 19% 17% 17% 18% 19% 19% 18% 20% 19% Europe, Middle East and Africa 17% 14% 14% 15% 15% 16% 16% 14% 14% 15% Japan 5% 6% 6% 6% 6% 6% 7% 7% 7% 6% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Revenue Mix by Product Category (% of Total Revenue) 2024 2025 PRODUCT CATEGORYQ1Q2Q3Q4YearQ1Q2Q3Q4YearCore EDA 76% 73% 70% 68% 71% 71% 71% 71% 69% 70% Semiconductor IP 12% 13% 14% 13% 13% 14% 13% 14% 15% 14% System Design and Analysis 12% 14% 16% 19% 16% 15% 16% 15% 16% 16% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Cadence Design Systems, Inc.Impact of Non-GAAP Adjustments on Forward Looking Operating MarginAs of February 17, 2026(Unaudited) Three Months Ending Year Ending March 31, 2026 December 31, 2026 Forecast Forecast GAAP operating margin as a percent of total revenue 30% - 31% 31.75% - 32.75% Reconciling items to non-GAAP operating margin as apercent of total revenue:Stock-based compensation expense 10% 9% Amortization of acquired intangibles 2% 2% Acquisition and integration-related costs 2% 2% Non-GAAP operating margin as a percent of total revenue† 44% - 45% 44.75% - 45.75% †The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.Cadence Design Systems, Inc.Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per ShareAs of February 17, 2026(Unaudited) Three Months Ending Year Ending March 31, 2026 December 31, 2026 Forecast Forecast Diluted net income per share on a GAAP basis $1.16 to $1.22 $4.95 to $5.05 Stock-based compensation expense 0.50 2.04 Amortization of acquired intangibles 0.12 0.46 Acquisition and integration-related costs 0.11 0.36 Income tax effect of non-GAAP adjustments 0.00 0.24 Diluted net income per share on a non-GAAP basis† $1.89 to $1.95 $8.05 to $8.15 †The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.Cadence Design Systems, Inc.Impact of Non-GAAP Adjustments on Forward Looking Net IncomeAs of February 17, 2026(Unaudited) Three Months Ending Year Ending March 31, 2026 December 31, 2026 ($ in millions) Forecast Forecast Net income on a GAAP basis $317 to $333 $1,355 to $1,382 Stock-based compensation expense 137 557 Amortization of acquired intangibles 32 125 Acquisition and integration-related costs 31 100 Income tax effect of non-GAAP adjustments 1 66 Net income on a non-GAAP basis† $518 to $534 $2,203 to $2,230 †The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. CDNS–IR Category: Financial, Featured Source: Cadence Design Systems, Inc.