Cadence Design Systems, Inc. (CDNS) Bundle
A Brief History of Cadence Design Systems, Inc. (CDNS)
Company Overview
Cadence Design Systems, Inc. (CDNS) is a global electronic design automation (EDA) software and hardware company headquartered in San Jose, California.
| Fiscal Year 2023 Financial Highlights | Amount |
|---|---|
| Total Revenue | $3.596 billion |
| Net Income | $1.041 billion |
| Market Capitalization (as of January 2024) | $71.2 billion |
| Number of Employees | 9,600 |
Key Business Segments
- Electronic Design Automation (EDA) Software
- Computational Software
- Hardware Verification Solutions
- Semiconductor IP
Stock Performance
| Stock Information | Details |
|---|---|
| Stock Ticker | CDNS |
| Stock Price (January 2024) | $202.47 |
| 52-Week High | $235.89 |
| 52-Week Low | $132.32 |
Research and Development
In fiscal year 2023, Cadence invested $1.245 billion in research and development, representing approximately 34.6% of total revenue.
Global Presence
- Offices in 20 countries
- Serves customers in over 90 countries
- Major design centers in United States, India, China, and Europe
Key Acquisitions
| Year | Company | Acquisition Value |
|---|---|---|
| 2022 | Pointwise, Inc. | Undisclosed |
| 2020 | Integrand Software | Undisclosed |
Leadership
CEO: Anirudh Devgan (since 2021)
A Who Owns Cadence Design Systems, Inc. (CDNS)
Institutional Ownership
As of Q4 2023, Cadence Design Systems has the following institutional ownership breakdown:
| Institutional Investor | Shares Owned | Percentage |
|---|---|---|
| Vanguard Group Inc | 26,485,760 | 10.52% |
| BlackRock Inc. | 21,789,617 | 8.67% |
| Capital World Investors | 16,634,761 | 6.62% |
| State Street Corporation | 13,795,938 | 5.49% |
Top Institutional Shareholders
- Vanguard Group Inc: Largest institutional shareholder
- BlackRock Inc.: Second largest institutional shareholder
- Capital World Investors: Third largest institutional shareholder
Insider Ownership
As of the latest filing, Lip-Bu Tan serves as a significant insider, holding approximately 0.3% of total shares.
Company Leadership Ownership
| Executive | Position | Shares Owned |
|---|---|---|
| Anirudh Devgan | President and CEO | 183,752 |
| John Wall | CFO | 79,456 |
Ownership Distribution
- Total Institutional Ownership: 75.4%
- Insider Ownership: 0.5%
- Retail Investor Ownership: 24.1%
Cadence Design Systems, Inc. (CDNS) Mission Statement
Company Overview
Cadence Design Systems, Inc. is a global electronic design automation (EDA) and semiconductor IP company headquartered in San Jose, California.
| Financial Metric | 2023 Value |
|---|---|
| Annual Revenue | $3.778 billion |
| Net Income | $1.126 billion |
| Market Capitalization | $69.48 billion |
| Stock Price (as of January 2024) | $249.38 |
Mission Statement Components
Cadence's mission focuses on driving innovation in electronic design and semiconductor technology.
- Provide advanced electronic design automation (EDA) software
- Develop cutting-edge semiconductor intellectual property (IP)
- Enable digital and analog design optimization
- Support advanced technology nodes from 5nm to 3nm
Strategic Focus Areas
| Technology Domain | Key Investment |
|---|---|
| Artificial Intelligence | $452 million R&D investment in 2023 |
| Cloud Computing | $287 million cloud infrastructure development |
| Semiconductor IP | Over 1,600 IP cores in portfolio |
Market Position
Cadence maintains a leading position in electronic design automation with significant global market share.
- Market share in EDA: 35.6%
- Customers in 100+ countries
- Serves 9 of top 10 semiconductor companies
- Serves 8 of top 10 electronics companies
Research and Development
| R&D Metric | 2023 Data |
|---|---|
| R&D Expenditure | $1.187 billion |
| R&D as Percentage of Revenue | 31.4% |
| Patent Portfolio | 3,800+ active patents |
How Cadence Design Systems, Inc. (CDNS) Works
Company Overview
Cadence Design Systems, Inc. is a global electronic design automation (EDA) software and hardware company headquartered in San Jose, California. As of Q4 2023, the company reported annual revenue of $3.757 billion.
Business Segments
| Segment | Revenue (2023) | Key Products |
|---|---|---|
| Digital Design | $1.85 billion | Virtuoso, Genus Synthesis |
| Computational Software | $1.22 billion | Palladium, Protium Emulation |
| IP | $685 million | Memory, Analog/Mixed-Signal IP |
Market Presence
As of 2024, Cadence serves approximately 75% of Fortune 500 technology companies in semiconductor and electronic design.
Key Financial Metrics
- Market Capitalization: $68.3 billion (January 2024)
- Gross Margin: 89.1%
- Operating Margin: 41.2%
- Net Income: $1.54 billion (2023)
Geographic Revenue Distribution
| Region | Percentage of Revenue |
|---|---|
| United States | 47% |
| Europe | 18% |
| Asia Pacific | 35% |
R&D Investment
R&D expenditure in 2023 was $1.64 billion, representing 43.7% of total revenue.
Employee Information
- Total Employees: 9,400
- Average Employee Compensation: $215,000
How Cadence Design Systems, Inc. (CDNS) Makes Money
Revenue Streams
Cadence Design Systems generates revenue through multiple product and service segments:
| Revenue Category | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Electronic Design Automation (EDA) Software | $3.542 billion | 88.5% |
| IP Licensing | $375 million | 9.4% |
| Services | $83 million | 2.1% |
Software Licensing Model
Cadence primarily generates revenue through:
- Perpetual software licenses
- Subscription-based software licenses
- Maintenance and support contracts
Key Product Categories
| Product Category | 2023 Revenue |
|---|---|
| Digital Design Solutions | $1.678 billion |
| Functional Verification | $912 million |
| Custom/Analog Design | $652 million |
Geographic Revenue Distribution
| Region | 2023 Revenue | Percentage |
|---|---|---|
| United States | $1.782 billion | 44.6% |
| China | $712 million | 17.8% |
| Korea | $356 million | 8.9% |
| Other International Markets | $1.150 billion | 28.7% |
Customer Segments
Primary customer segments include:
- Semiconductor manufacturers
- Electronic system design companies
- Integrated device manufacturers
- Foundries
Pricing Strategy
Average Software License Pricing: $50,000 to $500,000 per license, depending on complexity and features.
Financial Performance
| Financial Metric | 2023 Value |
|---|---|
| Total Revenue | $4 billion |
| Net Income | $1.024 billion |
| Gross Margin | 91.2% |
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