Cadence Design Systems, Inc. (NASDAQ: CDNS) reported better-than-expected results for the first quarter of 2024. Revenue exceeded guidance, driven by demand for its hardware products and strong design activity across multiple sectors.
Key highlights:
– Revenue of $1.009 billion, exceeding guidance
– Raised full-year revenue outlook to $4.56-$4.62 billion
– Record backlog of $6 billion
– Growth in AI portfolio and strategic partnerships
The company attributed its strong hardware performance to the launch of its new Palladium Z3 emulation and Protium X3 prototyping platforms. It also highlighted growth in its AI portfolio and collaborations with industry leaders.
Despite a decline in revenue from China, Cadence expressed optimism about its growth prospects, citing its focus on organic growth and strategic acquisitions. The company expects strong hardware revenue in the second half of 2024 and anticipates improved power efficiency in customer projects due to AI adoption.