Cadence Design Systems, Inc. (NASDAQ: CDNS) shares flew off the shelves after the company posted upbeat Q1 results and issued a strong Q2 forecast.
Monday, the San Jose-based Cadence reported its results under new revenue rules, ASC Topic 606, for the first time. For the first quarter of 2018, Cadence reported revenue of $517 million, GAAP net income of $73 million, or $0.26 per share on a diluted basis, and non-GAAP net income (as defined below), of $113 million, or $0.40 per share on a diluted basis.
Cadence also reported its results under the old revenue rules, ASC Topic 605, as required under the modified retrospective transition method, to allow easier comparison with prior results, all of which were reported under ASC Topic 605.
Under ASC Topic 605, for the first quarter of 2018, Cadence reported revenue of $525 million, compared to revenue of $477 million reported for the same period in 2017. On a GAAP basis, Cadence recognized net income of $84 million, or $0.30 per share on a diluted basis, in the first quarter of 2018, compared to net income of $68 million, or $0.25 per share on a diluted basis for the same period in 2017.
Cadence CEO Lip-Bu Tan declared, "The Data-Driven Economy is being propelled by key technology waves of mobile, cloud/datacenter, edge computing, automotive, and most significantly machine learning, all driving increasing design activity."
The shares triumphed $4.06, or 11.1%, to $40.80.
