Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three Months Ended March 29, 2014 and March 30, 2013

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

March 29,
2014

March 30,
2013

Revenue:

Product and maintenance

$         357,350

$         328,271

Services

21,200

25,995

Total revenue

378,550

354,266

Costs and expenses:

Cost of product and maintenance

42,197

29,847

Cost of services

14,902

18,344

Marketing and sales

98,323

90,402

Research and development

146,466

124,084

General and administrative

28,744

29,810

Amortization of acquired intangibles

5,210

3,791

Restructuring and other charges (credits)

396

(148)

Total costs and expenses

336,238

296,130

Income from operations

42,312

58,136

Interest expense

(7,268)

(9,262)

Other income, net

3,382

2,175

Income before provision (benefit) for income taxes

38,426

51,049

Provision (benefit) for income taxes

5,356

(27,560)

Net income 

$           33,070

$           78,609

Net income per share - basic

$               0.12

$               0.29

Net income per share - diluted

$               0.11

$               0.27

Weighted average common shares outstanding - basic

281,615

274,936

Weighted average common shares outstanding - diluted

301,034

292,151