Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three and Six Months Ended June 28, 2014 and June 29, 2013

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

June 28, 2014

June 29, 2013

June 28, 2014

June 29, 2013

Revenue:

Product and maintenance

$        354,468

$         337,983

$         711,818

$         666,254

Services

24,320

24,498

45,520

50,493

Total revenue

378,788

362,481

757,338

716,747

Costs and expenses:

Cost of product and maintenance

37,707

28,095

79,904

57,942

Cost of services

16,706

15,148

31,608

33,492

Marketing and sales

98,611

95,277

196,934

185,679

Research and development

152,672

136,395

299,138

260,479

General and administrative

32,042

34,441

60,786

64,251

Amortization of acquired intangibles

5,579

5,327

10,789

9,118

Restructuring and other charges (credits)

(26)

2,656

370

2,508

Total costs and expenses

343,291

317,339

679,529

613,469

Income from operations

35,497

45,142

77,809

103,278

Interest expense

(7,369)

(9,528)

(14,637)

(18,790)

Other income, net

1,635

2,018

5,017

4,193

Income before provision for income taxes

29,763

37,632

68,189

88,681

Provision for income taxes

6,500

28,203

11,856

643

Net income 

$          23,263

$             9,429

$           56,333

$           88,038

Net income per share - basic

$              0.08

$              0.03

$               0.20

$               0.32

Net income per share - diluted

$              0.08

$              0.03

$               0.19

$               0.30

Weighted average common shares outstanding - basic

283,344

277,146

282,480

276,018

Weighted average common shares outstanding - diluted

305,755

294,443

303,395

293,274