Cadence Design Systems Inc (NASDAQ:CDNS) shares are trading lower by around 3% after it reported Q3 FY23 financial results and issued guidance.
The company reported revenue of $1.023 billion, beating the consensus of $1.00 billion.
Adjusted gross margin contracted to 90.6% from 91.5% a year ago.
Adjusted operating margin expanded to 41.1% from 39.4% a year ago.
Adjusted EPS of $1.26 exceeded the consensus of $1.20.
Anirudh Devgan, president and CEO, said, “Generational trends including AI, HPC, and autonomous driving continue to fuel robust design activities, and 3D-IC designs are accelerating. We are excited about the momentum of our JedAI platform based Generative AI applications that are delivering breakthrough results for our customers.”
As of Q3 FY23, cash and cash equivalents stood at $962 million.
Outlook: For Q4, CDNS expects total revenue of $1.039 billion to $1.079 billion (vs. consensus of $1.07 billion) and adjusted EPS of $1.30 to $1.36 (vs. consensus of $1.37).
The company raised FY23 outlook for revenue to $4.06 billion to $4.10 billion (from $4.05 billion to $4.09 billion) vs. estimates of $4.08 billion and adjusted EPS to $5.07 to $5.13 (from $5.05 to $5.11) vs. $5.09 estimates.
Price Action: CDNS shares are down 3.30% at $232.00 premarket on the last check Tuesday.
