Cadence Design Systems, Inc. is a leading provider of electronic system design software and intellectual property (IP). The company's solutions are used by companies that design semiconductors and electronic systems across various industries, including automotive, artificial intelligence, aerospace and defense, high-performance and mobile computing, hyperscalers, wireless communication, industrial internet of things, and life sciences. Cadence's offerings are used in every stage of design creation, implementation, verification, analysis and signoff from chips to PCBs to complete electromechanical systems. The company's Intelligent System Design strategy allows it to quickly adapt to customers' dynamic design requirements. Cadence develops industry-leading computational software and hardware, generative AI, and digital twin algorithms to help solve their toughest challenges. The company operates globally.

• Employees: 11,200 (as of December 31, 2023)
• Geographic Footprint: Global
• Headquarters: San Jose, California
• Founded: Not explicitly stated in the 10K
• Number of locations/facilities: Not explicitly stated in the 10K
• Revenue: $4.09 billion (FY2023)
• Market Capitalization: Not explicitly stated in the 10K
• Key Subsidiaries/Brands: Not explicitly stated in the 10K, but includes brands such as Cadence, Tensilica, Allegro, OrCAD, Virtuoso, Spectre, Innovus, Tempus, Voltus, Quantus, Pegasus, JasperGold, Xcelium, Palladium, Protium, Verisium, Cerebrus, Clarity, Celsius, Fidelity, Millennium, Optimality.

• CEO: Anirudh Devgan
• CFO: John M. Wall
• Senior Vice President and General Manager of the Custom IC and PCB Group: Thomas P. Beckley
• Senior Vice President and General Manager of the System Verification Group: Paul Cunningham
• Senior Vice President, General Counsel and Corporate Secretary: Karna Nisewaner
• Senior Vice President and General Manager of the Digital and Signoff Group: Chin-Chi Teng
• Senior Vice President and Chief Revenue Officer: Neil Zaman

The executive officers are appointed by the Board of Directors and serve at the discretion of the Board of Directors. Anirudh Devgan has served as CEO since December 2021 and President since November 2017. John M. Wall has served as CFO since October 2017.

• Annual Revenue: $4.09 billion (FY2023)
• Net Income: $1.04 billion (FY2023)
• Total Assets: $5.67 billion (as of December 31, 2023)
• Number of Employees: 11,200 (as of December 31, 2023)
• Key Financial Highlights: Revenue increased by 15% compared to fiscal 2022, primarily due to growth in software and emulation/prototyping hardware.

Cadence offers a range of products and services, categorized by their role in the electronic product design process:

• Custom IC Design and Simulation: Tools for creating schematic and physical representations of circuits down to the transistor level, including the Virtuoso platform.
• Digital IC Design and Signoff: Solutions for creating logical representations of digital circuits, including Genus Synthesis Solution and Innovus Implementation System.
• Functional Verification: Products for verifying circuitry or software, including JasperGold Formal Verification Platform and Palladium Enterprise Emulation Platform.
• IP: Pre-verified, customizable functional blocks, including Tensilica DSPs and high-speed SerDes.
• System Design and Analysis: Tools for developing PCBs and advanced IC packages, including Allegro System Design Platform and Clarity 3D Solver.

All product categories have generative AI solutions that augment the core product offering.

Cadence does not explicitly define business segments in the 10K. However, the company groups its products into five categories based on major design activities:

• Custom IC Design and Simulation: 22% of product and related maintenance revenue in FY2023
• Digital IC Design and Signoff: 27% of product and related maintenance revenue in FY2023
• Functional Verification, including Emulation and Prototyping Hardware: 27% of product and related maintenance revenue in FY2023
• IP: 12% of product and related maintenance revenue in FY2023
• System Design and Analysis: 12% of product and related maintenance revenue in FY2023

Cadence's strategy, known as Intelligent System Design, focuses on delivering essential computational software, hardware, and IP. Key strategic initiatives include:

• Developing industry-leading computational software and hardware.
• Leveraging generative AI and digital twin algorithms.
• Expanding into new vertical sectors, including automotive, AI, aerospace and defense, high-performance and mobile computing, hyperscalers, wireless communication, industrial internet of things, and life sciences.
• Focusing on customer success by enabling them to meet their critical business goals, including time-to-market, costs, and productivity while meeting growing global environmental concerns.

Cadence continues to invest significantly in product research and development to keep pace with the latest manufacturing technology and customer requirements.

Cadence operates in the electronic design automation (EDA) industry. Key trends affecting the business include:

• Increasing complexity of semiconductor and electronic systems.
• Migration to advanced-process nodes and 3D transistors.
• Growing adoption of cloud computing technologies.
• Increasing need for multiphysics analysis and verification of complex systems.

Cadence competes most frequently with Synopsys, Inc., Siemens EDA, and ANSYS, Inc., as well as with numerous other tools providers, electronics device manufacturers with their own EDA capabilities, technical or computational software companies, electronics design and consulting companies and other IP companies. The company also faces emerging competitors in China.

• Business and Operational Risks: The company's operating results are affected by the timing of revenue recognition, particularly for emulation and prototyping hardware and IP products. The company's revenue is difficult to predict due to reliance on customer projects and the competitive market. The company is also subject to risks related to inflation and global economic uncertainty.
• Governmental Regulations: Cadence is subject to various trade controls, including those imposed by the U.S. Bureau of Industry and Security (BIS). These regulations can impact the company's ability to transact business with certain customers and in certain countries. The company is also subject to anti-corruption, anti-bribery, and data privacy laws.
• Acquisitions and Investments: Cadence's acquisitions and investments involve risks related to integration, potential dilution of stockholder value, and the failure to realize expected benefits. The company's ability to acquire other businesses may be impaired by trade tensions and increased global scrutiny of foreign investments.
• Intellectual Property: Cadence's business is dependent on its proprietary technology and the company faces risks related to the infringement or misappropriation of its IP rights by third parties. The company also relies on software and other IP licensed from third parties, which could create risks if licenses are not renewed or new licenses are not obtained.
• Cybersecurity: Cadence faces numerous cybersecurity risks that threaten the confidentiality, integrity and availability of its IT systems, confidential information, products and services. A significant cyberattack could result in compromise to the company's cloud portfolio, corruption or stealing of confidential information, and disruption of systems and services.