SAN JOSE -- Cadence Design Systems reported second quarter revenue at its Systems Design and Analysis unit, which includes PCB sales, rose 50% year-over-year to $191.25 million.

For the quarter ended June 30, the EDA software company reported revenue of $1.28 billion, beating analyst estimates. Adjusted operating margin was 42.8%, up from 40% last year. Adjusted net income totaled $449.9 million, up 28% year-over-year. Net income declined due to $140 million in one-time charges to settle a US investigation into software sales to China.

Cadence raised its full-year revenue outlook 13%, to a new range of $5.21 billion to $5.27 billion.

"I am pleased to report that Cadence delivered excellent results for Q2, with broad-based strength across all businesses, more than offsetting the impact of the temporary restrictions on exports to China imposed on May 23," said John Wall, chief financial officer, Cadence. "We are raising our 2025 revenue outlook to 13% growth year-over-year, and non-GAAP operating margin to 44%."

"In addition, Cadence expects to benefit from approximately $140 million in reduced cash tax payments due to the immediate expensing of US R&D expenditures under the One Big Beautiful Bill Act," the company said.

Cadence's GAAP results were affected by a one-time charge of $140.6 million in settlement payments with the U.S. Department of Justice and US Department of Commerce, the company said.

The settlements stem from illegal exports of EDA hardware and software and semiconductor design technology to parties in China on the "Entity List" through a Chinese subsidiary.

"In a settlement agreement with BIS, Cadence admitted that employees of its Chinese subsidiary knowingly transferred sensitive U.S. technology to entities that develop supercomputers in support of China's military modernization and nuclear weapons programs namely the National University of Defense Technology (NUDT), Tianjin Phytium Information Technology (Phytium), and other Entity List parties," according to the US Department of Commerce.

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