Cadence Reports Fourth Quarter and Fiscal Year 2018 Financial Results

SAN JOSE, Calif.--()--Cadence Design Systems, Inc. (NASDAQ: CDNS) today reported its results under new revenue rules, ASC Topic 606. For the fourth quarter of 2018, Cadence reported revenue of $570 million, GAAP net income of $98 million, or $0.35 per share on a diluted basis, and non-GAAP net income (as defined below) of $147 million, or $0.52 per share on a diluted basis. For 2018, Cadence reported revenue of $2.138 billion, GAAP net income of $346 million, or $1.23 per share on a diluted basis, and non-GAAP net income of $526 million, or $1.87 per share on a diluted basis.

Cadence also reported its results under the old revenue rules, ASC Topic 605, for easier comparison with prior results, all of which were reported under ASC Topic 605.

Under ASC Topic 605, for the fourth quarter of 2018, Cadence reported revenue of $579 million, compared to revenue of $502 million reported for the same period in 2017. On a GAAP basis, Cadence recognized net income of $100 million, or $0.36 per share on a diluted basis, in the fourth quarter of 2018, compared to a net loss of $14 million, or $(0.05) per share on a diluted basis for the same period in 2017. Using the non-GAAP measure defined below, net income for the fourth quarter of 2018 was $144 million, or $0.51 per share on a diluted basis, compared to net income of $111 million, or $0.39 per share on a diluted basis, for the same period in 2017.

Due to the U.S. Tax Cuts and Jobs Act enacted in December 2017, GAAP net loss for the fourth quarter of 2017 included a $67 million income tax expense for a one time transition tax on previously untaxed foreign earnings and a $25 million income tax expense for the reduction in the value of Cadence’s U.S. deferred tax assets caused by the U.S. corporate tax rate reduction.

Under ASC Topic 605, Cadence reported 2018 revenue of $2.146 billion, compared to revenue of $1.943 billion for 2017. On a GAAP basis, Cadence recognized net income of $351 million, or $1.25 per share on a diluted basis, in 2018, compared to net income of $204 million, or $0.73 per share on a diluted basis, in 2017. Using the non-GAAP measure defined below, net income for 2018 was $528 million, or $1.88 per share on a diluted basis, as compared to net income of $393 million, or $1.40 per share on a diluted basis, in 2017.

Cadence achieved excellent operating results for 2018 as technology trends like AI, cloud/datacenter and 5G drove strong design activity,” said Lip-Bu Tan, chief executive officer. “We continued to execute our System Design Enablement strategy, leading to broad strength across our product lines, as well as in the aerospace/defense vertical, and we announced our partnership with Green Hills Software, the leader in embedded safety and security software.”

I’d like to thank the entire Cadence team for their strong execution across all lines of business for 2018,” said John Wall, senior vice president and chief financial officer. “I am pleased with our results and look forward to building on our success in 2019.”

As of the end of the fourth quarter of 2018, $175 million remained available under the previously announced authorization to repurchase Cadence common stock. In February 2019, the Board of Directors authorized the repurchase of an additional $500 million of Cadence common stock. The timing and amount of repurchases will be subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.

CFO Commentary

Commentary on the fourth quarter and fiscal year 2018 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.

Business Outlook

For the first quarter of 2019, the company expects total revenue in the range of $565 million to $575 million. First quarter GAAP net income per diluted share is expected to be in the range of $0.36 to $0.38. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.48 to $0.50.

For 2019, the company expects total revenue in the range of $2.270 billion to $2.310 billion. On a GAAP basis, net income per diluted share for 2019 is expected to be in the range of $1.33 to $1.43. Using the non-GAAP measure defined below, net income per diluted share for 2019 is expected to be in the range of $1.97 to $2.07.

A schedule showing a reconciliation of the business outlook from GAAP net income and diluted net income per share to non-GAAP net income and diluted net income per share is included in this release.

Audio Webcast Scheduled

Lip-Bu Tan, chief executive officer, and John Wall, senior vice president and chief financial officer, will host the fourth quarter and fiscal year 2018 financial results audio webcast today, February 19, 2019, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting February 19, 2019 at 5 p.m. (Pacific) and ending March 15, 2019 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.

About Cadence

Cadence enables electronic systems and semiconductor companies to create the innovative end products that are transforming the way people live, work and play. Cadence® software, hardware and semiconductor IP are used by customers to deliver products to market faster. The company’s System Design Enablement strategy helps customers develop differentiated products—from chips to boards to systems—in mobile, consumer, cloud datacenter, automotive, aerospace, IoT, industrial and other market segments. Cadence is listed as one of Fortune Magazine's 100 Best Companies to Work For. Learn more at www.cadence.com.

Cadence and the Cadence logo are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

The statements contained above, as well as the information in the Business Outlook section, are or include forward-looking statements based on current expectations or beliefs and preliminary assumptions about future events that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, including, among others: (i) Cadence’s ability to compete successfully in the electronic design automation product and the commercial electronic design and methodology services industries; (ii) the success of Cadence’s efforts to improve operational efficiency and growth; (iii) the mix of products and services sold and the timing of significant orders for Cadence’s products; (iv) change in customer demands, including those resulting from consolidation among Cadence’s customers and the possibility that the restructurings and other efforts to improve operational efficiency of Cadence’s customers could result in delays in purchases of Cadence’s products and services; (v) economic and industry conditions in regions in which Cadence does business; (vi) fluctuations in rates of exchange between the U.S. dollar and the currencies of other countries in which Cadence does business; (vii) capital expenditure requirements, legislative or regulatory requirements, changes in tax laws, interest rates and Cadence’s ability to access capital and debt markets; (viii) the acquisition of other companies or technologies or the failure to successfully integrate and operate these companies or technologies Cadence acquires, including the potential inability to retain customers, key employees or vendors; (ix) the effects of Cadence’s efforts to improve operational efficiency in its business, including strategic, customer and supplier relationships, and its ability to retain key employees; (x) events that affect cash flow, liquidity, reserves or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation or other matters; and (xi) the effects of any litigation or other proceedings to which Cadence is or may become a party. In addition, the timing and amount of Cadence's repurchase of its common stock under the authorizations will be subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.

For a detailed discussion of these and other cautionary statements related to Cadence’s business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, which include Cadence’s most recent reports on Form 10-K and Form 10-Q, including Cadence’s future filings.

GAAP to Non-GAAP Reconciliation

Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with their most directly comparable GAAP financial results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance.

To supplement Cadence’s financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence’s performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, acquisition and integration-related costs including retention expenses, investment gains or losses, income or expenses related to Cadence’s non-qualified deferred compensation plan, restructuring and other significant items not directly related to Cadence’s core business operations, and the income tax effect of non-GAAP pre-tax adjustments.

Cadence management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence management, including forecasting and budgeting.

The following tables reconcile the specific items excluded from GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:

 
Net Income (Loss) Reconciliation     Three Months Ended
(unaudited) ASC 606     ASC 605     ASC 605
December 29, 2018 December 29, 2018 December 30, 2017
(in thousands)
Net income (loss) on a GAAP basis $ 98,425 $ 100,032 $ (14,442 )
Amortization of acquired intangibles 12,942 12,942 13,741
Stock-based compensation expense 42,594 42,594 36,015

Non-qualified deferred compensation expenses (credits)

(3,186 ) (3,186 ) 1,295
Restructuring and other charges 13,699 13,699 12,178
Acquisition and integration-related costs (credits) (1,360 ) (1,360 ) 5,712

Other income or expense related to investments and non-qualified deferred compensation plan assets*

1,356 1,356 (1,368 )
Income tax related to transition tax 67,188
Income tax related to tax rate change 25,292
Income tax effect of non-GAAP adjustments (17,737 ) (21,962 ) (34,328 )
Net income on a non-GAAP basis $ 146,733   $ 144,115   $ 111,283  
* Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.
 
 
Net Income Reconciliation     Years Ended
(unaudited) ASC 606     ASC 605     ASC 605
December 29, 2018 December 29, 2018 December 30, 2017
(in thousands)
Net income on a GAAP basis $ 345,777 $ 351,297 $ 204,101
Amortization of acquired intangibles 53,333 53,333 56,497
Stock-based compensation expense 167,715 167,715 130,023
Non-qualified deferred compensation expenses (credits) (1,471 ) (1,471 ) 6,145
Restructuring and other charges 11,089 11,089 9,406
Acquisition and integration-related costs 19,858 19,858 8,468
Other income or expense related to investments and non-qualified deferred compensation plan assets* (1,278 ) (1,278 ) (15,693 )
Income tax related to transition tax 67,188
Income tax related to tax rate change 25,292
Income tax effect of non-GAAP adjustments (69,489 ) (72,358 ) (98,810 )
Net income on a non-GAAP basis $ 525,534   $ 528,185   $ 392,617  
* Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.
 
 
Diluted Net Income (Loss) Per Share Reconciliation     Three Months Ended
(unaudited) ASC 606     ASC 605     ASC 605
December 29, 2018 December 29, 2018 December 30, 2017
(in thousands, except per share data)

Diluted net income (loss) per share on a GAAP basis

$ 0.35 $ 0.36 $ (0.05 )
Amortization of acquired intangibles 0.05 0.05 0.05
Stock-based compensation expense 0.15 0.15 0.13
Non-qualified deferred compensation expenses (credits) (0.01 ) (0.01 )
Restructuring and other charges 0.05 0.05 0.04
Acquisition and integration-related costs (credits) (0.01 ) (0.01 ) 0.02
Other income or expense related to investments and non-qualified deferred compensation plan assets* (0.01 )
Income tax related to transition tax 0.24
Income tax related to tax rate change 0.09
Income tax effect of non-GAAP adjustments (0.06 ) (0.08 ) (0.12 )
Diluted net income per share on a non-GAAP basis $ 0.52   $ 0.51   $ 0.39  

Shares used in calculation of diluted net income (loss) per share — GAAP**

280,321 280,321 273,157
Shares used in calculation of diluted net income per share — non-GAAP** 280,321 280,321 282,206
* Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.
** Shares used in the calculation of GAAP net income (loss) per share are expected to be the same as shares used in the calculation of non-GAAP net income per share, except when the company reports a GAAP net loss and non-GAAP net income, or GAAP net income and a non-GAAP net loss.
 
 
Diluted Net Income Per Share Reconciliation     Years Ended
(unaudited) ASC 606     ASC 605     ASC 605
December 29, 2018 December 29, 2018 December 30, 2017
(in thousands, except per share data)
Diluted net income per share on a GAAP basis $ 1.23 $ 1.25 $ 0.73
Amortization of acquired intangibles 0.19 0.19 0.20
Stock-based compensation expense 0.60 0.60 0.46
Non-qualified deferred compensation expenses (credits) (0.01 ) (0.01 ) 0.02
Restructuring and other charges 0.04 0.04 0.03
Acquisition and integration-related costs 0.07 0.07 0.03
Other income or expense related to investments and non-qualified deferred compensation plan assets* (0.05 )
Income tax related to transition tax 0.24
Income tax related to tax rate change 0.09
Income tax effect of non-GAAP adjustments (0.25 ) (0.26 ) (0.35 )
Diluted net income per share on a non-GAAP basis $ 1.87   $ 1.88   $ 1.40  
Shares used in calculation of diluted net income per share — GAAP** 281,144 281,144 280,221
Shares used in calculation of diluted net income per share — non-GAAP** 281,144 281,144 280,221
* Includes, as applicable, equity in losses or income from investments, write-down of investments, gains or losses on investments and gains or losses on non-qualified deferred compensation plan assets recorded in other income or expense.
** Shares used in the calculation of GAAP net income per share are expected to be the same as shares used in the calculation of non-GAAP net income per share, except when the company reports a GAAP net loss and non-GAAP net income, or GAAP net income and a non-GAAP net loss.
 

Cadence expects that its corporate representatives will meet privately during the quarter with investors, the media, investment analysts and others. At these meetings, Cadence may reiterate the business outlook published in this press release. At the same time, Cadence will keep this press release, including the business outlook, publicly available on its website.

Prior to the start of the Quiet Period (described below), the public may continue to rely on the business outlook contained herein as still being Cadence’s current expectations on matters covered unless Cadence publishes a notice stating otherwise.

Beginning March 15, 2019, Cadence will observe a Quiet Period during which the business outlook as provided in this press release and the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q no longer constitute Cadence’s current expectations. During the Quiet Period, the business outlook in these documents should be considered historical, speaking as of prior to the Quiet Period only and not subject to any update by Cadence. During the Quiet Period, Cadence’s representatives will not comment on Cadence’s business outlook, financial results or expectations. The Quiet Period will extend until Cadence’s first quarter 2019 earnings release is published, which is currently scheduled for April 22, 2019.

 
Cadence Design Systems, Inc.

Condensed Consolidated Balance Sheets

December 29, 2018 and December 30, 2017
(In thousands)

(Unaudited)

       

December 29, 2018

December 30, 2017
 
Current assets:
Cash and cash equivalents $ 533,298 $ 688,087

Receivables, net of allowances of $3,936 and $0, respectively

297,082 190,426
Inventories 28,162 33,209
Prepaid expenses and other   92,550   68,266
Total current assets 951,092 979,988
 

 

Property, plant and equipment, net of accumulated depreciation of $698,493 and $658,377, respectively

252,630 251,342
Goodwill 662,272 666,009
Acquired intangibles, net of accumulated amortization of
$333,687 and $297,456, respectively 225,457 278,835
Long-term receivables 5,972 12,239
Other assets   371,231   230,301
Total assets $ 2,468,654 $ 2,418,714
 
Current liabilities:
Revolving credit facility $ 100,000 $ 85,000
Accounts payable and accrued liabilities 256,526 221,101
Current portion of deferred revenue   352,456   336,297
Total current liabilities 708,982 642,398
 
Long-term liabilities:
Long-term portion of deferred revenue 48,718 61,513
Long-term debt 345,291 644,369
Other long-term liabilities   77,262   81,232
Total long-term liabilities   471,271   787,114
 
Stockholders' equity   1,288,401   989,202
Total liabilities and stockholders' equity $ 2,468,654 $ 2,418,714
 
 
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Operations
For the Three Months and Years Ended December 29, 2018 and December 30, 2017
(In thousands, except per share amounts)
(Unaudited)
 
 
    Three Months Ended     Years Ended

December 29,

    December 30, December 29,    

December 30,

  2018       2017     2018      

2017

 
 
Revenue:
Product and maintenance $ 534,418 $ 467,504 $ 1,997,887 $ 1,813,987
Services   35,432     34,218     140,135     129,045  
 
Total revenue   569,850     501,722     2,138,022     1,943,032  
 
Costs and expenses:
Cost of product and maintenance 54,748 39,305 173,011 156,676
Cost of services 21,376 20,979 85,736 80,714
Marketing and sales 112,613 107,654 439,669 419,161
Research and development 218,271 203,468 884,816 804,223
General and administrative 31,985 33,289 133,406 134,181
Amortization of acquired intangibles 3,468 3,571 14,086 14,716
Restructuring and other charges   13,699     12,178     11,089     9,406  
 
Total costs and expenses   456,160     420,444     1,741,813     1,619,077  
 

Income from operations

113,690 81,278 396,209 323,955
 
Interest expense (4,318 ) (6,712 ) (23,139 ) (25,664 )
Other income (expense), net   (735 )   2,385     3,320     16,755  
 
Income before provision for income taxes 108,637 76,951 376,390 315,046
 
Provision for income taxes   10,212     91,393     30,613     110,945  
 
Net income (loss) $ 98,425   $ (14,442 ) $ 345,777   $ 204,101  
 
 
Net income (loss) per share - basic $ 0.36   $ (0.05 ) $ 1.26   $ 0.75  
 
Net income (loss) per share - diluted $ 0.35   $ (0.05 ) $ 1.23   $ 0.73  
 
Weighted average common shares outstanding - basic   273,680     273,157     273,729     272,097  
 
Weighted average common shares outstanding - diluted   280,321     273,157     281,144     280,221  
 
 
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Cash Flows
For the Years Ended December 29, 2018 and December 30, 2017
(In thousands)
(Unaudited)
 
 
    Years Ended

December 29,

    December 30,
2018 2017
 
Cash and cash equivalents at beginning of year $ 688,087   $ 465,232  
Cash flows from operating activities:
Net income 345,777 204,101
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 118,721 115,524
Amortization of debt discount and fees 1,196 1,211
Stock-based compensation 167,715 130,023
Gain on investments, net (1,261 ) (13,869 )
Deferred income taxes (11,676 ) 79,934
Provisions for losses on receivables 5,102 2,623
Other non-cash items 1,136 5,068
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables (87,083 ) (31,032 )
Inventories 752 5,034
Prepaid expenses and other (19,622 ) (25,793 )
Other assets (16,077 ) (22,336 )
Accounts payable and accrued liabilities 1,553 (25,987 )
Deferred revenue 100,696 33,614
Other long-term liabilities   (2,178 )   12,625  
Net cash provided by operating activities   604,751     470,740  
 
Cash flows from investing activities:
Proceeds from the sale of available-for-sale securities - 833
Purchases of non-marketable investments (115,839 ) -
Proceeds from the sale of non-marketable investments 3,497 9,108
Purchases of property, plant and equipment (61,503 ) (57,901 )
Cash paid in business combinations and asset acquisitions, net of cash acquired   -     (143,249 )
Net cash used for investing activities   (173,845 )   (191,209 )
 
Cash flows from financing activities:
Proceeds from revolving credit facility 100,000 135,000
Payment on revolving credit facility (85,000 ) (100,000 )
Principal payments on term loan (300,000 ) -
Payment of debt issuance costs - (793 )
Proceeds from issuance of common stock 40,908 48,965
Stock received for payment of employee taxes on vesting of restricted stock (69,921 ) (57,161 )
Payments for repurchases of common stock (250,059 ) (100,025 )
Change in book overdraft   (3,867 )   3,867  
Net cash used for financing activities   (567,939 )   (70,147 )
 
Effect of exchange rate changes on cash and cash equivalents   (17,756 )   13,471  
 
Increase (decrease) in cash and cash equivalents   (154,789 )   222,855  
 
Cash and cash equivalents at end of year $ 533,298   $ 688,087  
 
 
Cadence Design Systems, Inc.
(Unaudited)
 
 
 
Revenue Mix by Geography (% of Total Revenue)     ASC 605     ASC 605     ASC 606
2017 2018 2018

GEOGRAPHY

Q1     Q2     Q3     Q4     Year Q1     Q2     Q3     Q4     Year Q1     Q2     Q3     Q4     Year
                                               
Americas 45% 45% 45% 44% 44% 45% 45% 43% 46% 44% 45% 46% 44% 44% 45%
Asia 26% 28% 27% 28% 27% 26% 26% 30% 29% 28% 27% 26% 29% 31% 28%
Europe, Middle East and Africa 20% 19% 19% 20% 20% 21% 21% 19% 17% 20% 20% 20% 19% 17% 19%
Japan 9% 8% 9% 8% 9% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
 
 
 
 
Revenue Mix by Product Group (% of Total Revenue) ASC 605 ASC 605 ASC 606
2017 2018 2018

PRODUCT GROUP

Q1     Q2     Q3     Q4     Year Q1     Q2     Q3     Q4     Year Q1     Q2     Q3     Q4     Year
 
Functional Verification, including Emulation and Prototyping Hardware 23% 23% 21% 23% 22% 26% 23% 21% 26% 24% 26% 23% 22% 25% 24%
Digital IC Design and Signoff 29% 30% 30% 29% 29% 29% 29% 30% 27% 29% 30% 30% 30% 28% 29%
Custom IC Design and Simulation 26% 26% 28% 26% 27% 26% 26% 27% 24% 26% 26% 26% 26% 25% 26%
System Interconnect and Analysis 10% 10% 10% 10% 10% 9% 10% 10% 9% 9% 9% 9% 9% 9% 9%
IP 12% 11% 11% 12% 12% 10% 12% 12% 14% 12% 9% 12% 13% 13% 12%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
 
 
Cadence Design Systems, Inc.
As of February 19, 2019
Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share
(Unaudited)
 
 
    Three Months Ending     Year Ending
March 30, 2019 December 28, 2019
Forecast Forecast
 
Diluted net income per share on a GAAP basis $0.36 to $0.38 $1.33 to $1.43
 
Amortization of acquired intangibles 0.05 0.19
Stock-based compensation expense 0.15 0.65
Acquisition and integration-related costs 0.01 0.03
Income tax effect of non-GAAP adjustments (0.09) (0.23)
   
Diluted net income per share on a non-GAAP basis† $0.48 to $0.50 $1.97 to $2.07
 
 
 
 
Cadence Design Systems, Inc.
As of February 19, 2019
Impact of Non-GAAP Adjustments on Forward Looking Net Income
(Unaudited)
 
 
Three Months Ending Year Ending
March 30, 2019 December 28, 2019

($ in millions)

Forecast Forecast
 
Net income on a GAAP basis $101 to $107 $371 to $399
 
Amortization of acquired intangibles 13 53
Stock-based compensation expense 42 182
Acquisition and integration-related costs 3 8
Income tax effect of non-GAAP adjustments (24) (63)
   
Net income on a non-GAAP basis† $135 to $141 $551 to $579
 

The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.

 

CDNS-IR

Contacts

Cadence Investor Relations
408-944-7100
investor_relations@cadence.com

Cadence Newsroom
408-944-7039
newsroom@cadence.com

Release Summary

Cadence Reports Fourth Quarter and Fiscal Year 2018 Financial Results

Contacts

Cadence Investor Relations
408-944-7100
investor_relations@cadence.com

Cadence Newsroom
408-944-7039
newsroom@cadence.com