Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three Months Ended April 4, 2015 and March 29, 2014

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

April 4,

2015

March 29,

2014

Revenue:

Product and maintenance

$        383,637

$             357,350

Services

27,729

21,200

Total revenue

411,366

378,550

Costs and expenses:

Cost of product and maintenance

42,059

42,197

Cost of services

18,526

14,902

Marketing and sales

100,268

98,323

Research and development

162,996

146,466

General and administrative

27,642

28,744

Amortization of acquired intangibles

6,231

5,210

Restructuring and other charges 

4,359

396

Total costs and expenses

362,081

336,238

Income from operations

49,285

42,312

Interest expense

(11,754)

(7,268)

Other income, net

4,781

3,382

Income before provision for income taxes

42,312

38,426

Provision for income taxes

6,053

5,356

Net income 

$          36,259

$               33,070

Net income per share - basic

$              0.13

$                   0.12

Net income per share - diluted

$              0.12

$                   0.11

Weighted average common shares outstanding - basic

284,523

281,615

Weighted average common shares outstanding - diluted

311,847

301,034