Cadence Design Systems – Application Software Stocks To Buy
How would you react if someone showed you a tech company that does high-end computational software and enables companies to design, test, and verify key factors when designing integrated circuits. The company sounds like a highly innovative start-up, doesn’t it? You may think that such a company will have high growth prospects but is yet to turn profitable. However, what if the company we are talking about has grown its earnings 8X over 10 years and consistently generates free cash flow. What if the company had gross margins in excess of 85%? The company we are talking about is called Cadence Design Systems. If you are interested in application software stocks, then it may help to take a closer look at Cadence. Some key customers of the company include NVidia, AMD, and Corning. If you are bullish on 5G, Artificial Intelligence, and high-end tech, then you are at the right place.
Cadence Reports Q22021 Earnings Numbers
On 26th July 2021, Cadence Design Systems reported its second-quarter 2021 earnings results. The total revenue was up from $638 million in Q22020 to $728 million. The GAAP operating margin was up slightly from 24% in Q22020 to 25%. The GAAP net income also improved from $131.3 million in Q22020 to $155.9 million. Non-GAAP net income per share on a diluted basis was also up from $0.66 to $0.86. Cadence is going to have a new CEO in December 2021. The current CEO, Lip-Bu Tan, will be transitioning to the role of Executive Chairman while Anirudh Devgan is going to step into the role of CEO. Overall, Cadence Design Systems continues to perform well. If you are looking for application software stocks to buy, then it may be a good idea to track the company.
Application Software Stocks
Cadence Design Systems has the goal of continuing to delight its customers with important and breakthrough innovations. It intends to collaborate with customers and ecosystem partners to further this goal. Cadence’s stock has returned close to 16% year-to-date.