Cadence Design Systems Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 29, 2012. Cadence reported fourth quarter 2012 total revenue of $346 million compared to revenue of $308 million reported for the same period in 2011. On a GAAP basis, Cadence recognized net income of $314 million or $1.10 per share on a diluted basis in the fourth quarter of 2012 compared to net income of $11 million or $0.04 per share on a diluted basis in the same period in 2011. Using Cadence's non-GAAP measure, net income in the fourth quarter of 2012 was $58 million, or $0.20 per share on a diluted basis, as compared to net income of $46 million, or $0.17 per share on a diluted basis, in the same period in 2011. Income from operations was $56.261 million against $45.699 million a year ago. Income before provision (benefit) for income taxes was $52.728 million against $33.225 million a year ago.

Total revenue for 2012 totaled $1.326 billion compared to revenue of $1.150 billion for 2011. Net income for 2012 was $440 million or $1.57 per share on a diluted basis compared to net income of $72 million or $0.27 per share on a diluted basis for 2011. For 2012, non-GAAP net income was $217 million, or $0.77 per share on a diluted basis, compared to non-GAAP net income of $138 million or $0.51 per share on a diluted basis, in 2011. Income from operations was $211.672 million against $120.377 million a year ago. Income before provision (benefit) for income taxes was $188.271 million against $95.426 million a year ago. Net cash provided by operating activities was $315.994 million against $240.342 million a year ago. Purchases of property, plant and equipment was $35.966 million against $31.421 million a year ago.

For the first quarter of 2013, the company expects total revenue in the range of $342 million to $352 million. First quarter GAAP net income per diluted share is expected to be in the range of $0.23 to $0.24. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.19 to $0.20.

For 2013, the company expects total revenue in the range of $1.405 billion to $1.445 billion. On a GAAP basis, net income per diluted share for 2013 is expected to be in the range of $0.58 to $0.68. Using the non-GAAP measure defined below, net income per diluted share for 2013 is expected to be in the range of $0.82 to $0.92. For the year, the company expects non-GAAP operating margin is expected to be approximately 25% for the annual basis for 2013. At the midpoint of the guidance range, this represents approximately a 50% drop through to incremental revenue to the non-GAAP operating income for the year. Non-GAAP other income and expense for 2013 is expected to be in the range of negative $15 million to negative $9 million. The company is assuming a non-GAAP tax rate of 26%. GAAP EPS for 2013 is expected to be in the range of $0.58 to $0.68. Non-GAAP EPS is expected to be in the range of $0.82 to $0.92. The company is expecting operating cash flow in the range of $350 million to $380 million and capital expenditures is expected to be in the range of $35 million to $40 million.