Cadence Design Systems - Q4 FY12/24 Earnings Review
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Quick Catchup On Cadence
by Alex King, CEO, Cestrian Capital Research, Inc
CDNS reports its Q1 of FY12/25 today after the close, so I don’t propose to go into great detail in this note. The company was in good health as of the end of Q4, with reported revenue growth accelerating, cashflow margins rising, the balance sheet strengthening and the backlog growing.
One way to cut through all the noise about the impact of tariffs right now is to look at actual company fundamentals as reported by the companies themselves. From these Q1 ’25 reports onwards we will be able to see whether indeed Doom Be Upon Us - slowing order book growth, rising costs, declining revenue growth etc - or whether the supply chain can take the change in its stride. When CDNS publishes its Q1 later today, the things to look for are change in RPO growth and absolute levels of RPO, and of course their guidance.
Let’s just level-set on Q4.