CDNS » Topics » Research and Development

This excerpt taken from the CDNS 10-Q filed May 1, 2009.
Research and Development
 
Research and development expense decreased by $30.7 million during the three months ended April 4, 2009, as compared to the three months ended March 29, 2008, due to the following:
 
         
    Change  
    (In millions)  
 
Salary, benefits and other employee-related costs
  $ (23.1 )
Stock-based compensation
    (3.3 )
Computer equipment lease costs and maintenance costs associated with third-party software
    (1.5 )
Travel and customer conference costs
    (1.2 )
Other individually insignificant items
    (1.6 )
         
    $ (30.7 )
         
 
Salary, benefits and other employee-related costs decreased during the three months ended April 4, 2009, as compared to the three months ended March 29, 2008, due to a reduction in headcount and a decrease in employee bonuses.
 
These excerpts taken from the CDNS 10-K filed Mar 2, 2009.
Research and Development
 
Our investment in research and development was $457.9 million during fiscal 2008, $494.0 million during fiscal 2007 and $460.1 million during fiscal 2006.
 
The primary areas of our research and development include SoC design, the design of silicon devices in the nanometer range, high-performance IC packaging, SiP and PCB design, system-level modeling and verification, high-performance logic verification technology and hardware/software co-verification. The electronics industry combines rapid innovation with rapidly increasing design and manufacturing complexity, so we make significant


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investments in enhancing our current products, as well as creating new products and technologies and integrating those products and technologies together into segmented solutions.
 
Our future performance depends largely on our ability to maintain and enhance our current product development and commercialization, to develop, acquire or operate with new products from third parties, and to develop solutions that meet increasingly demanding productivity, quality, predictability and cost requirements.
 
Research
and Development



 



Our investment in research and development was
$457.9 million during fiscal 2008, $494.0 million
during fiscal 2007 and $460.1 million during fiscal 2006.


 



The primary areas of our research and development include SoC
design, the design of silicon devices in the nanometer range,
high-performance IC packaging, SiP and PCB design, system-level
modeling and verification, high-performance logic verification
technology and hardware/software co-verification. The
electronics industry combines rapid innovation with rapidly
increasing design and manufacturing complexity, so we make
significant





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investments in enhancing our current products, as well as
creating new products and technologies and integrating those
products and technologies together into segmented solutions.


 



Our future performance depends largely on our ability to
maintain and enhance our current product development and
commercialization, to develop, acquire or operate with new
products from third parties, and to develop solutions that meet
increasingly demanding productivity, quality, predictability and
cost requirements.


 




Research and Development
 
Research and development expense decreased $36.1 million during fiscal 2008, as compared to fiscal 2007, and increased $33.9 million during fiscal 2007, as compared to fiscal 2006, due to the following:
 
                 
    Change  
    2008 vs. 2007     2007 vs. 2006  
    (In millions)  
 
Salary, benefits and other employee-related costs
  $ (26.8 )   $ 38.1  
Stock-based compensation
    (9.6 )     (4.6 )
Professional services costs
    (7.3 )     4.1  
Travel costs
    (3.5 )     ----  
                 
Executive severance costs
    1.1       ----  
Computer equipment lease costs and maintenance costs associated with third-party software
    3.0       2.9  
Facilities and other infrastructure costs
    3.1       ----  
Portion of the gain on the sale of land and building that relates to Research and development expense
    5.1       (6.5 )
Other individually insignificant items
    (1.2 )     (0.1 )
                 
    $ (36.1 )   $ 33.9  
                 
 
Salary, benefits and other employee-related costs decreased during fiscal 2008, as compared to fiscal 2007, due to a reduction in headcount and a decrease in employee bonuses. These costs increased during fiscal 2007, as compared to fiscal 2006, primarily due to increased headcount and higher bonuses earned during fiscal 2007.
 
Professional services costs decreased during fiscal 2008, as compared to fiscal 2007, due to our overall spending reductions and cost savings initiatives implemented during the year.
 
During fiscal 2007, we recognized a gain on the sale of land and buildings that related to and accordingly reduced Research and development expense for that period. There was no similar reduction during fiscal 2008.
 
Research
and Development



 



Research and development expense decreased $36.1 million
during fiscal 2008, as compared to fiscal 2007, and increased
$33.9 million during fiscal 2007, as compared to fiscal
2006, due to the following:


 























































































































































































                 

 

 

Change

 

 

 

2008 vs. 2007


 

 

2007 vs. 2006


 

 

 

(In millions)

 
 


Salary, benefits and other employee-related costs


 

$

(26.8

)

 

$

38.1

 


Stock-based compensation


 

 

(9.6

)

 

 

(4.6

)


Professional services costs


 

 

(7.3

)

 

 

4.1

 


Travel costs


 

 

(3.5

)

 

 

----

 

 

 

 

 

 

 

 

 

 


Executive severance costs


 

 

1.1

 

 

 

----

 


Computer equipment lease costs and maintenance costs associated
with third-party software


 

 

3.0

 

 

 

2.9

 


Facilities and other infrastructure costs


 

 

3.1

 

 

 

----

 


Portion of the gain on the sale of land and building that
relates to Research and development expense


 

 

5.1

 

 

 

(6.5

)


Other individually insignificant items


 

 

(1.2

)

 

 

(0.1

)

 

 

 

 

 

 

 

 

 

 

 

$

(36.1

)

 

$

33.9

 

 

 

 

 

 

 

 

 

 






 



Salary, benefits and other employee-related costs decreased
during fiscal 2008, as compared to fiscal 2007, due to a
reduction in headcount and a decrease in employee bonuses. These
costs increased during fiscal 2007, as compared to fiscal 2006,
primarily due to increased headcount and higher bonuses earned
during fiscal 2007.


 



Professional services costs decreased during fiscal 2008, as
compared to fiscal 2007, due to our overall spending reductions
and cost savings initiatives implemented during the year.


 



During fiscal 2007, we recognized a gain on the sale of land and
buildings that related to and accordingly reduced Research and
development expense for that period. There was no similar
reduction during fiscal 2008.


 




This excerpt taken from the CDNS 10-Q filed Dec 11, 2008.
Research and Development
 
Research and development expense decreased $2.9 million during the three months ended June 28, 2008, as compared to the three months ended June 30, 2007, primarily due to:
 
  •      A decrease of $3.1 million in stock-based compensation; and
  •      A decrease of $1.0 million in travel costs; partially offset by
  •      An increase of $2.9 million in facilities and other infrastructure costs.
 
Research and development expense increased $5.4 million during the six months ended June 28, 2008, as compared to the six months ended June 30, 2007, primarily due to:
 
  •      An increase of $5.6 million in facilities and other infrastructure costs;
  •      During the six months ended June 30, 2007, we recognized a gain of $4.7 million on the sale of land and buildings that related to and accordingly reduced Research and development expense for that period. There was no similar reduction during the six months ended June 28, 2008; and
  •      An increase of $4.3 million in salary, benefits and other employee-related costs, primarily due to an increase in the number of employees supporting product development, our acquisitions of Clear Shape Technologies, Inc. and Invarium, Inc., and increases in salary costs generally; partially offset by


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  •      A decrease of $6.5 million in stock-based compensation;
  •      A decrease of $2.2 million in professional services costs; and
  •      A decrease of $1.4 million in travel costs.
 
This excerpt taken from the CDNS 10-Q filed Dec 11, 2008.
Research and Development
 
Research and development expense increased $8.3 million in the three months ended March 29, 2008, as compared to the three months ended March 31, 2007, primarily due to:
 
  •      An increase of $7.4 million in salary, benefits and other employee-related costs, primarily due to an increase in the number of employees supporting product development, our acquisitions of Clear Shape Technologies, Inc. and Invarium, Inc., and increases in salary costs; and
  •      An increase of $4.7 million of Research and development expense in the three months ended March 29, 2008 due to no gains offsetting such expense during this period. In the three months ended March 31, 2007, we recognized a gain of $4.7 million on the sale of land and buildings that related to and accordingly reduced Research and development expense for that period. There was no similar reduction in Research and development expense for the three months ended March 29, 2008; partially offset by
  •      A decrease of $3.4 million in stock-based compensation.
 
This excerpt taken from the CDNS 10-Q filed Dec 11, 2008.
Research and Development
 
Research and development expense decreased $12.9 million during the three months ended September 27, 2008, as compared to the three months ended September 29, 2007, primarily due to:
 
  •      A decrease of $8.4 million in salary, benefits and other employee-related costs;
  •      A decrease of $2.3 million in professional services costs; and
  •      A decrease of $2.2 million in stock-based compensation.
 
Research and development expense decreased $7.5 million during the nine months ended September 27, 2008, as compared to the nine months ended September 29, 2007, primarily due to:
 
  •      A decrease of $8.6 million in stock-based compensation;
  •      A decrease of $4.5 million in professional services costs;
  •      A decrease of $4.2 million in salary, benefits and other employee-related costs; and
  •      A decrease of $2.1 million in travel costs; partially offset by
  •      An increase of $5.4 million in facilities and other infrastructure costs; and
  •      During the nine months ended September 29, 2007, we recognized a gain of $4.7 million on the sale of land and buildings that related to and accordingly reduced Research and development expense for that period. There was no similar reduction during the nine months ended September 27, 2008.
 
This excerpt taken from the CDNS 10-Q filed Jul 29, 2008.
Research and Development
 
Research and development expense decreased $2.9 million during the three months ended June 28, 2008, as compared to the three months ended June 30, 2007, primarily due to:
 
  •      A decrease of $3.1 million in stock-based compensation; and
  •      A decrease of $1.0 million in travel costs; partially offset by
  •      An increase of $2.9 million in facilities and other infrastructure costs.
 
Research and development expense increased $5.4 million during the six months ended June 28, 2008, as compared to the six months ended June 30, 2007, primarily due to:
 
  •      An increase of $5.6 million in facilities and other infrastructure costs;
  •      During the six months ended June 30, 2007, we recognized a gain of $4.7 million on the sale of land and buildings that related to and accordingly reduced Research and development expense for that period. There was no similar reduction during the six months ended June 28, 2008; and
  •      An increase of $4.3 million in salary, benefits and other employee-related costs, primarily due to an increase in the number of employees supporting product development, our acquisitions of Clear Shape Technologies, Inc. and Invarium, Inc., and increases in salary costs generally; partially offset by
  •      A decrease of $6.5 million in stock-based compensation;
  •      A decrease of $2.2 million in professional services costs; and
  •      A decrease of $1.4 million in travel costs.
 
This excerpt taken from the CDNS 10-Q filed Apr 25, 2008.
Research and Development
 
Research and development expense increased $8.3 million in the three months ended March 29, 2008, as compared to the three months ended March 31, 2007, primarily due to:
 
  •      An increase of $7.4 million in salary, benefits and other employee-related costs, primarily due to an increase in the number of employees supporting product development, our acquisitions of Clear Shape Technologies, Inc. and Invarium, Inc., and increases in salary costs; and
  •      An increase of $4.7 million of Research and development expense in the three months ended March 29, 2008 due to no gains offsetting such expense during this period. In three months ended March 31, 2007, we recognized a gain of $4.7 million on the sale of land and buildings that related to and accordingly reduced Research and development expense for that period. There was no similar reduction in Research and development expense for the three months ended March 29, 2008; partially offset by
  •      A decrease of $3.4 million in stock-based compensation.
 
These excerpts taken from the CDNS 10-K filed Feb 26, 2008.
Research and Development
 
2007 compared to 2006
 
Research and development expense increased $33.9 million in 2007, as compared to 2006, primarily due to:
 
  •      An increase of $38.1 million in salary, benefits and other employee-related costs, primarily due to an increased number of employees to support product development, our acquisitions of Clear Shape Technologies, Inc. and Invarium, Inc., and increases in salary costs;
  •      An increase of $4.1 million in third-party development costs; and
  •      An increase of $2.9 million in computer equipment lease costs and maintenance costs associated with third-party software; partially offset by
  •      A decrease of $4.6 million in stock-based compensation; and
  •      A decrease of $6.5 million due to the portion of the gain on the sale of land and buildings that relates to Research and development expense.
 
2006 compared to 2005
 
Research and development expense increased $69.4 million in 2006, as compared to 2005, primarily due to:
 
  •      An increase of $31.6 million in stock-based compensation expense due to our adoption of SFAS No. 123R;
  •      An increase of $28.3 million in employee salary, benefits and other employee-related costs due to increased staffing to support product development and higher employee salaries;
  •      An increase of $3.9 million in third-party development costs; and
  •      An increase of $3.3 million in computer equipment lease costs and maintenance costs associated with third-party software.
 
Research
and Development



 




2007
compared to 2006



 



Research and development expense increased $33.9 million in
2007, as compared to 2006, primarily due to:


 
























































  •     

An increase of $38.1 million in salary, benefits and other
employee-related costs, primarily due to an increased number of
employees to support product development, our acquisitions of
Clear Shape Technologies, Inc. and Invarium, Inc., and increases
in salary costs;
  •     

An increase of $4.1 million in third-party development
costs; and
  •     

An increase of $2.9 million in computer equipment lease
costs and maintenance costs associated with third-party
software; partially offset by
  •     

A decrease of $4.6 million in stock-based
compensation; and
  •     

A decrease of $6.5 million due to the portion of the gain
on the sale of land and buildings that relates to Research and
development expense.


 




2006
compared to 2005



 



Research and development expense increased $69.4 million in
2006, as compared to 2005, primarily due to:


 














































  •     

An increase of $31.6 million in stock-based compensation
expense due to our adoption of SFAS No. 123R;
  •     

An increase of $28.3 million in employee salary, benefits
and other employee-related costs due to increased staffing to
support product development and higher employee salaries;
  •     

An increase of $3.9 million in third-party development
costs; and
  •     

An increase of $3.3 million in computer equipment lease
costs and maintenance costs associated with third-party software.


 




This excerpt taken from the CDNS 10-Q filed Oct 30, 2007.
Research and Development
 
Research and development expense increased $15.1 million in the three months ended September 29, 2007, as compared to the three months ended September 30, 2006, primarily due to:
 
  •      An increase of $12.9 million in salary, benefits and other employee-related costs due to increased staffing to support product development; and
 
  •      An increase of $1.8 million in professional services costs.
 
Research and development expense increased $23.3 million in the nine months ended September 29, 2007, as compared to the nine months ended September 30, 2006, primarily due to:
 
  •      An increase of $27.6 million in salary, benefits and other employee-related costs due to increased staffing to support product development; partially offset by
 
  •      A decrease of $6.0 million due to the portion of the gain on the sale of land and buildings that relates to Research and development expense; and
 
  •      A decrease of $2.8 million in stock-based compensation.


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This excerpt taken from the CDNS 10-Q filed Jul 27, 2007.
Research and Development
 
Research and development expense increased $7.5 million in the three months ended June 30, 2007, as compared to the three months ended July 1, 2006, primarily due to:
 
  •      An increase of $7.4 million in salary, benefits and other employee-related costs due to increased staffing to support product development; partially offset by
 
  •      A decrease of $1.7 million in professional services costs.
 
Research and development expense increased $8.2 million in the six months ended June 30, 2007, as compared to the six months ended July 1, 2006, primarily due to:
 
  •      An increase of $15.2 million in salary, benefits and other employee-related costs due to increased staffing to support product development; partially offset by


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  •      A decrease of $5.4 million due to the portion of the gain on the sale of land and buildings that relates to Research and development expense;
 
  •      A decrease of $2.2 million in stock-based compensation; and
 
  •      A decrease of $1.5 million in professional services costs.
 
This excerpt taken from the CDNS 10-Q filed Apr 30, 2007.
Research and Development
 
Research and development expense increased $0.8 million in the three months ended March 31, 2007, as compared to the three months ended April 1, 2006, primarily due to:
 
  •      An increase of $7.2 million in salary, benefits and other employee-related costs due to increased staffing to support product development; partially offset by


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  •      A decrease of $5.2 million due to the portion of the gain on the sale of land and building that relates to Research and Development; and
 
  •      A decrease of $2.1 million in stock-based compensation.
 
This excerpt taken from the CDNS 10-K filed Feb 23, 2007.
Research and Development
 
2006 compared to 2005
 
Research and development expenses increased $69.4 million in 2006, as compared to 2005, primarily due to:
 
  •      An increase of $31.6 million in stock-based compensation expense due to our adoption of SFAS No. 123R;
  •      An increase of $28.3 million in employee salary, benefits and other employee-related costs due to increased staffing to support product development and higher employee salaries;
  •      An increase of $3.9 million in third-party development costs; and
  •      An increase of $3.3 million in computer equipment lease costs and maintenance costs associated with third-party software.
 
2005 compared to 2004
 
Research and development expense increased $22.6 million in 2005, as compared to 2004, primarily due to:
 
  •      An increase of $24.0 million in employee salary and benefit costs, primarily due to our acquisition of Verisity and increased staffing to support product development; and
  •      An increase of $2.2 million in stock-based compensation expense due to grants of restricted stock and the assumption of options in our acquisitions; partially offset by
  •      A decrease of $3.9 million in depreciation expense.
 
This excerpt taken from the CDNS 10-Q filed Oct 27, 2006.
Research and Development
 
Research and development expense increased $9.7 million in the three months ended September 30, 2006, as compared to the three months ended October 1, 2005, primarily due to an increase of $4.7 million in stock-based


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compensation expense, an increase of $1.8 million in salary, benefits and other employee-related costs and an increase of $1.6 million of maintenance costs associated with third-party software.
 
Research and development expense increased $50.1 million in the nine months ended September 30, 2006, as compared to the nine months ended October 1, 2005, primarily due to an increase of $23.5 million in stock-based compensation expense, an increase of $19.0 million in salary, benefits and other employee-related costs, an increase of $3.3 million of maintenance costs associated with third-party software and an increase of $3.2 million in third-party development costs.
 
This excerpt taken from the CDNS 10-Q filed Aug 7, 2006.
Research and Development
 
Research and development expense increased $19.1 million in the three months ended July 1, 2006, as compared to the three months ended July 2, 2005, primarily due to an increase of $7.4 million in stock-based compensation expense, an increase of $7.2 million in salary and benefits costs and an increase of $1.2 million in third-party development costs. The remaining increase in research and development expense is due to other individually insignificant items.
 
Research and development expense increased $40.4 million in the six months ended July 1, 2006, as compared to the six months ended July 2, 2005, primarily due to an increase of $18.7 million in stock-based compensation expense, an increase of $14.8 million in employee salary and benefit costs and an increase of $3.2 million in third-party development costs.


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