Cadence reported fourth quarter 2009 revenue of $220 million, compared to revenue of $227 million reported for the same period in 2008. On a GAAP basis, Cadence recognized net income of $2 million, or $0.01 per share on a diluted basis, in the fourth quarter of 2009, compared to a net loss of $1.63 billion, or $(6.55) per share on a diluted basis in the same period in 2008. Revenue for fiscal year 2009 totaled $853 million, compared to revenue of $1.04 billion in fiscal year 2008. The net loss for fiscal year 2009 was $150 million, or $(0.58) per share on a diluted basis, compared to a net loss of $1.86 billion, or $(7.30) per share on a diluted basis for fiscal year 2008. The GAAP net loss for the fourth quarter and fiscal year 2008 included a non-cash impairment charge of $1.36 billion, related to Cadence's goodwill, intangible assets, and fixed assets. The impairment charge, which was driven by adverse economic conditions and a decline in Cadence's market capitalization, had no effect on Cadence's cash flows.

In addition to using GAAP results to evaluate Cadence's business, management believes it is useful to measure results using a non-GAAP measure of net income or net loss, which excludes, as applicable, amortization of intangible assets, stock-based compensation expense, in-process research and development charges, costs related to a withdrawn acquisition proposal and losses on the sale of shares of the target company stock, integration and acquisition-related costs, gains or losses and expenses or credits related to non-qualified deferred compensation plan assets, executive severance costs, restructuring charges and credits, amortization of discount on convertible notes, equity in losses (income) from investments, write-down of investments, impairment charges related to goodwill, intangible assets and fixed assets, and losses related to the liquidation of a subsidiary. Non-GAAP net income or net loss is adjusted by the amount of additional taxes or tax benefit that the company would accrue if it used non-GAAP results instead of GAAP results to calculate the company's tax liability. See "GAAP to non-GAAP Reconciliation" below for further information on the non-GAAP measure.

Using this non-GAAP measure, net income in the fourth quarter of 2009 was $15 million, or $0.06 per share on a diluted basis, as compared to a net loss of $11 million, or $(0.04) per share on a diluted basis, in the same period in 2008. For fiscal year 2009, non-GAAP net loss was $16 million, or $(0.06) per share on a diluted basis, compared to a net loss of $10 million and $(0.04) per share on a diluted basis in fiscal year 2008.

"In 2009, we positioned Cadence for future growth. We improved our customer engagement, strengthened our foundation technology, and reduced our cost structure. We've identified new opportunities for growth, and renewed Cadence's culture of innovation and accountability," said Lip-Bu Tan, President and Chief Executive Officer. "Our primary operational focus in the year was to enhance the level of research and development engagement at key accounts and open new business opportunities for the company."

"In 2009, we significantly improved operating efficiency while strategically redeploying resources," said Kevin S. Palatnik, Senior Vice President and Chief Financial Officer, adding, "I believe that with continued strong focus on execution, we will expand our position with customers, grow the top line and improve profitability over time."