Cadence provides computational software, hardware, and intellectual property (IP) solutions aimed at engineers and scientists within the semiconductor and electronic systems sectors. The company's primary offerings include Core Electronic Design Automation (EDA), Semiconductor IP, and System Design and Analysis (SD&A). Core EDA involves software and services for designing and verifying semiconductor chips, while Semiconductor IP encompasses design architectures for silicon chip integration. The SD&A segment provides platforms for designing and simulating electronic systems.
Cadence operates in industries like automotive, aerospace, biotech, and telecommunications, generating revenue mainly through software licensing, which is offered on a time-based or perpetual basis. A significant portion of its revenue is recurring, coming from software maintenance, royalties, and design services, along with income from hardware sales and leases. Key market factors impacting Cadence's business include the complexity of semiconductor designs, advancements in manufacturing technology, and the demand for AI-driven solutions.
Cadence's primary customers are semiconductor companies and systems manufacturers looking to enhance product performance, reduce time to market, and improve design efficiency. The company's operational structure focuses on continuous innovation through research and development to keep pace with industry standards and customer needs. As of fiscal 2024, Cadence reported total revenue of approximately $4.641 billion, with 91% from product and maintenance offerings and 9% from services.