Cadence Design Systems, Inc.

Good afternoon. My name is Jamaria and I will be your conference operator today. At this time, I would like to welcome everyone to the Cadence Third Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one in your telephone keypad. Please limit your questions to one question and one follow up. Thank you. I will now turn the call over to Alan Lindstrom, Senior Group Director of Investor Relations for Cadence. Please go ahead.

Thank you, Jamaria. I would like to welcome everyone to our third quarter 2021 earnings conference call. I'm joined today by Lip Bhutan, Chief Executive Officer, Anur Devgn, President, and John Wall, Senior Vice President and Chief Financial Officer. The webcast of this call is available through our website, cadence.com, and will be archived through December 17, 2021. A copy of today's prepared remarks will also be available on our website at the conclusion of the call today. Please note that the discussion today will contain forward-looking statements Forward-looking statements include but are not limited to statements about our business outlook, product development, business strategy and plans, industry and regulatory trends, market size, opportunities, and positioning. Due to known and unknown risks and actual uncertainties, results may differ materially from those projected or implied in today's discussion. For information on factors that could cause a difference in our results, please refer to our filings with the Securities and Exchange Commission. These include Cadence's most recent reports on Form 10-K and Form 10-Q and the cautionary comments regarding forward-looking statements in today's earnings press release. You should not rely on our forward-looking statements as predictions of future events. All such statements are based on estimates and information available to us at this time and cadence disclaims any obligation to update any forward-looking statements except as required by law. In addition to financial results prepared in accordance with generally accepted accounting principles or GAAP, we will also present certain non-GAAP financial measures today. Cadence management believes that in addition to using GAAP results in evaluating our business, it can also be useful to review results using certain non-GAAP financial measures. These non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP results. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and may not be comparable to similarly titled measures from other companies. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures with their most direct comparable GAAP financial results in today's earnings press release. Copies of today's earnings press release dated October 25th, 2021, where the quarter ended October 2nd, 2021, related financial tables and the CFO commentary are also available on our website. For the Q&A session today, we would ask that you observe a limit of one question and one follow-up. You may re-queue if you would like to ask additional questions and time permits. Now I'll turn the call over to Lipu.

Good afternoon, everyone, and thank you for joining us today. Cadence delivered strong financial results for the third quarter, driven by accelerating customer demand for our innovative solutions. and continue strong execution by the team. Driven by the broad-based strength of our business, we are raising our financial outlook for the third time this year and are expecting about 11% revenue growth and 37% non-GAAP operating margin for 2021. John will provide the details in a moment for both our Q3 results and the updated outlook for the year. The data-driven era is being fueled by generation trends by 5G, hyperscale computing, autonomous driving, and industrial IoT that are accelerating the digital transformation of several industries. This requires continual innovation in key areas such as compute, connectivity, storage, and data analysis, which is in turn driving circular semiconductor growth and design activity across wide range of end markets. Before I ask Anurudh to go through the business and product highlights for the quarter, I would like to remind you that I will be transitioning with the role of Executive Chairman on December 15th, with Underwood becoming our President and CEO at that time. It has truly been an honor leading Cadence for the past 13 years. I'm very proud of the team's accomplishments and grateful for the confidence and trust that our customers and shareholders have placed in us. Caden is extremely well-positioned, and as I hand the baton over to Anirudh, I can think of no other better to lead the company through the next phase of growth. And I'm eagerly looking forward to him taking Caden to new heights. While I will remain engaged with shareholders, this will be my last Thank you very much for your continued support, and I will now turn the call over to Anirudh.