Cadence Design Systems, Inc. (NASDAQ:CDNS) Q4 2022 Earnings Call Transcript

John Wall: Yes. Andrew, our approach for capital allocation hasn’t changed and share repurchases, that effectively for this year again, we are expecting to use 50% of our free cash flow to repurchase shares. That’s the way we started last year, too. We have a number of repurchase programs. We have our baseline repurchase program. We had an accelerated share repurchase last year to offset dilution from the general stock refresh in the middle of year because we do merit in the middle of the year. But also, we have an opportunistic repurchase program that kicks in when certain price levels are met. And last year, that kicked in, in Q1, Q2 and Q4. So, we bought back shares when the prices were lower. We typically don’t guide to that right now, but we assume using at least 50% of free cash flow to repurchase shares. This year, if our opportunistic repurchase program kicks in, we will buy back more.

Andrew DeGasperi: Great. Thank you.

Operator: I will now turn the call back over to Anirudh Devgan for closing remarks.

Anirudh Devgan: Thank you all for joining us this afternoon. It’s an exciting time for Cadence as we enter 2023 with strong business momentum and robust design activity offering tremendous market opportunities. Our exceptional execution of the Intelligent System Design strategy, customer-first mindset and a high-performance and inclusive culture are driving accelerating growth as we grow our core EDA business while expanding our portfolio with new innovative solutions. Fostering sustainable innovation is a top priority, and we are thrilled to have been included in the newly released 2023 top-rated ESG Company List, ranking number 18 out of over 1,000 companies in the software and services group. And on behalf of our employees and our Board of Directors, we thank our customers, partners and investors for their continued trust and confidence in Cadence.

Operator: Thank you for participating in today’s Cadence fourth quarter and fiscal year 2022 earnings conference call. This concludes today’s call. You may now disconnect.