Cadence Design Systems, Inc. (NASDAQ:CDNS) provides “mission critical” electronic design automation (EDA) software to the semiconductor industry. Our investment in the company is based on its predictable and recurring revenue base as well as its ability to consistently raise prices, a rarity in the semiconductor space. The company reported a strong quarter highlighted by market share gains in both its digital and emulation segments. Cadence also finalized a $1.2 billion stock buyback program and announced a second program in the amount of $525 million. Though the news was positively received, we trimmed our position as the company’s share price appreciated towards our target price. We still remain invested due to Cadence’s shareholder-friendly practices and attractive risk-reward profile.
From Meridian Growth Funds first-quarter 2017 shareholder commentary.
Also check out:
