Cadence Design Systems Inc (NASDAQ:CDNS) Q3 2019 Earnings Conference Call - Final Transcript

Oct 21, 2019 • 05:00 pm ET

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Cadence Design Systems Inc (NASDAQ:CDNS) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
Lip-Bu Tan

the way we are going to continue to support the customer.

Analyst
Joshua Tilton

Thank you. Those are helpful.

Operator
Operator

Our last question comes from Krish Sankar with Cowen & Company. Please go ahead, your line is open.

Analyst
Krish Sankar

Yeah, hi, thanks for taking my question. Lip Bu, I had two of them. One is you guys are definitely getting a good traction with your hyperscale customers, I'm kind of curious as your hyperscale customers build their own silicon, how is their requirements for EDA different than the traditional semiconductor customers? Do they see one way to -- one way towards IP blocks or whatever it is? Any color on that would be helpful. And then I have a follow-up.

Executive
Lip-Bu Tan

Okay. Clearly, we are excited about the hyperscale players. They are going to be very important for our industry, because they are quietly building up. As I mentioned earlier, their workload requirement have changed and it's more about data and then so that domain specific processing development and also in the server into the data storage network, scale out going to be even more and more important for them and great partners for us and great customer and we love them. And then first of all, they are bit different on our semiconductor players, time to market is more important to them and also performance scalability is most important to them and that part, I think we worked very from the early days. We are already working on partner with them and we are also very excited about the cloud infrastructure that we also support the cloud infrastructure using some of our tool to do that and we continue to leadership on that. So I think in multiples, expect we're working with our partners in the cloud, and we're excited about the opportunity.

Analyst
Krish Sankar

That's very helpful, Lip-Bu. And then a follow up to either you or John, is there a way you can size the hardware market this year. How big is it? And this is that the different segments like FPGA apps, how big are they? Any color that would be helpful.

Executive
John M. Wall

Yeah, I don't have any break down in terms of the market data that I can share with you today, but we're very, very happy with -- with how our year is going. And with the strong pipeline that we have leading into Q4.

Analyst
Krish Sankar

Thanks, John. Thanks Lip-Bu

Executive
Lip-Bu Tan

Thank you.

Executive
John M. Wall

Thanks.

Operator
Operator

There are no further questions at this time. I will turn the call back to Lip-Bu for closing remarks.

Executive
Lip-Bu Tan

Thank you all for joining us this afternoon. Next phase of our strategy, Intelligent System Design brings new opportunities in Design Excellence, System Innovation and Pervasive Intelligence and an expanded total addressable market. We are capitalizing on multiple technology trends and further proliferating our solutions with a broader base of customers. And in closing, I would like to thank all our shareholders, customers and partners, the Board of Directors and our hardworking employees for their continued support.

Operator
Operator

[Operator Closing Remarks]