Cadence Design Systems Inc (NASDAQ:CDNS) Q3 2019 Earnings Conference Call - Final Transcript
Oct 21, 2019 • 05:00 pm ET
and SoC verification especially for hardware/software regression and earlier software development, that combination using the same front end software and make it easier for the customer.
And then, so I think we clearly see that in our -- in new customer and its key expansions. And so I think we are just delighted and are very pleased. Protium is giving a lot of opportunity for us. And we also highlight a global marquee customer significantly expanded their existing hardware footprint with additional Z1 capacity and add-on the Protium X1 as well because that one is a larger one or the largest hardware orders for Cadence. So I think all in all, we see strength. And then I think John can highlight the reason of building up the inventory.
John M. Wall
Yes, yeah, Jackson. As Lip-Bu says, I mean our hardware solutions are proven to be very robust in the marketplace and cost demand is good. Q3 results were slightly up on Q3 '18 but we were building inventories heading into Q4 because we have a strong pipeline going into Q4.
Okay that makes sense. And then one quick question, a follow-up on the 30 customers at Clarity engagement. Can you give us any kind of industry sense for those or is it significantly different from the Cadence customer base in EDA?
Yeah, I think you know both and not just on semiconductor, many other system companies and because this only see the value of the -- up to 10x performance and also tie in very well with the from the system simulation down to the silicon emulation. That fully integrated, it's a complete that customer love.
Okay, thank you.
Your next question comes from Rich Valera with Needham & Co. Your line is open.
Thank you. First just a clarification. Congratulations on the large IP order that you mentioned was from the marquee customer you had referenced previously. Just wanted to clarify, is the significant hardware order as well from the same marquee customer, or was that a different one?
Yeah. So I think what we mentioned earlier, is that IP deal is with a global US semiconductor company -- marquee US semiconductor company. And then the hardware you know clearly is a marquee global marquee company and they are already our customer, but they are increasing their hardware capacity plus the Protium that they like a lot. And so that they are fully integrated and make it one of the largest hardware orders.
Got it. So they are different customers so as that just to be perfectly clear.
Yes, yes. Yes.
Okay, thank you. And then moving on to the system products. First, just wanted to understand, you mentioned that Bosch and ARM had endorsed and I think you said both of these products, and I just wanted to clarify that that was in fact an endorsement of both Celsius and Clarity. And then, if that's the case have either of them actually purchased Clarity? Or are they among