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Non-GAAP Information

In addition to disclosing results determined in accordance with generally accepted accounting principles, or GAAP, certain of the results and financial information of Cadence presented on the Interactive Analyst Center may also disclose certain non-GAAP and pro forma non-GAAP financial measures. Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures contained within the Interactive Analyst Center with their most directly comparable GAAP financial results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance. See Cadence’s earnings press releases, which are available on the Investor Relations section of the Cadence website, for further discussion of Cadence’s non-GAAP financial measures, as well as for reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures.

To supplement Cadence’s financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence’s performance. Cadence and Virtua take no responsibility for third-party pricing data provided for informational purposes and certain ratio results formulated from the provided third party pricing data.

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