Anirudh Devgan
President and Chief Executive Officer at Cadence Design Systems
Good afternoon, everyone, and thank you for joining us today. I'm pleased to report that Cadence delivered exceptional results for the first quarter of 2022, with broad-based demand for our innovative solutions driving solid double-digit growth across all business groups. In view of the strong start to the year and the continuing momentum of our business, we are raising our financial outlook for the year. John will provide more details on that in a moment.
Generational trends such as hyperscale computing, 5G, autonomous driving and AI/ML are creating an explosion of data that in turn is driving the need for next-generation compute, connectivity, storage and data analytics solutions. Along with accelerating digital transformation of multiple end markets, these trends continue to fuel robust design activity, creating rich market opportunities for our differentiated end-to-end EDA, IP and system solutions.
Now, let's talk about our key highlights for Q1. A key element of our approach has been to closely collaborate with our ecosystem partners and focus on market-shaping customers. We are very excited to have built upon our successful engagement with a marquee U.S. semiconductor company and in the Q1 signed one of the largest contracts in company history to enable the broad proliferation of our EDA hardware and system solutions. Additionally in Q1, we expanded our long-standed partnership with ARM who is using a comprehensive set of Cadence's EDA solutions and Cadence who is using ARM's latest IP, to jointly provide implementation reference flows and an optimized processor IP to accelerate customer innovation.
Rapidly increasing challenges in system verification and software bring-up continued to be a strong pull for our verification business, which delivered 30% year-over-year revenue growth. On the heels of a record year our hardware business had its biggest quarter by far with unabating demand for our best-in-class Palladium Z2 and Protium X2 hardware platforms. With 10 new customers and over 50 repeat customers, more than half the orders during the quarter included both the platforms.
Demand for hardware was broad-based with particular strengths seen in hyperscale, 5G communication and AI/ML segment. Our digital and sign-off business had another strong quarter with 23% year-over-year revenue growth. Deployment of our digital full flow, delivering industry leading quality of results at the most advanced nodes continue to accelerate with more than 15 new wins in Q1. Our Innovative Cadence Cerebrus solution uses unique reinforcement learning ML technologies to explore the entire design space and intelligently optimize the digital full flow in a fully automated manner.
Several market-shaping customers have successfully deployed Cadence Cerebrus and realized remarkable productivity and power performance and area benefits, including a marquee Asia-Pacific system company used Cadence Cerebrus to achieve 5 times engineering productivity and nearly 10% power gains on a critical advanced node subsystem. And a leading Asia-Pacific hyperscaler used Cadence Cerebrus with our digital full flow to tape out a chip with nearly 2 billion instances reducing power by 5% compared to the alternative flow.
Our System Design & Analysis business which is driving our expansion beyond EDA continued its strong momentum in Q1, delivering 22% year-over-year revenue growth. There is growing interest in our integrity 3D-IC solution, the industry's most advanced multi-die platform with tightly integrated system planning, implementation and analysis technology. A large U.S. data infrastructure company successfully deployed Integrity to tape-out their 2.5D IC and Lightelligence used Integrity 3D-IC, Virtuoso and Innovus in the development of their fully integrated optical computer system.
In System Analysis, we continued executing to our strategy of building out our multi-physics platform, offering best-in-class engines, delivering superior results compared to legacy solutions. We are pleased with the new wins and growing repeat orders for our organically developed Clarity and Celsius products, as well as our recently acquired CFD technologies. Over the past year, our CFD solutions have continued to proliferate especially in the aerospace and defense arena with market-shaping customers such as Lockheed Martin.
In Q1, Juniper Networks renewed their commitment to Cadence Technology, including comprehensive access to our systems portfolio across PCB packaging and system analysis solutions. And last week we introduced Fidelity CFD, a comprehensive CFD platform that includes enhanced machine technology as well as a next generation, massively parallel high-order solver that dramatically improved the performance and accuracy of complex CFD applications across multiple vertical end markets.
Fidelity CFD software meshing capabilities have been used by Toyota Motor Europe to be their standard workflow for CFD pre-processing. And the winning America's Cup, Team New Zealand relies on Fidelity Marine solver for their hull hydrodynamic modeling. Lastly, in addition to our outstanding business results, I'm also proud of our high-performance inclusive culture and thrilled that we have been selected by Fortune and Great Place to Work as one of the 2022 100 Best Companies to Work For, for the eighth consecutive year.
Now, I will turn it over to John to provide more details on the Q1 results and our updated 2022 outlook.