Synopsys, Inc. reported results for its third quarter of fiscal year 2015.
For the third quarter of fiscal year 2015, Synopsys reported revenue of $555.8 million, compared to $521.8 million for the third quarter of fiscal 2014, an increase of 6.5 percent.
"Synopsys delivered strong third quarter results, and expects to exit the year with approximately 10% non-GAAP earnings per share growth," said Aart de Geus, chairman and co-CEO of Synopsys. "Our new products are driving excellent customer design success and adoption momentum. In addition, we closed several acquisitions, further strengthening our IP portfolio and expanding our presence in the higher-growth software quality and security market."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the third quarter of fiscal 2015 was $55.4 million, or $0.35 per share, compared to $65.7 million, or $0.42 per share, for the third quarter of fiscal 2014.
Non-GAAP Results
On a non-GAAP basis, net income for the third quarter of fiscal 2015 was $99.7 million, or $0.63 per share, compared to non-GAAP net income of $103.2 million, or $0.65 per share, for the third quarter of fiscal 2014. Reconciliation between GAAP and non-GAAP results is provided below.
Financial Targets
Synopsys also provided its financial targets for the fourth quarter and full fiscal year 2015. These targets do not include any impact of future acquisition-related activities or costs that may be incurred in the remainder of fiscal year 2015. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.
Fourth Quarter of Fiscal Year 2015 Targets:
- Revenue: $570 million - $585 million
- GAAP expenses: $503 million - $521 million
- Non-GAAP expenses: $450 million - $460 million
- Other income and expense: $0 - $2 million
- Tax rate applied in non-GAAP net income calculations: 19 - 20 percent
- Fully diluted outstanding shares: 155 million - 159 million
- GAAP earnings per share: $0.31 - $0.38
- Non-GAAP earnings per share: $0.65 - $0.67
Full Fiscal Year 2015 Targets:
- Revenue: $2.225 billion - $2.240 billion
- Other income and expense: $10 million - $12 million
- Tax rate applied in non-GAAP net income calculations: 19 - 20 percent
- Fully diluted outstanding shares: 155 million - 159 million
- GAAP earnings per share: $1.43 - $1.50
- Non-GAAP earnings per share: $2.76 - $2.78
- Cash flow from operations: approximately $450 million