CIMdata PLM Industry Summary Online Archive
19 May 2004
Financial News
Synopsys Posts Financial Results for Second Quarter of Fiscal 2004
Synopsys, Inc. reported results for its second quarter ended April 30, 2004.
For the second quarter of fiscal 2004, Synopsys reported revenue of $294.6 million, a 1% increase over revenue of $292.0 million for the second quarter of fiscal 2003. For the six-month period ended April 30, 2004, revenue was $579.9 million, an increase of 4% over revenue of $560.2 million for the same period in 2003.
On a generally accepted accounting principles (GAAP) basis, for the second quarter of fiscal 2004, net income was $28.7 million, or $0.18 per share, compared to net income of $22.3 million, or $0.15 per share, for the second quarter of fiscal 2003. GAAP net income for the six-month period ended April 30, 2004 was $60.9 million, or $0.37 per share, compared to $56.7 million, or $0.37 per share, for the same period in 2003..2
On a non-GAAP basis, net income was $57.1 million, or $0.35 per share, for the second quarter of fiscal 2004 compared to non-GAAP net income of $61.2 million, or $0.40 per share, for the second quarter of fiscal 2003. Non-GAAP net income for the six-month period ended April 30, 2004 was $111.4 million, or $0.68 per share, compared to $113.7 million, or $0.74 per share, for the same period in 2003.
Per share data for the periods presented reflects the Company's two-for-one stock split completed on September 23, 2003. GAAP and non-GAAP net income are reconciled under "GAAP Reconciliation" in the full text of this press release at http://www.synopsis.com/news/announce/press2004/earnings/earnings_q204.pdf
"Recently, the overall spending environment for our solutions has firmed up," said Aart de Geus, Chairman and Chief Executive Officer of Synopsys. "Customers are moving more aggressively to smaller geometries and we are unveiling some remarkable new technology that cements our position as the industry leader. These trends should bode well for us for the remainder of the year."
Financial Outlook
Synopsys also announced its operating model targets for the third quarter of fiscal 2004 and revised targets for the full year. The following targets are forward-looking and based on current expectations. Third Quarter of Fiscal 2004 Targets:
• Revenue: $300 million-$320 million
• Non-GAAP expenses: $220 million-$230 million
• Non-GAAP other income and expense: ($2.0) million - $1.0 million
• Fully diluted outstanding shares: 158 million-166 million
• Tax rate applied in net income calculations: 31%
• Non-GAAP earnings: $0.35-$0.40 per share
• Upfront licenses as a percentage of product bookings: 30%, plus or minus 5%.3
Fiscal Year 2004 targets:
• Orders: $1.4 billion
• Revenue: $1.20 billion-$1.23 billion
• Non-GAAP earnings: $1.37-$1.47 per share
• Upfront licenses as a percentage of product bookings: 30%, plus or minus 5%
The targets set forth above represent Synopsys' expectations as of the date of this release only. Although this release will remain available on the Synopsys website, its continued availability does not indicate that Synopsys is reaffirming or confirming its continued validity. Synopsys does not currently intend to report on its progress during the third quarter of fiscal 2004 or comment to analysts or investors on, or otherwise update, such targets until it releases its quarterly results in August 2004.
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m., Pacific Time. A webcast replay will also be available at http://www.synopsys.com/corporate/invest/invest.html from approximately 5:30 p.m. Pacific Time today through the time of the announcement of Synopsys' results for the third quarter of fiscal 2004 in August 2004. Finally, Synopsys will post copies of the prepared remarks of Aart de Geus, Chairman and Chief Executive Officer, and Steve Shevick, Chief Financial Officer, on its website at http://www.synopsys.com/corporate/invest/invest.html following the call.
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