CIMdata PLM Industry Summary Online Archive
21 July 2004
Financial News
Synplicity Reports Record Quarterly Revenue for the Quarter Ended June 30, 2004
Highlights:
• Record quarterly revenue for the third consecutive quarter which totaled $14.2 million
• Second quarter GAAP net income of $469,000, or $0.02 per share
• Second quarter pro forma net income of $748,000, or $0.03 per share
• ASIC synthesis quarterly bookings increased 60 percent year over year
• Second quarter cash flow from operations of $2.5 million
• Record quarter-end deferred revenue balance of $17.0 million
Synplicity, Inc. announced financial results for the quarter ended June 30, 2004. Revenue for the quarter ended June 30, 2004 was $14.2 million, a 16 percent increase from revenue of $12.2 million for the quarter ended June 30, 2003 and a five percent sequential increase from revenue of $13.5 million for the quarter ended March 31, 2004.
On a generally accepted accounting principles (GAAP) basis, net income was $469,000 or $0.02 per diluted share for the quarter ended June 30, 2004, which included amortization of intangible assets from acquisitions of $222,000 and stock-based compensation expense of $57,000. For the quarter ended June 30, 2003, GAAP net loss was $599,000, or $0.02 per diluted share, which included amortization of intangible assets of $223,000 and stock-based compensation expense of $130,000. For the quarter ended March 31, 2004, GAAP net income was $296,000, or $0.01 per diluted share, which included amortization of intangible assets from acquisitions of $223,000 and stock-based compensation expense of $62,000.
Pro forma net income was $748,000, or $0.03 per diluted share for the quarter ended June 30, 2004, compared to pro forma net loss of $246,000, or $0.01 per diluted share for the quarter ended June 30, 2003, and pro forma net income of $581,000, or $0.02 per diluted share for the quarter ended March 31, 2004. Pro forma figures exclude the impact of amortization of intangible assets and stock-based compensation expense. A reconciliation of GAAP to pro forma net income (loss) is included with this press release.
For the six months ended June 30, 2004, revenue was $27.7 million, a 17 percent increase from revenue of $23.8 million for the six months ended June 30, 2003. For the six months ended June 30, 2004, Synplicity had a GAAP net income of $765,000, or $0.03 per diluted share, compared to net loss of $1.2 million, or $0.05 per diluted share, for the six months ended June 30, 2003. Pro forma net income was $1.3 million, or $0.05 per diluted share, for the six months ended June 30, 2004, compared to pro forma net loss of $521,000, or $0.02 per diluted share, for the six months ended June 30, 2003. Pro forma figures exclude the impact of amortization of intangible assets and stock-based compensation expense. A reconciliation of GAAP to pro forma income (loss) is included with this press release.
"Our strategy to expand our market opportunities continues to pay off for us, and I am proud that we exceeded both our revenue and earnings guidance for the quarter," said Bernard Aronson, President and CEO of Synplicity. "Bookings for our ASIC synthesis products grew 60% over the same period last year, led by multiple license sales with major customers. Overall bookings for our ASIC products represented 24% of total product bookings, and we believe we continued to maintain our leadership position in the FPGA synthesis marketplace. In addition, year-to-date bookings from time-based and multi-year arrangements as a percent of total bookings grew to 25% from 16% for the same period last year. Though these bookings do not fully contribute to revenue immediately, they are a source of recurring revenue and help increase our revenue visibility," Aronson concluded.
The following statements are based on current expectations. We do not intend to update, confirm or change this guidance until our next earnings conference call, although we may provide additional detail regarding our guidance on today's scheduled call.
Revenue for the third quarter of 2004 is expected to range from $14.4 million to $14.6 million, with sequential growth primarily due to higher license revenue
GAAP operating expenses for the third quarter of 2004 are expected to increase approximately two percent sequentially from the second quarter of 2004
GAAP and pro forma net income per fully diluted share for the third quarter of 2004 are expected to be the same as the second quarter of 2004
Revenue for 2004 is expected to be at the high end of our range, approximately $57 million
GAAP operating expenses for 2004 are expected to increase by approximately 10 percent from 2003, as compared to previous guidance of eight percent
GAAP net income per fully diluted share for 2004 is expected to be at the high end of our range, approximately $0.07
Pro forma net income per fully diluted share for 2004 is expected to be at the high end of our range, approximately $0.11
Synplicity's earnings call will be webcast today at 1:15 p.m. Pacific. Following completion of the call, a rebroadcast of the webcast will be available at http://investor.synplicity.com/ through September 30, 2004. For those without access to the Internet, a replay of the call will be available from 5:00 p.m. Pacific on July 21, 2004 through July 28, 2004. To listen to a replay, call (719) 457-0820, access code 313618.
This press release includes financial measures for net income (loss) and net income (loss) per share that exclude certain non-cash charges and that have not been calculated in accordance with GAAP. These measures differ from GAAP in that they exclude the amortization of intangible assets from acquisitions and stock-based compensation expense for stock options granted prior to Synplicity's initial public offering. Synplicity has previously provided these measurements in addition to GAAP financial results because it believes they provide a consistent basis for comparison between quarters that is not influenced by certain non-cash expenses and therefore are helpful to understanding Synplicity's underlying operational results. Further, these non-GAAP measures are some of the primary measures Synplicity's management uses for planning and forecasting. These measures should not be considered an alternative to GAAP, and these non-GAAP measures may not be comparable to information provided by other companies.
For more information, visit http://www.synplicity.com
This press release contains forward-looking statements including, but not limited to, statements regarding Synplicity's leadership position in the FPGA software marketplace, sources of recurring revenue and revenue visibility as well as Synplicity's business outlook for revenue, operating expenses, net income and net income per share. For additional information and considerations regarding the risks faced by Synplicity, see its annual report on Form 10-K for the year ended December 31, 2003 as filed with the Securities and Exchange Commission, as well as other periodic reports filed with the SEC from time to time including its quarterly reports on Form 10-Q.
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