CIMdata PLM Industry Summary Online Archive
20 October 2004
Financial News
Synplicity Announces Financial Results For The Quarter Ended September 30, 2004
Synplicity, Inc. announced financial results for the quarter ended September 30, 2004. Revenue for the quarter ended September 30, 2004 was $14.1 million, a 13 percent increase from revenue of $ 12.5 million for the quarter ended September 30, 2003 and a one percent sequential decrease from revenue of $14.2 million for the quarter ended June 30, 2004.
On a generally accepted accounting principles (GAAP) basis, net income was $646,000, or $0.02 per diluted share, for the quarter ended September 30, 2004, which included amortization of intangible assets from acquisitions of $223,000 and stock-based compensation expense of $38,000. For the quarter ended September 30, 2003, GAAP net income was $409,000, or $0.02 per diluted share, which included amortization of intangible assets of $223,000 and stock-based compensation expense of $98,000. For the quarter ended June 30, 2004, GAAP net income was $469,000, or $0.02 per diluted share, which included amortization of intangible assets from acquisitions of $222,000 and stock-based compensation expense of $57,000.
Pro forma net income was $907,000, or $0.03 per diluted share, for the quarter ended September 30, 2004, compared to pro forma net income of $730,000, or $0.03 per diluted share, for the quarter ended September 30, 2003, and pro forma net income of $748,000, or $0.03 per diluted share, for the quarter ended June 30, 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 nine months ended September 30, 2004, revenue was $41.9 million, a 15 percent increase from revenue of $36.3 million for the nine months ended September 30, 2003. For the nine months ended September 30, 2004, Synplicity had a GAAP net income of $1.4 million, or $0.05 per diluted share, compared to net loss of $822,000, or $0.03 per diluted share, for the nine months ended September 30, 2003. Pro forma net income was $2.2 million, or $0.08 per diluted share, for the nine months ended September 30, 2004, compared to pro forma net income of $209,000, or $0.01 per diluted share, for the nine months ended September 30, 2003.
"In the third quarter, we completed our executive team, signed with Fujitsu as our third major structured/platform ASIC development partner, and sold our first few licenses of Synplify DSP," said Gary Meyers, President and CEO. "Despite softness in the overall EDA market and a significant increase in the level of our time-based business, we achieved double-digit revenue growth year over year, and with careful expense management, we had our most profitable quarter in over three years. I am pleased with our progress and excited to be in this new role," Meyers concluded.
Business Outlook
The following statements are based on current expectations. We do not intend to update, confirm or change this guidance until our earnings conference call to discuss our fourth quarter 2004 results, although we may provide additional detail regarding our guidance on today's scheduled call.
• Revenue for the fourth quarter of 2004 is expected to range from $14.2 million to $14.4 million
• GAAP operating expenses for the fourth quarter of 2004 are expected to increase approximately two percent sequentially from the third quarter of 2004
• GAAP and pro forma net income per fully diluted share for the fourth quarter of 2004 are expected to be the same as the third quarter of 2004
• Revenue for 2004 is expected to be approximately $56 million
• GAAP operating expenses for 2004 are expected to increase by approximately eight percent from 2003, as compared to previous guidance of 10 percent
• GAAP net income per fully diluted share for 2004 is expected to be approximately $0.08, as compared to previous guidance of $0.07
• Pro forma net income per fully diluted share for 2004 is expected to be approximately $0.11
Audio Webcast
Synplicity's earnings call will be webcast today at 1:15 p.m. Pacific, and may be accessed at http://investor.synplicity.com or at http://www.firstcallevents.com . Synplicity will discuss its third quarter 2004 results and 2004 business outlook. Following completion of the call, a rebroadcast of the webcast will be available at http://investor.synplicity.com through December 31, 2004. For those without access to the Internet, a replay of the call will be available from 5:00 p.m. Pacific on October 20, 2004 through October 27, 2004. To listen to a replay, call (719) 457-0820, access code 966283.
Use of Non-GAAP Financial Measures
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.
Full financials are available at http://www.synplicity.com/corporate/pressreleases/2004/Q304ReleaseFinal.html
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