CIMdata PLM Industry Summary Online Archive
5 February 2008
Financial News
Synplicity Announces Fourth Quarter 2007 and Full Year Results Record Quarter- Revenue of $20.1 Million
Synplicity ® Inc. announced financial results for the quarter and year ended December 31, 2007.
Revenue for the quarter ended December 31, 2007 grew by 23% to $20.1 million, from the $16.4 million reported for the quarter ended December 31, 2006. On a generally accepted accounting principles (GAAP) basis, net income was $10.3 million, or $0.38 per diluted share, for the quarter ended December 31, 2007. GAAP net income included a benefit of $9.4 million, or $0.34 per diluted share, related to the recognition of deferred tax assets in accordance with the accounting rules specified in SFAS 109. Excluding the benefit from the deferred tax assets, net income was $936,000, or $0.04 per diluted share in the quarter ended December 31, 2007. For the quarter ended December 31, 2006, GAAP net income was $1.6 million, or $0.06 per diluted share. For the quarter ended December 31, 2007, GAAP net income included $879,000 of amortization of intangible assets, principally from the June 2007 acquisition of HARDI, and $802,000 of stock-based compensation expense. For the quarter ended December 31, 2006, GAAP net income included $248,000 of amortization of intangible assets and $791,000 of stock-based compensation expense. Non-GAAP net income for the quarter ended December 31, 2007, which excludes the deferred tax asset benefit, intangible asset amortization expense and stock-based compensation expense was $2.6 million, or $0.10 per diluted share. For the comparable quarter in 2006, non-GAAP net income, excluding intangible amortization expense and stock-based compensation expense was $2.6 million, or $0.10 per diluted share. A reconciliation of GAAP to non-GAAP net income is included with this press release.
For the year ended December 31, 2007, revenue grew by 14% to $71.2 million from the $62.5 million reported for the year ended December 31, 2006. On a GAAP basis, net income was $13.1 million, or $0.47 per diluted share, in 2007. The 2007 results include the benefit of $9.4 million, or $0.34 per diluted share related to the recognition of deferred tax assets noted above. Excluding the benefit of the deferred tax assets, net income was $3.6 million, or $0.13 per diluted share in 2007. For the year ended December 31, 2006, GAAP net income was $3.2 million, or $0.11 per diluted share. For the year ended December 31, 2007, GAAP net income included $2.5 million of amortization of intangible assets, principally from the June 2007 acquisition of HARDI, and $3.2 million of stock-based compensation expense. For the year ended December 31, 2006, GAAP net income included $916,000 of amortization of intangible assets, $3.6 million of stock-based compensation expense and a restructuring charge of $854,000. Non-GAAP net income for 2007, which excludes the deferred tax asset benefit, intangible asset amortization expense and stock-based compensation expense was $9.4 million, or $0.34 per diluted share. For 2006, non-GAAP net income, excluding intangible amortization expense, stock-based compensation expense and a restructuring charge, was $8.6 million, or $0.31 per diluted share.
“I am pleased to report outstanding bookings and revenue growth in each of our three product categories in the fourth quarter of 2007 compared to a year ago,” said Gary Meyers, president and chief executive officer. “Our ASIC verification solution, Confirma TM, which integrates our software with the HAPS hardware acquired through our acquisition of Hardi in June 2007, presents us with the largest market opportunity in our history. In addition, our FPGA synthesis line continues to gain share and revenue from our ESL products is growing at nearly a 50% rate, with a more than doubling of bookings in 2007. We are in the process of introducing enhancements across our product line, providing us with the prospects for another solid year in 2008.”
Business Outlook
The following statements are based on Synplicity’s current expectations. We do not intend to update, confirm or change this guidance until our first quarter 2008 earnings conference call.
For the quarter ending March 31, 2008:
• Revenue is expected to be in the range of $17.5 million to $18.5 million.
• GAAP net income per share is expected to be in the range of $0.00 to $0.02 per diluted share. GAAP net income is expected to include $811,000 of stock-based compensation expense and $850,000 of intangible assets amortization.
For the year ending December 31, 2008:
• Revenue is expected to be in the range of $80.0 million to $83.0 million.
• GAAP net income per share is expected to be in the range of $0.13 to $0.19 per diluted share. GAAP net income is expected to include $3.2 million of stock-based compensation expense and $3.4 million of intangible assets amortization.
• The income tax provision for 2008 is expected to be about 30% of pretax GAAP income.
Audio Webcast
The Company’s earnings call will be webcast on February 5, 2008 at 2:00 p.m. Pacific, and may be accessed at http://investor.synplicity.com. The Company will discuss the fourth quarter and full year 2007 results. Following completion of the call, a rebroadcast of the webcast will be available at http://investor.synplicity.com through March 31, 2008. For those without access to the Internet, a replay of the call will be available from 5:00 p.m. Pacific on February 5, 2008 through February 18, 2008. To listen to a replay, call (719) 457-0820, access code 4360504.
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