CIMdata PLM Industry Summary Online Archive
16 February 2011
Financial News
Synopsys Posts Financial Results for First Quarter Fiscal Year 2011
Synopsys, Inc. reported results for its first quarter of fiscal year 2011.
For the first quarter of fiscal year 2011, Synopsys reported revenue of $364.6 million, compared to $330.2 million for the first quarter of fiscal 2010, an increase of 10.4%.
"Synopsys began fiscal 2011 with a strong first quarter, putting us well on-track towards meeting our objectives for the year," said Aart de Geus, chairman and CEO of Synopsys. "With a backdrop of a healthy semiconductor industry, we continue to deliver strong technology with our traditional EDA solutions, while achieving meaningful scale with our solutions in higher-growth adjacencies."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal 2011 was $48.2 million, or $0.31 per share, compared to $132.8 million, or $0.88 per share, for the first quarter of fiscal 2010. Net income for the first quarter of fiscal 2010 included a one-time $91.6 million, or $0.61 per share, tax benefit associated with the IRS settlement for fiscal years 2002-2004, announced on January 12, 2010.
Non-GAAP Results
On a non-GAAP basis, net income for the first quarter of fiscal 2011 was $68.3 million, or $0.44 per share, compared to non-GAAP net income of $62.4 million, or $0.41 per share, for the first quarter of fiscal 2010. Reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
Financial Targets
Synopsys also provided its financial targets for the second quarter and full fiscal year 2011. These targets do not include future acquisition-related expenses that may be incurred in fiscal 2011. These targets constitute forward-looking information and are based on current expectations.
Second Quarter of Fiscal Year 2011 Targets:
Revenue: $386 million - $394 million
GAAP expenses: $319 million - $338 million
Non-GAAP expenses: $292 million - $302 million
Other income and expense: $0 - $2 million
Tax rate applied in non-GAAP net income calculations: 26 - 27 percent
Fully diluted outstanding shares: 150 million - 155 million
GAAP earnings per share: $0.26 - $0.31
Non-GAAP earnings per share: $0.43 - $0.45
Revenue from backlog: greater than 90 percent
Full Fiscal Year 2011 Targets:
Revenue: $1.5 billion - $1.525 billion
Other income and expense: $1 million - $5 million
Tax rate applied in non-GAAP net income calculations: 25 - 26 percent
Fully diluted outstanding shares: 149 million - 154 million
GAAP earnings per share: $1.03 - $1.20
Non-GAAP earnings per share: $1.67 - $1.77
Cash flow from operations: approximately $230 million - $250 million
GAAP Reconciliation
Synopsys continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys' operating results in a manner that focuses on what Synopsys believes to be its ongoing business operations and what Synopsys uses to evaluate its ongoing operations and for internal planning and forecasting purposes. Synopsys' management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Synopsys' management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes: (i) the amortization of acquired intangible assets, (ii) the impact of stock compensation, (iii) acquisition-related costs, (iv) other significant items, including the effect of a tax benefit from a settlement with the Internal Revenue Service, and (v) the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes; and the non-GAAP measures that exclude such information in order to assess the performance of Synopsys' business and for planning and forecasting in subsequent periods. Whenever Synopsys uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.
To access the unabridged press release with financial tables please click HERE.
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