Synopsys, Inc. reported results for its first quarter of fiscal year 2016.
For the first quarter of fiscal year 2016, Synopsys reported revenue of $568.6 million, compared to $542.0 million for the first quarter of fiscal 2015, an increase of approximately 5 percent.
"The fiscal first quarter was a very good start to the year, and we are well on-track to meeting our annual financial targets," said Aart de Geus, chairman and co-CEO of Synopsys. "Our business is strong, even in the context of the challenging macro environment, and customers continue to count on us for their most critical projects. As the market and technology leader in EDA, the second largest IP provider in the world, and the emerging front-runner in addressing the critical new software quality and security space, our vision and investments align well with robust current and future opportunities."
On a generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal 2016 was $60.0 million, or$0.39 per share, compared to $65.2 million, or $0.41 per share, for the first quarter of fiscal 2015.
On a non-GAAP basis, net income for the first quarter of fiscal 2016 was $105.9 million, or $0.68 per share, compared to non-GAAP net income of $125.7 million, or $0.80 per share, for the first quarter of fiscal 2015.
Fiscal first quarter 2015 earnings reflected the reinstatement of the federal R&D tax credit for 2014, including both a retroactive benefit for fiscal 2014 and a partial year impact to fiscal 2015. Fiscal first quarter 2016 reflects a permanent reinstatement of the federal R&D tax credit.
Synopsys also provided its financial targets for the second quarter and full fiscal year 2016. These targets do not include any impact of future acquisition-related activities or costs that may be incurred in fiscal year 2016. Beginning in fiscal year 2016, Synopsys began utilizing a normalized annual non-GAAP tax rate in calculating non-GAAP financial measures in order to provide better consistency across interim reporting periods by eliminating the effects of non-recurring and period-specific items.
These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.
Second Quarter of Fiscal Year 2016 Targets:
- Revenue: $595 million - $610 million
- GAAP expenses: $503 million - $522 million
- Non-GAAP expenses: $450 million - $460 million
- Other income and expense: $0 - $2 million
- Normalized annual tax rate applied in non-GAAP net income calculations: 19 percent
- Fully diluted outstanding shares: 153 million - 156 million
- GAAP earnings per share: $0.38 - $0.47
- Non-GAAP earnings per share: $0.78 - $0.81
Full Fiscal Year 2016 Targets:
- Revenue: $2.350 billion - $2.390 billion
- Other income and expense: $0 - $4 million
- Normalized annual tax rate applied in non-GAAP net income calculations: 19 percent
- Fully diluted outstanding shares: 153 million - 156 million
- GAAP earnings per share: $1.64 - $1.79
- Non-GAAP earnings per share: $2.93 - $3.00
- Cash flow from operations: at least $500 million
