MOUNTAIN VIEW, Calif. -- Feb. 18, 2009 -- Synopsys, Inc. , a world leader in software and IP for semiconductor design and manufacturing, today reported results for its first quarter ended January 31, 2009.
For the first quarter of fiscal 2009, Synopsys reported revenue of $339.8 million, a 7.7 percent increase compared to $315.5 million for the first quarter of fiscal 2008.
"Synopsys' first quarter was characterized by solid financial performance, continued technology momentum and visible customer success," said Aart de Geus, chairman and CEO of Synopsys. "While the recession has clearly deepened and we have seen signs of customer stress, we believe that Synopsys is well positioned to help our customers weather the storm, and to emerge an even stronger company as a result."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal 2009 was $52.4 million, or $0.37 per share, compared to $46.4 million, or $0.31 per share, for the first quarter of fiscal 2008.
Non-GAAP Results
On a non-GAAP basis, net income for the first quarter of fiscal 2009 was $71.6 million, or $0.50 per share, compared to non-GAAP net income of $66.0 million, or $0.44 per share, for the first quarter of fiscal 2008.
Reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
Financial Targets| Three Months Ended January 31, | ||
| 2009 | 2008 | |
| GAAP net income | $52,429 | $46,445 |
| Adjustments: | ||
| Amortization of intangible assets | 11,808 | 11,624 |
| Share-based compensation | 14,143 | 15,644 |
| In-process research and development | 600 | - |
| Tax effect | (7,384) | (7,697) |
| Non-GAAP net income | $71,596 | $66,016 |
| Three Months Ended January 31, | ||
| 2009 | 2008 | |
| GAAP earnings per share | $0.37 | $0.31 |
| Adjustments: | ||
| Amortization of intangible assets | 0.08 | 0.08 |
| Share-based compensation | 0.09 | 0.10 |
| In-process research and development | 0.01 | - |
| Tax effect | (0.05) | (0.05) |
| Non-GAAP earnings per share | $0.50 | $0.44 |
| Shares used in calculation | 142,612 | 150,683 |
Reconciliation of Target Operating Results
The following tables reconcile the specific items excluded from GAAP in the calculation of target non-GAAP operating results for the periods indicated below:
GAAP to Non-GAAP Reconciliation of Second Quarter Fiscal Year 2009 Targets (in thousands, except per share amounts)
| Range for Three Months Ending April 30, 2009 | ||
| | Low | High |
| Target GAAP expenses | $280,500 | $296,000 |
| Adjustment: | ||
| Estimated impact of amortization of intangible assets | (10,500) | (14,000) |
| Estimated impact of share-based compensation | (13,000) | (15,000) |
| Target non-GAAP expenses | $257,000 | $267,000 |
| Range for Three Months Ending April 30, 2009 | ||
| Low | High | |
| Target GAAP earnings per share | $0.25 | $0.30 |
| Adjustment: | ||
| Estimated impact of amortization of intangible assets | 0.10 | 0.07 |
| Estimated impact of share-based compensation | 0.10 | 0.09 |
| Net non-GAAP tax effect | (0.06) | (0.05) |
| Target non-GAAP earnings per share | $0.39 | $0.41 |
| Shares used in non-GAAP calculation (midpoint of target range) | 144,500 | 144,500 |
| Range for Fiscal Year Ending October 31, 2009 | ||
| Low | High | |
| Target GAAP earnings per share | $1.11 | $1.27 |
| Adjustment: | ||
| Estimated impact of amortization of intangible assets | 0.33 | 0.29 |
| Estimated impact of share-based compensation | 0.38 | 0.37 |
| Net non-GAAP tax effect | (0.22) | (0.21) |
| Target non-GAAP earnings per share | $1.60 | $1.72 |
| Shares used in non-GAAP calculation (midpoint of target range) | 146,500 | 146,500 |
Click here to read financial tables
Earnings Call Open to Investors
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m., Pacific Time. A live webcast of the call will be available at Synopsys' corporate website at http://www.synopsys.com/. A recording of the call will be available by calling +1-800-475-6701 (+1-320-365-3844 for international callers), access code 985197, beginning at 5:30 p.m. Pacific Time today. A webcast replay will also be available on the website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the second quarter fiscal 2009 in May 2009. Synopsys will post copies of the prepared remarks of Aart de Geus, chairman and chief executive officer, and Brian Beattie, chief financial officer, on its website following the call. In addition, Synopsys makes additional financial information available in a financial supplement also posted on the corporate website.
Effectiveness of Information
The targets included in this release, the statements made during the earnings conference call and the information contained in the financial supplement (available in the Investor Relations section of Synopsys' website at http://www.synopsys.com) represent Synopsys' expectations and beliefs as of the date of this release only. Although this press release, copies of the prepared remarks of the chief executive officer and chief financial officer made during the call and the financial supplement will remain available on Synopsys' website through the date of the second quarter earnings call in May 2009, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys does not currently intend to report on its progress during the second quarter of fiscal 2009 or comment to analysts or investors on, or otherwise update, the targets given in this earnings release.
Availability of Final Financial Statements
Synopsys will include final financial statements for the first quarter in its Quarterly Report on Form 10-Q to be filed by March 12, 2009.
About Synopsys
Synopsys, Inc. is the world leader in electronic design automation (EDA), supplying the global electronics market with the software, intellectual property (IP) and services used in semiconductor design and manufacturing. Synopsys' comprehensive, integrated portfolio of implementation, verification, IP, manufacturing and field-programmable gate array (FPGA) solutions helps address the key challenges designers and manufacturers face today, such as power and yield management, software-to- silicon verification and time-to-results. These technology-leading solutions help give Synopsys customers a competitive edge in bringing the best products to market quickly while reducing costs and schedule risk. Synopsys is headquartered in Mountain View, California, and has more than 60 offices located throughout North America, Europe, Japan, Asia and India. Visit Synopsys online at http://www.synopsys.com/.