siliconangle.com, Aug. 21, 2024 –
Silicon chip design software maker Synopsys Inc. delivered third-quarter earnings and revenue above expectations today and then issued strong guidance, sending its stock higher in after-hours trading.
The company, one of the leaders in the electronic design automation software industry, reported earnings before certain costs such as stock compensation of $3.43 per share, well ahead of the analysts' consensus estimate of $3.28. Revenue for the period rose 13% from a year earlier, to $1.53 billion, also beating the Street's target of $1.52 billion.
The rising revenue provided a nice boost to Synopsys' bottom line, as the company reported net income for the quarter of $408.1 million, up from $336.3 million in the year-ago period.
Synopsys, based in Sunnyvale, California, sells software design tools used by computer chipmakers such as Intel Corp. and Qualcomm Inc. Its software helps to automate the semiconductor design process. Chip design involves many stages, including design, verification, signoff, physical verification and more, and Synopsys' software can aid in each of these steps. Virtually every computer chip in the world has been designed using software from Synopsys or its rival Cadence Design Systems Inc.
The growing compute requirements for artificial intelligence systems have led to companies clamoring for more powerful and complex chips, and Synopsys provides the tools chipmakers need to design that silicon. That demand likely explains why Synopsys' revenue figure was a quarterly record for the company.