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 Target Fourth Quarter and Fiscal Year 2005 Targets (in thousands, except per share data) Range for Three Months Ending October 31, 2005 Low High Target GAAP expenses $243,000 $254,000 Adjustment: Estimated impact of amortization of intangible assets and deferred stock compensation (16,000) (17,000) Target non-GAAP expenses $227,000 $237,000 Range for Three Months Ending October 31, 2005 Low High Target GAAP earnings per share $(0.02) $0.01 Adjustment: Estimated impact of amortization of intangible assets and deferred stock compensation per share 0.11 0.12 Income tax effect of non-GAAP adjustments (0.02) (0.02) Target non-GAAP earnings per share $0.07 $0.11 Shares used in calculation (midpoint of target range) 146,000 146,000 Range for Fiscal Year Ending October 31, 2005 Low High Target GAAP earnings per share $(0.03) $-- Adjustment: In-process research and development 0.04 0.04 Estimated impact of amortization of intangible assets and deferred stock compensation per share 0.78 0.79 Litigation settlement (0.23) (0.23) Income tax effect of non-GAAP adjustments (0.20) (0.20) Target non-GAAP earnings per share $0.36 0.40 Shares used in calculation (midpoint of target range) 146,000 146,000 Additional Financial Information Available on Synopsys Website
In connection with this earnings release, Synopsys is making available to investors supplemental financial information, which can be found on Synopsys' website at http://www.synopsys.com/corporate/invest/finsupp/q305.pdf . Synopsys currently intends to provide this information on a quarterly basis.
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/corporate/invest/invest.html . A recording of the call will be available by calling 1-800-230-1085 (612-288-0329 for international callers), access code 791814, beginning at 5:30 p.m. Pacific Time today. A webcast replay will also be available at
http://www.synopsys.com/corporate/invest/invest.html from approximately 5:30 p.m. Pacific Time today through the time of the announcement of Synopsys' results for the fourth quarter of fiscal 2005 in November 2005. In addition, Synopsys will post copies of the prepared remarks of Aart de Geus, Chairman and Chief Executive Officer, and Rex Jackson, Acting Chief Financial Officer, Senior Vice President and General Counsel, on its website at
http://www.synopsys.com/corporate/invest/invest.html following the call.