In the quarter Galaxy Design accounted for 55% of total revenue, Discovery Verification for 24%, IP for 6.5%, DFM for 10% and Services & Other for 5%.
Net income for the quarter was $1.7 million, compared to a net loss of $15.6 million in the same quarter a year earlier and compared to a net loss of $11.1 million in the prior quarter (which included $11 million in incremental tax expense related to the repatriation of $360 million in cash from its international subsidiaries).
Aart de Geus, chairman and CEO of Synopsys said "Synopsys has delivered another quarter of very solid results. We again executed well against our financial goals, and continue to win business based on our strong technology momentum."
On February 1, 2006 Synplicity announced its results for the fourth quarter and the year, the periods ended December 31, 2005. Total revenue for the quarter was $16.3 million, an increase of 7.2% from the $15.2 million in the fourth quarter of 2004 and a 2.5% increase from the $15.9 million in the just preceding quarter. The fourth quarter was the strongest quarter in company history but a few percentage points below guidance. There were several orders from Asia that were received late in the quarter and could not be shipped and recognized as revenue. License revenue was $8.9 million and accounted for 55% of total revenue, a 3.3% rise year-over-year and a 1% rise sequentially. Maintenance revenue was $7.3 million and accounted for 45% of total revenue, an increase of 12% year-over-year and a 5% increase sequentially.
The firm added 45 new customers in the quarter. No customer accounted for more than 10% of revenue or bookings. Bookings in the fourth quarter by geography were 45% North America, 27% Europe, 14% Japan and 14% from the rest of Asia.
Net income for the quarter was $2.6 million, more than triple the $803 thousand a year earlier and up 5% from the $2.5 million the just prior quarter.
In October 2005, Synplicity announced that John J. Hanlon has joined Synplicity as senior vice president of finance and chief financial officer. Most recently Hanlon served as EVP and CFO at Accelrys, Inc., formerly Pharmacopeia, Inc. On January 13, 2006, the company announced the promotion of Jim Lovas to vice president, worldwide sales. Previously, Mr. Lovas was Sinplicity's vice president, North American sales.
Gary Meyers, President and CEO, said, "2005 was a year of strong execution for Synplicity. We increased our share in our core market of FPGA synthesis once again, released numerous upgrades across our entire product line, including the highly acclaimed Synplify Premier tool and continued our history of industry leading customer service. We managed this impressive performance while growing our revenue at the high end of the industry, increasing backlog, adding over $8 million of cash and investments to our balance sheet and dramatically improving our operating income. In 2006, we look forward to continuing to increase shareholder value and offering the very best tools to our customers."
EDA Vendor Stock Performances
As shown in Tables 7 and 8 and Figure 3 below, the combined stock prices for the EDA vendors were up 12% year-over-year in absolute dollars and 11% in average percentage change. This compared to a 1.2% rise in the average price of the three major stock indexes. The year-over-year growth leaders were Ansoft at 69%, Synopsys at 39% and Cadence at 22%. The largest decliners were LogicVision and Mentor Graphics at 33% and 32%, respectively.
The combined stock prices on a sequential basis rose 12% in absolute dollars, an average price increase of 11%. This compares to an average 1.8% growth in the three major stock indexes.
Calendar 2005 EDA Vendor Performances
Note that many of the the EDA vendors have different fiscal years. The section below compares the last four reported quarters, nominally the calendar year 2005.
The combined revenues in "calendar" 2005 were $3,378 million, a very modest 4% rise from the $3,253 million in calendar 2004. Ansoft and Cadence led the pack with 16% and 11% growth, respectively. Synopsys had the largest percentage decline at 3.7%.
The combined earnings of six EDA vendors (Altium did not report on earnings) was $57 million, down a disappointing 62% from $93 million in 2004. Cadence, Magma and Synopsys had year-over-year earnings declines in the $20 million to $25 million range. On the other hand, Mentor Graphics increased earnings by $25 million. Ansoft and Synopsys also had increased earnings in 2005 versus 2004.
Individual EDA Vendor Performances for Calendar 2005
Table 11 below shows the Altium's revenue figures for the last two calendar years.
For calendar 2005 Ansoft had total revenue of $74 million, an increase of 16% from the $63.8 million in calendar 2004. Net earnings for the year were $14.3 million, a 89% increase from the $7.5 million in 2004.
For calendar 2005 Cadence had total revenue of $1.33 billion, an 11% increase over the $1.2 million in calendar 2004. Net income for the year was $49 million versus $74 million in the prior year. Much of this 34% earnings decline is attributable to $35 million in restructuring during 2005, compared to only $13.5 million in 2004. North America accounted for 48% of total revenue, Europe for 18%, Japan for 25% and Asia for 9%. Revenue in North America was up 2.5%, for Europe down 9.2%, for Japan up 73% and for Asia down .1%. Functional Verification and Digital IC were the strongest segments growing 22% and 30%, respectively.
Magma's Revenue for calendar 2005 was $156 million, an increase of 8% from the $144 million in 2004. Net loss for the year was $20 million, compared to a net gain of $1.2 million in the prior year. For calendar 2005 Mentor Graphics had revenue of $705 million, down 1% from $711 million in 2004. System and Software revenue, accounting for 58% of total revenue, was $410 million, down nearly 3%. Service and support revenue was $295 million, up 2.3%. Net income for the year was $4.3 million, compared to a net loss of $20.5 million in 2004.
For calendar 2005 Synopsys had revenue of $1.01 billion, a 3.7% decrease from the $1.05 billion in calendar 2004. Net income for the year was $2.8 million, compared to net income of $27.9 million in the prior year. The year 2005 included $11 million in incremental tax expense related to the Company's repatriation of $360 million in cash from its international subsidiaries.
For the calendar year 2005 Synplicity had total revenue of $71.9 million, a 26% increase over the $57 million in 2004. License revenue at $44 million was up 39%, while maintenance revenue at $28 million was up 10%. Net income for the year was $6.6 million, essentially triple the $2.2 million in 2004. In 2005 FPGA accounted for 78% of bookings, and TBL accounted for 29%.