Synopsys Posts Financial Results for Second Quarter Fiscal Year 2011

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 www.synopsys.com.  A recording of the call will be available by dialing +1-800-475-6701 (+1-320-365-3844 for international callers), access code 203338, beginning at 4:00 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 third quarter fiscal 2011 in August 2011.  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 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 third quarter fiscal year 2011 earnings call in August 2011, 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 third quarter of fiscal 2011 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 second quarter fiscal 2011 in its quarterly report on Form 10-Q to be filed by June 9, 2011.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is a world leader in electronic design automation (EDA), supplying the global electronics market with the software, intellectual property (IP) and services used in semiconductor design, verification 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, system-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 approximately 70 offices located throughout North America, Europe, Japan, Asia and India. Visit Synopsys online at http://www.synopsys.com/.

Forward-Looking Statements

The statements made in this press release regarding projected financial results in the sections entitled "Financial Targets," and "Reconciliation of Target Non-GAAP Operating Results," financial objectives, and certain statements made in the earnings conference call are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934.  Actual results could differ materially from those described by these statements due to a number of uncertainties, including, but not limited to:

  • changes in demand for Synopsys' products due to fluctuations in demand for its customers' products;
  • uncertainty in the growth of the semiconductor and electronics industry;
  • Synopsys' ability to realize the potential financial or strategic benefits of the acquisitions it completes and the difficulties in the integration of the products and operations of acquired companies or assets into Synopsys' products and operations;
  • continued uncertainty in the global economy and its potential impact on the semiconductor and electronics industries;
  • increased competition in the market for Synopsys' products and services including through  consolidation in the industry and among our customers;
  • lower-than-anticipated new IC design starts;
  • lower-than-anticipated purchases or delays in purchases of software or consulting services by Synopsys' customers, including delays in the renewal, or non-renewal, of Synopsys' license arrangements with major customers;
  • changes in the mix of time-based licenses and upfront licenses;  
  • lower-than-expected orders; and
  • failure of customers to pay license fees as scheduled.

 

In addition, Synopsys' actual expenses, earnings per share and tax rate on a GAAP and non-GAAP basis for the fiscal quarter ending July 31, 2011 and actual expenses, earnings per share, tax rate, cash flow from operations and other projections on a GAAP and non-GAAP basis for fiscal year 2011 could differ materially from the targets stated under "Financial Targets" above for a number of reasons, including, but not limited to, (i) a determination by Synopsys that any portion of its goodwill or intangible assets have become impaired, (ii) application of the actual consolidated GAAP and non-GAAP tax rates for such periods, or judgment by management, based upon the status of pending audits and settlements to increase or decrease an income tax asset or liability, (iii) integration and other acquisition-related costs including amortization of intangible assets and costs formerly capitalized but now expensed due to new accounting guidance related to business combinations, as well as changes in the fair value of contingent consideration related to prior acquisitions, (iv) changes in the anticipated amount of employee stock compensation expense recognized on Synopsys' financial statements, (v) actual change in the fair value of Synopsys' non-qualified deferred compensation plan obligations, (vi) increases or decreases to estimated capital expenditures, (vii) changes driven by new accounting rules, regulations, interpretations or guidance, (viii) general economic conditions, and (ix) other risks as detailed in Synopsys' SEC filings, including those described in the "Risk Factors" section in the latest Quarterly Report on Form 10-Q for the first fiscal quarter ended January 31, 2011.  Furthermore, Synopsys' actual tax rates applied to income for the third quarter and fiscal year 2011 could differ from the targets given in this press release as a result of a number of factors, including the actual geographic mix of revenue during the quarter and year, and actions by the government.  Finally, Synopsys' targets for outstanding shares in the third quarter and fiscal year 2011 could differ from the targets given in this press release as a result of higher than expected employee stock plan issuances or stock option exercises, acquisitions and the extent of Synopsys' stock repurchase activity.

Synopsys is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the financial supplement whether as a result of new information, future events or otherwise, unless otherwise required by law.

Synopsys is a registered trademark of Synopsys, Inc.  Any other trademarks mentioned in this release are the property of their respective owners.

INVESTOR CONTACT:
Lisa L. Ewbank
Synopsys, Inc.
650-584-1901

EDITORIAL CONTACT:
Yvette Huygen
Synopsys, Inc.
650-584-4547
Email Contact

SYNOPSYS, INC.

Unaudited Consolidated Statements of Operations (1)

(in thousands, except per share amounts)


















Three Months Ended April 30,


Six Months Ended April 30,


2011


2010


2011


2010

Revenue:








 Time-based license

$ 318,762


$ 288,672


$ 614,371


$ 561,147

 Upfront license

25,014


12,715


51,549


33,161

 Maintenance and service

49,894


36,719


92,394


73,965

     Total revenue

393,670


338,106


758,314


668,273

Cost of revenue:








 License

51,146


44,930


101,669


86,144

 Maintenance and service

19,974


15,268


40,521


31,778

 Amortization of intangible assets

14,908


8,829


28,143


16,686

    Total cost of revenue

86,028


69,027


170,333


134,608

Gross margin

307,642


269,079


587,981


533,665

Operating expenses:








 Research and development

123,169


113,050


243,909


214,282

 Sales and marketing

99,562


79,363


178,886


158,979

 General and administrative

29,470


28,713


59,335


54,566

 Amortization of intangible assets

3,756


2,985


7,504


5,778

    Total operating expenses

255,957


224,111


489,634


433,605

Operating income

51,685


44,968


98,347


100,060

Other income, net

5,574


8,905


11,244


11,155

Income before income taxes

57,259


53,873


109,591


111,215

(Benefit) provision for income taxes

(23,855)


14,324


(19,749)


(61,120)

Net income

$   81,114


$   39,549


$ 129,340


$ 172,335









Net income per share:








 Basic

$       0.55


$       0.27


$       0.87


$       1.17

 Diluted

$       0.53


$       0.26


$       0.84


$       1.14









Shares used in computing per share amounts:








 Basic

148,461


148,890


148,738


147,860

 Diluted

152,593


152,482


153,198


151,635











(1)

Synopsys' second quarter ended on the Saturday nearest April 30.  For presentation purposes, the Unaudited Consolidated Statements of Operations refer to a calendar month end.



SYNOPSYS, INC.

Unaudited Consolidated Balance Sheets (1)

(in thousands, except par value amounts)








April 30, 2011


October 31, 2010

ASSETS:





Current assets:





 Cash and cash equivalents


$       694,032


$             775,407

 Short-term investments


146,431


163,154

          Total cash, cash equivalents and short-term investments


840,463


938,561

 Accounts receivable, net


210,068


181,102

 Deferred income taxes


72,930


73,465

 Income taxes receivable


28,696


18,425

 Prepaid and other current assets


54,465


36,202

         Total current assets


1,206,622


1,247,755

Property and equipment, net


150,370


148,580

Goodwill


1,256,485


1,265,843

Intangible assets, net


220,610


249,656

Long-term deferred income taxes


262,173


268,759

Other long-term assets


113,209


105,948

          Total assets


$    3,209,469


$          3,286,541






LIABILITIES AND STOCKHOLDERS' EQUITY:





Current liabilities:





 Accounts payable and accrued liabilities


$       226,784


$             312,850

 Accrued income taxes


2,476


8,349

 Deferred revenue


578,576


600,569

          Total current liabilities


807,836


921,768

Long-term accrued income taxes


95,706


128,603

Other long-term liabilities


111,598


101,885

Long-term deferred revenue


46,931


34,103

          Total liabilities


1,062,071


1,186,359

Stockholders' equity:





 Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding


-


-

 Common stock, $0.01 par value: 400,000 shares authorized; 146,485 and





     148,479 shares outstanding, respectively


1,465


1,485

 Capital in excess of par value


1,539,833


1,541,383

 Retained earnings


883,487


770,674

 Treasury stock, at cost: 10,779 and 8,786 shares, respectively


(278,016)


(197,586)

 Accumulated other comprehensive loss


629


(15,774)

          Total stockholders' equity


2,147,398


2,100,182

          Total liabilities and stockholders' equity


$    3,209,469


$          3,286,541








(1)

Synopsys' second quarter ended on the Saturday nearest April 30.  For presentation purposes, the Unaudited Consolidated Balance Sheets refer to a calendar month end.



SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows (1)

(in thousands)






Six Months Ended April 30,


2011


2010

CASH FLOWS FROM OPERATING ACTIVITIES:




Net income

$129,340


$172,335

Adjustments to reconcile net income to net cash provided by operating




   activities:




Amortization and depreciation

64,998


50,218

Stock compensation

27,914


30,700

Allowance for doubtful accounts

723


(742)

Write-down of long-term investments

999


-

Gain on sale of investments

(50)


(2,420)

Deferred income taxes

(939)


(38,549)

Net changes in operating assets and liabilities, net of




acquired assets and liabilities:




Accounts receivable

(28,904)


(20,626)

Prepaid and other current assets

(8,848)


(7,139)

Other long-term assets

(11,658)


(3,997)

Accounts payable and other liabilities

(69,320)


(68,672)

Income taxes

(40,890)


(29,645)

Deferred revenue

(6,510)


(45,235)

Net cash provided by operating activities

56,855


36,228





CASH FLOWS FROM INVESTING ACTIVITIES:




Proceeds from sales and maturities of short-term investments

63,648


188,650

Purchases of short-term investments

(49,435)


(131,748)

Purchases of property and equipment

(20,600)


(13,793)

Cash paid for acquisitions, net of cash acquired

(3,520)


(130,872)

Capitalization of software development costs

(1,512)


(1,410)

Net cash used in investing activities

(11,419)


(89,173)





CASH FLOWS FROM FINANCING ACTIVITIES:




Principal payments on capital leases

(1,310)


(1,346)

Issuances of common stock

108,843


73,210

Purchases of treasury stock

(234,985)


(50,257)

Net cash (used in) provided by financing activities

(127,452)


21,607

Effect of exchange rate changes on cash and cash equivalents

641


(844)

Net change in cash and cash equivalents

(81,375)


(32,182)

Cash and cash equivalents, beginning of period

775,407


701,613

Cash and cash equivalents, end of period

$694,032


$669,431







(1)

Synopsys' second quarter ended on the Saturday nearest April 30.  For presentation purposes, the Unaudited Consolidated Statements of Cash Flows refer to a calendar month end.




« Previous Page 1 | 2 | 3 | 4  Next Page »



Review Article Be the first to review this article
CST Webinar Series

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Technical Support Engineer for EDA Careers at Freemont, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
RELIABILITY ENGINEER... FRANCE for EDA Careers at FRANCE, France
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy