Synopsys Posts Financial Results for Second Quarter Fiscal Year 2011

MOUNTAIN VIEW, Calif. -- May 18, 2011 -- Synopsys, Inc. (Nasdaq: SNPS), a world leader in software and IP for semiconductor design, verification and manufacturing, today reported results for its second quarter of fiscal year 2011.

For the second quarter of fiscal year 2011, Synopsys reported revenue of $393.7 million, compared to $338.1 million for the second quarter of fiscal 2010, an increase of 16.4%.

"Synopsys delivered strong second quarter results as we continue to execute well," said Aart de Geus, chairman and CEO of Synopsys. "Our technology pipeline, delivery and customer adoption remain strong, and we continue to see momentum in our IP and Systems products."

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the second quarter of fiscal 2011 was $81.1 million, or $0.53 per share, compared to $39.5 million, or $0.26 per share, for the second quarter of fiscal 2010. Net income for the second quarter of fiscal 2011 includes a one-time $32.8 million, or $0.21 per share, tax benefit associated with a settlement with the IRS for audits for fiscal years 2006 through 2009.

Non-GAAP Results

On a non-GAAP basis, net income for the second quarter of fiscal 2011 was $68.5 million, or $0.45 per share, compared to non-GAAP net income of $61.9 million, or $0.41 per share, for the second quarter of fiscal 2010. Reconciliation between GAAP and non-GAAP results is provided at the end of this press release.

Financial Targets

Synopsys also provided its financial targets for the third quarter and full fiscal year 2011. These targets do not include future acquisition-related costs that may be incurred in fiscal 2011. These targets constitute forward-looking information and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.

Third Quarter of Fiscal Year 2011 Targets:

Revenue: $378 million - $386 million
GAAP expenses: $319 million - $337 million
Non-GAAP expenses: $292 million - $302 million
Other income and expense: $0 - $2 million
Tax rate applied in non-GAAP net income calculations: 24 - 25 percent
Fully diluted outstanding shares: 149 million - 153 million
GAAP earnings per share: $0.25 - $0.31
Non-GAAP earnings per share: $0.41 - $0.43
Revenue from backlog: greater than 90 percent

Full Fiscal Year 2011 Targets:

Revenue: $1.5 billion - $1.525 billion
Other income and expense: $1 million - $5 million
Tax rate applied in non-GAAP net income calculations: 24 - 25 percent
Fully diluted outstanding shares: 149 million - 153 million
GAAP earnings per share: $1.33 - $1.46
Non-GAAP earnings per share: $1.70 - $1.77
Cash flow from operations: approximately $300 million

Financial tables

To read financial tables, click here

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/.