Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2009

MOUNTAIN VIEW, Calif., Dec. 2 /PRNewswire-FirstCall/ -- Synopsys, Inc. (NASDAQ: SNPS), a world leader in software and IP for semiconductor design, verification and manufacturing, today reported results for its fourth quarter and fiscal year ended October 31, 2009.

For the fourth quarter of fiscal 2009, Synopsys reported revenue of $338.3 million compared to $352.8 million for the fourth quarter of fiscal 2008. Revenue for fiscal year 2009 was $1.36 billion, an increase of two percent from $1.34 billion in fiscal 2008.

"Synopsys met or exceeded almost every goal we set at the beginning of the year, a notable accomplishment given the turbulence that characterized the economic environment," said Aart de Geus, chairman and CEO of Synopsys. "Looking forward into 2010, we intend to continue to control expenses, invest to accelerate our strong technology momentum, and focus on growing our customer relationships."

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal 2009 was $19.5 million, or $0.13 per share, compared to $46.4 million, or $0.32 per share, for the fourth quarter of fiscal 2008. GAAP net income for fiscal year 2009 was $167.7 million, or $1.15 per share, compared to $190.0 million, or $1.29 per share, for fiscal 2008, which included a $17.3 million tax benefit associated with the settlement of an IRS tax issue for fiscal years 2000 and 2001.

Non-GAAP Results

On a non-GAAP basis, net income for the fourth quarter of fiscal 2009 was $49.5 million, or $0.33 per share, compared to non-GAAP net income of $62.7 million, or $0.43 per share, for the fourth quarter of fiscal 2008. Non-GAAP net income for fiscal year 2009 was $255.3 million, or $1.75 per share, compared to non-GAAP net income of $252.9 million, or $1.71 per share, for fiscal 2008. 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 first quarter and full fiscal year 2010. 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.

Note: in the second quarter of 2009, Synopsys reached a tentative settlement with the IRS that would resolve a dispute regarding its 2002-2004 returns, primarily associated with Synopsys' acquisition of Avant!. If approved, it is expected to result in a decrease in forecasted GAAP income tax expense in fiscal 2010 (for additional detail, refer to the Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2009). The targets below exclude this potential impact.

First Quarter of Fiscal Year 2010 Targets:

    --  Revenue: $325 million - $333 million
    --  GAAP expenses: $269 million - $286 million
    --  Non-GAAP expenses: $245 million - $255 million
    --  Other income and expense: $0 - $3 million
    --  Tax rate applied in non-GAAP net income calculations: approximately 27
        percent
    --  Fully diluted outstanding shares: 148 million - 153 million
    --  GAAP earnings per share: $0.23 - $0.28
    --  Non-GAAP earnings per share: $0.38 - $0.40
    --  Revenue from backlog: greater than 90 percent

Full-Year Fiscal Year 2010 Targets:

    --  Revenue: approximately $1.33 billion - $1.35 billion
    --  Other income and expense: $4 million - $8 million
    --  Tax rate applied in non-GAAP net income calculations: approximately 27
        percent
    --  Fully diluted outstanding shares: 150 million - 155 million
    --  GAAP earnings per share: $1.01 - $1.20
    --  Non-GAAP earnings per share: $1.52 - $1.62
    --  Cash flow from operations: $200 million - $220 million

GAAP Reconciliation

Synopsys continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys' operating results in a manner that focuses on what Synopsys believes to be its ongoing business operations and what Synopsys uses to evaluate its ongoing operations and for internal planning and forecasting purposes. Synopsys' management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Synopsys' management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes: (i) stock compensation; (ii) the amortization of acquired intangible assets and in-process research and development charges; (iii) other significant items, including the effect of a tax benefit from a settlement with the Internal Revenue Service and a facility restructuring charge, and (iv) the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes; and the non-GAAP measures that exclude such information in order to assess the performance of Synopsys' business and for planning and forecasting in subsequent periods. Whenever Synopsys uses such a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed below.

Reconciliation of Fourth Quarter and Full Fiscal Year 2009 Results

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per share for the periods indicated below.


         GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal
                              Year 2009 Results
           (unaudited and in thousands, except per share amounts)

                                 Three Months Ended  Twelve Months Ended
                                     October 31,         October 31,
                                   2009      2008      2009      2008
GAAP net income                  $19,528   $46,397  $167,681  $189,978
Adjustments:
  Amortization of intangible
   assets                         11,638     9,250    45,474    44,091
  Stock compensation              14,137    14,666    56,936    65,472
  In-process research and
   development                     1,200         -     2,200     4,800
  Facility restructuring charge    4,538         -      4,538                  -
    Tax  benefit  from  IRS  settlement            -                  -                  -      (17,253)
    Tax  effect                                            (1,543)      (7,635)    (21,534)    (34,230)
Non-GAAP  net  income                            $49,498      $62,678    $255,295    $252,858



                                                                    Three  Months  Ended      Twelve  Months  Ended
                                                                            October  31,                  October  31,
                                                                        2009            2008            2009            2008
GAAP  net  income  per  share                    $0.13          $0.32          $1.15          $1.29
Adjustments:
    Amortization  of  intangible
      assets                                                      0.08            0.06            0.31            0.30
    Stock  compensation                                0.09            0.10            0.39            0.44
    In-process  research  and
      development                                            0.01                  -            0.02            0.03
    Facility  restructuring  charge          0.03                  -            0.03                  -
    Tax  benefit  from  IRS  settlement            -                  -                  -          (0.12)
    Tax  effect                                              (0.01)        (0.05)        (0.15)        (0.23)
Non-GAAP  net  income  per  share            $0.33          $0.43          $1.75          $1.71

Shares  used  in  calculation              149,332      145,638      145,857      147,672
 


1 | 2 | 3 | 4 | 5  Next Page »



Review Article Be the first to review this article

Featured Video
Editorial
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
Re-Use Your CAD: The ModelCHECK Handbook
Jobs
GIS Analyst II for Air Worldwide at Boston, MA
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
Upcoming Events
Design & Manufacturing, Feb 7 - 9, 2017 Anaheim Convention Center, Anaheim, CA at Anaheim Convention Center Anaheim CA - Feb 7 - 9, 2017
Innorobo 2017 at Docks de Paris Paris France - May 16 - 18, 2017
Display Week 2017 at Los Angeles Convention Center 1201 S Figueroa St Los Angeles CA - May 21 - 26, 2017



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 EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy Advertise