Synopsys' Q2-09 revenue up 3.8 percent as compared to Q2-08

MOUNTAIN VIEW, USA: Synopsys Inc. reported results for its second quarter ended April 30, 2009. For the second quarter of fiscal 2009, Synopsys reported revenue of $336.8 million, a 3.8 percent increase compared to $324.6 million for the second quarter of fiscal 2008.

"Synopsys continues to execute well in an environment that still shows signs of economic stress," said Aart de Geus, chairman and CEO of Synopsys. "Customers are choosing Synopsys for its strong technology, global support, continued investment in the future, and financial strength."

GAAP results
On a generally accepted accounting principles (GAAP) basis, net income for the second quarter of fiscal 2009 was $48.3 million, or $0.33 per share, compared to $39.4 million, or $0.27 per share, for the second quarter of fiscal 2008.

Non-GAAP results
On a non-GAAP basis, net income for the second quarter of fiscal 2009 was $65.9 million, or $0.45 per share, compared to non-GAAP net income of $59.7 million, or $0.41 per share, for the second quarter of fiscal 2008.

Financial targets
Synopsys also provided its financial targets for the third quarter and full fiscal year 2009. These targets constitute forward-looking information and are based on current expectations.

Third Quarter of Fiscal Year 2009 Targets:
Revenue: $342 million - $350 million
GAAP expenses: $284.5 million - $300 million
Non-GAAP expenses: $261 million - $271 million
Other income and expense: $0 - $3 million
Tax rate applied in non-GAAP net income calculations: approximately 27 percent
Fully diluted outstanding shares: 144 million - 149 million
GAAP earnings per share: $0.26 - $0.31
Non-GAAP earnings per share: $0.40 - $0.42
Revenue from backlog: greater than 90 percent

Full-Year Fiscal Year 2009 Targets:
Revenue: approximately $1.35 billion - $1.38 billion
Other income and expense: $14 million - $18 million
Tax rate applied in non-GAAP net income calculations: approximately 27 percent
Fully diluted outstanding shares: 144 million - 149 million
GAAP earnings per share: $1.11 - $1.26
Non-GAAP earnings per share: $1.62 - $1.72
Cash flow from operations: $170 million - $190 million (excludes potential impact of a tentative settlement with the Internal Revenue Service, described below)

In the second quarter, the Company reached a tentative settlement with the IRS that would resolve a dispute regarding its 2002-2004 returns, primarily associated with the acquisition of Avant.

The tentative settlement is subject to further approval by the government. If approved, we do not expect a material impact to the Company's income statement. However, we do expect it to result in a cash payment to the IRS of approximately $50 million, most likely within the next 12 months. If the tentative settlement is approved, this payment would be fully offset by tax reductions in future years.