Synopsys posts financial results for Q3 fiscal 2010

MOUNTAIN VIEW, USA: Synopsys Inc. has reported results for its third quarter of fiscal year 2010.

For the third quarter of fiscal 2010, Synopsys reported revenue of $336.9 million, compared to $345.2 million for the third quarter of fiscal 2009.

"Synopsys delivered strong results in Q3, and we are well on-track to meeting or beating the targets we set at the beginning of the year," said Aart de Geus, chairman and CEO of Synopsys.

"During the downturn over the past two years, we invested to strengthen our technology portfolio, gained customer momentum, and expanded our total addressable market through several acquisitions. Looking forward, our objective is to sustainably grow earnings per share primarily by growing revenue, controlling expenses and focusing efforts on value-added projects."

GAAP results
On a generally accepted accounting principles (GAAP) basis, net income for the third quarter of fiscal 2010 was $39.3 million, or $0.26 per share, compared to $47.4 million, or $0.32 per share, for the third quarter of fiscal 2009.

Non-GAAP results
On a non-GAAP basis, net income for the third quarter of fiscal 2010 was $58.2 million, or $0.39 per share, compared to non-GAAP net income of $68.3 million, or $0.47 per share, for the third quarter of fiscal 2009.

Financial targets
Synopsys also provided its financial targets for the fourth quarter and full fiscal year 2010. These targets do not include future acquisition-related expenses that may be incurred in fiscal 2010. These targets constitute forward-looking information and are based on current expectations.

Fourth Quarter of Fiscal Year 2010 Targets:
Revenue: $349 million - $357 million
GAAP expenses: $291 million - $310 million
Non-GAAP expenses: $267 million - $277 million
Other income and expense: $0 - $3 million
Tax rate applied in non-GAAP net income calculations: approximately 27 percent
Fully diluted outstanding shares: 149 million - 153 million
GAAP earnings per share: $0.21 - $0.27
Non-GAAP earnings per share: $0.37 - $0.39
Revenue from backlog: greater than 90 percent

Full-Year Fiscal Year 2010 Targets:
Revenue: $1.354 billion - $1.362 billion
Other income and expense: $4 million - $7 million
Tax rate applied in non-GAAP net income calculations: approximately 27 percent
Fully diluted outstanding shares: 149 million - 153 million
GAAP earnings per share: $1.61 - $1.67
Non-GAAP earnings per share: $1.58 - $1.60
Cash flow from operations: approximately $300 million.