Synopsys posts financial results for Q1 fiscal year 2011

MOUNTAIN VIEW, USA: Synopsys Inc. has reported results for its first quarter of fiscal year 2011.

For the first quarter of fiscal year 2011, Synopsys reported revenue of $364.6 million, compared to $330.2 million for the first quarter of fiscal 2010, an increase of 10.4 percent.

"Synopsys began fiscal 2011 with a strong first quarter, putting us well on-track towards meeting our objectives for the year," said Aart de Geus, chairman and CEO of Synopsys. "With a backdrop of a healthy semiconductor industry, we continue to deliver strong technology with our traditional EDA solutions, while achieving meaningful scale with our solutions in higher-growth adjacencies."

GAAP results
On a generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal 2011 was $48.2 million, or $0.31 per share, compared to $132.8 million, or $0.88 per share, for the first quarter of fiscal 2010. Net income for the first quarter of fiscal 2010 included a one-time $91.6 million, or $0.61 per share, tax benefit associated with the IRS settlement for fiscal years 2002-2004, announced on January 12, 2010.

Non-GAAP results
On a non-GAAP basis, net income for the first quarter of fiscal 2011 was $68.3 million, or $0.44 per share, compared to non-GAAP net income of $62.4 million, or $0.41 per share, for the first quarter of fiscal 2010.

Financial targets
Synopsys also provided its financial targets for the second quarter and full fiscal year 2011. These targets do not include future acquisition-related expenses that may be incurred in fiscal 2011. These targets constitute forward-looking information and are based on current expectations.

Q2 of fiscal year 2011 targets:

Revenue: $386 million - $394 million
GAAP expenses: $319 million - $338 million
Non-GAAP expenses: $292 million - $302 million
Other income and expense: $0 - $2 million
Tax rate applied in non-GAAP net income calculations: 26 - 27 percent
Fully diluted outstanding shares: 150 million - 155 million
GAAP earnings per share: $0.26 - $0.31
Non-GAAP earnings per share: $0.43 - $0.45
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: 25 - 26 percent
Fully diluted outstanding shares: 149 million - 154 million
GAAP earnings per share: $1.03 - $1.20
Non-GAAP earnings per share: $1.67 - $1.77
Cash flow from operations: approximately $230 million - $250 million.