Synopsys posts Q1-12 results

MOUNTAIN VIEW, USA: Synopsys Inc. reported results for its first quarter of fiscal year 2012. For the first quarter of fiscal year 2012, Synopsys reported revenue of $425.5 million, compared to $364.6 million for the first quarter of fiscal 2011, an increase of 16.7 percent.

"Business in fiscal Q1 was strong and broad based. Combined with a solid outlook for the rest of the year, our results allow us to raise our outlook for fiscal 2012, independent of any impact from the Magma Design Automation acquisition," said Aart de Geus, chairman and CEO of Synopsys. "Customers are aggressively moving to develop advanced new products, and demand for our technology and support is high. We expect the acquisition of Magma, which closed today, will enable us to accelerate delivery of state-of-the art technology to our customers."

GAAP results
On a generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal 2012 was $56.69 million, or $0.39 per share, compared to $48.2 million, or $0.31 per share, for the first quarter of fiscal 2011. Due to our fiscal calendar, the first quarter of fiscal year 2012 included an extra week.

Non-GAAP results
On a non-GAAP basis, net income for the first quarter of fiscal 2012 was $82.3 million, or $0.56 per share, compared to non-GAAP net income of $68.3 million, or $0.44 per share, for the first quarter of fiscal 2011. Reconciliation between GAAP and non-GAAP results is provided at the end of this press release. Due to our fiscal calendar, the first quarter of fiscal year 2012 included an extra week.

Financial targets
Synopsys also provided its financial targets for the second quarter and full fiscal year 2012. These targets do not include any impact of the acquisition of Magma Design Automation or future acquisition-related expenses that may be incurred in fiscal 2012. These targets constitute forward-looking information and are based on current expectations.

Q2 of Fiscal Year 2012 Targets
Revenue: $412 million - $420 million
GAAP expenses: $332 million - $348 million
Non-GAAP expenses: $303 million - $313 million
Other income and expense: $0 - $2 million
Tax rate applied in non-GAAP net income calculations: approximately 25 percent
Fully diluted outstanding shares: 146 million - 150 million
GAAP earnings per share: $0.37 - $0.43
Non-GAAP earnings per share: $0.54 - $0.56
Revenue from backlog: greater than 90 percent.

Full Fiscal Year 2012 Targets
Revenue: $1.655 billion - $1.675 billion
Other income and expense: $0 - $4 million
Tax rate applied in non-GAAP net income calculations: approximately 25 percent
Fully diluted outstanding shares: 146 million - 150 million
GAAP earnings per share: $1.33 - $1.48
Non-GAAP earnings per share: $1.97 - $2.03
Cash flow from operations: approximately $300 million.