Synopsys posts financial results for Q1 fiscal 2010

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

For the first quarter of fiscal 2010, Synopsys reported revenue of $330.2 million compared to $339.8 million for the first quarter of fiscal 2009.

"Synopsys started the year with solid momentum," said Aart de Geus, chairman and CEO of Synopsys. "We met or exceeded our financial targets, and made a number of strategic moves that we believe will increase our total available market substantially in the long term."

GAAP results
On a generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal 2010 was $132.8 million, or $0.88 per share, compared to $52.4 million, or $0.37 per share, for the first quarter of fiscal 2009. Net income for the first quarter of fiscal 2010 includes 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 2010 was $62.4 million, or $0.41 per share, compared to non-GAAP net income of $71.6 million, or $0.50 per share, for the first quarter of fiscal 2009.

Financial targets
Synopsys also provided its financial targets for the second 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.

Second Quarter of Fiscal Year 2010 Targets:
Revenue: $331 million - $339 million
GAAP expenses: $278 million - $295 million
Non-GAAP expenses: $252 million - $262 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: $0.22 - $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: 149 million – 154 million
GAAP earnings per share: $1.55 - $1.74
Non-GAAP earnings per share: $1.52 - $1.62
Cash flow from operations: $200 million - $220 million