Synopsys posts results for Q4 and fiscal 2010

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

For the fourth quarter of fiscal 2010, Synopsys reported revenue of $375.5 million, compared to $338.3 million for the fourth quarter of fiscal 2009. Revenue for fiscal year 2010 was $1.38 billion, an increase of 1.5 percent from $1.36 billion in fiscal 2009.

"Synopsys had a strong year, relative to the industry and our expectations, and we enter fiscal 2011 with an even better outlook," said Aart de Geus, chairman and CEO of Synopsys. "Building on significant technology and customer momentum, and an improved customer landscape, we expect to deliver growth in both traditional EDA and the adjacencies in which we've been steadily investing over the past several years."

GAAP results
On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal 2010 was $25.4 million, or $0.17 per share, compared to $19.5 million, or $0.13 per share, for the fourth quarter of fiscal 2009. GAAP net income for fiscal year 2010 was $237.1 million, or $1.56 per share, compared to $167.7 million, or $1.15 per share for fiscal 2009.

Net income for fiscal year 2010 includes a one-time $94.3 million, or $0.62 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 fourth quarter of fiscal 2010 was $59.9 million, or $0.39 per share, compared to non-GAAP net income of $49.5 million, or $0.33 per share, for the fourth quarter of fiscal 2009. Non-GAAP net income for fiscal 2010 was $242.4 million, or $1.60 per share, compared to non-GAAP net income of $255.3 million, or $1.75 per share, for fiscal 2009.

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

First Quarter of Fiscal Year 2011 Targets:

Revenue: $360 million - $368 million
GAAP expenses: $305 million - $323 million
Non-GAAP expenses: $278 million - $288 million
Other income and expense: $0 - $2 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: $0.21 - $0.28
Non-GAAP earnings per share: $0.38 - $0.41
Revenue from backlog: greater than 90 percent

Full Fiscal Year 2011 Targets:

Revenue: $1.5 billion - $1.525 billion
Other income and expense: $2 million - $6 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: $1.06 - $1.24
Non-GAAP earnings per share: $1.67 - $1.77
Cash flow from operations: approximately $220 million - $240 million
Revenue from backlog: greater than 80 percent.