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SNPS - Synopsys Posts Financial Results for Third Quarter Fiscal Year 2012

Q3 2012 Financial Highlights
- Revenue: $443.7 million
- GAAP earnings per share: $0.50
- Non-GAAP earnings per share: $0.55
PR NewswirePress Release: Synopsys, Inc. – 35 minutes ago

MOUNTAIN VIEW, Calif., Aug. 22, 2012 /PRNewswire/ -- Synopsys, Inc. (SNPS), a world leader in software and IP used in the design, verification and manufacture of electronic components and systems, today reported results for its third quarter of fiscal year 2012.

For the third quarter of fiscal year 2012, Synopsys reported revenue of $443.7 million, compared to $386.8 million for the third quarter of fiscal year 2011, an increase of 14.8 percent.

"Our business is strong, reflected in the excellent results we delivered in the third quarter," said Aart de Geus, chairman and co-CEO of Synopsys. "We see our customers continuing to drive design aggressively, even in the context of an uncertain economy. The electronic design automation and IP industries are increasing in importance, and Synopsys in particular is well-positioned to accelerate innovation due to its combination of financial strength, technology leadership, global support, and strategic vision."

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the third quarter of fiscal year 2012 was $75.7 million, or $0.50 per share, compared to $52.1 million, or $0.35 per share, for the third quarter of fiscal year 2011.

Non-GAAP Results

On a non-GAAP basis, net income for the third quarter of fiscal year 2012 was $82.3 million, or $0.55 per share, compared to non-GAAP net income of $68.1 million, or $0.46 per share, for the third quarter of fiscal year 2011.

Financial Targets

Synopsys also provided its financial targets for the fourth quarter and full fiscal year 2012. These targets do not include any impact from the pending acquisition of SpringSoft, or other future acquisition-related expenses that may be incurred in fiscal year 2012. These targets constitute forward-looking information and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.

Fourth Quarter of Fiscal Year 2012 Targets:

Revenue: $440 million - $448 million
GAAP expenses: $387 million - $403 million
Non-GAAP expenses: $345 million - $355 million
Other income and expense: ($2) million - $0 million
Tax rate applied in non-GAAP net income calculations: approximately 24 percent
Fully diluted outstanding shares: 150 million - 154 million
GAAP earnings per share: $0.22 - $0.28
Non-GAAP earnings per share: $0.46 - $0.48
Revenue from backlog: greater than 90 percent

Full Fiscal Year 2012 Targets:

Revenue: $1.742 billion - $1.750 billion
Other income and expense: $1 million - $3 million
Tax rate applied in non-GAAP net income calculations: approximately 24 percent
Fully diluted outstanding shares: 148 million - 152 million
GAAP earnings per share: $1.25- $1.31
Non-GAAP earnings per share: $2.09 - $2.11
Cash flow from operations: approximately $450 million

GAAP Reconciliation

Synopsys continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys' operating results in a manner that focuses on what Synopsys believes to be its ongoing business operations and what Synopsys uses to evaluate its ongoing operations and for internal planning and forecasting purposes. Synopsys' management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Synopsys' management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes: (i) the amortization of acquired intangible assets, (ii) the impact of stock compensation, (iii) acquisition-related costs, (iv) other significant items, including facilities restructuring charges and the effect of benefits from tax settlements with tax authorities, and (v) the income tax effect of non-GAAP pre-tax adjustments as well as unusual or infrequent tax adjustments; and the non-GAAP measures that exclude such information in order to assess the performance of Synopsys' business and for planning and forecasting in subsequent periods. Whenever Synopsys uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed below.

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