SAN JOSE, Calif. Pending Synopsys acquisition target Nassda Corp. returned to profitability in the first quarter of 2005, posting revenue of $11.3 million, an increase of 2 percent from $11 million for the quarter ended Sept. 30, 2004.
Net income for the quarter was $1.3 million, or $0.05 per diluted share, an increase of 135 percent over $572,000, or $0.02 per diluted share, for the quarter ended Dec. 31, 2003 and an increase of $68.6 million from a net loss of $67.3 million, or negative $2.50 per diluted share for the quarter ended Sept. 30.
On a call with analysts, Nassda officials said the company returned to profitability and achieved lower than expected expenses for the quarter. Officials said the pending $61 million acquisition by Synopsys, designed to end litigation between the companies, meant Nassda incurred lower than expected legal fees for the quarter.
Earlier this week, Nassda and Synopsys announced that the Federal Trade Commission (FTC) has requested more documentation on the pending acquisition.
Nassda said it intends to comply with FTC's request as quickly as possible," said Nassda CFO Tammy Liu. "However we can not predict how long this review process may take."
Liu would not elaborate on the nature of the FTC's request.
Nassda predicted revenue for the current quarter ending March 31 will be in the range of $11 million to $11.3 million. The company did not offer further earnings guidance for the quarter or the rest of the year pending its acquisition.