SAN FRANCISCO Synopsys Inc. Wednesday (May 18) reported a net loss of $4.9 million, or 3 cents per share, for its fiscal second quarter, based on generally accepted accounting principles (GAAP). The result, which exceeded company internal targets, represents an improvement over the $14.6 million GAAP loss that the company reported for the first fiscal quarter of 2005.
On a year-over-year basis, the quarterly loss represents a decline in performance when compared with the net income of $28.7 million, or 18 cents per share, that Synopsys reported for the second fiscal quarter of 2004. However, Synopsys Chairman and CEO Aart de Geus said that comparison with the year-ago quarter is largely irrelevant because of a fundamental change in the company's license model, a shift to increased subscription licensing over upfront licensing, which began in the fourth quarter of 2004.
Synopsys reported revenue of $244.3 million, up 1 percent from the $241.3 million reported for the first quarter of fiscal 2005 and down 17 percent from the $294.6 million that the company reported for the year-ago quarter.
Characterizing the quarter as solid, de Geus said strong quarterly bookings and the success of the company's newer products, along with progress on the transition to "the most predictable license model in the industry," bode well for Synopsys. "We feel that we are on a roll right now," he said.
de Geus added that all Synopsys product areas exceeded financial expectations for the quarter.
Also Wednesday, Synopsys announced that its chief financial officer (CFO), Steve Shevick, is leaving the company after 10 years to join an undisclosed company outside the EDA industry. Rex Jackson, Synopsys general counsel, will serve as acting CFO until a permanent replacement is found, the company said.
de Geus said that a list of candidates to replace Shevick is being assembled and that the company wants to move quickly to appoint a new permanent CFO.
Synopsys said it expects revenue of $243 million-$253 million for the fiscal third quarter and $960 million-$990 million for the year.