SAN FRANCISCOMarket-leading EDA vendor Synopsys Inc. more than doubled its profit for the quarter ended Jan. 31 thanks to a settlement with the U.S. Internal Revenue Service (IRS), even as sales declined for the period, the company said Wednesday (Feb. 17).
|Aart de Geus|
(Mountain View, Calif.), reported sales of $330.2 million for the first quarter of its fiscal 2010, down about 2 percent from the previous quarter and down about 3 percent from the year-ago period.
In accordance with generally accepted accounting principles (GAAP), Synopsys reported a net income of $132.8 million, or 88 cents per share, up 581 percent from the previous quarter and up 153 percent compared with the year-ago period.
Synopsys said its net income for the recently concluded quarter included a one-time tax benefit worth $91.6 million, or 61 cents per share. The tax benefit was the result of a previously announced settlement with the IRS covering fiscal years 2002 through 2004, the company said.
Synopsys' fiscal first quarter revenue came in just ahead of consensus analyst expectations of $328.8, according to Yahoo Finance. Non-GAAP earnings per share of 41 cents also exceeded the average analyst estimate of 39 cents, according to Yahoo Finance.
"Synopsys started the year with solid momentum," said Aart de Geus, Synopsys chairman and CEO, in a statement. "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."
For the current quarter, which ends April 30, Synopsys said it expects revenue of between $331 million and $339 million. The company said it expects to report GAAP earnings of 22 to 28 cents per share.
For fiscal 2010, Synopsys said it expects sales of between $1.33 billion and $1.35 billion and GAAP earnings per share of between $1.55 and $1.74.