SAN FRANCISCO—EDA and IP vendor Synopsys Inc. Wednesday (Aug. 17) raised its 2011 sales and earnings targets after reporting better-than-expected revenue and profits for its third quarter of fiscal 2011.
Synopsys (Mountain View, Calif.) said it now expects fiscal 2011 sales to be between $1.531 billion and $1.537 billion, up from an earlier guided range of $1.5 billion to $1.525 billion. The company said it now expects 2011 earnings per share in accordance with generally accepted accounting principles (GAAP) to be between $1.46 and $1.51, up from a previously guided range of $1.33 to $1.46.
Aart de Geus, Synopsys chairman and CEO, said in an interview with EE Times that Synopsys better-than-expected results for fiscal 2011 were being paced by strength in the company's core EDA and IP businesses. "The drive to more advanced technology nodes continues to be very strong," de Geus said.
Synopsys reported fiscal third quarter sales of $386.8 million, down 2 percent from the previous quarter and up 15 percent compared with the year-ago quarter. The company reported a GAAP net income of $52.1 million, or 35 cents per share, down 36 percent from the previous quarter and up 33 percent from the year-ago quarter.
Synopsys' GAAP net income in the fiscal second quarter was boosted by a one-time settlement with the U.S. Internal Revenue Service concerning tax years 2006 through 2009.
On a non-GAAP basis, excluding charges, Synopsys reported a net income of $68.1 million, or 46 cents per share, down slightly from the previous quarter and up 17 percent compared with the year-ago quarter.
Consensus analysts' expectations had called for Synopsys to report fiscal third quarter sales of about $382.4 million and non-GAAP earnings per share of 43 cents, according to Yahoo Finance.
For the fiscal fourth quarter, Synopsys said it expects sales to be between $386 million and $392 million. The company said it expects to report GAAP earnings per share of 26 to 31 cents. Synopsys' fiscal fourth quarter guidance was in line with consensus analysts' expectations, according to Yahoo Finance.
Asked about the semiconductor industry and global economy, de Geus said he is watching the debate about the strength of the broad global market. But de Geus said the semiconductor industry is likely to fare better than other industries if there is a global economic slowdown because of strong overall demand for electronics.