Q4 2011 Financial Highlights
(PRNewswire) — Synopsys, Inc. (Nasdaq: 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 fourth quarter and fiscal year 2011.For the fourth quarter of fiscal 2011, Synopsys reported revenue of $390.5 million, compared to $375.5 million for the fourth quarter of fiscal 2010. Revenue for fiscal year 2011 was $1.536 billion, an increase of 11.2 percent from $1.38 billion in fiscal 2010.
"Synopsys had an outstanding fiscal 2011, with double-digit revenue and non-GAAP earnings per share growth," said Aart de Geus, chairman and CEO of Synopsys. "Our customers continue to drive design aggressively, even in the context of economic uncertainty. Our combination of advanced technology and support expertise is helping to solve the most pressing technical challenges. Synopsys' financial strength and predictable business model support an objective of double-digit non-GAAP earnings per share growth in fiscal 2012."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal 2011 was $39.9 million, or $0.27 per share, compared to $25.4 million, or $0.17 per share, for the fourth quarter of fiscal 2010. GAAP net income for fiscal year 2011 was $221.4 million, or $1.47 per share, compared to $237.1 million, or $1.56 per share, for fiscal 2010.
Non-GAAP Results
On a non-GAAP basis, net income for the fourth quarter of fiscal 2011 was $65.3 million, or $0.45 per share, compared to non-GAAP net income of $59.9 million, or $0.39 per share, for the fourth quarter of fiscal 2010. Non-GAAP net income for fiscal 2011 was $270.3 million, or $1.80 per share, compared to non-GAAP net income of $242.4 million, or $1.60 per share, for fiscal 2010. Reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
Financial Targets
Synopsys also provided its financial targets for the first quarter and full fiscal year 2012. These targets do not include any impact of future acquisition-related activities. 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.
First Quarter of Fiscal Year 2012 Targets:
- Revenue: $412 million - $420 million
- GAAP expenses: $340 million - $357 million
- Non-GAAP expenses: $310 million - $320 million
- Other income and expense: $0 - $2 million
- Tax rate applied in non-GAAP net income calculations: 24 – 25 percent
- Fully diluted outstanding shares: 145 million - 149 million
- GAAP earnings per share: $0.33 - $0.38
- Non-GAAP earnings per share: $0.51 - $0.53
- Revenue from backlog: greater than 90 percent
Note: The first quarter of fiscal 2012 includes an extra week.
Full Fiscal Year 2012 Targets:
- Revenue: $1.640 billion - $1.665 billion
- Other income and expense: $0 million - $4 million
- Tax rate applied in non-GAAP net income calculations: 25 – 26 percent
- Fully diluted outstanding shares: 145 million - 149 million
- GAAP earnings per share: $1.28 - $1.44
- Non-GAAP earnings per share: $1.93 - $1.99
- Cash flow from operations: approximately $300 million
- Revenue from backlog: greater than 80 percent
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 the effect of tax benefits from settlements with the Internal Revenue Service, 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.
Reconciliation of Fourth Quarter and Fiscal Year 2011 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per share for the periods indicated below.
|
GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2011 Results | |||||||
|
(unaudited and in thousands, except per share amounts) | |||||||
|
| |||||||
|
|
Three Months Ended |
|
Twelve Months Ended | ||||
|
|
October 31, |
|
October 31, | ||||
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
GAAP net income |
$ 39,942 |
|
$ 25,401 |
|
$ 221,364 |
|
$ 237,063 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
16,852 |
|
14,610 |
|
69,420 |
|
47,685 |
|
Stock compensation |
14,984 |
|
14,775 |
|
56,414 |
|
59,989 |
|
Acquisition-related costs |
963 |
(1) |
10,814 |
|
1,231 |
(1) |
20,650 |
|
Facility restructuring charge |
- |
|
123 |
|
- |
|
1,238 |
|
Tax benefit from IRS settlement |
- |
|
- |
|
(32,782) |
|
(94,344) |
|
Tax adjustments |
(7,414) |
|
(5,870) |
|
(45,374) |
|
(29,892) |
|
Non-GAAP net income |
$ 65,327 |
|
$ 59,853 |
|
$ 270,273 |
|
$ 242,389 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended | ||||
|
|
October 31, |
|
October 31, | ||||
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
GAAP net income per share |
$ 0.27 |
|
$ 0.17 |
|
$ 1.47 |
|
$ 1.56 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
0.12 |
|
0.09 |
|
0.46 |
|
0.31 |
|
Stock compensation |
0.10 |
|
0.10 |
|
0.38 |
|
0.40 |
|
Acquisition-related costs |
0.01 |
(1) |
0.07 |
|
0.01 |
(1) |
0.14 |
|
Facility restructuring charge |
- |
|
0.00 |
|
- |
|
0.01 |
|
Tax benefit from IRS settlement |
- |
|
- |
|
(0.22) |
|
(0.62) |
|
Tax adjustments |
(0.05) |
|
(0.04) |
|
(0.30) |
|
(0.20) |
|
Non-GAAP net income per share |
$ 0.45 |
|
$ 0.39 |
|
$ 1.80 |
|
$ 1.60 |
|
|
|
|
|
|
|
|
|
|
Shares used in calculation |
146,350 |
|
151,978 |
|
150,367 |
|
151,911 |
