SUNNYVALE, Calif.—(BUSINESS WIRE)—April 25, 2006—
Synplicity, Inc. (Nasdaq:
SYNP):
Highlights:
-- Strong double digit bookings growth year over year, with
greater weighting towards time-based orders
-- Record deferred revenue and backlog
-- Over $3 million of operating cash generation, with total cash
and short-term investments increasing to $58.8 million
Synplicity, Inc. (Nasdaq:
SYNP), a leading supplier of software for
the design and verification of semiconductors, today announced
financial results for the quarter ended March 31, 2006. Revenue for
the quarter ended March 31, 2006 was $14.5 million, compared with
$14.6 million for the quarter ended March 31, 2005. The total value of
product bookings, including the full value of multi-year agreements,
increased by over 30 percent from total orders booked in the first
quarter of 2005. As the percentage of time-based orders was higher in
the first quarter of 2006, deferred revenue and backlog increased to
record levels.
On a generally accepted accounting principles (GAAP) basis, the
net loss was $1.2 million, or $(0.04) per diluted share for the
quarter ended March 31, 2006, which included stock-based compensation
expense of $961,000, a restructuring charge of $854,000 for severance
costs and the impairment of capitalized software development costs
related to the business re-focus announced on March 30, 2006, and
amortization of intangible assets of $223,000. For the quarter ended
March 31, 2005, GAAP net income was $515,000, or $0.02 per diluted
share, which included amortization of intangible assets of $223,000
and stock-based compensation expense of $9,000.
Non-GAAP net income was $860,000, or $0.03 per diluted share, for
the quarter ended March 31, 2006, compared to non-GAAP net income of
$747,000, or $0.03 per diluted share, for the quarter ended March 31,
2005. In 2006, non-GAAP figures include the GAAP income tax benefit of
$481,000, or $0.02 per share and exclude amortization of intangible
assets, stock-based compensation expense and the restructuring charge
noted above. In 2005, non-GAAP figures exclude amortization of
intangible assets and stock-based compensation expense. A
reconciliation of GAAP to non-GAAP net income is included with this
press release.
"During Q1 we made important progress in several areas. We are
confident that our decision to withdraw from the cell-based and
structured ASIC markets will produce greater returns in our core areas
of business," said Gary Meyers, president and CEO of Synplicity.
"Synplicity has been the leading provider of FPGA synthesis tools for
the past five years and by redeploying our R&D investments, we will
strengthen our core products and enable long term growth and increased
shareholder value. Additionally, I am pleased to report that we
experienced strong order growth during the quarter, including several
large multi-year customer agreements. We believe this is an indication
of a growing perception of our product leadership within the customer
base."
Business Outlook
The following statements are based on current expectations. We do
not intend to update, confirm or change this guidance until our
earnings conference call for the second quarter of 2006.
-- Revenue for 2006 is expected to be in the range of $63 to $65
million, a decrease from prior guidance, as a result of the
business refocus noted above.
-- GAAP net income per fully diluted share for 2006 is expected
to be in the range of $0.10 to $0.15, an increase from prior
guidance. GAAP net income is expected to include charges of
approximately $3.8 million relating to stock compensation
expense based on historical award activity, $890,000 of
amortization of intangible assets and $854,000 of
restructuring charge relating to severance and the impairment
of capitalized software development costs. Tax expense for the
year is expected to be about 29 percent of pretax income.
-- Non-GAAP net income per share for 2006 is expected to be in
the range of $0.28 to $0.34, an increase from prior guidance.
-- Revenue for the second quarter of 2006 is expected to be in
the range of $15.1 to $15.6 million.
-- GAAP net income per fully diluted share for the second quarter
of 2006 is expected to be in the range of $0.03 to $0.05. GAAP
net income for the quarter is expected to include non-cash
charges of approximately $950,000 relating to stock-based
compensation based on historical award activity and $222,000
of amortization of intangible assets.
-- Non-GAAP net income per share for the second quarter of 2006
is expected to be in the range of $0.07 to $0.09.
Audio Webcast
Synplicity's earnings call will be webcast today at 2:00 p.m.
Pacific, and may be accessed at
http://investor.synplicity.com.
Synplicity will discuss the current quarter and its second quarter and
full year 2006 outlook. Following completion of the call, a
rebroadcast of the webcast will be available at
http://investor.synplicity.com through June 30, 2006. For those
without access to the Internet, a replay of the call will be available
from 5:00 p.m. Pacific on April 25, 2006 through April 26, 2006. To
listen to a replay, call (719) 457-0820, access code 3341182.
Use of Non-GAAP Financial Measures
This press release includes financial measures for net income
(loss) and net income (loss) per share that exclude certain non-cash
and other charges and that have not been calculated in accordance with
GAAP. These measures differ from GAAP in that they exclude
amortization of intangible assets from acquisitions and stock-based
compensation and in addition in 2006, exclude restructuring charge and
include the GAAP income tax benefit. Synplicity has provided these
measurements in addition to GAAP financial results because it believes
they provide a consistent basis for comparison between quarters that
is not influenced by other activities and therefore are helpful to
understanding Synplicity's underlying operational results. Further,
these non-GAAP measures are some of the primary measures Synplicity's
management uses for planning and forecasting. These measures should
not be considered an alternative to GAAP, and these non-GAAP measures
may not be comparable to information provided by other companies.
About Synplicity
Synplicity(R) Inc. (Nasdaq:
SYNP - News) is a leading supplier of
innovative software solutions that enable the rapid and effective
design of Programmable Logic Devices (FPGAs, PLDs and CPLDs) that
serve a wide range of communications, military/aerospace, consumer,
semiconductor, computer, and other electronic systems markets.
Synplicity's tools provide outstanding performance, cost and
time-to-market benefits by simplifying, improving and automating key
design planning, logic synthesis, physical synthesis and verification
functions for FPGA, FPGA-based ASIC verification, and DSP designers.
Synplicity is the number one supplier of FPGA synthesis solutions and
has been rated #1 in customer satisfaction in 2004 and 2005 in EE
Times' Annual FPGA Customer Survey. Synplicity products support
industry-standard design languages (VHDL and Verilog) and run on
popular platforms. The company operates in over 20 facilities
worldwide and is headquartered in Sunnyvale, California. For more
information visit
http://www.synplicity.com.
Forward-Looking Statements
This press release contains forward-looking statements including,
but not limited to, statements regarding Synplicity's short-term and
long-term growth, market performance and business outlook for our core
products, customers' perception of our products, backlog, deferred
revenue, revenue, stock-based compensation expense, amortization of
intangible assets, restructuring charge, income tax expense (benefit),
net income (loss) and net income (loss) per share. These statements
relate to future events and involve known and unknown risks,
uncertainties and other factors that may cause Synplicity's actual
financial results, levels of activity, performance or achievements to
differ materially from those expressed or implied by the
forward-looking statements. In some cases, you will be able to
identify forward-looking statements by terminology such as "may,"
"will," "should," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential," "continue" or the negative of
these terms or other comparable terminology. Forward-looking
statements are only predictions and actual events or results may
differ materially. Synplicity cannot provide any assurance that its
future results will meet expectations. Synplicity's operating results
could differ materially due to a number of factors, including the
performance and quality of its software products relative to its
competitors' products, the growth of the markets addressed, and
Synplicity's level of expenses. For additional information and
considerations regarding the risks faced by Synplicity, see its annual
report on Form 10-K for the year ended December 31, 2005 as filed with
the Securities and Exchange Commission, as well as other periodic
reports filed with the SEC from time to time. Although Synplicity
believes that the expectations reflected in the forward-looking
statements are reasonable, Synplicity cannot guarantee future results,
levels of activity, performance or achievements. In addition, neither
Synplicity nor any other person assumes responsibility for the
accuracy or completeness of these forward-looking statements.
Synplicity disclaims any obligation to update information contained in
any forward-looking statement.