About Synopsys
Synopsys, Inc. (NASDAQ: SNPS) is a world leader in electronic design automation (EDA), supplying the global electronics market with the software, intellectual property (IP) and services used in semiconductor design, verification and manufacturing. Synopsys' comprehensive, integrated portfolio of implementation, verification, IP, manufacturing and field-programmable gate array (FPGA) solutions helps address the key challenges designers and manufacturers face today, such as power and yield management, software-to-silicon verification and time-to-results. These technology-leading solutions help give Synopsys customers a competitive edge in bringing the best products to market quickly while reducing costs and schedule risk. Synopsys is headquartered in Mountain View, California, and has more than 65 offices located throughout North America, Europe, Japan, Asia and India. Visit Synopsys online at http://www.synopsys.com/.
Forward-Looking Statements
The statements made in this press release regarding projected financial results in the sections entitled "Financial Targets," and "Reconciliation of Target Operating Results" and certain statements made in the earnings conference call are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those described by these statements due to a number of uncertainties, including, but not limited to:
-- continued uncertainty in the global economy in general, and weakness in
the semiconductor and electronics industries;
-- failure of customers to pay license fees as scheduled;
-- lower-than-expected research and development spending by semiconductor
and electronic systems companies;
-- competition in the market for Synopsys' products and services;
-- lower-than-anticipated new IC design starts;
-- lower-than-anticipated purchases or delays in purchases of software or
consulting services by Synopsys' customers, including delays in the
renewal, or non-renewal, of Synopsys' license arrangements with major
customers;
-- changes in the mix of time-based licenses and upfront licenses;
-- lower-than-expected orders;
-- the terms of a final settlement, if any, with the IRS regarding the
2002-2004 returns, and
-- difficulties in the integration of the products and operations of
acquired companies or assets into Synopsys' products and operations.
In addition, Synopsys' actual expenses, earnings per share and tax rate on a GAAP and non-GAAP basis for the fiscal quarter ending January 31, 2010 and actual expenses, earnings per share, tax rate, cash flow from operations and other projections on a GAAP and non-GAAP basis for fiscal year 2010 could differ materially from the targets stated under "Financial Targets" above for a number of reasons, including, but not limited to, (i) a determination by Synopsys that any portion of its goodwill or intangible assets have become impaired, (ii) application of the actual consolidated GAAP and non-GAAP tax rates for such periods, or judgment by management, based upon the status of pending audits and settlements to increase or decrease an income tax asset or liability, (iii) integration and other acquisition-related expenses including amortization of intangible assets associated with future acquisitions, if any, (iv) changes in the anticipated amount of employee stock compensation expense recognized on Synopsys' financial statements, (v) actual change in the fair value of Synopsys' non-qualified deferred compensation plan obligations, (vi) increases or decreases to estimated capital expenditures, (vii) changes driven by new accounting rules, regulations, interpretations or guidance, including new guidance related to business combinations, (viii) general economic conditions, and (ix) other risks as detailed in our SEC filings, including those described in the "Risk Factors" section in our latest Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2009. Furthermore, Synopsys' actual tax rates applied to income for the first quarter and fiscal year 2010 could differ from the targets given in this press release as a result of a number of factors, including the actual geographic mix of revenue during the quarter and year, and actions by the government. Finally, Synopsys' targets for outstanding shares in the first quarter and fiscal year 2010 could differ from the targets given in this press release as a result of higher than expected employee stock plan issuances or stock option exercises, acquisitions and the extent of Synopsys' stock repurchase activity.
Synopsys is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the financial supplement whether as a result of new information, future events or otherwise, unless otherwise required by law.
Synopsys is a registered trademark of Synopsys, Inc. Any other trademarks mentioned in this release are the property of their respective owners.
INVESTOR CONTACT: Lisa L. Ewbank Synopsys, Inc. 650-584-1901 EDITORIAL CONTACT: Yvette Huygen Synopsys, Inc. 650-584-4547 yvetteh@synopsys.com
SYNOPSYS, INC.
Unaudited Consolidated Statements of Operations (1)
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
October 31, October 31,
2009 2008 2009 2008
Revenue:
Time-based license $285,102 $290,515 $1,138,551 $1,125,845
Upfront license 16,180 26,090 69,473 71,383
Maintenance and service 36,996 36,200 152,021 139,723
Total revenue 338,278 352,805 1,360,045 1,336,951
Cost of revenue:
License 47,332 45,213 175,620 171,974
Maintenance and service 17,331 15,440 65,368 63,596
Amortization of
intangible assets 8,509 6,215 32,662 23,326
Total cost of revenue 73,172 66,868 273,650 258,896
Gross margin 265,106 285,937 1,086,395 1,078,055
Operating expenses:
Research and development 114,116 102,564 419,908 394,747
Sales and marketing 86,247 87,706 324,124 334,779
General and administrative 35,492 27,328 119,100 103,852
In-process research and
development 1,200 - 2,200 4,800
Amortization of
intangible assets 3,129 3,035 12,812 20,765
Total operating
expenses 240,184 220,633 878,144 858,943
Operating income 24,922 65,304 208,251 219,112
Other income, net 6,891 (9,584) 24,819 (156)
Income before income taxes 31,813 55,720 233,070 218,956
Provision for income taxes 12,285 9,323 65,389 28,978
Net income $19,528 $46,397 $167,681 $189,978
Net income per share:
Basic $0.13 $0.33 $1.17 $1.33
Diluted $0.13 $0.32 $1.15 $1.29
Shares used in computing
per share amounts:
Basic 145,730 142,684 143,752 143,258
Diluted 149,332 145,638 145,857 147,672
(1) Synopsys' fourth quarter ended on the Saturday nearest October 31.
For presentation purposes, the Unaudited Consolidated Statements of
Operations refer to a calendar month end.
