Synopsys (Nasdaq:SNPS) announced this afternoon results for its first quarter of fiscal 2014 and its acquisition of Coverity, Inc. Highlights of the announcements are provided below. The full Synopsys releases can be accessed here: Synopsys Posts Financial Results for First Quarter Fiscal Year 2014 - Feb 19, 2014 and here Synopsys Enters Software Quality and Security Market with Coverity Acquisition - Feb 19, 2014
Coverity acquisition highlights:
Synopsys signed a definitive agreement to acquire Coverity, the leading provider of software quality, testing, and security tools. Under the terms of the agreement, Synopsys will pay approximately $375 million, or $350 million net of cash acquired. The acquisition opens up opportunities to increase
penetration into the semiconductor and systems space where Synopsys excels and enables Synopsys to enter a new, growing market geared toward enterprise IT and independent software providers that Synopsys doesn’t currently address. The acquisition is expected to close in Synopsys’ fiscal Q2.
Q1 2014 highlights include:
Synopsys posted its first-quarter results, overachieving EPS guidance by $.07. The company also cited continued customer successes, as well as ongoing preparations for a number of upcoming product launches. While Synopsys says its customers remain cautious in their spending, technology advances continue unabated, making great EDA and IP solutions essential to their success.
quarter of fiscal 2013.
Synopsys also provided financial targets for the second quarter and full fiscal year 2014. These targets do not include any impact from future acquisition-related expenses that may be incurred in fiscal year 2014.
Second Quarter of Fiscal Year 2014 Targets:
Full Fiscal Year 2014 Targets:
Earnings Call-in Information
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available at Synopsys’ corporate website at www.synopsys.com. A recording of the call will be available by calling +1-800-475-6701 (+1- 320-365-3844 for international callers), access code 318297, beginning at 4:00 p.m. Pacific Time today. A webcast replay will also be available on the website from approximately 4:30 p.m. Pacific Time today through the time Synopsys announces its results for the second fiscal quarter in May 2014. Synopsys will post copies of the prepared remarks of Aart de Geus, chairman and co-chief executive officer, and Brian Beattie, chief financial officer, on its website following the call. In addition, Synopsys makes additional financial information available in a financial supplement also posted on the corporate website.
About Synopsys
Synopsys, Inc. (Nasdaq:SNPS) accelerates innovation in the global electronics market. As a leader in electronic design automation (EDA) and semiconductor IP, its software, IP and services help engineers address their design, verification, system and manufacturing challenges. Since 1986, engineers around the world have been using Synopsys technology to design and create billions of chips and systems.
Synopsys is headquartered in Mountain View, California, and has approximately 70 offices located throughout North America, Europe, Japan, Asia and India. Visit Synopsys online at Synopsys.com.
Coverity acquisition highlights:
Synopsys signed a definitive agreement to acquire Coverity, the leading provider of software quality, testing, and security tools. Under the terms of the agreement, Synopsys will pay approximately $375 million, or $350 million net of cash acquired. The acquisition opens up opportunities to increase
penetration into the semiconductor and systems space where Synopsys excels and enables Synopsys to enter a new, growing market geared toward enterprise IT and independent software providers that Synopsys doesn’t currently address. The acquisition is expected to close in Synopsys’ fiscal Q2.
Q1 2014 highlights include:
Synopsys posted its first-quarter results, overachieving EPS guidance by $.07. The company also cited continued customer successes, as well as ongoing preparations for a number of upcoming product launches. While Synopsys says its customers remain cautious in their spending, technology advances continue unabated, making great EDA and IP solutions essential to their success.
- Revenue for the first quarter of fiscal 2014 was $479.0 million, compared
- GAAP net income for the first quarter of fiscal 2014 was $67.7 million, or $0.43 per share, compared to $69.9 million, or $0.45 per share, for the first quarter of fiscal 2013.
- On a non-GAAP basis, net income for the first quarter of fiscal 2014 was $93.1 million, or $0.59
quarter of fiscal 2013.
Synopsys also provided financial targets for the second quarter and full fiscal year 2014. These targets do not include any impact from future acquisition-related expenses that may be incurred in fiscal year 2014.
Second Quarter of Fiscal Year 2014 Targets:
- Revenue: $505 million - $515 million
- GAAP expenses: $422 million - $444 million
- Non-GAAP expenses: $377 million - $387 million
- Other income and expense: $0 - $1 million
- Tax rate applied in non-GAAP net income calculations: approximately 24 percent
- Fully diluted outstanding shares: 155 million - 159 million
- GAAP earnings per share: $0.33- $0.41
- Non-GAAP earnings per share: $0.60 - $0.62
Full Fiscal Year 2014 Targets:
- Revenue: $2.03 billion - $2.065 billion
- Other income and expense: $8 million - $11 million
- Tax rate applied in non-GAAP net income calculations: approximately 24 percent
- Fully diluted outstanding shares: 155 million - 159 million
- GAAP earnings per share: $1.72 - $1.83
- Non-GAAP earnings per share: $2.55 - $2.60
- Cash flow from operations: $425 million - $450 million
Earnings Call-in Information
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available at Synopsys’ corporate website at www.synopsys.com. A recording of the call will be available by calling +1-800-475-6701 (+1- 320-365-3844 for international callers), access code 318297, beginning at 4:00 p.m. Pacific Time today. A webcast replay will also be available on the website from approximately 4:30 p.m. Pacific Time today through the time Synopsys announces its results for the second fiscal quarter in May 2014. Synopsys will post copies of the prepared remarks of Aart de Geus, chairman and co-chief executive officer, and Brian Beattie, chief financial officer, on its website following the call. In addition, Synopsys makes additional financial information available in a financial supplement also posted on the corporate website.
About Synopsys
Synopsys, Inc. (Nasdaq:SNPS) accelerates innovation in the global electronics market. As a leader in electronic design automation (EDA) and semiconductor IP, its software, IP and services help engineers address their design, verification, system and manufacturing challenges. Since 1986, engineers around the world have been using Synopsys technology to design and create billions of chips and systems.
Synopsys is headquartered in Mountain View, California, and has approximately 70 offices located throughout North America, Europe, Japan, Asia and India. Visit Synopsys online at Synopsys.com.