Synopsys Posts 12% Revenue Growth in Q3 FY2018

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Synopsys, Inc. reported results for its third quarter of fiscal year 2018. Revenue was $779.7 million, compared to $695.4 million for the third quarter of fiscal year 2017, an increase of 12.1%. 

"Synopsys delivered another outstanding quarter and is raising revenue and non-GAAP earnings per share guidance for the year. The age of digital intelligence is driving significant investments by traditional and new semiconductor and systems companies, as well as software developers across many industries. Our strategic investments over the past several years are paying off. Strong products and customer relationships in EDA and IP, as well as our rapid growth in software security and quality, are leading to double-digit revenue and non-GAAP earnings growth in 2018," said Aart de Geus, chairman and co-CEO of Synopsys. "This backdrop provides a solid foundation for continued growth and increased operating leverage in the business."

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the third quarter of fiscal 2018 was $79.4 million, or $0.52 per share, compared to $116.8 million, or $0.75 per share, for the third quarter of fiscal 2017. These results reflect a $26 million charge related to the settlement of Mentor Graphics patent litigation.

Non-GAAP Results

For the third quarter of fiscal 2018, on a non-GAAP basis, net income was $145.6 million, or $0.95 per share, compared to non-GAAP net income of $141.6 million, or $0.92 per share, for the third quarter of fiscal 2017.

Fourth Quarter of Fiscal Year 2018 Targets:

• Revenue: $774 million - $804 million
• GAAP expenses: $722 million - $738 million
• Non-GAAP expenses: $655 million - $665 million
• Other income and expense: ($3) million – ($1) million
• Normalized annual tax rate applied in non-GAAP net income calculations: 13 percent
• Fully diluted outstanding shares: 153 million - 156 million
• GAAP earnings per share: $0.39 - $0.47
• Non-GAAP earnings per share: $0.76 - $0.80

Full Fiscal Year 2018 Targets:

• Revenue: $3.10 billion - $3.13 billion
• Other income and expense: ($5) million – ($3) million
• Normalized annual tax rate applied in non-GAAP net income calculations: 13 percent
• Fully diluted outstanding shares: 153 million - 156 million
• GAAP earnings per share: $1.55 - $1.63
• Non-GAAP earnings per share: $3.89 - $3.93
• Cash flow from operations: $460 million - $500 million

About Synopsys

Synopsys, Inc. is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As the world's 15th largest software company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and is also growing its leadership in software security and quality solutions. Whether you're a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing applications that require the highest security and quality, Synopsys has the solutions needed to deliver innovative, high-quality, secure products. Learn more here.