Summary
Synopsys, Inc. (SNPS) reported fiscal year 2009 revenues of $1.36 billion, a slight 2% increase from the previous year, demonstrating resilience despite the global economic downturn. The company's strong recurring revenue model, comprising over 90% of total revenue through time-based licenses and maintenance, provided stability. Net income for the year was $167.7 million, a decrease from fiscal 2008 primarily due to a one-time tax settlement benefit in the prior year and lower interest income. The company maintained a healthy cash position and continued to invest in research and development to maintain its leadership in electronic design automation (EDA) software and services. Despite economic headwinds, Synopsys managed its costs effectively, with sales and marketing expenses decreasing year-over-year. The company's strategy focuses on integrated platforms, manufacturing solutions, and intellectual property to help customers accelerate product development and time-to-market. While backlog decreased by 15% year-over-year, this was attributed to the timing of large contract renewals and customer bankruptcies, and the company highlighted that backlog fluctuations are not necessarily indicators of future sales. Synopsys remains a key player in the EDA market, navigating economic challenges with a focus on technological advancement and customer support.
Financial Highlights
50 data points| Revenue | $1.36B |
| Cost of Revenue | $273.65M |
| Gross Profit | $1.09B |
| R&D Expenses | $419.91M |
| Operating Expenses | $878.14M |
| Operating Income | $208.25M |
| Net Income | $167.68M |
| EPS (Basic) | $1.17 |
| EPS (Diluted) | $1.15 |
| Shares Outstanding (Basic) | 143.75M |
| Shares Outstanding (Diluted) | 145.86M |
Key Highlights
- 1Revenue grew 2% to $1.36 billion in fiscal 2009, driven by time-based license and maintenance revenue, showing resilience during an economic downturn.
- 2Net income was $167.7 million, a decrease from the prior year, mainly due to a one-time tax benefit recorded in fiscal 2008 and reduced interest income.
- 3The company maintained a recurring revenue model, with over 90% of revenue coming from time-based licenses and maintenance, providing financial stability.
- 4Sales and marketing expenses decreased by 3% year-over-year, reflecting effective cost management.
- 5R&D expenses increased by 6% to $419.9 million, underscoring Synopsys' commitment to innovation and product development.
- 6Backlog decreased by 15% to $2.2 billion, attributed to the timing of contract renewals and customer bankruptcies.
- 7The company ended the fiscal year with a strong cash and cash equivalents balance of $701.6 million.