Summary
Synopsys Inc. reported its financial results for the quarter ended April 30, 2010, showing relatively flat total revenue compared to the prior year's quarter at $338.1 million. However, net income saw a decrease of 18% to $39.5 million, primarily due to increased operating expenses, particularly in research and development, driven by recent acquisitions. The company maintained a strong balance sheet with total assets of $3.01 billion and total stockholders' equity of $2.06 billion. The company continues to rely heavily on its recurring revenue business model, with over 90% of revenue derived from time-based licenses, maintenance, and services. Despite a challenging economic environment impacting customer spending, Synopsys maintained positive operating cash flow. The company also highlighted its robust liquidity, with $1.08 billion in cash, cash equivalents, and short-term investments, and no outstanding borrowings on its credit facility, indicating a strong financial position to navigate the economic uncertainties and pursue strategic growth opportunities.
Financial Highlights
29 data points| Revenue | $338.11M |
| Cost of Revenue | $69.03M |
| Gross Profit | $269.08M |
| R&D Expenses | $113.05M |
| Operating Expenses | $224.11M |
| Operating Income | $44.97M |
| Net Income | $39.55M |
| EPS (Basic) | $0.27 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 148.89M |
| Shares Outstanding (Diluted) | 152.48M |
Key Highlights
- 1Total revenue remained stable at $338.1 million for the three months ended April 30, 2010, a slight increase from $336.8 million in the prior year period.
- 2Net income decreased by 18% to $39.5 million compared to $48.3 million in the prior year's quarter, largely due to increased operating expenses, particularly R&D, influenced by acquisitions.
- 3The company reported strong liquidity with $1.08 billion in cash, cash equivalents, and short-term investments as of April 30, 2010.
- 4Goodwill significantly increased from $932.7 million to $998.9 million, reflecting continued acquisition activity.
- 5Total liabilities decreased by approximately $147.5 million to $947.2 million, primarily due to reductions in accounts payable and deferred revenue, while stockholders' equity increased to $2.06 billion.
- 6Operating cash flow for the six months ended April 30, 2010, was positive at $36.2 million, a significant improvement from a negative $57.2 million in the prior year period.
- 7The company continues to repurchase its common stock, with $449.7 million remaining available under its repurchase program as of April 30, 2010.