SYNOPSYS INC Quarterly Report for Q3 Ended Jul 31, 2010

Summary

Synopsys, Inc. (SNPS) reported its third-quarter results for the period ending July 30, 2010. The company demonstrated robust financial health with total assets reaching $3.11 billion and total stockholders' equity at $2.05 billion. Revenue for the quarter slightly decreased year-over-year, totaling $336.9 million, primarily due to a dip in maintenance and service revenues. However, net income saw a significant increase, rising to $39.3 million from $47.4 million in the prior year's comparable quarter, driven by a favorable tax provision. The company maintained a strong liquidity position, with cash and cash equivalents and short-term investments totaling $1.21 billion. Synopsys also highlighted continued investment in research and development and strategic acquisitions, including the recent purchase of Virage Logic Corporation.

Key Highlights

• 1Total assets grew to $3.11 billion as of July 31, 2010, an increase from $2.94 billion at fiscal year-end 2009.
• 2Stockholders' equity significantly increased to $2.05 billion from $1.84 billion in the prior fiscal year-end.
• 3For the third quarter, total revenue was $336.9 million, a slight decrease from $345.2 million in the same period of 2009.
• 4Net income for the quarter was $39.3 million, compared to $47.4 million in the prior year's quarter, with a significant positive impact from a lower tax provision.
• 5The company held a strong cash position with $883.4 million in cash and cash equivalents and $326.4 million in short-term investments, totaling $1.21 billion.
• 6Operating cash flow for the nine months ended July 31, 2010, was $244.1 million, a substantial increase from $175.2 million in the prior year period.
• 7Synopsys completed several acquisitions during the nine months ended July 31, 2010, totaling $146.9 million in purchase consideration, and announced the acquisition of Virage Logic Corporation for approximately $312 million on September 2, 2010.

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