Summary
Synopsys, Inc. (SNPS) reported a solid performance for the third quarter of fiscal year 2011, ending July 30, 2011. Total revenue increased by 15% year-over-year to $386.8 million, driven by growth in time-based license revenue, upfront license revenue, and professional services, reflecting contributions from recent acquisitions and strong customer contract renewals. Net income saw a significant increase of 33% to $52.1 million, bolstered by robust revenue growth and a more favorable effective tax rate. The company maintained strong operating cash flow, with $367.3 million generated in the first nine months of the fiscal year, underscoring its recurring revenue business model and effective cash management. Synopsys ended the quarter with a healthy cash position and ample liquidity, with no outstanding debt under its credit facility.
Financial Highlights
53 data points| Revenue | $386.80M |
| Cost of Revenue | $84.73M |
| Gross Profit | $302.06M |
| R&D Expenses | $122.55M |
| Operating Expenses | $243.88M |
| Operating Income | $58.18M |
| Net Income | $52.08M |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.35 |
| Shares Outstanding (Basic) | 144.96M |
| Shares Outstanding (Diluted) | 148.04M |
Key Highlights
- 1Total revenue grew 15% year-over-year to $386.8 million for the third quarter.
- 2Net income increased by 33% to $52.1 million, driven by revenue growth and a lower effective tax rate.
- 3Time-based license revenue, the largest component, increased by 12% to $322.1 million.
- 4Professional services revenue showed substantial growth of 70% due to acquisitions.
- 5Operating cash flow for the nine months ended July 31, 2011, was strong at $367.3 million, a 50% increase from the prior year.
- 6The company ended the quarter with a robust cash and cash equivalents balance of $889.9 million, an increase of 15% year-over-year.
- 7Synopsys repurchased $100 million of its common stock during the quarter, demonstrating a commitment to returning value to shareholders and managing dilution.