Summary
Synopsys, Inc. reported its third-quarter fiscal year 2013 financial results, showing a revenue increase of 9% year-over-year to $482.9 million, driven primarily by time-based license revenue and contributions from recent acquisitions. Despite revenue growth, net income saw a significant decrease of 31% to $52.3 million, largely due to a favorable tax settlement in the prior year that boosted net income in fiscal 2012. The company's balance sheet strengthened, with cash and cash equivalents increasing by approximately 27% to $892.4 million, indicating robust cash generation from operations, which provided $305.4 million for the nine months ended July 31, 2013. While operating expenses, particularly R&D and sales & marketing, increased due to headcount growth from acquisitions and personnel-related costs, the company maintained a strong financial position. Intangible assets and goodwill remained substantial, reflecting past strategic acquisitions. Synopsys continues to repurchase its stock, with $202.4 million remaining available under its authorized repurchase program, signaling confidence in its financial health and commitment to shareholder returns.
Financial Highlights
55 data points| Revenue | $482.94M |
| Cost of Revenue | $115.65M |
| Gross Profit | $367.30M |
| R&D Expenses | $166.67M |
| Operating Expenses | $312.30M |
| Operating Income | $54.99M |
| Interest Expense | $404K |
| Net Income | $52.30M |
| EPS (Basic) | $0.34 |
| EPS (Diluted) | $0.33 |
| Shares Outstanding (Basic) | 153.91M |
| Shares Outstanding (Diluted) | 157.06M |
Key Highlights
- 1Total revenue increased by 9% to $482.9 million for the three months ended July 31, 2013, compared to the prior year period.
- 2Net income decreased by 31% to $52.3 million for the three months ended July 31, 2013, largely due to a favorable tax settlement in the prior year.
- 3Cash and cash equivalents increased by approximately 27% to $892.4 million as of July 31, 2013, indicating strong operational cash flow generation.
- 4Operating expenses, particularly Research & Development and Sales & Marketing, increased by 16% and 5% respectively for the three-month period, driven by acquisitions and personnel costs.
- 5Goodwill remains a significant asset at $1.98 billion, with minor adjustments noted.
- 6The company had $202.4 million remaining under its stock repurchase program as of July 31, 2013.
- 7Time-based license revenue continued to be the largest contributor to total revenue, representing 80% of revenue for the quarter.