Summary
Synopsys Inc. reported solid financial results for the nine months ended July 31, 2014, with total revenue increasing by 4% to $1.52 billion compared to the same period last year. This growth was driven by a strong performance in time-based license revenue, which constituted approximately 83% of total revenue. The company also demonstrated robust operational cash flow, generating $378.0 million for the nine-month period, a 24% increase year-over-year. However, investing activities saw a significant outflow of $430.1 million, largely due to the acquisition of Coverity, Inc. for $375.5 million, which expanded Synopsys's market reach into software quality, testing, and security tools. Despite increased investment, the company maintained a healthy cash position and managed its debt effectively.
Financial Highlights
54 data points| Revenue | $521.81M |
| Cost of Revenue | $115.53M |
| Gross Profit | $406.28M |
| R&D Expenses | $182.81M |
| Operating Expenses | $339.06M |
| Operating Income | $67.23M |
| Interest Expense | $715K |
| Net Income | $65.66M |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 155.19M |
| Shares Outstanding (Diluted) | 157.62M |
Key Highlights
- 1Total revenue for the nine months ended July 31, 2014, increased by 4% to $1.52 billion.
- 2Time-based license revenue, representing 83% of total revenue, showed strong growth.
- 3Operating cash flow increased by 24% to $378.0 million for the nine-month period.
- 4The acquisition of Coverity, Inc. for $375.5 million expanded Synopsys's product portfolio and market reach.
- 5Goodwill increased by $284.9 million to $2.26 billion, primarily due to acquisitions.
- 6Diluted earnings per share for the nine months was $1.25, an increase from $1.22 in the prior year.
- 7The company maintained a strong liquidity position with $903.0 million in cash and cash equivalents as of July 31, 2014.