Synopsys revenue up 15% in Q1

EDA provider Synopsys Inc. reported revenue of $300.2 million for its first fiscal 2007 quarter ending Jan. 31, 2007, representing a 15 percent growth compared to the $260.2 million reported in the prior year quarter.

The company reported net GAAP income for the quarter of $23.4 million, compared to $1.7 million for Q1 of fiscal 2006. Non-GAAP income for the latest quarter was $44 million, compared to non-GAAP income of $26.4 million for the year-ago quarter.

"Q1 started with great execution, and delivered strong financial results," said Aart de Geus, Synopsys CEO, in a conference call. De Geus said that Synopsys saw strength across all its product lines, and singled out product lines including Design Compiler Ultra, IC Compiler, the VCS simulator, and analog/mixed-signal simulation as strong performers in the quarter.

De Geus also said Synopsys is pursuing a "culture of cost management" and has streamlined its infrastructure, has reorganized field operations, and is increasingly staffing projects in low-cost regions. "We will keep our expense growth at less than half the rate of our revenue growth," he said.

The quarter follows a strong fiscal 2006 for Synopsys, which reported annual revenue growth of 10.4 percent last November. For its fiscal 2006, Synopsys reported revenue of $1.096 billion.

For its Q2 2007, Synopsys expects revenue in the $285 to $295 million range. For the full year 2007, the company expects revenue between $1.185 and $1.205 billion.

Synopsys' 2006 gains, however, slightly lag those of its two largest competitors. Cadence Design Systems announced Jan. 31 that its full-year 2006 revenue was $1.48 billion, up 12 percent over 2005, while Mentor Graphics Corp. announced overall 2006 revenue of $791 million, up 12 percent over 2005.

- Richard Goering
EE Times