For the second quarter of fiscal year 2011, Synopsys reported revenue of $393.7 million, compared to $338.1 million for the second quarter of fiscal 2010, an increase of 16.4%.
Synopsys delivered strong second quarter results as we continue to execute well, said Aart de Geus, chairman and CEO of Synopsys. Our technology pipeline, delivery and customer adoption remain strong, and we continue to see momentum in our IP and Systems products.
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the second quarter of fiscal 2011 was $81.1 million, or $0.53 per share, compared to $39.5 million, or $0.26 per share, for the second quarter of fiscal 2010. Net income for the second quarter of fiscal 2011 includes a one-time $32.8 million, or $0.21 per share, tax benefit associated with a settlement with the IRS for audits for fiscal years 2006 through 2009.
Non-GAAP Results
On a non-GAAP basis, net income for the second quarter of fiscal 2011 was $68.5 million, or $0.45 per share, compared to non-GAAP net income of $61.9 million, or $0.41 per share, for the second quarter of fiscal 2010. Reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
Financial Targets
Synopsys also provided its financial targets for the third quarter and full fiscal year 2011. These targets do not include future acquisition-related costs that may be incurred in fiscal 2011. These targets constitute forward-looking information and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see Forward-Looking Statements below.
Third Quarter of Fiscal Year 2011 Targets:
* Revenue: $378 million – $386 million
* GAAP expenses: $319 million – $337 million
* Non-GAAP expenses: $292 million – $302 million
* Other income and expense: $0 – $2 million
* Tax rate applied in non-GAAP net income calculations: 24 – 25 percent
* Fully diluted outstanding shares: 149 million – 153 million
* GAAP earnings per share: $0.25 – $0.31
* Non-GAAP earnings per share: $0.41 – $0.43
* Revenue from backlog: greater than 90 percent
Full Fiscal Year 2011 Targets:
* Revenue: $1.5 billion – $1.525 billion
* Other income and expense: $1 million – $5 million
* Tax rate applied in non-GAAP net income calculations: 24 – 25 percent
* Fully diluted outstanding shares: 149 million – 153 million
* GAAP earnings per share: $1.33 – $1.46
* Non-GAAP earnings per share: $1.70 – $1.77
* Cash flow from operations: approximately $300 million