The electronic design automation company, Synopsys Inc revealed its fiscal second-quarter results of a non-GAAP earnings of $2.50 per share, beating Zacks Consensus estimate of $2.37 improving the bottom line by 47.1% year over year. With the results, the semiconductor design software maker also delivered its guidance for the next period.
Synopsys reported a net profit of $294.8 million, while the revenue for the quarter rose 25% from a year ago to $1.28 billion.
The company’s stock consequently rose almost 5% in extended trading.
Synopsys Chairman and Chief Executive Aart de Geus credited the company’s “outstanding” performance in the quarter to be driven by robust demand resulting from trends such as the adoption of big data and machine learning.
Synopsys derives its revenue from three business segments. According to the company, time-based products drove $723.8 million in sale, up 12% from a year ago, while upfront products added another $336.6 million, up more than 60%. Maintenance and service generated $218.7 million in sales, up 31% from a year earlier.
During the quarter, Synopsys acquired an application security provider WhiteHat Security from Nippon Telegraph and Telephone Corp. for $330 million. The company said at the time it was buying significant software-as-a-service capabilities and market-leading dynamic application security testing technology that would help to boost its own portfolio of security testing tools.
De Geus said that based on the company’s strong first-half execution and its confidence in its business, it is raising its fiscal 2022 targets “substantially.”
“Notwithstanding macroeconomic choppiness in an uncertain geopolitical environment, our customers continue to prioritize investments to enable the new ‘smart everything’ era, For fiscal 2022, we expect to grow annual revenue approximately 20% and pass the $5 billion milestone, drive further operating margin expansion, grow earnings per share by more than 25%, and generate approximately $1.6 billion in operating cash flow,” he said.
Synopsys also looks at having a stronger next quarter, looking at earning of between $2.01 and $2.06 per share. This is much ahead of Wall Street’s forecast of $1.54 per share in earnings.
The revised forecast for fiscal 2022 calls for earnings of $8.63 to $8.70 per share on revenue of $5 billion to $5.05 billion. Wall Street is looking for full-year earnings of $7.90 per share on sales of $4.81 billion.
