Chip-design software provider Synopsys Inc. (SNPS: Quote) Wednesday reported higher profit for the first quarter, backed by increased revenues and lower provision for income taxes. Both earnings and revenues topped Wall Street estimates.
Further, citing the strong first fiscal quarter results, including the impact of the reinstatement of the federal R&D tax credit, and confidence in its business, the firm raised its non-GAAP earnings per share target for the year.
The company provides software, IP and services used to accelerate innovation in chips and electronic systems.
Net profit for the quarter rose to $69.9 million or $0.45 per share from $56.7 million or $0.39 per share in the same quarter last year. The first quarter of fiscal year 2012 included an extra week.
Excluding mainly amortization of intangible assets, stock compensation and tax adjustments, net income was $103.0 million or $0.67 per share, while it totaled $82.3 million or $0.56 per share in the prior-year quarter.
On average, six analysts polled by Thomson Reuters expected the company to earn $0.55 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 11.7 percent to $475.1 million from $425.5 million in the prior-year quarter. Analysts had a consensus revenue estimate of $473.12 million for the quarter.
Provision for income taxes declined to $1.81 million from $17.14 million.
For the second quarter, the company expects non-GAAP earnings per share of $0.63 - $0.65 on revenues of $490 million - $500 million. Analysts look for earnings of $0.55 per share on revenues of $486.10 million.
For the year, adjusted earnings are estimated in the range of $2.35 - $2.40 per share on revenues of $1.955 billion - $1.975 billion. Wall Street expects earnings of $2.28 per share and estimates revenues to be $1.96 billion.
The company's previous projection was for adjusted earnings of $2.26 to $2.31 per share and revenues of $1.955 billion to $1.975 billion.
SNPS closed up 0.5 percent at $34.79 on Wednesday, and advanced 4.9 percent in the extended trade to reach $36.50.
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by RTT Staff Writer
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