Chip-design software provider Synopsys Inc. (SNPS), Wednesday reported a sharp increase in profit for the second quarter, aided mostly by growth in revenues, while the prior year included acquisition costs. As well, both earnings and revenue for the quarter topped Wall Street estimates.
Moving forward, Synopsys provided a weak outlook for the third quarter, but raised its earnings expectations for fiscal year 2013.
Synopsys provides software, IP and services used to accelerate innovation in chips and electronic systems.
The Mountain View, California-based company reported quarterly net income of $68.7 million or $0.44 per share, compared with $21 million or $0.14 per share last year.
Results for the 2013 quarter included amortization costs of $32 million and stock-based compensation expense of $15 million, among other items.
The prior-year quarter included amortization costs of $28.6 million, stock-based compensation expense of $20.6 million, and acquisition costs of $31 million.
Excluding items, adjusted earnings for the quarter were $103.7 million or $0.66 per share, compared with $78.5 million or $0.53 per share in the prior year.
On average, six analysts polled by Thomson Reuters estimated earnings of $0.63 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the second quarter were $499 million, up 15% from $432.6 million a year ago. Analysts had consensus revenue estimate of $496.27 million.
For the third quarter, Synopsys expects net earnings of $0.28 to $0.34 per share, adjusted earnings of $0.53 to $0.55 per share, and revenues of $475 million to $485 million. Analysts currently expect earnings of $0.57 per share on revenues of $495.85 million.
For fiscal year 2013, Synopsys now estimates net earnings of $1.48 to $1.56 per share and adjusted earnings of $2.37 to $2.42 per share. It earlier estimated net earnings of $1.44 to $1.56 per share and adjusted earnings of $2.35 to $2.40 per share. Revenues are still expected in the range of $1.955 billion to $1.975 billion.
Analysts currently expect earnings of $2.40 per share on revenues of $1.97 billion for 2013.
Synopsys stock closed Wednesday at $35.40, down 1.03%, on a volume of 451 thousand shares on the Nasdaq. In after hours, the stock gained $0.70 or 1.98%.
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