EDA
System
IP
SolvNetPlus
Training & Education
Synopsys, Inc. (NASDAQ: SNPS), the world leader in semiconductor design software, today reported results for its third quarter ended July 31, 2004.
For the third quarter of fiscal 2004, Synopsys reported revenue of $281.7 million, a 6% decrease compared to revenue of $300.4 million for the third quarter of fiscal 2003. For the nine-month period ended July 31, 2004, revenue was $861.5 million compared to revenue of $860.5 million for the same period in 2003.
GAAP Results
On a generally accepted accounting principles (GAAP) basis, for the third quarter of fiscal 2004, net income was $41.8 million, or $0.26 per share, compared to net income of $48.5 million, or $0.30 per share, for the third quarter of fiscal 2003. GAAP net income for the nine-month period ended July 31, 2004 was $102.7 million, or $0.63 per share, compared to $105.1 million, or $0.67 per share, for the same period in fiscal 2003.
Non-GAAP Results
On a non-GAAP basis, net income was $53.2 million, or $0.33 per share, for the third quarter of fiscal 2004 compared to non-GAAP net income of $66.9 million, or $0.41 per share, for the third quarter of fiscal 2003. Non-GAAP net income for the nine-month period ended July 31, 2004 was $164.6 million, or $1.01 per share, compared to $180.5 million, or $1.15 per share, for the same period in fiscal 2003.
A description of the items excluded from non-GAAP results and a reconciliation of GAAP and non-GAAP results are contained in the section entitled "GAAP Reconciliation" below. Per share data for the periods presented reflects Synopsys' two-for-one stock split completed on September 23, 2003.
Third Quarter Business Environment
"Clearly, our third quarter was tough, mainly due to lower-than-expected bookings for upfront licenses, with several contracts being pushed out very late in the quarter," said Aart de Geus, chairman and chief executive officer. "In July, customers became markedly more cautious about extending existing commitments and spending cash, particularly impacting our upfront bookings, which under our model require front-loaded payment terms. Recent announcements in the industry of lower earnings and reduced forecasts suggest continued caution on customer spending. This caution, and the fact that we anticipate 2005 will be a relatively low renewal year for Synopsys, will reduce our bookings expectations for fiscal 2005.
"Against this backdrop, with new technology rolling out this year and accelerating in 2005, and with the advantage of a strong existing backlog, we have decided to move Synopsys immediately towards a maximally subscription- based license model," continued Dr. de Geus. "We believe this further transition offers the best opportunity to preserve the value of our new technology, aggressively pursue competitive displacements, decrease end-of- quarter uncertainty, and more flexibly offer customers complete, differentiated solutions to match their current needs. Moving away from upfront licenses will in the near-term lower our fourth quarter, fiscal 2004 and fiscal 2005 revenue expectations, but we believe it is the right action to put Synopsys on the strongest long-term footing."
2004 Financial Targets
Synopsys also announced its operating model targets for the fourth quarter of fiscal 2004 and revised targets for the full fiscal year. These targets reflect Synopsys' expectations of a shift in the mix of license revenues during the fourth quarter.
Fourth Quarter of Fiscal 2004 Targets: * Revenue: $220 million - $240 million * Non-GAAP expenses: $222 million - $232 million * Other income and expense: ($1.5) million - $1.5 million * Fully diluted outstanding shares: 150 million - 158 million * Tax rate applied in net income calculations: 31% * Non-GAAP earnings: $0.00 - $0.04 per share * Revenue from backlog: over 90% of revenue target Revised Fiscal 2004 Targets: * Revenue: $1.08 billion - $1.1 billion * Non-GAAP expenses: $846 million - $856 million * Fully diluted outstanding shares: 158 million - 162 million * Non-GAAP earnings: $1.01 - $1.05 per share
Synopsys' orders for the year are expected to be below its previous target of $1.4 billion. Synopsys is not providing a new total orders target for fiscal 2004 or an updated target for upfront orders as a percentage of product orders for the year. Both of these metrics will be materially affected, more so than in other quarters, by the timing of completion of certain agreements currently being negotiated. Synopsys intends to report on its orders results for the year when it reports its fourth quarter results.
Preliminary Fiscal 2005 Financial Targets
Synopsys' preliminary operating model targets for fiscal 2005 are as follows:
* Orders: approximately $900 million * Revenue: approximately $940 million * Non-GAAP earnings: $0.28 - $0.38 per share
The fourth quarter, full-year fiscal 2004 and preliminary fiscal 2005 financial targets constitute forward-looking information based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see the section entitled "Forward- Looking Statements" below.
GAAP Reconciliation
Non-GAAP net income consists of GAAP net income excluding, to the extent incurred in a particular quarter, amortization of intangible assets and deferred stock compensation, in-process research and development charges, integration and other acquisition-related expenses and facilities and workforce realignment charges. Intangible assets consist primarily of purchased technology, contract rights intangible, customer-installed base/relationships, trademarks and tradenames, covenants not to compete and customer backlog. Non-GAAP net income is reduced by the amount of additional taxes that Synopsys would accrue if it used non-GAAP results instead of GAAP results to calculate Synopsys' tax liability.
Synopsys' management evaluates and makes operating decisions primarily based on the bookings and revenues of its core software and services business operations and the direct, ongoing and recurring costs of those operations such as cost of revenues and research and development, sales and marketing and general and administrative expenses. Management does not believe amortization of intangible assets and deferred stock compensation, in-process research and development charges, integration and other acquisition-related expenses and facilities and workforce realignment charges are ordinary, ongoing and recurring operating charges for Synopsys' core software and services business operations. Therefore, management calculates the non-GAAP financial measures used in this earnings release excluding these charges and uses these non-GAAP financial measures to enable it to analyze further and more consistently the period-to-period financial performance of its core business operations. Management believes that, although it is important for investors to understand GAAP measures, providing investors with these non-GAAP measures gives them additional important information to enable them to assess, in a way management assesses, Synopsys' current and future continuing operations.
Reconciliation of Third Quarter Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP results for the periods indicated below:
Income Statement Reconciliation Three Months Ended Nine Months Ended
(in thousands) July 31, July 31,
2004 2003 2004 2003
GAAP net income $41,828 $48,475 $102,719 $105,149
Amortization of intangible assets
and deferred stock compensation 34,092 33,077 102,927 95,338
Merger termination fee -- -- 10,000 --
In process research and development -- 1,600 -- 19,850
Realignment charges, net of those
settled at a lower cost than
estimated -- -- 513 --
Collection of acquired accounts
receivable originally assumed
uncollectable -- (3,000) -- (3,000)
Pre-merger liabilities settled at a
lower cost than estimated -- (616) -- (616)
Tax effect (22,692) (12,652) (51,525) (36,179)
Non-GAAP net income $53,228 $66,884 $164,634 $180,542
Income Statement Reconciliation Per Share
(in thousands, Three Months Ended Nine Months Ended
except per share data) July 31, July 31,
2004 2003 2004 2003
GAAP earnings per share $0.26 $0.30 $0.63 0.67
Amortization of intangible assets and
deferred stock compensation 0.21 0.20 0.63 0.61
Merger termination fee -- -- 0.06 --
In process research and development -- 0.01 -- 0.13
Realignment charges, net of those
settled at a lower cost than estimated -- -- -- --
Collection of acquired accounts
receivable originally assumed
uncollectable -- (0.02) -- (0.02)
Pre-merger liabilities settled at a
lower cost than estimated -- -- -- --
Tax effect (0.14) (0.08) (0.31) (0.24)
Non-GAAP earnings per share $0.33 $0.41 $1.01 $1.15
Shares used in calculation 160,346 162,696 162,638 156,320
Reconciliation of Estimated Target Operating Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP target operating results for the periods indicated below:
Non-GAAP Target Expenses Reconciliation Range for Three Months
(in thousands) Ending October 31, 2004
Low High
GAAP target expenses $256,000 $268,000
Impact of amortization of intangible
assets and deferred stock compensation (34,000) (35,000)
Impact of known facility realignment charges -- (1,000)
Non-GAAP target expenses $222,000 $232,000
Non-GAAP Target Expenses Reconciliation Range for Fiscal Year
(in thousands) Ending October 31, 2004
Low High
GAAP target expenses $993,000 $1,006,000
Merger termination fee (10,000) (10,000)
Estimated impact of amortization of
intangible assets and deferred stock
compensation (137,000) (138,000)
Estimated impact of known facility
realignment charges -- (2,000)
Non-GAAP target expenses $846,000 $856,000
Information regarding Target Earnings Per Share
(in thousands, except per share data) Range for Three Months
Ending October 31, 2004
Low High
GAAP target earnings per share $(0.15) $(0.12)
Impact of amortization of intangible
assets and deferred
stock compensation per share, net of
tax effect 0.15 0.16
Impact of facility realignment charges per
share, net of tax effect -- --
Non-GAAP target earnings per share -- $0.04
Shares used in calculation (midpoint
of target range) 154,000 154,000
Information regarding Target Earnings Per Share
(in thousands, except per share data) Range for Fiscal Year
Ending October 31, 2004
Low High
GAAP target earnings per share $0.41 $0.43
Impact of amortization of intangible assets
and deferred stock compensation per share,
net of tax effect 0.59 0.60
Impact of facility realignment charges per
share, net of tax effect 0.01 0.02
Non-GAAP target earnings per share $1.01 $1.05
Shares used in calculation (midpoint
of target range) 160,000 160,000
Information regarding Target Earnings Per Share
(in thousands, except per share data) Range for Fiscal Year
Ending October 31, 2005
Low High
Preliminary GAAP target earnings per share $(0.16) $(0.07)
Impact of amortization of intangible assets
and deferred stock compensation per share,
net of tax effect 0.44 0.45
Preliminary non-GAAP target earnings per share $0.28 $0.38
Shares used in calculation 154,000 154,000
Additional Financial Information Available on Synopsys Website
In connection with the issuance of this earnings release, Synopsys is making available to investors supplemental financial information, which can be found on Synopsys' website at http://www.synopsys.com/corporate/invest/finsupp/q304.pdf . Synopsys currently intends to provide this information on a quarterly basis.
Earnings Call Open to Investors
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m., Pacific Time. A live webcast of the call will be available at Synopsys' corporate website at http://www.synopsys.com/corporate/invest/invest.html . A recording of the call will be available by calling 1-800-288-8976 (612-332-0226 for international callers), access code 741248, beginning at 5:30 p.m. Pacific Time today. A webcast replay will also be available at http://www.synopsys.com/corporate/invest/invest.html from approximately 5:30 p.m. Pacific Time today through the time of the announcement of Synopsys' results for the fourth quarter of fiscal 2004 in December 2004. Finally, Synopsys will post copies of the prepared remarks of Aart de Geus, Chairman and Chief Executive Officer, and Steve Shevick, Chief Financial Officer, on its website at http://www.synopsys.com/corporate/invest/invest.html following the call.
Effectiveness of Information
The targets included in this release, the statements made during the earnings conference call and the information contained in the financial supplement represent Synopsys' expectations and beliefs as of the date of this release only. Although this release, copies of the prepared remarks of the CEO and CFO made during the call and the financial supplement will remain available on Synopsys' website through the date of the fourth quarter earnings call in December 2004, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys does not currently intend to report on its progress during the fourth quarter of fiscal 2004 or comment to analysts or investors on, or otherwise update, the targets given in this earnings release until it releases such results in December 2004. Furthermore, Synopsys is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the financial supplement whether as a result of new information, future events or otherwise unless required by law.
Availability of Final Financial Statements
Synopsys will include final financial statements for the third quarter of fiscal 2004 in its Quarterly Report on Form 10-Q to be filed in September 2004.
About Synopsys
Synopsys, Inc. is the world leader in electronic design automation (EDA) software for semiconductor design. The company delivers technology-leading semiconductor design and verification platforms and IC manufacturing software products to the global electronics market, enabling the development and production of complex systems-on-chips (SoCs). Synopsys also provides intellectual property and design services to simplify the design process and accelerate time-to-market for its customers. Synopsys is headquartered in Mountain View, California and has offices in more than 60 locations throughout North America, Europe, Japan and Asia. Visit Synopsys online at http://www.synopsys.com/ .
Forward-Looking Statements
The statements made in this press release regarding projected or expected future events or financial results in the sections entitled "Third Quarter Business Environment", "Fiscal 2004 Financial Targets", "Preliminary Fiscal 2005 Financial Targets" and "GAAP Reconciliation" are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those described by these statements due to a number of uncertainties, including but not limited to the risk of:
* continued weakness or continued budgetary caution in the
semiconductor or electronic systems industries;
* lower-than-expected research and development spending by
semiconductor and electronic systems companies;
* lower-than-anticipated purchases or delays in purchases of software
or consulting services by Synopsys' customers, including delays in
the renewal, or non-renewal, of Synopsys' license arrangements with
major customers;
* unexpected changes in the mix of time-based licenses and upfront
licenses;
* lower-than-expected bookings of licenses on which revenue is
recognized upfront;
* lower-than-anticipated new IC design starts;
* competition in the market for Synopsys' products and services;
* failure to continue to improve Synopsys' existing products;
* failure to successfully develop additional intellectual property
blocks for its IP business or to develop and integrate its design
for manufacturing products;
* difficulties in the ongoing integration of the products and
operations of acquired companies or assets into Synopsys' products
and operations;
* adverse variations from currently projected customer payment terms;
and
* downward pressure on maintenance orders, adversely affecting
Synopsys' future level of service revenue.
In addition, Synopsys' actual expenses and earnings per share on a GAAP basis for the fourth quarter of fiscal 2004 and actual earnings per share on a GAAP basis for the full fiscal years 2004 and 2005 could differ materially from the targets stated under "Fiscal 2004 Financial Targets" and "Preliminary Fiscal 2005 Financial Targets" above for a number of reasons, including (i) a determination by Synopsys that any portion of its intangible assets have become impaired, (ii) changes in deferred stock compensation expenses caused by employee terminations, and (iii) integration and other acquisition-related expenses, amortization of additional intangible assets and deferred stock compensation associated with future acquisitions, if any.
For further discussion of these and other factors that may cause results to differ from those projected in this release, readers are referred to the reports Synopsys has filed with the Securities and Exchange Commission, and available at www.sec.gov, specifically the section contained in Part I, Item 2 of Synopsys' Quarterly Report on Form 10-Q for the second quarter of fiscal 2004 filed with the Commission on June 10, 2004 entitled "Factors That May Affect Future Results."
NOTE: Synopsys is a registered trademark of Synopsys, Inc. All other trademarks mentioned in this release are the intellectual property of their respective owners.
SYNOPSYS, INC.
Unaudited Condensed Consolidated Statements of Income (1)
(in thousands, except per share data)
Three Months Ended July 31, 2004 (2)
Non-GAAP
GAAP Basis Adjustments Basis
Revenue:
Upfront license $62,352 -- $62,352
Time-based license 164,398 -- 164,398
Service 54,931 -- 54,931
Total revenue 281,681 -- 281,681
Cost of revenue:
Upfront license 3,277 -- 3,277
Time-based license 15,550 -- 15,550
Service 19,929 -- 19,929
Amortization of intangible assets
and deferred stock compensation 25,562 (25,562) --
Total cost of revenue 64,318 (25,562) 38,756
Gross margin 217,363 25,562 242,925
Operating expenses:
Research and development 68,471 -- 68,471
Sales and marketing 70,395 -- 70,395
General and administrative 28,194 -- 28,194
In-process research and development -- -- --
Amortization of intangible assets
and deferred stock compensation 8,530 (8,530) --
Total operating expenses 175,590 (8,530) 167,060
Operating income 41,773 34,092 75,865
Other income, net 1,277 -- 1,277
Income before provision for
income taxes 43,050 34,092 77,142
Provision for income taxes 1,222 22,692 23,914
Net income $41,828 $11,400 $53,228
Basic earnings per share:
Net income per share $0.27 $0.34
Weighted-average common shares 155,199 155,199
Diluted earnings per share:
Net income per share $0.26 $0.33
Weighted-average common shares
and equivalents 160,346 160,346
Three Months Ended July 31, 2003 (2)
Non-GAAP
GAAP Basis Adjustments Basis
Revenue:
Upfront license $74,709 -- $74,709
Time-based license 160,875 -- 160,875
Service 64,782 -- 64,782
Total revenue 300,366 -- 300,366
Cost of revenue:
Upfront license 3,536 -- 3,536
Time-based license 13,792 -- 13,792
Service 16,974 -- 16,974
Amortization of intangible assets
and deferred stock compensation 23,856 (23,856) --
Total cost of revenue 58,158 (23,856) 34,302
Gross margin 242,208 23,856 266,064
Operating expenses:
Research and development 70,716 -- 70,716
Sales and marketing 78,189 -- 78,189
General and administrative 19,763 3,000 22,763
In-process research and development 1,600 (1,600) --
Amortization of intangible assets
and deferred stock compensation 9,221 (9,221) --
Total operating expenses 179,489 (7,821) 171,668
Operating income 62,719 31,677 94,396
Other income, net 5,307 (616) 4,691
Income before provision for
income taxes 68,026 31,061 99,087
Provision for income taxes 19,551 12,652 32,203
Net income $48,475 $18,409 $66,884
Basic earnings per share:
Net income per share $0.32 $0.44
Weighted-average common shares 153,240 153,240
Diluted earnings per share:
Net income per share $0.30 $0.41
Weighted-average common shares
and equivalents 162,696 162,696
(1) Synopsys' fiscal year and third quarter ends on the Saturday nearest
to October 31 and July 31, respectively.
For presentation purposes, the unaudited condensed consolidated
financial statements refer to a calendar month end.
(2) All common share and per share data for all periods presented are
adjusted to reflect Synopsys' two-for-one stock split completed on
September 23, 2003.
SYNOPSYS, INC.
Unaudited Condensed Consolidated Statements of Income (1)
(in thousands, except per share data)
Nine Months Ended July 31, 2004 (2)
Non-GAAP
GAAP Basis Adjustments Basis
Revenue:
Upfront license $197,654 -- $197,654
Time-based license 497,942 -- 497,942
Service 165,953 -- 165,953
Total revenue 861,549 -- 861,549
Cost of revenue:
Upfront license 17,473 197 17,670
Time-based license 31,305 -- 31,305
Service 65,043 111 65,154
Amortization of intangible assets
and deferred stock compensation 76,517 (76,517) --
Total cost of revenue 190,338 (76,209) 114,129
Gross margin 671,211 76,209 747,420
Operating expenses:
Research and development 208,944 754 209,698
Sales and marketing 216,026 580 216,606
General and administrative 95,805 (12,155) 83,650
In-process research and development -- -- --
Amortization of intangible assets
and deferred stock compensation 26,410 (26,410) --
Total operating expenses 547,185 (37,231) 509,954
Operating income 124,026 113,440 237,466
Other (expense) income, net 1,133 -- 1,133
Income before provision for
income taxes 125,159 113,440 238,599
Provision for income taxes 22,440 51,525 73,965
Net income $102,719 $61,915 $164,634
Basic earnings per share:
Net income per share $0.66 $1.06
Weighted-average common shares 155,437 155,437
Diluted earnings per share:
Net income per share $0.63 $1.01
Weighted-average common shares
and equivalents 162,638 162,638
Nine Months Ended July 31, 2003 (2)
Non-GAAP
GAAP Basis Adjustments Basis
Revenue:
Upfront license $211,229 -- $211,229
Time-based license 450,165 -- 450,165
Service 199,136 -- 199,136
Total revenue 860,530 -- 860,530
Cost of revenue:
Upfront license 11,134 -- 11,134
Time-based license 40,050 -- 40,050
Service 56,744 -- 56,744
Amortization of intangible assets
and deferred stock compensation 68,959 (68,959) --
Total cost of revenue 176,887 (68,959) 107,928
Gross margin 683,643 68,959 752,602
Operating expenses:
Research and development 206,597 -- 206,597
Sales and marketing 230,397 -- 230,397
General and administrative 66,554 3,000 69,554
In-process research and development 19,850 (19,850) --
Amortization of intangible assets
and deferred stock compensation 26,379 (26,379) --
Total operating expenses 549,777 (43,229) 506,548
Operating income 133,866 112,188 246,054
Other (expense) income, net 22,032 (616) 21,416
Income before provision for
income taxes 155,898 111,572 267,470
Provision for income taxes 50,749 36,179 86,928
Net income $105,149 $75,393 $180,542
Basic earnings per share:
Net income per share $0.70 $1.20
Weighted-average common shares 150,008 150,008
Diluted earnings per share:
Net income per share $0.67 $1.15
Weighted-average common shares
and equivalents 156,320 156,320
(1) Synopsys' fiscal year and third quarter ends on the Saturday nearest
to October 31 and July 31, respectively.
For presentation purposes, the unaudited condensed consolidated
financial statements refer to a calendar month end.
(2) All common share and per share data for all periods presented are
adjusted to reflect Synopsys' two-for-one stock split completed on
September 23, 2003.
SYNOPSYS, INC.
Unaudited Condensed Consolidated Balance Sheets (1)
(in thousands)
July 31, October 31,
2004 2003
ASSETS:
Current assets:
Cash and cash equivalents $499,234 $524,308
Short-term investments 200,111 174,049
Total cash, cash equivalents and
short-term investments 699,345 698,357
Accounts receivable, net of allowances of
$7,848 and $8,295, respectively 143,006 200,998
Deferred income taxes 243,106 248,425
Income taxes receivable 49,223 72,124
Prepaid expenses and other current assets 30,081 19,302
Total current assets 1,164,761 1,239,206
Property and equipment, net 180,081 184,313
Long-term investments 13,458 8,595
Goodwill 570,047 550,732
Intangible assets, net 213,155 285,583
Other assets 80,054 38,924
Total assets $2,221,556 $2,307,353
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable and accrued liabilities $159,407 $204,226
Accrued income taxes 182,569 201,855
Deferred revenue 385,302 398,878
Total current liabilities 727,278 804,959
Deferred compensation and other liabilities 51,521 47,390
Long-term deferred revenue 29,215 21,594
Stockholders' equity (2):
Common stock, $0.01 par value; 400,000
shares authorized; 154,779 and 155,837
shares outstanding, respectively 1,548 1,560
Additional paid-in capital 1,240,384 1,198,421
Retained earnings 249,844 251,979
Treasury stock, at cost; 2,350 and
662 shares, respectively (74,834) (20,733)
Deferred stock compensation (3,543) (7,170)
Accumulated other comprehensive income 143 9,353
Total stockholders' equity 1,413,542 1,433,410
Total liabilities and
stockholders' equity $2,221,556 $2,307,353
(1) Synopsys' fiscal year and third quarter ends on the Saturday nearest
to October 31 and July 31, respectively.
For presentation purposes, the unaudited condensed consolidated
financial statements refer to a calendar month end.
(2) All common share and per share data for all periods presented are
adjusted to reflect Synopsys' two-for-one stock split completed on
September 23, 2003.
SYNOPSYS, INC.
Unaudited Condensed Consolidated Statements of Cash Flows (1)
(in thousands)
Three Months Ended Nine Months Ended
July 31, July 31,
2004 2003 2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $41,828 $48,475 $102,719 $105,149
Adjustments to reconcile net
income to net cash provided
by operating activities:
Amortization and depreciation 48,258 46,898 144,530 137,773
Deferred taxes -- -- -- --
In-process research and development -- 1,600 -- 19,850
Write-down of long-term investments -- 1,877 1,901 3,942
Tax benefit associated with stock
options -- -- -- 3,226
Deferred rent 71 209 -- 1,560
Provision for doubtful accounts
and sales returns (2,000) (4,000) -- (1,577)
Net change in unrecognized gains
and losses on foreign exchange
contracts (3,458) (3,637) (11,142) 15,640
Gain on sale of short- and long-
term investments (111) (8,098) (867) (20,568)
Net changes in operating assets
and liabilities:
Accounts receivable 79,865 47,944 58,134 6,379
Income taxes receivable (1) -- 22,795 2,038
Prepaid expenses and other current
assets 3,255 (8,485) (10,779) (7,391)
Other assets (2,230) 20,870 (13,449) 18,535
Accounts payable and accrued
liabilities 1,252 10,545 (49,042) (54,888)
Accrued income taxes 900 (2,921) (19,286) 2,156
Deferred revenue (37,366) (29,393) (6,097) 33,500
Deferred compensation 211 3,369 11,053 7,992
Net cash provided by operating
activities 130,474 125,253 230,470 273,316
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales and maturities
of short-term investments 262,330 66,030 795,643 179,829
Purchases of short-term
investments (305,556) (84,853) (821,655) (219,099)
Proceeds from sale of long-term
investments 112 13,775 412 32,006
Purchases of long-term investments (4,890) -- (6,144) (800)
Purchases of property and
equipment, net (10,944) (13,838) (35,073) (33,543)
Cash paid for acquisitions, net of
cash received (915) (5,283) (39,730) (167,744)
Capitalization of software
development costs (685) (654) (2,056) (1,962)
Net cash used in investing
activities (60,548) (24,823) (108,603) (211,313)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facility -- -- 200,000 --
Payments on credit facility -- -- (200,000) --
Issuances of common stock 23,896 216,269 141,892 279,688
Purchases of treasury stock (49,998) (158,855) (288,336) (226,650)
Net cash used in financing
activities (26,102) 57,414 (146,444) 53,038
Effect of exchange rate changes on
cash (713) (382) (497) (1,337)
Net decrease in cash and cash
equivalents 43,111 157,462 (25,074) 113,704
Cash and cash equivalents,
beginning of period 456,123 268,822 524,308 312,580
Cash and cash equivalents, end of
period $499,234 $426,284 $499,234 $426,284
(1) Synopsys' fiscal year and third quarter ends on the Saturday nearest
to October 31 and July 31, respectively.
For presentation purposes, the unaudited condensed consolidated
financial statements refer to a calendar month end.
SOURCE: Synopsys, Inc.
CONTACT: INVESTOR, Minaxi Patel, +1-650-584-1901, or EDITORIAL, Yvette
Huygen, +1-650-584-4547, both of Synopsys, Inc.
Web site: http://www.synopsys.com/