Synopsys, Inc. (SNPS), Wednesday said its profit for the fourth quarter improved from the previous year, helped primarily by higher license revenues. Earnings for the quarter came in line with analysts' estimates, while revenues surpassed expectations. Going forward, the company provided its guidance for the first quarter and fiscal year 2011.
The Mountain View, California-based company's net income for the fourth quarter increased to $25.40 million or $0.17 per share from $19.53 million or $0.13 per share in the previous year.
Results for the quarter include amortization charges of $0.09 per share, stock compensation of $0.10 per share and acquisition-related costs of $0.07 per share.
On a non-GAAP basis, net income for the quarter was $0.39 per share, compared to $0.33 per share in the year-ago quarter.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.
The electronic design automation software provider's total revenue for the quarter increased to $375.46 million from $338.28 million a year ago. Analysts estimated revenues of $355.58 million for the quarter.
Time-based license revenues rose to $310.71 million from $289.86 million last year. Upfront license revenue was $20.81 million, up from $11.42 million a year ago. Maintenance and service revenue increased to $43.94 million from $37.00 million in the previous year.
Aart de Geus, chairman and CEO of Synopsys, said, "Building on significant technology and customer momentum, and an improved customer landscape, we expect to deliver growth in both traditional EDA and the adjacencies in which we've been steadily investing over the past several years."
Looking ahead, the company said it expects non-GAAP earnings in the range of $0.38 to $0.41 per share, on revenues in the range of $360 million to $368 million for the first quarter of fiscal year 2011. Analysts currently expect earnings of $0.41 per share, on revenues of $362.80 million for the first quarter.
For the full-year 2011, Synopsys anticipates non-GAAP earnings in the range of $1.67 to $1.77 per share, on revenues in ranging from $1.5 billion to $1.525 billion. Analysts currently expect earnings of $1.75 per share, on revenues of $1.47 billion for the full year.
SNPS closed Wednesday's regular trading at $26.51, up $0.82 or 3.19%, on a volume of 1.74 million shares on the Nasdaq. In the past 52-week period, the stock trended in a range of $20.27 to $26.63, with a 3-month average volume of 0.86 million shares.
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