Synopsys Tumbles After-Hours

Shares of SynopsysSNPS dived in after-hours trading Monday after the semiconductor-design software maker announced two acquisitions and said second-quarter results will fall short of expectations.

Shares of Synopsys recently fell $4.40, or 12.8%, to $30.03 after closing Monday's regular session down $1.14, or 3.2%, at $34.43.

After the close, Synopsys announced plans to acquire Monolithic System TechnologyMOSY in a combination cash-stock deal totaling $432 million. In addition to that deal, expected to close before the end of May, Synopsys also announced the acquisition of privately held Accelerant Networks. The financial terms of the second deal were not disclosed.

Monolithic shareholders will receive $13.50 a share, half payable in Synopsys shares and half in cash. That represents a hefty 92.9% premium on Monolithic shares, which closed Monday at $7, down 50 cents, or 6.7%. Monolithic shares soared $6.13, or 87.6%, in after-hours trading to $13.13.

In a separate release, Synopsys projected second-quarter revenue would range from $285 million to $300 million, with pro forma earnings ranging from 31 to 35 cents a share. That fell short of analyst estimates polled by Thomson First Call, who predicted revenue would total $307.2 million and earnings would come in at 39 cents a share in the second quarter.

For the full year, Synopsys said revenue should range from $1.2 billion to $1.25 billion, with earnings ranging from $1.30 to $1.40 a share. That also is short of the consensus estimate calling for revenue of $1.23 billion and earnings of $1.55 a share.

For the first quarter, Synopsys reported net income of $32.2 million, or 19 cents a share on a generally accepted accounting principles basis, compared with net income of $34.4 million, or 22 cents a share, a year earlier.

Excluding charges, pro forma net income was $54.3 million, or 33 cents a share, compared with $52.5 million, or 34 cents a share, in the year-earlier period. That beat the consensus EPS estimate by 2 cents.

First-quarter revenue rose 6% year over year to $285.3 million. That beat the $281.8 million consensus estimate gathered by Multex.