Synopsys Posts Better-than-expected 2Q Profit

MOUNTAIN VIEW, Calif. (AP) — Synopsys Inc., which makes software for developing and testing chips, said Wednesday its fiscal second-quarter profit rose 23 percent, helped partly by higher sales, and beat Wall Street expectations. But the company trimmed the top end of its full-year revenue guidance, sending shares down 5 percent after-hours.

For the fiscal quarter ended April 30, earnings rose to $48.3 million, or 33 cents per share, from $39.4 million, or 27 cents per share, last year. Excluding one-time items, the company would have earned 45 cents per share in the latest period.

Sales rose nearly 4 percent to $336.8 million from $324.6 million.

The results beat expectations of analysts polled by Thomson Reuters, who had forecast earnings of 40 cents per share and sales of $336 million. Analysts' estimates typically exclude one-time charges and gains.

Looking ahead to the third quarter, the company forecast adjusted earnings between 40 cents and 42 cents per share and revenue between $342 million and $350 million. Analysts expect profit of 39 cents per share and sales of $345.4 million, on average.