Synopsys Shares Tumble After Sales Forecast Cut

NEW YORK (AP) — Shares of Synopsys Inc. tumbled Thursday as investors appeared to focus on the company's decision to trim its full-year sales forecast.

The stock fell $2.36, or 11 percent, to $19.26 in afternoon trading.

On Wednesday the Mountain View, Calif., company, which makes software for testing semiconductors, topped earnings and sales estimates for the quarter ended April 30. Earnings jumped 23 percent.

But Synopsys now sees revenue for the full fiscal year coming in between $1.35 billion and $1.38 billion, down from a previous estimate of $1.37 billion to $1.40 billion.

Deutsche Bank analyst Tim Fox said the company showed "continued cost discipline in the face of weak end-markets," in a note to clients Wednesday.

But he said "despite glimmers of optimism creeping into the semiconductor industry," spending on the kind of testing products Synopsys makes "remains tepid."

He reiterated a "Buy" rating on shares based on a "long term" view of the company.