Synopsys Posts Better-than-expected 3Q Results

MOUNTAIN VIEW, Calif. (AP) — Synopsys Inc., which makes software to develop and test chips, said Wednesday its fiscal third-quarter profit declined 18 percent from a year-ago period helped by an income tax gain, but the results still beat Wall Street expectations.

For the three months ended July 31, the company earned $47.4 million, or 32 cents per share, down from $57.7 million, or 39 cents per share, in the same period a year earlier. Adjusted earnings totaled 47 cents per share in the latest quarter.

Revenue was nearly flat at $345.2 million compared with $344.1 million.

Analysts, on average, were expecting a profit of 41 cents per share on sales of $345.2 million, according to a poll by Thomson Reuters. Analysts typically exclude one-time items from their estimates.

But for the fourth quarter, the company expects adjusted earnings of 29 cents to 33 cents per share and revenue in the range of $335 million to $343 million. That's slightly below the profit of 34 cents per share and sales of $346.1 million that analysts have forecast.

Shares fell 62 cents, or 3 percent, to $19.90 in after-hours trading, having closed earlier up 55 cents, or 2.8 percent, at $20.52.