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Synopsys' CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: SNPS

As we work through the detailed planning and integration, our priorities are the following: first and foremost, maintain complete focus on the continued success of our joint customers and their in-progress designs; second, immediate consultation with our joint customers, as we evolve and/or revise our technology and product roadmaps. We plan to take the next 90 days for this effort, which we'll communicate further details.

And third, rationalize the 2 organizations. Our intent is to move quickly and diligently to optimally integrate the companies with the clear objectives of: one, customer success; two, technology acceleration; and three, continuity in delivering high-value solutions, while achieving economic efficiency.

Rajeev Madhavan, Magma CEO, will not join Synopsys, but has graciously agreed to be available to advise us as we transition the company. We thank him for his efforts to date towards making this merger a success.

Roy Jewell, Magma's President and COO, will work with Synopsys management team to ensure a successful integration. From a financial perspective and based on our initial view, we reiterate that we expect the acquisition to be modestly accretive to our 2012 non-GAAP earnings per share.

Due to antitrust-related restrictions in effect until this morning, we have only just begun the detailed planning and integration process, and we expect to provide specific guidance related to the impact of the Magma acquisition when we report Q2 earnings in May.

Moving to the overall market picture. Semiconductor and systems companies are very aggressively developing and producing advanced new products, particularly in the mobile, cloud infrastructure and 'Smart Everything' market segments. The great potential of these end markets has driven a renewed emphasis on technology, visible from the rapid adoption of the 28- and 20-nanometer silicon nodes, to the focus on new transistor structures such as FinFETs, all the way to system design with an increased focus on broad verification strategies and system prototyping.

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