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Synopsys Management Discusses Q2 2012 Results - Earnings Call Transcript

In addition to any risks that we highlight during this call, important factors that may affect our future results are described in our quarterly report on Form 10-Q for the quarter ended January 31, 2012, and our earnings release for the second quarter of fiscal year 2012.

All financial information to be discussed on this conference call, the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures and supplemental financial information can be found in the current report on Form 8-K that we filed today, our second quarter earnings release and our financial supplement. All of these items are currently available on our website at www.synopsys.com.

With that, I'll turn the call over to Aart de Geus.

Aart J. de Geus

Good afternoon, and thank you for joining us. Today, I'm pleased to report excellent Q2 results, very rapid progress on the integration of Magma Design Automation and raise guidance for fiscal year 2012.

Let me begin with a financial summary. Our business in Q2 was strong across all metrics with revenue of $433 million and non-GAAP earnings per share of $0.53, which includes $0.01 of dilution from Magma that was not included in our previous guidance range. For the year, we are raising our outlook based on increased visibility and confidence and the progress made on the Magma integration to a range of $2.03 to $2.07.

From the perspective of our long-term financial management, you may recall that in 2010, we communicated to you a high single-digit EPS growth objective based on 5 pillars: One, organic revenue growth in core EDA of low to mid-single-digits; two, double-digit organic revenue growth in IP and systems; three, continued M&A; four, efficient allocation of resources; and five, keeping share count roughly flat at approximately 150 million shares.

Clearly, we continue to deliver against these objectives and are already well on track to achieve double-digit EPS growth again this year. We will provide 2013 guidance in our December earnings release, but I will say already now that our objective is to achieve high single-digit EPS growth for next year as well.

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