The Mountain View, Calif.-based semiconductor-design software company earned, on a non-GAAP basis, $30.1 million, or 21 cents a share, for the latest quarter compared with $15.3 million, or 10 cents a share, a year ago.
Adjusted for amortization of intangible assets and employee stock-based compensation, GAAP earnings for the latest quarter was $9.6 million, or 7 cents a share. Analysts polled by Thomson First Call were expecting 19 cents a share for the quarter.
Fourth-quarter revenue rose 11% to $283.4 million.
The company expects non-GAAP earnings of 26 to 28 cents a share for the first quarter of fiscal 2007. The GAAP earnings estimate is 10 to 15 cents a share. Analysts expect EPS of 22 cents, revised from the earlier 21. For the full fiscal 2007, non-GAAP expectation is $1.20 to $1.28 a share, while GAAP earnings estimate is 60 to 73 cents a share, as against analysts' revised expectation of $1.10 a share.
Revenue for the quarter is estimated at $292 million to $300 million. Analysts expect revenue of $278.67 million for the quarter. For the full fiscal 2007, the revenue estimate is $1.18 billion to $1.20 billion, as against the revised $1.19 billion expected by analysts.
"In 2006, we delivered strong revenue and earnings growth, solid cash flow and business that was notably above plan. As a result of our technology leadership, we are seeing increased momentum in customer adoptions and new products," said Aart de Geus, chairman and CEO of Synopsys. "For fiscal 2007 we are committed to reaching a 20 percent-plus operating margin by the second half of the year. Beyond 2007, we expect to drive revenue growth and expense control to achieve our next target operating margin in the mid to high 20s."
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