Updated from 7:49 a.m. EST
swung to a first-quarter profit, helped by growth in time-based license revenue.
The chip-design software company earned $1.7 million, or 1 cent a share in the quarter, compared with a loss of $14.3 million, or 10 cents a share, a year ago. Excluding amortization charges, research and development expenses, options expense and other charges, Synopsys earned 18 cents a share. On that basis, analysts surveyed by Thomson Financial were expecting the company to earn 14 cents a share.
First-quarter revenue rose 7.8% from a year ago to $260.2 million. Analysts were expecting revenue of $258.5 million.
For the second quarter of 2006, the company expects to post a loss of 2 cents a share to a profit of 3 cents a share. Excluding items, it sees earnings of 13 cents a share to 17 cents a share on revenue of $262 million to $270 million. Analysts were forecasting earnings of 16 cents a share on revenue of $263.7 million.
For fiscal 2006, the company expects to earn 5 cents to 17 cents a share, or earnings of 65 cents a share to 73 cents a share excluding items, on revenue of $1.06 billion to $1.09 billion. Analysts were forecasting earnings of 69 cents a share on revenue of $1.08 billion.
In the first quarter, revenue from time-based license rose 13.3% to $211.1 million. Revenue from maintenance and service fell 7.9% to $40.7 million.
"Synopsys has delivered another quarter of very solid results," the company said. "We again executed well against our financial goals, and continue to win business based on our strong technology momentum."
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