Synopsys Swings to Profit

License revenue rises.
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Synopsys

(SNPS) - Get Report

, a maker of design software for the semiconductor sector, swung to profit in the second quarter, helped by growth in time-based license revenue.

The Mountain View, Calif.-based company earned $5.4 million, or 4 cents a share in the quarter, compared with a loss of $5 million, or 3 cents a share, a year ago. Excluding amortization charges, research and development expenses, options expense and other charges, earnings were 17 cents a share in the most recent quarter. On that basis, analysts surveyed by Thomson Financial were expecting the company to earn 15 cents a share.

Second-quarter revenue rose 12.5% from a year ago to $274.8 million as against analysts' expectation of $266.1 million.

The company's revenue from time-based license rose 19.1% to $209.4 million. Revenue from maintenance and service fell 23.3% to $39.4 million.

The company expects to earn 2 cents to 7 cents a share in the third quarter. Excluding items, it sees earnings of 17 cents to 20 cents a share, on revenue of $270 million to $278 million, as against analysts' forecast of 17 cents a share, on revenue of $270.3 million.

For the full year, the company forecasts earnings of 8 cents to 17 cents a share, or 68 cents to 74 cents a share, excluding items, on revenue of $1.08 billion to $1.09 billion, as against analysts' estimate of 73 cents a share, on revenue of $1.08 billion.

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