"Synopsys delivered an excellent second fiscal quarter, with record revenue and strength across both operating segments," said Aart de Geus, the company's chief executive, in a statement. "Whereas geopolitical tension has escalated, the overall customer environment for us is quite solid."Synopsys has had business with Huawei Technologies, and its expanded full-year revenue and earnings per share guidance ranges were modified following the U.S. government's crackdown on the Chinese technology company. The U.S. Commerce Department earlier this month said it would put Huawei Technologies and dozens of its affiliates on the so-called " Entity List." That blacklist would restrict U.S. companies from selling components and parts to Huawei.
Synopsys ( SNPS - Get Report) was rising Thursday after the software company's second-quarter earnings beat analysts' estimates.
Shares were trading up 1.9% to $117.35 on Nasdaq after the California-based company posted adjusted earnings per share of $1.16 on net income of $178.1 million. The earnings beat expectations, topping the Zacks Consensus Estimate by 7 cents.
Those results surpassed earnings during the same quarter a year prior, when Synopsys posted adjusted earnings of $1.08 per share on $165 million.
Synopsys also posted second-quarter revenue of $836.2 million, up 7.6% from the second quarter in fiscal 2018.
"As a result of this government action, we are not able to book new business with one of our customers and its affiliates, and revenue associated with contracts currently in place has been put on hold until either the contract expires, or the restriction is lifted," said the Synopsis in its earnings report.
For the third quarter, Synopsis forecasts adjusted earnings per share of $1.07 to $1.12 and revenue of $810 million to $850 million. Full-year predictions are for earnings per share of $4.24 to $4.40, and revenue of $3.29 billion to $3.35 billion.