Synopsys Inc. (NASDAQ: SNPS), a provider of technology solutions used to develop electronics and electronics systems, today reported its third-quarter financial results, posting a 45% increase in profit. SNPSâ€™s profit rose as it continued to benefit from competition among chipmakers.
Aart de Geus, co-CEO of the Mountain View, California-based company, said that SNPS sees its customers continue to drive design aggressively, even in the context of an uncertain economy.
For the third quarter ended July 31, Synopsys reported a profit of $75.7 million, or $0.50 per share, compared to $52.1 million, or $0.35 per share reported for the same period in the previous year. Excluding one-time items, SNPS reported earnings of $0.55 per share, up from $0.46 per share reported for the same period in the previous year.
Revenue for the quarter rose 15% to $443.7 million.
SNPSâ€™s results were in-line with the forecast made by the company in May. Back in May, the company had said that it expects third-quarter earnings to be between $0.49 per share and $0.51 per share and revenue to be between $440 million and $448 million.
SNPS gross margin for the third quarter was 77.5%, down from 78.1% reported for the same period in the previous year.
Synopsys also raised its full-year earnings guidance. The company now expects full-year adjusted earnings to be between $2.09 per share and $2.11 per share, compared to previous guidance range of $2.03 to $2.07 per share. The company expects full-year revenue to be between $1.742 billion and $1.75 billion.
For the fourth quarter, SNPS expects adjusted earnings to be between $0.46 per share and $0.48 per share. Revenue for the fourth quarter is expected to be between $440 million and $448 million.
SNPS shares rose sharply following the release of third-quarter results. The stock rose to a 52-week high of $33.92, and at last check, it was trading 4.77% higher at $33.16 on above average volume of 1.93 million.
Year-to-date, SNPS shares have gained 22.1%, outperforming the broad market.