Synopsys, Inc. (SNPS) has reported a 46.09 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $72.70 million, or $0.47 a share in the quarter, compared with $49.76 million, or $0.31 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $119.06 million, or $0.77 a share compared with $105.52 million or $0.67 a share, a year ago.
Revenue during the quarter grew 7.93 percent to $633.72 million from $587.16 million in the previous year period. Gross margin for the quarter expanded 138 basis points over the previous year period to 77.56 percent. Total expenses were 86.94 percent of quarterly revenues, down from 90.20 percent for the same period last year. This has led to an improvement of 326 basis points in operating margin to 13.06 percent.
Operating income for the quarter was $82.76 million, compared with $57.56 million in the previous year period.
"Synopsys reported a strong fourth quarter finish to an outstanding fiscal year 2016, in the context of a challenging semiconductor landscape. We enter 2017 with a solid technical and economic foundation," said Aart de Geus, chairman and co chief executive officer of Synopsys. "During the year, we made very good progress with our design and verification products, delivered strong results in IP, and further scaled our software integrity solutions, including the acquisitions of Cigital and Codiscope, which closed today. To drive long-term shareholder value, we also continue to successfully balance our investment priorities, including $400 million in share repurchases during fiscal year 2016."
For financial year 2017, Synopsys, Inc. projects revenue to be in the range of $2,570 million to $2,600 million. It forecasts diluted earnings per share to be in the range of $1.92 to $2.06. It forecasts diluted earnings per share to be in the range of $3.16 to $3.23 on adjusted basis for the same period.
For the first-quarter, Synopsys, Inc. projects revenue to be in the range of $630 million to $645 million. It forecasts diluted earnings per share to be in the range of $0.43 to $0.50. It forecasts diluted earnings per share to be in the range of $0.77 to $0.80 on an adjusted basis for the same period.
Operating cash flow improves
Synopsys, Inc. has generated cash of $586.64 million from operating activities during the year, up 18.47 percent or $91.47 million, when compared with the last year.
The company has spent $142.68 million cash to meet investing activities during the year as against cash outgo of $559.63 million in the last year.
The company has spent $306.94 million cash to carry out financing activities during the year as against cash outgo of $62.07 million in the last year period.
Cash and cash equivalents stood at $976.62 million as on Oct. 31, 2016, up 16.79 percent or $140.43 million from $836.19 million on Oct. 31, 2015.
Debt remains stable
Total debt remained stable at $205 million as on Oct. 31, 2016, when compared with the last year. Short-term debt remained stable at $205 million as on Oct. 31, 2016, when compared with the last year. Total debt was 3.91 percent of total assets as on Oct. 31, 2016, compared with 4.06 percent on Oct. 31, 2015. Debt to equity ratio was almost stable at 0.06 as on Oct. 31, 2016, when compared with the last year.
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