Synopsys: 50% Upside In Sight
Tue, May 24, 12:28 PM
- Synopsys (SNPS +2.6%) has struck a $125M accelerated buyback deal with JPMorgan. The company will receive initial delivery of 2M shares (1.3% of outstanding shares).
- Synopsys is within $2 of a 52-week high of $52.78. Shares moved higher last week after an FQ2 beat, and added to their gains following rival Mentor Graphics' earnings.
Fri, May 20, 1:32 PM
- After plummeting in November following its FQ3 report (weak results/guidance) and declining in March after its FQ4 report (results beat, but guidance was mixed), Mentor Graphics (MENT +7.3%) is faring much better today after beating FQ1 estimates and issuing solid guidance.
- The chip design hardware/software firm expects FQ2 revenue of $245M and EPS of $0.09 vs. a consensus of $236.4M and $0.09. It's affirming FY17 (ends Jan. '17) guidance for revenue of $1..215B, EPS of $1.68, and op. cash flow of $200M.
- Revenue was still down 16% Y/Y in FQ1, and Mentor notes "weakness in semiconductor-related activity" (caused in part by R&D spending cuts that have followed industry M&A) remained. On the flip side, bookings for automotive customers (have benefited from growing chip/electronics content within cars) hit a new record.
- System/software revenue fell 32% Y/Y to $106.7M, while service/support revenue (fueled by part system/software sales) rose 4% to $120.9M. Non-GAAP operating expenses rose by a modest $500K to $182.5M. Mentor ended FQ1 with $216M in cash and $273M in debt.
- EDA hardware/software peers Cadence (CDNS +2.7%) and Synopsys (SNPS +2.4%) are also outperforming - Synopsys posted an FQ2 beat on Wednesday afternoon. The Nasdaq is up 1.2%.
- Mentor's FQ1 results, earnings release
Wed, May 18, 4:06 PM
Tue, May 17, 5:35 PM
Thu, Mar. 10, 5:27 PM
- A Northern California federal jury has ruled private EDA software firm ATopTech infringed Synopsys (NASDAQ:SNPS) copyrights related to the company's PrimeTime timing analysis software, and awarded $30.4M in damages.
- Synopsys sued ATopTech in 2013, accusing the company of using elements of PrimeTime's commands within its Aprisa software. Last year, Synopsys lost a legal battle related to its ZeBu emulation systems and software to rival Mentor Graphics.
Wed, Feb. 17, 4:10 PM
Tue, Feb. 16, 5:35 PM| Tue, Feb. 16, 5:35 PM
Dec. 2, 2015, 6:37 PM
- Though Synopsys (NASDAQ:SNPS) beat FQ4 estimates, it's guiding for FQ1 revenue of $560M-$575M and EPS of $0.60-$0.63, mostly below a consensus of $573.2M and $0.73.
- FY16 (ends Oct. '16) guidance is better: Revenue of $2.35B-$2.39B and EPS of $2.93-$3.00 vs. a consensus of $2.38B and $2.97. FY16 op. cash flow is expected to be "at least" $500M.
- The EDA systems/software firm notes it's dealing with a "somewhat challenging semiconductor industry backdrop." Peer Mentor Graphics recently stated (while posting an FQ3 miss and issuing soft FQ4 guidance) chip industry consolidation was weighing on demand.
- Shares have dropped to $48.80 after hours.
- FQ4 results, PR
Dec. 2, 2015, 4:13 PM
- Synopsys (NASDAQ:SNPS): FQ4 EPS of $0.67 beats by $0.01.
- Revenue of $587.2M (+8.9% Y/Y) beats by $10.07M.
- Shares +0.6%.
Dec. 1, 2015, 5:35 PM
Nov. 19, 2015, 5:41 PM
- In addition to missing FQ3 estimates, Mentor Graphics (NASDAQ:MENT) has guided for FQ4 revenue of $336M and EPS of $0.47, well below a consensus of $439.3M and $0.97.
- Notably, the EDA hardware/software vendor states the chip industry's massive M&A wave is "having an adverse impact on our ability to close business," as are delays in buying decisions for Mentor's Veloce emulation systems.
- System/software revenue fell 5% Y/Y in FQ3 to $168.7M, while service/support revenue (more stable) rose 6% to $121.8M. Non-GAAP operating expenses rose 3% Y/Y to $201.4M.
- Mentor has plunged to $21.49 after hours. EDA peers are also lower: Cadence (NASDAQ:CDNS) is down 7.7% to $21.35, and Synopsys (NASDAQ:SNPS) is down 2.6% to $51.17.
- Mentor's FQ3 miss, PR
Sep. 1, 2015, 4:27 PM
- Five days after announcing a $100M accelerated buyback (ASR) and 9 months after launching a $180M ASR, Synopsys (NASDAQ:SNPS) has hiked its buyback authorization to $500M. The EDA software vendor did something similar in Dec. 2013.
- At current levels, Synopsys' authorization is good for repurchasing 7% of outstanding shares.
Aug. 19, 2015, 4:09 PM
- Synopsys (NASDAQ:SNPS): FQ3 EPS of $0.63 beats by $0.04.
- Revenue of $555.8M (+6.5% Y/Y) in-line.
Aug. 18, 2015, 5:35 PM
Jul. 17, 2015, 1:50 PM
- Synopsys (SNPS -0.6%) has acquired chip IP related to the low-power Bluetooth Smart protocol (expected to be used by many embedded/wearable devices) from private IP developer Silicon Vision. Terms are undisclosed.
- Synopsys states the deal will strengthen its DesignWare chip IP portfolio, particularly in terms of servicing chipmakers looking to include Bluetooth support within SoCs going into IoT devices.
- In late June, Synopsys announced the purchase of security IP provider Elliptic Technologies.
Jun. 30, 2015, 2:10 PM
- Elliptic Technologies provides cryptography cores and middleware, security protocol accelerators/processors, security IP modules, and other security-related IP for chipmakers and electronics firms. Synopsys (SNPS +1.5%) is buying the company for an undisclosed sum.
- Synopsys states Elliptic's offerings will complement its DesignWare chip IP portfolio. The deal follows the acquisition of Codenomicon, a Finnish provider of software tools that help developers uncover/fix security issues.
Synopsys, Inc. engages in the provision of software products and consulting services in the electronic design automation industry. It provides intellectual property products, which are pre-designed circuits that engineers use as components of larger chip designs, as well as software and hardware... More
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