Synopsys Results Top Estimate; Details Weak Q4 Outlook - Update

(RTTNews) - Synopsys Inc (SNPS), Wednesday reported an increase in third-quarter profit, helped mainly by an 8 percent increase in revenue.

Synopsys detailed a weak outlook for the fourth quarter. For 2014, the company lifted the lower end of its adjusted earnings outlook, but tightened the revenue range.

"Synopsys delivered an excellent fiscal third quarter, solidifying the year's financial outlook," said CEO Aart de Geus. "We shipped game-changing new products that are generating intense customer interest and high-impact results."

Synopsys provides software, IP and services used to accelerate innovation in chips and electronic systems.

Synopsys, based in Mountain View, California, posted quarterly net earnings of $65.7 million or $0.42 per share, compared with $52.3 million or $0.33 per share last year.

Excluding items, adjusted earnings for the quarter were $0.65 per share, compared with $0.55 per share in the prior year.

On average, eight analysts polled by Thomson Reuters expected earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the third quarter rose to $521.8 million from $482.9 million a year ago. Analysts anticipated revenues of $521 million for the quarter.

For the fourth quarter, Synopsys expect adjusted earnings of $0.59 to $0.61 per share and revenue of $537 million to $547 million. Analysts currently expect earnings of $0.63 per share on revenues of $547 million for the quarter.

For fiscal year 2014, Synopsys now projects adjusted earnings of $2.48 to $2.50 per share and revenue of $2.055 billion to $2.065 billion. The company had earlier targeted adjusted earnings of $2.45 to $2.50 per share and revenue of $2.05 billion to $2.08 billion.

Synopsys stock closed Wednesday at $39.30, up $0.20 or 0.51%, on a volume of 488k shares on the Nasdaq. In after hours, the stock gained $0.10 or 0.25%.