Synplicity (MM) (NASDAQ:SYNP)
Historical Stock Chart
From Jul 2019 to Jul 2024
Synplicity®, Inc. (Nasdaq:SYNP), a leading
supplier of innovative IC design and verification solutions, today
announced financial results for the quarter and year ended December 31,
2007.
Revenue for the quarter ended December 31, 2007 grew by 23% to $20.1
million, from the $16.4 million reported for the quarter ended December
31, 2006. On a generally accepted accounting principles (GAAP) basis,
net income was $10.3 million, or $0.38 per diluted share, for the
quarter ended December 31, 2007. GAAP net income included a benefit of
$9.4 million, or $0.34 per diluted share, related to the recognition of
deferred tax assets in accordance with the accounting rules specified in
SFAS 109. Excluding the benefit from the deferred tax assets, net income
was $936,000, or $0.04 per diluted share in the quarter ended December
31, 2007. For the quarter ended December 31, 2006, GAAP net income was
$1.6 million, or $0.06 per diluted share. For the quarter ended December
31, 2007, GAAP net income included $879,000 of amortization of
intangible assets, principally from the June 2007 acquisition of HARDI,
and $802,000 of stock-based compensation expense. For the quarter ended
December 31, 2006, GAAP net income included $248,000 of amortization of
intangible assets and $791,000 of stock-based compensation expense.
Non-GAAP net income for the quarter ended December 31, 2007, which
excludes the deferred tax asset benefit, intangible asset amortization
expense and stock-based compensation expense was $2.6 million, or $0.10
per diluted share. For the comparable quarter in 2006, non-GAAP net
income, excluding intangible amortization expense and stock-based
compensation expense was $2.6 million, or $0.10 per diluted share. A
reconciliation of GAAP to non-GAAP net income is included with this
press release.
For the year ended December 31, 2007, revenue grew by 14% to $71.2
million from the $62.5 million reported for the year ended December 31,
2006. On a GAAP basis, net income was $13.1 million, or $0.47 per
diluted share, in 2007. The 2007 results include the benefit of $9.4
million, or $0.34 per diluted share related to the recognition of
deferred tax assets noted above. Excluding the benefit of the deferred
tax assets, net income was $3.6 million, or $0.13 per diluted share in
2007. For the year ended December 31, 2006, GAAP net income was $3.2
million, or $0.11 per diluted share. For the year ended December 31,
2007, GAAP net income included $2.5 million of amortization of
intangible assets, principally from the June 2007 acquisition of HARDI,
and $3.2 million of stock-based compensation expense. For the year ended
December 31, 2006, GAAP net income included $916,000 of amortization of
intangible assets, $3.6 million of stock-based compensation expense and
a restructuring charge of $854,000. Non-GAAP net income for 2007, which
excludes the deferred tax asset benefit, intangible asset amortization
expense and stock-based compensation expense was $9.4 million, or $0.34
per diluted share. For 2006, non-GAAP net income, excluding intangible
amortization expense, stock-based compensation expense and a
restructuring charge, was $8.6 million, or $0.31 per diluted share.
“I am pleased to report outstanding bookings
and revenue growth in each of our three product categories in the fourth
quarter of 2007 compared to a year ago,” said
Gary Meyers, president and chief executive officer. “Our
ASIC verification solution, ConfirmaTM, which
integrates our software with the HAPS hardware acquired through our
acquisition of Hardi in June 2007, presents us with the largest market
opportunity in our history. In addition, our FPGA synthesis line
continues to gain share and revenue from our ESL products is growing at
nearly a 50% rate, with a more than doubling of bookings in 2007. We are
in the process of introducing enhancements across our product line,
providing us with the prospects for another solid year in 2008.”
Business Outlook
The following statements are based on Synplicity’s
current expectations. We do not intend to update, confirm or change this
guidance until our first quarter 2008 earnings conference call.
For the quarter ending March 31, 2008:
Revenue is expected to be in the range of $17.5 million to $18.5
million.
GAAP net income per share is expected to be in the range of $0.00 to
$0.02 per diluted share. GAAP net income is expected to include
$811,000 of stock-based compensation expense and $850,000 of
intangible assets amortization.
For the year ending December 31, 2008:
Revenue is expected to be in the range of $80.0 million to $83.0
million.
GAAP net income per share is expected to be in the range of $0.13 to
$0.19 per diluted share. GAAP net income is expected to include $3.2
million of stock-based compensation expense and $3.4 million of
intangible assets amortization.
The income tax provision for 2008 is expected to be about 30% of
pretax GAAP income.
Audio Webcast
The Company’s earnings call will be webcast on
February 5, 2008 at 2:00 p.m. Pacific, and may be accessed at http://investor.synplicity.com.
The Company will discuss the fourth quarter and full year 2007 results.
Following completion of the call, a rebroadcast of the webcast will be
available at http://investor.synplicity.com through March 31, 2008. For
those without access to the Internet, a replay of the call will be
available from 5:00 p.m. Pacific on February 5, 2008 through February
18, 2008. To listen to a replay, call (719) 457-0820, access code
4360504.
Use of Non-GAAP Financial Measures
This press release includes financial measures for net income and net
income per share that exclude certain non-cash and other charges and
that have not been calculated in accordance with GAAP. These measures
differ from GAAP in that they exclude a tax benefit from the recognition
of deferred tax assets in 2007, amortization of intangible assets,
stock-based compensation and, in 2006, a restructuring charge. The
Company has provided these measurements in addition to GAAP financial
results because it believes they provide a consistent basis for
comparison between quarters and years that is not influenced by other
activities and therefore are helpful to understanding the Company’s
underlying operational results. Further, these non-GAAP measures are
some of the primary measures the Company’s
management uses for planning and forecasting. These measures should not
be considered an alternative to GAAP and these non-GAAP measures may not
be comparable to information provided by other companies.
About Synplicity
Synplicity®, Inc. (Nasdaq: SYNP) is a leading
supplier of innovative software and hardware solutions for the design
and verification of semiconductors that serve a wide range of
communications, military/aerospace, consumer, semiconductor, computer,
and other electronic systems markets. Synplicity's FPGA implementation
tools provide outstanding performance, cost and time-to-market benefits
by simplifying, improving and automating design planning, logic
synthesis and physical synthesis for FPGA and DSP designs. The
combination of the company's ASIC verification and FPGA-based
prototyping software tools and HAPS ASIC prototyping hardware, provide
designers with a comprehensive at-speed ASIC / ASSP verification flow
known as the ConfirmaTM platform which
dramatically accelerates functional verification of FPGAs and ASICs.
Synplicity is the number one supplier of FPGA synthesis tools and its
physical synthesis and ASIC verification technology are the recipients
of several prestigious industry awards. Synplicity products support
industry-standard design languages (VHDL and Verilog) and run on popular
platforms. The company operates in over 20 facilities worldwide and is
headquartered in Sunnyvale, California. For more information visit http://www.synplicity.com.
Forward-Looking Statements
This press release contains forward-looking statements including, but
not limited to, statements regarding the Company’s
FPGA market focus and development of products, growth in revenue, the
Company’s execution and results, estimated
net income, net income per share, non-GAAP operating expenses, the
effective tax rate and certain expenses for 2008. These statements
relate to future events and involve known and unknown risks,
uncertainties and other factors that may cause Synplicity’s
actual financial results, levels of activity, performance or
achievements to differ materially from those expressed or implied by the
forward-looking statements including the finalization of the 2007 audit
of its financial statements, continued demand for Synplicity’s
FPGA products, Synplicity’s ability to
increase revenue from its FPGA products, the integration of HARDI and
its products as well as employee retention. For additional information
and considerations regarding the risks faced by Synplicity, see its
annual report on Form 10-K for the year ended December 31, 2006, as
filed with the Securities and Exchange Commission, as well as other
periodic reports filed with the SEC from time to time. Although
Synplicity believes that the expectations reflected in the
forward-looking statements are reasonable, Synplicity cannot guarantee
future results, levels of activity, performance or achievements. In
addition, neither Synplicity nor any other person assumes responsibility
for the accuracy or completeness of these forward-looking statements.
Synplicity disclaims any obligation to update information contained in
any forward-looking statement.
Synplicity and HAPS are registered trademarks of Synplicity, Inc. All
other brands or products are the trademarks or registered trademarks of
their owners.
SYNPLICITY, INC.CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
December 31,
2007
2006 (1)
(unaudited)
Assets:
Current assets:
Cash and cash equivalents and short-term investments
$
42,991
$
65,397
Restricted cash
2,700
-
Accounts receivable, net
15,513
10,323
Inventories
1,377
-
Prepaid expenses
1,807
1,233
Other current assets
3,406
914
Total current assets
67,794
77,867
Restricted cash
2,700
-
Property and equipment, net
3,206
2,472
Goodwill
8,692
1,272
Intangible assets, net
10,189
1,035
Other assets
8,333
1,163
Total assets
$
100,914
$
83,809
Liabilities and Shareholders’ Equity:
Current liabilities:
Accounts payable
$
2,081
$
1,299
Accrued liabilities
1,714
1,537
Accrued compensation
5,258
4,360
Deferred revenue
18,616
18,409
Total current liabilities
27,669
25,605
Other liabilities
351
89
Deferred income taxes
2,902
-
Shareholders' equity:
Common stock
61,320
62,699
Retained earnings (accumulated deficit)
8,837
(4,255
)
Accumulated other comprehensive loss
(165
)
(329
)
Total shareholders’ equity
69,992
58,115
Total liabilities and shareholders’
equity
$
100,914
$
83,809
(1) Derived from audited financial
statements
SYNPLICITY, INC.CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2007
2006
2007
2006
Revenue:
License and systems
$
8,966
$
5,349
$
26,148
$
17,867
Maintenance
7,417
6,871
27,994
27,192
Bundled license and services
3,690
4,197
17,024
17,484
Total revenue
20,073
16,417
71,166
62,543
Cost of revenue:(2)
Cost of license and systems
1,229
38
2,672
153
Cost of maintenance
450
362
1,695
1,641
Cost of bundled license and services
75
163
364
457
Amortization of intangible assets
581
248
1,847
916
Total cost of revenue
2,335
811
6,578
3,167
Gross profit
17,738
15,606
64,588
59,376
Operating expenses:(2)
Research and development
6,536
5,266
24,797
23,386
Sales and marketing
7,781
6,818
27,638
25,412
General and administrative
2,183
2,142
8,642
8,073
Amortization of intangible assets from acquisition
298
-
669
-
Restructuring charge
-
-
-
854
Total operating expenses
16,798
14,226
61,746
57,725
Income from operations
940
1,380
2,842
1,651
Other income, net
392
810
2,417
2,728
Income before income taxes
1,332
2,190
5,259
4,379
Income tax provision (benefit)
(9,014
)
596
(7,833
)
1,204
Net income
$
10,346
$
1,594
$
13,092
$
3,175
Net income per share:
Basic and diluted net income per share
$
0.39
$
0.06
$
0.49
$
0.12
Shares used in basic per share calculation
26,493
26,851
26,684
26,902
Diluted net income per share
$
0.38
$
0.06
$
0.47
$
0.11
Shares used in diluted per share calculation
27,319
27,839
27,607
27,793
(2) Amortization of stock-based
compensation expense relates to the following:
Three Months Ended
Year Ended
December 31,
December 31,
2007
2006
2007
2006
Cost of maintenance
$
24
$
21
$
88
$
106
Research and development
348
318
1,410
1,630
Sales and marketing
217
218
879
956
General and administrative
213
234
865
941
SYNPLICITY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in thousands, except per share data)
(unaudited)
Net Income
Three Months Ended
Year Ended
December 31,
December 31,
2007
2006
2007
2006
GAAP net income
$
10,346
$
1,594
$
13,092
$
3,175
Amortization of intangible assets
879
248
2,516
916
Stock-based compensation expense
802
791
3,242
3,633
Deferred tax benefit
(9,410
)
-
(9,410
)
-
Restructuring charge
-
-
-
854
Non-GAAP net income
$
2,617
$
2,633
$
9,440
$
8,578
Non-GAAP net income per share:
Non-GAAP net income per common share
$
0.10
$
0.09
$
0.34
$
0.31
Shares used in non-GAAP per share calculation
27,319
27,839
27,607
27,793