Synopsys 1st-Qtr Net Rises; 2nd-Qtr May Lag Forecasts (Update3)
By Ashley Gross
quote.bloomberg.com
Mountain View, California, Feb. 20 (Bloomberg) -- Synopsys Inc., a maker of semiconductor-design software, said fiscal first- quarter earnings rose 48 percent, meeting analysts' lowered estimates, and second-quarter profit may fall short of forecasts.
Net income rose to $14.1 million, or 22 cents a share, in the quarter ended Feb. 2 from $9.5 million, or 15 cents, in the year- earlier quarter, Synopsys said in a statement. Sales rose 12 percent to $175.5 million from $157.2 million.
Semiconductor companies last year fell into the industry's worst slump ever, leading them to spend less on research and development, including chip-design software made by Synopsys and larger rival Cadence Design Systems Inc. In December, Synopsys reduced its earnings forecast for the year ending in October.
``The semiconductor market is clearly still going through a tough time,'' said Garo Toomajanian, an analyst at RBC Capital Markets, who has a ``sector outperform'' rating on Synopsys and doesn't own the shares. ``People were really optimistic when 2002 hit that things were going to magically get better.''
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