Synopsys overtakes Cadence for EDA's top spot
By Michael Santarini
EE Times
May 21, 2003 (6:19 p.m. EST)
SAN MATEO, Calif. — Roughly one year after acquiring Avanti Corp., Synopsys Inc. has surpassed Cadence Design Systems Inc. as the EDA industry's revenue leader. But the lead won't last long, according to Cadence.
Synopsys reported record revenue on Wednesday (May 21) of $292 million for its fiscal second quarter ending May 3,2003. In terms of earnings before goodwill (EBG), Synopsys reported a gain of $0.80 per share, topping its projected per share EBG of $0.67-$0.72 and topping Wall Street expectations of $0.70.
Synopsys said its $292 million revenue total represented a 57- percent increase over the same period last year. EBG was $61.2 million, a 144 percent increase over EBG net income of $25.1 million the second quarter last year.
However, the increases were similar to Synopsys revenues and earnings last year before it added Avanti's earnings and revenues.
Synopsys topped Cadence's first calendar quarter 2003 revenues of $252 million. As a result, Synopsys claimed the revenue lead from Cadence, which has only yielded the top spot once in the last decade.
In early 1999, Cadence announced a drastic change in its licensing model and a drop in design services, which for one quarter gave Synopsys the product revenue lead, but not overall revenues lead.
Once again, Synopsys has only a temporary lead, said Ray Bingham, Cadence president and CEO. "As we've stated before, we're experiencing a temporary reduction in revenues due to our license model transition," Bingham said. "We are building significant backlog, and we remain confident in our role as market leader."
"Despite a tough economic backdrop, our second quarter was the largest orders quarter in Synopsys' history," Aart de Geus, Synopsys chairman and chief executive, said in a statement. "We are pleased with the company's current momentum and look forward to achieving strong financial results during the remainder of fiscal 2003."
During a conference call with analysts, De Geus said Synopsys is seeing greater success in place and route, verification and test bookings and sales. The bulk of sales have come from customers transitioning from Apollo to the Astro place-and- route products.
Synopsys also said it expects third quarter revenue to range from $288 million to $303 million and per-share earnings of between $0.77 and $0.82. It expects perpetual licensing to represent 20 to 25 percent of bookings.
For fiscal 2003, the company said it expects revenues between $1.13 billion and $1.18 billion, earnings per share of $2.95 to $3.10 with perpetual licensing representing 20 to 25 percent of bookings. |
