Synopsys 3Q results beat Wall Street estimates

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MOUNTAIN VIEW, Calif. (AP) — Synopsys Inc., which makes software used to test and develop chips, said Wednesday that its net income in the latest quarter increased 33 percent and beat Wall Street’s estimates.

The company reported net income of $52 million, or 35 cents per share, for the three months ended July 31, the fiscal third quarter. That compares with net income of $39 million, or 26 cents per share, a year earlier.

Excluding special items, the company earned 46 cents per share for the latest quarter. Wall Street on average had expected Synopsys to earn 43 cents per share excluding special items.

Synopsys had $387 million in revenue in the latest quarter, a 15 percent increase from $337 million a year ago. That was slightly above the $383 million expected by analysts polled by FactSet.

Synopsys Chairman and CEO Aart de Geus said semiconductor design activity is continuing unabated, driven by demand for mobile devices, Internet-based computing services and electronics components in many products.

Synopsys said it is projecting revenue of $386 million to $392 million in the current quarter. That is higher than the $383 million that analysts were expecting. The company forecast earnings of 44 cents to 46 cents per share excluding special items — above analysts’ expectations of 43 cents a share.

For the full fiscal year, the company is expecting revenue of $1.53 billion to $1.54 billion and earnings of $1.79 to $1.81 per share excluding items. Analysts were expecting $1.75 a share on revenue of $1.52 billion.