CIMdata PLM Industry Summary Online Archive
4 January 2007
Financial News
Synplicity Announces Estimated Financial Results for 2006 and Preliminary Outlook for 2007
Synplicity, Inc. announced estimated financial results for the quarter and year ended December 31, 2006 and preliminary guidance for 2007. The Company is making this announcement today in anticipation of their attendance at the Needham Conference in New York City on January 9, 2007, the Sidoti conference in Palm Beach, Florida on January 16, 2007 and its issuance of a significant technology announcement on January 8, 2007.
Revenue for the December 31, 2006 quarter is estimated at approximately $16.4 million, below previously issued Company guidance, while revenue for the year 2006 is estimated at approximately $62.5 million. Revenue for Q4 2006 was negatively impacted due to some backlog not converting into Q4 revenue as expected, and by a modest number of delayed or reduced orders. The quarter and full year results will be discussed in detail during the Company's earnings conference call on February 1, 2007.
On a generally accepted accounting principles (GAAP) basis, net income is estimated at between $1.6 million, or $0.06 per diluted share and $1.9 million, or $0.07 per diluted share for the quarter ended December 31, 2006, and between $3.2 million, or $0.12 per diluted share and $3.5 million, or $0.13 per diluted share for the 2006 year. These estimates are within the range of previously announced guidance. For the quarter ended December 31, 2006, GAAP net income is expected to include $247 thousand in amortization of intangible assets and $950 thousand in stock-based compensation expense, resulting from implementation of SFAS123R as of January 1, 2006. For the year ended December 31, 2006, GAAP net income is expected to include $915 thousand in amortization of intangible assets, $3.8 million in stock-based compensation expense, and a restructuring charge, from Q1 2006, of $854 thousand. The tax provision for the 2006 year is projected to be approximately 28% of pretax GAAP income.
Technology Announcement
The Company also announced that a technology press release will be issued on January 8, 2007 describing its new TotalRecallT functionality. This breakthrough technology is expected to result in a new product offering later in 2007 and its impact has been incorporated into the Company's 2007 plan. More details will be provided by the Company during its earnings call on February 1, 2007.
Preliminary Outlook for 2007
The following statements are based on current expectations. We do not intend to update, confirm or change this guidance until our earnings conference call on February 1, 2007 at which time the Company will extend this outlook to include other financial measures for the 2007 year and for Q1 2007.
Revenue for 2007 is expected to be in the range of $65.0 million to $67.0 million. Non-ASIC tools revenue is expected to increase at a low double digit rate in 2007 over 2006, while ASIC synthesis tools revenue is expected to decline by approximately $3.5 million in 2007.
Non-GAAP operating income is expected to increase from approximately 12% of revenue in the year ended December 31, 2006 to between 14% and 15% of revenue in the year ended December 31, 2007.
Earnings Call
The Company's earnings call will be webcast on February 1, 2007 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 2006 results. Following completion of the call, a rebroadcast of the webcast will be available at http://investor.synplicity.com through March 31, 2007. For those without access to the Internet, a replay of the call will be available from 5:00 p.m. Pacific on February 1, 2007 through February 15, 2007. To listen to a replay, call (719) 457-0820, access code 1643708.
Financial Conferences
Gary Meyers, president and CEO, and John Hanlon, senior vice president and CFO, of Synplicity, Inc., will speak at the 9th Annual Needham and Company, LLC Growth Conference at the New York Palace Hotel in New York on Tuesday, January 9, 2007 and at Sidoti & Company LLC's Emerging Growth Institutional Investor Forum at the Ritz-Carlton, Palm Beach, Florida on Tuesday, January 16, 2007.
A webcast of the presentation will be available on the investor relations page of Synplicity's Web site at http://investor.synplicity.com/ . A replay of the presentation will be available for 30 days following the presentations.
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