CIMdata PLM Industry Summary Online Archive
1 August 2007
Financial News
Synplicity Announces Second Quarter 2007 Results; HARDI Electronics AB Acquisition Closed in June
Synplicity, Inc. announced financial results for the quarter ended June 30, 2007. Results included the acquisition of HARDI Electronics, AB from June 8 through June 30, 2007.
Revenue for the quarter ended June 30, 2007 was $16.8 million. This compares to the $15.4 million of revenue reported for the quarter ended June 30, 2006. On a generally accepted accounting principles (GAAP) basis, net income was $641,000, or $0.02 per diluted share, for the quarter ended June 30, 2007, as compared to a GAAP net income of $1.1 million, or $0.04 per diluted share, for the quarter ended June 30, 2006. For the quarter ended June 30, 2007, GAAP net income included non-cash charges of $430,000 of intangible amortization expense from acquisitions and $814,000 of stock-based compensation expense. In addition, the 2007 quarter included expenses associated with the sale of HARDI products, HARDI personnel costs and expenses related to a combination of non-recurring charges and the costs of the DAC tradeshow which occurred in the June quarter of 2007 but in the September quarter of 2006. For the quarter ended June 30, 2006, GAAP net income included $222,000 of intangible amortization expense from acquisitions and $935,000 of stock-based compensation expense.
For the six months ended June 30, 2007, revenue was $31.7 million, compared to revenue of $29.9 million for the six months ended June 30, 2006. For the six months ended June 30, 2007, the Company reported GAAP net income of $1.3 million, or $0.05 per diluted share. Included in GAAP net income for the six month period ended June 30, 2007 were non-cash charges of $678,000 of intangible amortization expense from acquisitions and $1.7 million of stock-based compensation expense. For the six months ended June 30, 2006, the Company reported a GAAP net loss of $63,000, or $(0.00) per diluted share. The loss included $445,000 of intangible amortization expense from acquisitions, $1.9 million of stock-based compensation and a restructuring charge of $854,000.
"This was an exciting quarter for Synplicity as we completed the acquisition of HARDI Electronics, expanded our market share in FPGA implementation with strong Synplify Premier sales, introduced the ASIC edition of Synplify DSP, announced our Identify Pro product as part of our ConfirmaT platform for ASIC verification, and formed a new partnership with Synopsys, all while delivering solid revenue growth," said Gary Meyers, the Company's president and CEO. "The remainder of 2007 will see continued revenue growth and the rollout of new products paving the way for a strong 2008," concluded Meyers.
Business Outlook
The following statements are based on current expectations. This guidance reflects the acquisition of HARDI Electronics AB in June 2007. We do not intend to update, confirm or change this guidance until our earnings conference call for the third quarter of 2007.
Revenue for 2007 is expected to be in the range of $70.0 to $72.0 million, an increase from prior guidance.
GAAP net income per fully diluted share for 2007 is expected to be in the range of $0.13 to $0.15, reflecting the increase in intangible amortization expense resulting from the HARDI acquisition. GAAP net income is expected to include non-cash charges of approximately $3.5 million relating to stock compensation expense and $2.5 million of intangible amortization expense from acquisitions. Tax expense for 2007 is expected to be about 32% percent of pretax GAAP income.
Revenue for the third quarter of 2007 is expected to be in the range of $19.0 to $19.5 million.
GAAP net income per fully diluted share for the third quarter of 2007 is expected to be in the range of $0.03 to $0.05. GAAP net income for the quarter is expected to include non-cash charges of approximately $850,000 relating to stock-based compensation and $941,000 of amortization expense from acquisitions.
Audio Webcast
The Company's earnings call will be webcast today at 2:00 p.m. Pacific, and may be accessed at http://investor.synplicity.com/ . Following completion of the call, a rebroadcast of the webcast will be available at http://investor.synplicity.com/ through September 30, 2007. For those without access to the Internet, a replay of the call will be available from 5:00 p.m. Pacific on August 1, 2007 through August 15, 2007. To listen to a replay, call (719) 457-0820, access code 5178174.
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