Semiconductor Value Chain

EDA Leader Synopsys Posts Solid Quarterly Growth

21 August 2013

Synopsys, Inc. an electronic design automation provider, intellectual property and services reported third quarter fiscal year 2013 revenue of $482.9 million, up from $443.7 million for the same period a year ago, an increase of 8.8 percent.

"Synopsys continues to demonstrate broad strength and innovation in technology and customer relationships, as well as excellent execution and financial results," said Aart de Geus, chairman and co-CEO of Synopsys.

For the fourth quarter 2013, Synopsys is targeting revenues of $500 million to $510 million and full fiscal year 2013 revenue of between $1.957 billion and $1.967 billion. Synopsys’ fiscal 2012 annual revenue was $1.76 billion.

In its reporting Synopsys warned of a number of uncertainties ahead, including:

  • Uncertainty about the health of the global economy and its potential impact on the semiconductor and electronics industries
  • Uncertainty about the growth of the semiconductor and electronics industry
  • Synopsys' ability to realize the potential financial or strategic benefits of acquisitions it completes, including the recent acquisitions of SpringSoft and EVE
  • Lower-than-anticipated new IC design starts

These are legitimate concerns as the EDA sector is positioned at the front of semiconductor food chain and its fortunes are highly dependent on future chip demand. Nevertheless, EDA industry revenue increased 8.1 percent from the first quarter of last year to $1.67 billion, according to EDA Consortium.

In recent financial news, the other two “big three” EDA companies— Cadence Design Systems and Mentor Graphics—also reported positive results.

Cadence in June reported second quarter 2013 revenue of $362 million, compared to revenue of $326 million reported for the same period in 2012. For the third quarter of 2013, the company expects total revenue in the range of $360 million to $370 million. And for 2013, the company expects total revenue in the range of $1.445 billion to $1.465 billion.

Mentor Graphics, reported record revenues of $1.089 billion for fiscal 2013, a growth rate of 7 percent over fiscal 2012.

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