Synplicity�, Inc. (Nasdaq:SYNP), a leading supplier of innovative
IC design and verification solutions, today announced financial
results for the quarter ended March 31, 2008. Revenue for the
quarter ended March 31, 2008 was $18.6 million, compared to $14.9
million for the quarter ended March 31, 2007. On a generally
accepted accounting principles (GAAP) basis, net loss was $1.9
million, or $(0.07) per diluted share for the quarter ended March
31, 2008 compared to a net income of $654,000, or $0.02 per diluted
share for the quarter ended March 31, 2007. For the quarter ended
March 31, 2008, GAAP net loss included $1.4 million in expenses
related to the pending merger of Synplicity and Synopsys, Inc.,
$849,000 in amortization of intangible assets and $809,000 of
stock-based compensation expense. For the quarter ended March 31,
2007, GAAP net income included $248,000 in amortization of
intangible assets and $879,000 of stock-based compensation expense.
�We are pleased to report that revenue in the first quarter of 2008
came in ahead of our expectations,� said Gary Meyers, president and
CEO of Synplicity. �Our ConfirmaTM product line for ASIC
verification again showed substantial year over year revenue
growth. Our unique combination of hardware, software and global
support organization is driving market share gains in this
important segment,� concluded Meyers. On March 20, 2008, Synplicity
and Synopsys announced that the companies had signed a definitive
merger agreement for Synplicity to be acquired by Synopsys. The
closing of the merger is subject to the satisfaction of certain
conditions, including the approval of Synplicity�s shareholders and
other regulatory approvals, including HSR approval. 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. The
Company will discuss its first quarter 2008 results. Following
completion of the call, a rebroadcast of the webcast will be
available at http://investor.synplicity.com through June 30, 2008.
For those without access to the Internet, a replay of the call will
be available from 5:00 p.m. Pacific on April 22, 2008 through May
6, 2008. To listen to a replay, call (719) 457-0820, access code
1479317. Business Outlook In light of the pending acquisition of
Synplicity by Synopsys, Synplicity is withdrawing its 2008 business
outlook and will not be providing a business outlook for the second
quarter of 2008. About Synplicity Synplicity�, Inc. (Nasdaq: SYNP)
is a leading supplier of innovative software and hardware solutions
for the design and verification of semiconductors that serve a wide
range of communications, military/aerospace, consumer,
semiconductor, computer, and other electronic systems markets.
Synplicity's FPGA implementation tools provide outstanding
performance, cost and time-to-market benefits by simplifying,
improving and automating design planning, logic synthesis and
physical synthesis for FPGA and DSP designs. The combination of the
company's ASIC verification and FPGA-based prototyping software
tools and HAPS ASIC prototyping hardware, provide designers with a
comprehensive at-speed ASIC / ASSP verification flow known as the
ConfirmaTM platform which dramatically accelerates functional
verification of FPGAs and ASICs. Synplicity is the number one
supplier of FPGA synthesis tools and its physical synthesis and
ASIC verification technology are the recipients of several
prestigious industry awards. Synplicity products support
industry-standard design languages (VHDL and Verilog) and run on
popular platforms. The company operates in over 20 facilities
worldwide and is headquartered in Sunnyvale, California. For more
information visit http://www.synplicity.com. Forward-Looking
Statements This press release contains forward-looking statements
that involve risks and uncertainties concerning Synopsys� proposed
acquisition of Synplicity and the acceptance of the Confirma
platform. Actual events or results may differ materially from those
described in this document due to a number of risks and
uncertainties. The potential risks and uncertainties include, among
others, the possibility that the transaction will not close, that
the closing may be delayed or that the companies may be required to
modify aspects of the transaction to obtain regulatory approval, as
well as lack of customer acceptance of the Confirma platform.
Neither Synopsys nor Synplicity undertakes any obligation to update
these forward-looking statements to reflect events or circumstances
after the date of this document. Additional Information On April
17, 2008, Synplicity filed a definitive proxy statement filed with
the Securities and Exchange Commission (the �SEC�) regarding the
proposed acquisition of Synplicity by Synopsys. Investors and
security holders of Synplicity are urged to read the definitive
proxy statement and any other relevant materials filed by Synopsys
or Synplicity with the SEC because they contain, or will contain,
important information about Synopsys, Synplicity and the proposed
acquisition. The definitive proxy statement has been mailed to the
security holders of Synplicity. The definitive proxy statement and
other relevant materials (when they become available), and any
other documents filed by Synopsys or Synplicity with the SEC, may
be obtained free of charge at the SEC�s web site at www.sec.gov. In
addition, investors and security holders may obtain free copies of
the documents filed with the SEC by Synopsys by contacting Synopsys
Investor Relations, 700 East Middlefield Road, Mountain View,
California, 94043, (650) 584-5000. Investors and security holders
may obtain free copies of the documents filed with the SEC by
Synplicity by contacting Synplicity Investor Relations, 600 W.
California Avenue, Sunnyvale, California, 94086, (408) 215-6000.
Synplicity and its officers and directors may be deemed to be
participants in the solicitation of proxies from Synplicity�s
shareholders with respect to the merger. A description of any
interests that these officers and directors have in the merger will
be available in the proxy statement. Additional, information
concerning Synplicity�s directors and executive officers is set
forth Synplicity�s Amendment No.1 to Annual Report on Form 10-K,
which was filed with the SEC on April 4, 2008. These documents are
available free of charge at the SEC�s web site at www.sec.gov or by
going to Synplicity�s Investor Relations page on its corporate
website at www.synplicity.com. Synplicity is a registered trademark
of Synplicity, Inc. All other brands or products are the trademarks
or registered trademarks of their owners. SYNPLICITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) � � March 31,
� December 31, � 2008 � 2007(1) � Assets: (unaudited) Current
assets: Cash and cash equivalents and short-term investments $
47,269 $ 42,991 Restricted cash 2,700 2,700 Accounts receivable,
net 12,037 15,513 Inventories 3,354 1,308 Prepaid expenses 2,471
1,807 Other current assets 823 724 Short-term deferred tax assets �
3,872 � 2,701 � Total current assets 72,526 67,744 Restricted cash
2,700 2,700 Property and equipment, net 3,652 3,206 Goodwill 9,098
9,098 Intangible assets, net 9,340 10,189 Other assets 1,370 1,340
Long-term deferred tax assets � 7,136 � 7,073 � Total assets $
105,822 $ 101,350 � � Liabilities and Shareholders� Equity: Current
liabilities: Accounts payable $ 5,225 $ 2,067 Accrued liabilities
2,732 1,715 Accrued compensation 4,926 5,258 Deferred revenue
19,061 18,616 Short-term other liabilities 99 36 Short-term
deferred income taxes � 1,614 � 922 � Total current liabilities
33,657 28,614 Long-term other liabilities 279 427 Long-term
deferred income taxes 1,558 2,317 Shareholders' equity: Common
stock 63,011 61,320 Retained earnings 6,981 8,837 Accumulated other
comprehensive loss � 336 � (165 ) Total shareholders� equity �
70,328 � 69,992 � Total liabilities and shareholders� equity �
105,822 $ 101,350 � � (1) Derived from audited financial
statements. SYNPLICITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (in thousands, except per share data) (unaudited) � �
Three Months Ended March 31, � 2008 � � � 2007 Revenue: License and
systems $ 8,115 $ 3,884 Maintenance 7,159 6,617 Bundled license and
services � 3,316 � � 4,398 Total revenue 18,590 14,899 Cost of
revenue:(2) Cost of license and systems 1,310 30 Cost of
maintenance 501 382 Cost of bundled license and services 46 95
Amortization of intangible assets � 550 � � 248 Total cost of
revenue � 2,407 � � 755 Gross profit 16,183 14,144 Operating
expenses:(2) Research and development 6,899 5,795 Sales and
marketing 7,434 6,213 General and administrative 2,332 2,059
Amortization of intangible assets 299 - Costs related to pending
acquisition � 1,419 � � - Total operating expenses � 18,383 � �
14,067 Income (loss) from operations (2,200 ) 77 Other income, net
� 122 � � 885 Income (loss) before income taxes (2,078 ) 962 Income
tax provision (benefit) � (222 ) � 308 Net income (loss) $ (1,856 )
$ 654 Net income (loss) per share: Basic and diluted net income
(loss) per share $ (0.07 ) $ 0.02 Shares used in basic per share
calculation � 26,442 � � 26,720 Shares used in diluted per share
calculation � 26,442 � � 27,719 � (2) Amortization of stock-based
compensation expense relates to the following: Three Months Ended
March 31, Cost of maintenance $ 28 $ 23 Research and development
344 394 Sales and marketing 224 233 General and administrative 213
229
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