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.
