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Synopsys Inc. shares rose in the extended session Wednesday after the chip-design verification and automation company topped Wall Street earnings expectations and named a new chief executive.
Synopsys
SNPS,
shares rose about 2% after hours, following a 2% decline in the regular session to close at $428.21. At Wednesday’s close, shares are up 34% year to date, compared with a 15% gain by the S&P 500 index
SPX.
Along with results, the company announced that Sassine Ghazi, the current president and chief operating officer, will succeed Chairman Aart de Geus as chief executive on Jan. 1, 2024.
The company reported third-quarter net income of $336.3 million, or $2.17 a share, compared with $222.6 million, or $1.43 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $2.88 a share, compared with $2.10 a share in the year-ago period.
Revenue rose to $1.49 billion from $1.25 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast $2.74 a share on revenue of $1.48 billion.
Synopsys forecast earnings of $3.01 to $3.06 a share on revenue of $1.56 billion to $1.6 billion for the fourth quarter, and $11.04 to $11.09 a share on revenue of $5.81 billion to $5.84 billion for the year.
Analysts had estimated earnings of $2.91 a share on revenue of $1.57 billion for the fiscal fourth quarter, and $10.82 a share on revenue of $5.82 billion for the year.
Back in March, Synopsys launched its suite of AI-driven chip-design verification, testing and manufacturing tools, Synopsis.ai.
Also in March, Nvidia Corp.
NVDA,
said that third-party foundry Taiwan Semiconductor Manufacturing Co.
TSM,
and Synopsys will be using its cuLitho software library that improves upon computational lithography, a process that allows for better resolution of etched transistors as they get smaller.
On Monday, Synopsis announced a broader IP and electronic design automation partnership with Intel Corp.
INTC,
On Wednesday, Intel announced it was no longer acquiring Tower Semiconductor Ltd.
TSEM,
because it did not receive regulatory approvals for the deal on time.
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