There got to be an end: it is just not human! But I do not see any changes to Synopsys good news, quarter after quarter. It may be in the genes, it may be in the coffee, or it just may be in old fashioned good work. But first, an outing then the numbers.
I have had a relationship with Synopsys since 1990, never as an employee, but as an early user of Design Compiler, then as somewhat of a competitor, and finally as a professional observer. During all that time I have known Chi-Foon Chan who joined Synopsys in 1990 and until May 23rd was the President and COO of the company. I know relatively few people that knew that Chi-Foon even existed. He worked in the background, but worked very effectively. By comparison everyone knows who Greg Hinckley is at Mentor. I suppose that when one is in the same organization as Aart de Geus, it is not very difficult to stay in the background. But it takes a lot of stamina to do so and outperform expectations for a long time. Most people seek the lime lights, or at least their piece of sunshine. So Chi-Foon is out of the closet, and everyone now knows what I have experienced. Talk EDA with Aart or Chi-Foon and the result is the same.
So it was a terrific pleasure to receive a press release from Synopsys announcing that Chi-Foon was named Co-CEO. That is the highest position at Synopsys until Aart finds a full time hobby, or forgets how to timeshare. Just in case, Aart, there is a complete island, just of the coast of Sarasota, for $29.5 million. It comes with a great looking mansion and room for further development. Can we start the Synopsys research center there? We can even invite Chi-Foon for periodic visits, since he would keep a low profile for sure.
Another thing that goes to Chi-Foon credit is that in the ten years he has worked as Aart surrogate, he never got a perm! Customers could always tell who was visiting, in spite of the fact that they both have an accent.
My friend Jay Vleeschhouwer says it like it is. And so his report on Synopsys 2Q12 financial status starts as follows: "Synopsys outperformed in 2Q12 in terms of revenues, earnings, and bookings". Not much more to add to this. Revenues for the quarter were $432.6 million, up 10% or $0.53 a share. The Magma acquisition contributed about $14 million, so Synopsys grew even without the acquisition. Product revenue were just less than $386 million, on a course to surpass the $1.5 billion mark. The non-GAAP operating margin, a common way to compare companies in EDA, was 23.3%. Mentor just reported its first quarter results and, if I am not mistaken, its non-GAAP operating margin was 13.9%.
Looking at market segments, DFM was up 11% year/year, IP and Systems 5%, and "core EDA" also up 11%.
Geographically, Synopsys revenues in North America were up 17% year/year, Europe was up 16%, while Japan was flat and Asia-Pacific declined by 1%, but it must be said that the 2Q11 had an increase of 36% thus skewing the result a bit.
Even continuing to acquire companies Synopsys still has almost $800 million in cash and cash equivalent. The only way they are ever going to consume cash seems to be becoming a player in the derivative market! But with his knowledge of mathematics and European affairs, Aart would be good at it as well.