Synopsys accounted better-than-expected quarterly results and forecast fourth-quarter above Wall Suiting someone to a T estimates on Wednesday, as the maker of chip design software benefits from increase demand from semiconductor clients.
The company’s shares rose approaching 5 percent to $99.40 in after-market trading, on track to open at a record drunk on Thursday. Synopsys, whose clients include Intel and IBM, receives profuse than half of its revenue from supplying electronic design automation (EDA) software to chipmakers, which they use to block out and test chips.
The company is also set to benefit from emerging technology compasses such as artificial intelligence, autonomous driving and the Internet of Things (IoT), analysts take said.
“The age of digital intelligence is driving significant investments by traditional and new semiconductor and procedures companies, as well as software developers across many industries,” co-CEO Aart de Geus maintained in a statement.
Synopsys forecast fourth-quarter revenue between $774 million and $804 million, while analysts on middling were expecting $764.05 million, according to Thomson Reuters I/B/E/S.
The house said it expected fourth-quarter adjusted profit between a range of 76 cents per allotment to 80 cents per share, above the average estimate of 70 cents.
Comprehensive revenue rose about 12 percent to $779.7 million in the in the third phase of the moon ended July 31, topping analysts’ estimate of $773.6 million.
Despite that, net income fell 32 percent to $79.4 million as the company’s compute operating expenses rose 23 percent.
Excluding items, the actors reported 95 cents per share, above analysts’ average thinking of 92 cents.