Synopsys Earnings Call Insights: Business Levels and Non-GAAP Operating Expenses
Synopsys (NASDAQ:SNPS) recently reported its third quarter earnings and discussed the following topics in its earnings conference call.
Richard Valera – Needham & Company: So Brian you referenced higher than planned business levels yet you really slightly tweaked down your revenue guidance for the year. Is that just due to the what you mentioned sort of higher expected volatility around hardware sales in those timing of consulting deals?
Brian Beattie – CFO: Again, we are very, very strong business levels and we referenced that last quarter and again this quarter and as a result of that we were able to confirm very solid revenue growths for the year. We are looking at that 12% write down. It is right within the range we set at the very beginning of the year. It’s within the range that we set at the last quarter. As a result of that too we are now able to raise the midpoint of our EPS guidance by about $0.03 from last quarter. So again we are in good shape. We are actually – you see us now shooting for over $500 million of revenue in the fourth quarter, which is a record achievement for us as well that we are planning.
Richard Valera – Needham & Company: Maybe I could ask it another way, are there any geos or product areas that are bit lighter than expected and I guess, you had called out Japan in particular, that’s been down high single digits to double-digits for the last three quarters, is that a headwind that’s sort of had some cumulative impacts here and any thoughts on any of those?