Synopsys, Inc. (NASDAQ: SNPS) stock rose over 1.4% on 20th May, 2021 (as of 10:40 UTC-4 · USD; Source: Google finance) after the company posted better than expected results for the second quarter of FY 21. Software Integrity segment revenue was $94 million. The company is on-track to meet the 2021 expectations of 15% to 20% orders growth and to exit the year with double-digit revenue growth in the fourth quarter. The company posted Total non-GAAP costs and expenses of $707 million, resulting in a non-GAAP operating margin of 31%. Adjusted operating margin for the Semiconductor & System Design segment was 33%, and Software Integrity margin was 9% for the second quarter. The company has generated a record $526 million in operating cash flow and ended the quarter with a cash balance of $1.46 billion and total debt of $116 million.
SNPS in the second quarter of FY 21 has reported the adjusted earnings per share of $1.70, beating the analysts’ estimates for the adjusted earnings per share of $1.52, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 18.6 percent to $1.02 billion in the second quarter of FY 21, beating the analysts’ estimates for revenue of $988.47 million. The revenue growth is driven by broad-based strength across product groups and geographies. Semiconductor & System Design segment revenue was $930 million, with strong growth in both EDA, software and hardware, and IP.
For fiscal 2021 the company expects the revenue to be in the range of $4.035 billion to $4.085 billion, an increase of $35 million, representing double-digit growth. Total non-GAAP costs and expenses is expected to be between $2.835 billion and $2.865 billion. The company expects non-GAAP operating margin to be in the range of 29.5% to 30%. Other income and expenses is expected to be between minus $5 million and minus $9 million. Non-GAAP normalized tax rate the company of 16% and Non-GAAP earnings is expected to be in the range of $6.38 to $6.45 per share, representing mid-teens growth. Cash flow from operations is expected to be range of $1.25 billion to $1.3 billion. And capital expenditures of approximately is expected to be $100 million.
For the third quarter, the company expects revenue to be between $1.03 billion and $1.06 billion. Total non-GAAP costs and expenses is expected to be between $707 million and $717 million. Q3 non-GAAP earnings is expected to be in the range of $1.75 per share to $1.80 per share.