EDA firm Synopsys has reported a nine per cent drop in revenue for its financial year, falling to $992m from $1.09bn in 2004.
The firm said its shift to a fully ratable licence model was to blame for the drop, with 92 per cent of revenue now coming from backlog, rather than upfront licensing payments.
“We had an excellent quarter to complete our fiscal year, with business above target in all product areas, technology indicators consistently strong and sound financial execution. We have a solid foundation for continued growth in fiscal 2006,” said Aart de Geus, chairman and chief executive officer of Synopsys.
The fourth quarter brought in $255m, up 11 per cent from the final quarter of 2004 when the new licensing model was introduced.
Over the full financial year (to the end of October), Synopsys recorded a net loss of £13.1m, compared to net income of $74.3m in 2004. These numbers include extraordinary items, such as amortisation of intangible assets, deferred stock compensation, in-process R&D charges and acquisition-related expenses.
For the coming financial year, Synopsys is forecasting revenue of $254m to $262m in the first quarter and $1.06bn to $1,09bn for the full year. It expects the licensing model to realise 95 per cent of revenue from backlog in the first quarter.
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