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Dec 10 (Reuters) – Chip design software program supplier Synopsys beat analysts estimates for fourth-quarter income on Wednesday, pushed by robust demand for its chip design instruments, sending its shares up 5% in prolonged buying and selling.
Synopsys, whose software program is utilized by semiconductor companies to design and confirm chips, has benefited from surging funding in synthetic intelligence and superior computing, which require more and more complicated chip architectures.
It has additionally been benefiting from its partnership with Nvidia, Intel and Qualcomm.
Final week, Nvidia invested $2 billion in chip design software program maker as a part of an expanded multi-year tie-up to collectively develop new instruments for designing merchandise throughout industries utilizing its AI know-how.
Final month, the Sunnyvale, California-based firm introduced plans to put off about 10% of its workforce, saying the transfer would permit it to reinvest in development areas such as AI-driven design and system-level options.
Synopsys additionally accomplished its acquisition of simulation software program maker Ansys in July, a deal which contributed $667.7 million in income for the fourth quarter. The deal, introduced early final 12 months, confronted intense antitrust scrutiny in markets together with Britain.
The corporate competes with Cadence Design Programs and Siemens within the digital design automation market, projected to develop as chipmakers race to construct AI and high-performance computing processors.
Synopsys posted quarterly income of $2.26 billion, above estimates of $2.25 billion in accordance with information compiled by LSEG.
On an adjusted foundation, Synopsys reported a revenue of $2.90 per share, above estimates of $2.78.
For the first quarter, firm sees income within the vary of $2.36 billion to $2.42 billion, in contrast with analyst estimates of $2.38 billion.
(Reporting by Kritika Lamba in Bengaluru; Modifying by Krishna Chandra Eluri)
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