Synplicity Announces Second Quarter 2006 Results

On a generally accepted accounting principles (GAAP) basis, net income was $1.1 million, or $0.04 per diluted share, for the quarter ended June 30, 2006, as compared to GAAP net income of $921,000, or $0.03 per diluted share, for the quarter ended June 30, 2005. For the quarter ended June 30, 2006, GAAP net income included $222,000 in amortization of intangible assets from acquisitions and $935,000 in stock-based compensation expense, resulting from implementation of FAS123R as of January 1, 2006. For the quarter ended June 30, 2005, GAAP net income included $222,000 in amortization of intangible assets from acquisitions and $6,000 in stock-based compensation expense.
Non-GAAP net income was $2.3 million, or $0.08 per diluted share, for the quarter ended June 30, 2006, compared to non-GAAP net income of $1.1 million, or $0.04 per diluted share, for the quarter ended June 30, 2005. A reconciliation of GAAP to non-GAAP net income is included with this press release.

For the six months ended June 30, 2006, revenue was $29.9 million compared to revenue of $29.7 million for the six months ended June 30, 2005. For the six months ended June 30, 2006, the Company reported a GAAP net loss of $(63,000), or $(0.00) per diluted share. Included in the GAAP net loss for the six month period ended June 30, 2006 were stock-based compensation charges of $1.9 million, amortization of intangible charges of $445,000, and from the first quarter of 2006, a restructuring charge of $854,000.
Non-GAAP net income was $3.1 million, or $0.11 per diluted share, for the six months ended June 30, 2006. GAAP net income of $1.4 million, or $0.05 per diluted share was previously reported for the six months ended June 30, 2005. This included $445,000 of amortization of intangibles and $15,000 of stock-based compensation. Non-GAAP net income was $1.9 million, or $0.07 per diluted share, for the six months ended June 30, 2005.

"During the second quarter, we re-focused the company onto our core FPGA implementation strength and delivered solid execution to our plan, resulting in revenue and earnings growth despite our exit from the ASIC business," said Gary Meyers, president and CEO of Synplicity. "Orders in our focused growth areas of Synplify Premier, Certify, and Synplify DSP exceeded our expectations and continued to demonstrate our leadership. With spending under control and an exciting roadmap of unique high value solutions in hand, we look forward to building greater shareholder value in the future," concluded Meyers.