Q4 2011 Earnings Call
November 30, 2011 5:00 pm ET
Lisa Ewbank -
Aart J. de Geus - Co-Founder, Chairman and Chief Executive Officer
Brian Beattie - Chief Financial Officer
Paul B. Thomas - BofA Merrill Lynch, Research Division
Mahesh Sanganeria - RBC Capital Markets, LLC, Research Division
Richard Valera - Needham & Company, LLC, Research Division
Sterling P. Auty - JP Morgan Chase & Co, Research Division
Raj Seth - Cowen and Company, LLC, Research Division
Jay Vleeschhouwer - Griffin Securities, Inc., Research Division
Thomas Diffely - D.A. Davidson & Co., Research Division
Previous Statements by SNPS
» Synopsys Inc. - Shareholder/Analyst Call
» Synopsys' CEO Discusses Q3 2011 Results - Earnings Call Transcript
» Synopsys' CEO Discusses Q2 2011 Results - Earnings Call Transcript
Thank you, Nick. Good afternoon, everyone. With us on the call today are Aart de Geus, Chairman and CEO of Synopsys; and Brian Beattie, Chief Financial Officer. Today's conference call will include commentary regarding our Q4 and fiscal 2011 results and also the definitive agreement to acquire Magma Design Automation, both of which we announced this afternoon.
Before we begin, I'd like to remind everyone that during the course of this conference call, Synopsys will discuss forecasts and targets and will make other forward-looking statements regarding the company and its financial results, our expectations about the timing and likelihood of closing the acquisition and about the potential benefits of the culmination. While these statements represent our best current judgment about future results and performance as of today, our actual results and performance are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect.
In addition to any risks that we highlight during this call, important factors that may affect our future results are described in our quarterly report on Form 10-Q for the quarter ended July 31, 2011, our earnings release for the fourth quarter of fiscal year 2011 and our press release announcing the definitive agreement to acquire Magma issued this afternoon.
All financial information to be discussed on this conference call, the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures and supplemental financial information can be found in the current report on Form 8-K that we filed today, our fourth quarter earnings release and our financial supplement. All of these items are currently available on our website at www.synopsys.com.
In addition, the information we discuss on this conference call related to our intent to acquire Magma is for informational purposes only. This information is not an offer to buy or the solicitation of an offer to sell any securities. Magma intends to file with the Securities and Exchange Commission preliminary and definitive proxy statements and other relevant materials in connection with the proposed transaction. Before making any voting or investment decision with respect to the acquisition, investors are urged to read Magma's proxy statement and the other relevant materials when they become available because they will contain important information about the transaction.
With that, I'll turn the call over to Aart de Geus.
Aart J. de Geus
Good afternoon, and thank you for joining us. Today, I'm happy to report first on our excellent Q4 and fiscal 2011 results and our raised guidance for FY 2012 and second on the signing of a definitive agreement to acquire Magma Design Automation, which we announced this afternoon.
Let me begin with our results. Our business in Q4 was strong, closing an outstanding overall fiscal '11 and most importantly yielding an excellent position heading into FY '12. Specifically, in Q4, we delivered revenue of $391 million resulting in $1.536 billion for the fiscal year. This is 11% growth over FY '10. With non-GAAP earnings per share of $0.45 in Q4, we delivered $1.80 for the year, above the target range we communicated at the beginning of fiscal '11 and 13% growth over fiscal '10.
In the process, we managed to a solid non-GAAP operating margin of 22.3% for the year while generating $440 million in operating cash flow. Our 3-year backlog grew to $2.5 billion and we have more than 80% of next year's plan revenue scheduled from current backlog.
In summary, a strong year with double-digit growth in both top and bottom line.
Looking forward to fiscal year 2012, we are raising our outlook. While we're conscious of the continued economic uncertainty, our good momentum and backlog support an objective of double-digit non-GAAP EPS growth. We plan to achieve this goal on the basis of solid top line growth and improvement of our operating margin. Brian will give you more detail in just a minute.
Before moving to the business highlights, let me address today's announcement that we have signed a definitive agreement to acquire Magma Design Automation. This acquisition is motivated by our customers' need for further technology exploration and productivity. Indeed, today's chip designs requires customers to either deal with the very complex physics of advanced 28-, 20- or even 40-nanometer silicon or squeeze the last bit of performance, power and cost from designs at more mature nodes.
Either way, the R&D and support demands to keep the state-of-the-art moving necessitate more invention and more investments. Bringing together the complementary technologies of Synopsys and Magma, as well as our R&D and support capabilities, will help us deliver advanced tools earlier, thus, directly impacting our customers demand for increased design productivity.