Synopsys, Inc. (SNPS.US) reported better-than-expected Q1 performance and maintained its guidance, causing a slight increase in stock price.

Electronic design automation company Synopsys, Inc. (SNPS.US) announced its first quarter financial results on Wednesday Eastern Time, with both quarterly performance and guidance exceeding market expectations, causing the stock price to rise by 4% in after-hours trading on Wednesday. As of the time of writing, the stock price has risen by 2.3% after hours. In the fiscal quarter ending on January 31, Synopsys, Inc. reported an adjusted earnings per share of $3.03, surpassing analysts' expectations of $2.79 per share. Despite a 12% year-on-year decrease in revenue, the company still achieved $1.46 billion, exceeding analysts' expectations of $1.45 billion. Within this, revenue from the design automation business saw a slight increase of 3.5%, reaching $1.02 billion; while revenue from the design intellectual property (IP) business decreased by 17% to $435.1 million. Synopsys, Inc. Chief Financial Officer Shelagh Glaser stated, "We had a strong start to the new year with non-GAAP earnings exceeding guidance, and revenue at the high end of our guidance range. These achievements reflect our resilient business model, strong operational execution, and leading-edge technology that is critical to our customers. We are maintaining our full-year guidance and expect revenue growth in the double digits." Looking ahead, Synopsys, Inc. expects adjusted earnings per share for the second quarter to be between $3.37 and $3.42, with revenue projected to be between $1.59 billion and $1.62 billion. Analysts had previously expected adjusted earnings per share of $3.39 and revenue of $1.6 billion. For the full year performance expectations, Synopsys, Inc. still anticipates adjusted earnings per share to be between $14.88 and $14.96, with free cash flow estimated to be around $1.6 billion and revenue expected to be between $6.75 billion and $6.81 billion. Analysts had previously expected adjusted earnings per share of $14.91 and revenue of $6.78 billion.