Synopsys forecasts weak first quarter

CALIFORNIA, USA: Chip design software maker Synopsys Inc posted a steep drop in quarterly profit and gave a cloudy forecast for the first quarter and the full year, sending its shares down 9 percent in extended trading.

For the first quarter, the company expects adjusted earnings of 38 cents to 40 cents a share, on revenue of $325 million to $333 million.

Analysts were expecting earnings of 41 cents a share, on revenue of $332.8 million for the period, according to Thomson Reuters I/B/E/S.

Net income for the fourth quarter was $19.5 million, or 13 cents a share, compared to $46.4 million, or 32 cents a share, in the year-ago period. Excluding certain items, the company earned 33 cents a share.

Revenue fell about 4 percent to $338.3 million.

Analysts had expected a profit of 32 cents a share, on revenue of $339.4 million.

Late October, the company's biggest rival in the electronic design automation market, Cadence Design Systems Inc, posted a surprise quarterly profit driven expenses.