Synopsys Q1 Results Beat Estimates

February 22, 2012 8:28 PM EST

(Reuters) -- Chip-design software maker Synopsys Inc posted a quarterly profit that beat analysts' estimates, helped by strong demand for its new products, and raised its full-year outlook.

The company, which makes software used by semiconductor companies to design chips, expects a profit of $1.97 to $2.03 a share, excluding items, on revenue of $1.66 billion to $1.68 billion for 2012.

It had earlier forecast an adjusted profit of $1.93 to $1.99 a share, on revenue of $1.64 billion to $1.67 billion.

Analysts were expecting adjusted earnings of $1.98 a share, on revenue of $1.66 billion, according to Thomson Reuters I/B/E/S.

First-quarter net income rose to $56.7 million, or 39 cents a share, from $48.2 million, or 31 cents a share, a year ago.

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Excluding items, the company, which competes with Mentor Graphics and Cadence Design Systems, earned 56 cents a share, above consensus estimates of 52 cents a share.

Revenue rose 17 percent to $425.5 million to beat estimates of $416.5 million.

Shares of the Mountain View, Calif.-based company hit a near eight-year high of $30.76 in regular trading on the Nasdaq on Wednesday, before closing at $30.63.

They have gained nearly 30 percent of their value in the last six months.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Don Sebastian)