(Reuters) - Synopsys Inc (SNPS.O) reported second-quarter revenue on Wednesday that beat analysts’ estimates, driven by higher demand from semiconductor clients for its chip design software.
The Mountain View, California-based company’s shares were up nearly 1 percent in extended trading.
The company gets more than half of its revenue from supplying electronic design automation software to chipmakers, which they use to design and test chips.
“With the clear drive towards growing artificial intelligence applications and the resulting need for increased data capacity, semiconductor and systems companies are making substantial investments,” said Aart de Geus, co-CEO of Synopsys.
Synopsys also forecast third-quarter revenue between $760 million and $785 million, above analysts’ estimate of $700.6 million, according to Thomson Reuters I/B/E/S.
Net income rose to $102.5 million, or 67 cents per share, in the second quarter ended April 30, from $53.3 million, or 34 cents per share, a year earlier.
Excluding items, the company earned $1.08 per share, matching the analysts’ average estimate of $1.08.
Total revenue rose 14.2 percent to $776.8 million, beating estimates of $775.6 million.
Reporting by Munsif Vengattil in Bengaluru; Editing by Shounak Dasgupta