Synopsys Appoints Janice D. Chaffin as New Board Member - Analyst Blog

Synopsys Inc. (SNPS) recently announced changes in its management, as per which it has appointed Janice D. Chaffin to its board of directors effective immediately. Chaffin previously served as the president of Symantec Corporation’s (SYMC) consumer business unit from 2007 to 2013.

Chaffin was associated with Symantec since 2003. Having served as the senior vice president and chief marketing officer of Symantec's consumer business unit division for three years, she has the requisite leadership qualities. Chaffin has also served for more than 25 years in general management and marketing at Hewlett-Packard (HPQ).

She is experienced in diverse fields such as marketing and technology, and is a business leader in the software and hardware industries. Alongside, she is at present on the boards of International Game Technology and PTC Inc.

Management believes that with her able leadership, considerable experience and business proficiency, she will be an asset for Synopsys and help the company achieve its long-term goals.

Chaffin holds a series of educational and professional degrees, including a Bachelor of Arts degree and a Masters of Business Administration, both from California University. Further, she has also been associated with Ancestry.com LLC, the UCLA Anderson School of Management, Montalvo Arts Center and Illuminate Ventures as a supporting leader.

Given her experience with technology firms and her understanding of Synopsys’ business, she will likely contribute to the company’s growth.

We believe that Chaffin will employ better strategies and take Synopsys to newer heights in the changing demand scenario.

Synopsys recently announced mixed fourth quarter 2014 results wherein its adjusted earnings per share of 54 cents cruised way ahead of the Zacks Consensus Estimate of 36 cents.

Moreover, benefitting from higher adoption of Synopsys’ products and the Coverity acquisition, the company’s sales jumped 6.8% to $539 million.

Looking Ahead

The company provided an encouraging first-quarter and fiscal 2015 guidance. For the first-quarter of fiscal 2015, the company expects revenues in the range of $535 million–$545 million. The Zacks Consensus Estimate is pegged at $544 million. Management expects non-GAAP earnings per share in the range of 61 cents–63 cents, much higher than the Zacks Consensus Estimate of 23 cents per share.

For fiscal 2015, the company expects revenues in the range of $2.185 billion–$2.225 billion, while non-GAAP earnings per share are projected within $2.67–$2.72. The respective Zacks Consensus Estimate for revenues and earnings are pegged at $2.211 billion and $1.33 per share.

To Conclude

We believe the company’s recent product launches, acquisitions and deal wins will boost results, going ahead. Moreover, unique intellectual properties and global support provided by the company will likely drive its forthcoming results. Additionally, the company’s acquisition of Coverity will expand Synopsys’ reach in the software quality, testing and security tools market.

However, competition from Cadence Design Systems Inc. (CDNS) and Mentor Graphics Corp. coupled with a challenging technology spending environment and uncertainty regarding proper time to realize acquisition synergies keep us on the sidelines.

Currently, Synopsys has a Zacks Rank #4 (Sell).

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