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Synopsys (SNPS): $26.95:

Synopsys has transitioned to a subscription-based revenue model.   With 3-year contracts, SNPS has very strong visibility relative to most technology companies.  The company is expanding margins and has new management in place that has something to prove.  SNPS increased guidance on 11/29 and Mentor Graphics just raised its guidance earlier this week.  Near-term business is healthy. 

The stock  trades at 20x CY07 and 16x CY08.  More importantly, the current price represents ~12x CY07 Free Cash Flow (10x 2008).  This is less than the S&P500.

Synopsys (SNPS): $26.95:

Synopsys has transitioned to a subscription-based revenue model.   With 3-year contracts, SNPS has very strong visibility relative to most technology companies.  The company is expanding margins and has new management in place that has something to prove.  SNPS increased guidance on 11/29 and Mentor Graphics just raised its guidance earlier this week.  Near-term business is healthy. 

The stock  trades at 20x CY07 and 16x CY08.  More importantly, the current price represents ~12x CY07 Free Cash Flow (10x 2008).  This is less than the S&P500.

Synopsys (SNPS) this afternoon said its board approved a new $500 million stock repurchase plan. Purchases may begin immediately, and will be funded from available working capital.

SNPS, which sells chip design software, has a market cap of $3.2 billion.

In late trading, SNPS is up 30 cents, or 1.4%, to $22.35.

Synopsys (SNPS) shares are losing ground in late trading after the company posted solid results for its fiscal third quarter ended July 31, but provided Q4 guidance short of Street estimates.

For Q3, the EDA software company reported revenue of $345.2 million, up slightly from $344.1 million a year ago, and about in line with the Street at $345.5 million. Non-GAAP EPS of 47 cents share nicely beat the Street at 41 cents.

However, for Q4, the company sees revenue of $335 million to $343 million, with non-GAAP EPS of 29-33 cents; the Street consensus was higher, at $348.3 million and 34 cents.