Electronic design automation company Synopsys Inc. (SNPS) recently announced that Freescale Semiconductor has licensed its DesignWare IP for Freescale’s system-on-chip designs. Freescale Semiconductor specializes in automotive, consumer, industrial and networking markets.
This multi-year agreement gives the semiconductor company access to Synopsys’ broad portfolio of DesignWare interface and analog IP such as USB, HDMI, PCI Express, SATA, and MIPI interfaces, as well as data converters, audio codecs and video front-ends.
Synopsys’ established technology has helped in developing products that are user friendly, innovative and offers good end-user experience, at a competitive price. This has resulted increased their popularity, leading to a sizable number of customer wins.
This apart, the company recently introduced Proteus LRC for lithography verification. This comprehensive verification module has process-window-aware checking features to identify locations in a design that are sensitive to process variations, thereby enabling corrective action prior to committing a design to manufacture.
The new verification technology will be used by Micron Technology Inc. (MU) and other semiconductor companies. In 2010, SVTC Technologies deployed Synopsys’ manufacturing tool suite.
Product innovation remains a focal point for management.
In the past, the company offered solutions, which helped in a 20% reduction in clock buffering to improve the routing congestion situation, as well as in lowering power dissipation, improving clock skew by a 30% reduction in total run time.
Synopsys also offers a variety of IT protection models, from methodology-driven project assistance to full turnkey development, to help satisfy customers’ business and project needs.
We believe that the success of Synopsys’ manufacturing solutions will boost licensing revenue through additional customer wins going forward.
Although Synopsys is gaining traction from new products and acquisitions, we believe these will take some time to produce favorable results. Moreover, the company is also facing competition from Salesforce.com (CRM). Although customer concentration risk remains, we believe that the relatively strong balance sheet will facilitate acquisitions that could help it gain market share.
The company currently has a Zacks #3 Rank (short-term Hold recommendation).
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