Shares in Synopsys Inc. rose slightly in late trading after the electronic design automation company reported better-than-expected revenue and earnings.

For its fiscal second quarter that ended April 30, Synopsys reported earnings before costs such as stock compensation of $393.3 million, or $2.54 per share, up from $390.8 million, or $2.50 per share, in the same quarter of last year. Revenue rose 9% from a year ago, to $1.396 billion. Analysts had expected earnings per share of $2.48 on revenue of $1.38 billion.

Synopsys’ electronic design automation division led the company’s revenue growth, delivering $900.8 million in revenue in the quarter, up from $874.3 million in the previous quarter and $787 million in the same quarter last year. Conversely, the company’s design intellectual property business, which came in at $335.2 million, was down from $343.7 million in the previous quarter and $348.5 million this time last year. The company’s adjusted operating margin in the quarter was 33.3%, down from 36.8% in the same quarter of last year.

Highlights in the quarter included the announcement of Synposys.ai, an expanded suite of artificial intelligence tools to aid in designing, verifying and testing advanced computer chips. The Synopsys.ai EDA suite is said to help accelerate chip design with solutions for functional verification and silicon testing, with more capabilities to be added later.

“Our financial performance is the product of a relentless drive for technology innovation and years of building trust in our customer base,” Aart de Geus, chairperson and chief executive of Synopsys, said in the company’s earnings release. “Our industry-leading AI-driven design platform, Synopsys.ai, unleashes our next wave of impact as our customers drive a groundswell of ‘smart, secure, and safe’ new products.”

For its fiscal third quarter, Synopsys said it expects adjusted earnings of $2.70 to $2.75 per sahre on revenue of $1.465 billion to $1.495 billion. Analysts were expecting $2.70 and $1.48 billion. For its full fiscal year ending Oct. 31, the company said it expects adjusted earnings of $10.77 to $10.84 per share on revenue of $5.79 billion to $5.83 billion. Analysts had expected $10.58 and $5.79 billion.

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