Shares in Synopsys Inc. rose more than 2% in late trading today after the electronic design automation company reported stronger-than-expected earnings and record quarterly and yearly revenue as it wound down its fiscal year.

For its fourth quarter that ended on Oct. 31, Synopsys reported adjusted earnings of $490.9 million, or $3.17 per share, up from $297.7 million, or $1.91 per share, in the same quarter of last year. Revenue rose 25%, to $1.599 billion, a quarterly record for the company.

Both figures were beats, as analysts polled by FactSet had expected earnings of $3.04 a share on sales of $1.59 billion.

Synopsys’ electronic design automation division led the company’s revenue growth, delivering $931.4 million in revenue in the quarter, up from $833.5 million in the same quarter last year. The company’s design intellectual property business came in at healthy $513.7 million, up from $335.2 million in the previous quarter and $295.2 million this time last year. Software integrity came in at $131.7 million and other revenue was $22.3 million.

Recent business highlights included Synopsys announcing in August that it is hiring 25-year industry veteran Sassine Ghazi as its new chief executive officer. Ghazi, who currently serves as its president and chief operating officer, will succeed longtime CEO Aart de Geus in January 2024.

More recently, in November, Synopsys said it planned to bring generative artificial intelligence to the computer chip design software industry. The new Synopsis.ai Copilot, already in early access use by customers, runs on Microsoft Corp.’s Azure OpenAI Service and provides generative AI support via natural language to chip design teams.

For its full fiscal year 2023, Synopsys reported adjusted earnings per share of $11.19, up from $8.90 a year prior, on revenue of $5.843 billion, up 15% year-over-year and a record high for the company.

“Despite global macroeconomic uncertainty, 2023 was a year of record revenue and profitability for Synopsys as silicon research and development and design starts remain robust,” Ghazi said in the company’s earnings release. “We start 2024 with tremendous forward momentum driven by a resilient business model, technology trends – chief among them AI – that create a rising tide for our business and customers who continue to prioritize investments in the chips and systems that position them for the future.”

For its fiscal 2024 first quarter, Synopsis expects adjusted earnings per share of $3.40 to $3.45 on revenue of $1.64 billion to $1.66. Both were beats, as analysts expected $3.05 and $1.58 billion.

For the full fiscal year, the company expects adjusted earnings per share of $13.33 to $13.41 on revenue of $6.57 billion to $6.63 billion. Both were significantly higher than an expected $11.10 and $5.83 billion.

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