Synplicity to Focus On FPGA and Verification Markets
March 30 2006 - 4:30PM
Business Wire
Synplicity, Inc. (Nasdaq:SYNP), a leading supplier of software for
the design and verification of semiconductors, today announced a
plan to re-focus its R&D investment and headcount on its
strategic growth opportunities in FPGA implementation and ASIC
verification. "LSI Logic's recent decision to withdraw their
RapidChip platform ASIC product from the market prompted a
reassessment of the market opportunity associated with our
investments in the ASIC product line," said Gary Meyers,
Synplicity's CEO and president. "The impact of their withdrawal
delays the estimated time at which our ASIC software business could
become profitable. While we continue to see growth potential in the
structured ASIC market, we see a greater return in our FPGA
implementation, ESL synthesis for DSP, and ASIC verification
products," continued Meyers. "Our decision then, is to withdraw
from the cell-based and structured ASIC markets while we continue
to support our existing customers and honor our ongoing obligations
with Fujitsu Microelectronics, LSI Logic and NEC Electronics. About
half of our ASIC R&D team will be re-deployed to other exciting
growth opportunities." "We have an outstanding ASIC development
team, and with their new focus on products such as Synplify
Premier, Certify and Synplify DSP, we can accelerate our lead in
these key growth markets," Meyers concluded. The plan to exit the
ASIC markets includes a workforce reduction of approximately 8
percent, concentrated in the Company's Sunnyvale facility. The
reduction in force is estimated to reduce the Company's annual
personnel-related expenses by approximately $4.5 million per year.
Severance costs and the impairment of capitalized software
development costs are estimated to result in a charge to the
Company of approximately $900 thousand in the March 2006 quarter.
The Company will discuss this decision in more detail and will
provide updated 2006 financial guidance during its upcoming Q1 2006
earnings conference call. About Synplicity Synplicity(R) Inc.
(Nasdaq:SYNP) is a leading supplier of innovative software
solutions that enable the rapid and effective design of
Programmable Logic Devices (FPGAs, PLDs and CPLDs) that serve a
wide range of communications, military/aerospace, consumer,
semiconductor, computer, and other electronic systems markets.
Synplicity's tools provide outstanding performance, cost and
time-to-market benefits by simplifying, improving and automating
key design planning, logic synthesis, physical synthesis and
verification functions for FPGA, FPGA-based ASIC prototyping, and
DSP designers. Synplicity is the number one supplier of FPGA
synthesis solutions and has been rated #1 in customer satisfaction
in 2004 and 2005 in EE Times' Annual FPGA Customer Survey.
Synplicity products support industry-standard design languages
(VHDL and Verilog) and run on popular platforms. The company
operates in over 20 facilities worldwide and is headquartered in
Sunnyvale, California. For more information visit
http://www.synplicity.com. Forward-Looking Statements This press
release contains forward-looking statements including, but not
limited to, statements regarding Synplicity's growth, market
performance, standard of its products and operating results. These
statements relate to future events and involve known and unknown
risks, uncertainties and other factors that may cause Synplicity's
actual financial results, levels of activity, performance,
achievements or market position to differ materially from those
expressed or implied by the forward-looking statements. In some
cases, you will be able to identify forward-looking statements by
terminology such as "may," "will," "should," "expects," "plans,"
"anticipates," "believes," "estimates," "predicts," "potential,"
"continue", "can" or the negative of these terms or other
comparable terminology. Forward-looking statements are only
predictions and actual events or results may differ materially.
Synplicity cannot provide any assurance that its future results
will meet expectations. For additional information and
considerations regarding the risks faced by Synplicity, see its
annual report on Form 10-K for the year ended December 31, 2005, as
filed with the Securities and Exchange Commission, as well as other
periodic reports filed with the SEC from time to time. Although
Synplicity believes that the expectations reflected in the
forward-looking statements are reasonable, Synplicity cannot
guarantee future results, levels of activity, performance or
achievements. In addition, neither Synplicity nor any other person
assumes responsibility for the accuracy or completeness of these
forward-looking statements. Synplicity disclaims any obligation to
update information contained in any forward-looking statement.
Synplicity, Synplify and Certify are registered trademarks of
Synplicity, Inc. All other brands or products are the trademarks or
registered trademarks of their owners.
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