US Stock Market Move | The third quarter performance and guidance of Synopsys, Inc. (SNPS.US) were both below expectations, leading to a plunge of over 35%.

On Wednesday, Synopsys, Inc. (SNPS.US) opened with a sharp drop of over 35%, hitting a low of $392.55, the biggest drop since 2004. On the news front, the company's third-quarter performance and guidance were both below expectations. Synopsys, Inc. reported a 14% year-on-year revenue growth to $1.74 billion for the third quarter ending on July 31; with adjusted earnings per share of $3.39. Analysts had previously expected revenue of $1.77 billion and adjusted earnings per share of $3.80. Looking ahead, Synopsys, Inc. expects adjusted earnings per share for the fourth quarter to be between $2.76 and $2.80, with revenues between $2.23 billion and $2.26 billion. Analysts had previously forecast earnings per share of $4.50 and revenue of $2.1 billion for the company. Synopsys, Inc. Chief Financial Officer, Shelagh Glaser, stated that given the poor performance of the design intellectual property business, the company is taking a more cautious approach to the fourth quarter, while still expecting to achieve profit growth for the year.