Synopsys Inc. witnessed a surge in its shares during the extended session on Wednesday, following an announcement that the chip-design verification and automation company had exceeded Wall Street’s earnings projections. Additionally, the company revealed the appointment of a new chief executive.

In after-hours trading, Synopsys shares (SNPS) experienced a 3% increase after closing the regular session with a 2% decline at $428.21. Year to date, the stock has soared by 34%, outperforming the S&P 500 index, which saw a gain of only 15%.

Accompanying this positive news, Synopsys declared that Sassine Ghazi, the current president and chief operating officer, will assume the role of CEO from Chairman Aart de Geus on January 1, 2024.

The company’s third-quarter net income escalated to $336.3 million, or $2.17 per share, compared to $222.6 million, or $1.43 per share, in the previous year. Adjusted earnings, excluding stock-based compensation expenses and other items, were reported at $2.88 per share, significantly higher than the $2.10 per share reported in the same period last year.

Furthermore, revenue for the quarter surged from $1.25 billion in the year-ago quarter to $1.49 billion.

Analysts surveyed by FactSet predicted earnings of $2.74 per share on revenue of $1.48 billion.

For the fourth quarter, Synopsys anticipates earnings to range between $3.01 and $3.06 per share, with revenue falling between $1.56 billion and $1.6 billion. Moreover, the company expects earnings for the year to range from $11.04 to $11.09 per share, accompanied by revenue ranging from $5.81 billion to $5.84 billion.

In comparison, analysts had previously estimated earnings of $2.91 per share on revenue of $1.57 billion for the fiscal fourth quarter, and $10.82 per share on revenue of $5.82 billion for the year.

Back in March, Synopsys unveiled its AI-driven chip-design verification, testing, and manufacturing tools known as

It is worth noting that Nvidia Corp. announced earlier this year that Synopsys, along with third-party foundry Taiwan Semiconductor Manufacturing Co., would utilize its cuLitho software library to enhance computational lithography, a process crucial for improving the resolution of etched transistors as they become smaller.

Additionally, Synopsys recently announced an expanded partnership with Intel Corp. in IP and electronic design automation.

However, it is important to mention that Intel announced on Wednesday that its acquisition of Tower Semiconductor Ltd. would not proceed due to failure to obtain necessary regulatory approvals in a timely manner.

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