SUNNYVALE, Calif., Jan. 8, 2025 /PRNewswire/ -- Today, Synopsys issued the following statement in response to the UK Competition and Markets Authority (CMA) provisionally accepting its proposed remedies in Phase 1 regarding its proposed acquisition of Ansys: Synopsys headquarters in Sunnyvale, Calif. (PRNewsfoto/Synopsys, Inc.) "We are very pleased that today the CMA has taken the important step of provisionally accepting our proposed remedies in Phase 1 rather than referring the transaction to Phase 2 ...

ANSYS, Inc. (ANSS) and Synopsys, Inc. (SNPS) have announced a definitive agreement to sell Ansys' PowerArtist business to Keysight Technologies, Inc. (KEYS) .The transaction is contingent upon standard closing conditions, including regulatory review and the completion of Synopsys' planned acquisition of Ansys. The deal is currently awaiting regulatory approvals and is anticipated to be finalized in the first half of 2025.PowerArtist, a register-transfer-level (RTL) design-for-power platform, is leveraged by ...

Earnings Performance - Synopsys reported Q4 non-GAAP earnings of $3.40 per share, beating the Zacks Consensus Estimate of $3.29 and the guided range of $3.27-$3.32, with a 13% year-over-year increase [2] - Q4 revenues grew 12% year-over-year to $1.64 billion, slightly surpassing the Zacks Consensus Estimate of $1.63 billion [3] - Fiscal year 2024 revenues were $6.127 billion, a 15% increase from $5.32 billion in fiscal year 2023 [8] - Non-GAAP net income for fiscal year 2024 was $2.058 billion, or $13.20 per share, compared to $1.636 billion, or $10.54 per share, in fiscal year 2023 [8] Revenue Breakdown - Time-Based Product revenues (51% of total revenues) increased 6.9% year-over-year to $834.4 million [4] - Upfront Product revenues (31.8% of total revenues) grew 18% year-over-year to $520.9 million [4] - Maintenance and Service revenues (17.2% of total revenues) rose 14.5% year-over-year to $280.7 million [4] - Electronic Design Automation (EDA) revenues (65.6% of total revenues) increased 15.2% year-over-year to $1.07 billion [5] - Design IP revenues (31.7% of total revenues) were $517.8 million, slightly up from $513.7 million in the year-ago quarter [5] - Other revenues (2.7% of total revenues) surged 102.7% year-over-year to $45.2 million [5] Geographic Revenue Distribution - North America accounted for 45% of total revenues, generating $738.5 million [6] - Europe contributed 11% of total revenues, amounting to $185.2 million [6] - Korea, China, and Other regions accounted for 12%, 16%, and 15% of total revenues, generating $203.5 million, $259.9 million, and $248.9 million, respectively [6] Operating Margins - The non-GAAP operating margin for Q4 was 36.9%, contracting 40 basis points year-over-year [6] - EDA's adjusted operating margin improved by 440 basis points to 37% [7] - Design IP segment's margin decreased from 46% to 36.7% year-over-year [7] - The non-GAAP operating margin for fiscal year 2024 was 38.5%, expanding 220 basis points compared to the previous year [8] Balance Sheet & Cash Flow - Cash and short-term investments were $4.05 billion as of Oct 31, 2024, compared to $1.99 billion as of July 31, 2024 [9] - Total long-term debt was $16 million at the end of the reported quarter, slightly higher than the $15.6 million reported in the previous quarter [9] - Cash flow from operating activities for Q4 was $563 million, compared to $326 million in the year-ago quarter [10] - Cash flow from operating activities for fiscal year 2024 was $1.41 billion, lower than the previous year's $1.70 billion [10] Guidance - For fiscal 2025, Synopsys expects revenues between $6.745 billion and $6.805 billion, with non-GAAP earnings in the range of $14.88-$14.96 per share [11] - Non-GAAP expenses for fiscal 2025 are expected to be between $4.045 billion and $4.085 billion [11] - For Q1 fiscal 2025, Synopsys anticipates revenues between $1.435 billion and $1.465 billion, with non-GAAP EPS between $2.77 and $2.82 [11] - Non-GAAP expenses for Q1 fiscal 2025 are expected to be between $945 million and $955 million [11] Analyst Sentiment - Analysts did not issue any earnings estimate revisions in the last two months, leading to a consensus estimate shift of -30.26% [12] Stock Performance - Synopsys shares lost about 6.3% in the past month, underperforming the S&P 500 [1] - The stock has a subpar Growth Score of D, a Momentum Score of F, and a Value Score of F, resulting in an aggregate VGM Score of F [13] - Synopsys has a Zacks Rank 3 (Hold), with an expected in-line return in the next few months [14]

Stock Performance - Synopsys shares lost 8.69% in the past month, underperforming the Computer and Technology sector, which gained 5.93%, and the S&P 500, which gained 1.05% [1] - In the latest market close, Synopsys reached $495.82, with a -0.87% movement compared to the previous day, lagging the S&P 500's daily loss of 0.04% [8] Valuation Metrics - Synopsys has a Forward P/E ratio of 33.55, which is a premium compared to the industry average of 31.98 [2] - The company currently holds a PEG ratio of 2.34, matching the average PEG ratio of the Computer - Software industry [10] Earnings and Revenue Projections - For the upcoming release, Synopsys' EPS is projected to be $3.44, reflecting a 3.37% decrease from the same quarter last year [5] - Revenue is anticipated to be $1.45 billion, indicating an 11.9% decrease from the same quarter last year [5] - For the full year, the Zacks Consensus Estimates project earnings of $14.91 per share and revenue of $6.77 billion, representing changes of +12.95% and +8.04%, respectively, from the prior year [9] Analyst Revisions and Industry Ranking - Recent revisions to analyst forecasts for Synopsys should be monitored, as positive alterations signify optimism regarding the company's business and profitability [3] - The Computer - Software industry has a Zacks Industry Rank of 59, placing it in the top 24% of all industries [4] - The Zacks Rank system shows that stocks ranked 1 have delivered an average annual return of +25% since 1988, while Synopsys currently holds a Zacks Rank of 3 (Hold) [6][12] Industry Performance - The Computer - Software industry is part of the Computer and Technology sector, which has shown strong performance recently [4] - The Zacks Industry Rank research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [12]

Regulatory Review and Transaction Progress - The UK Competition and Markets Authority (CMA) has completed its Phase 1 review of Synopsys' proposed acquisition of Ansys, which is an expected step in the regulatory process [2] - Synopsys has already taken steps to address concerns raised by the CMA, including announcing plans to sell its Optical Solutions business to Keysight, contingent on the closing of the Ansys acquisition [2] - The company remains confident in a positive resolution of the regulatory review process and expects the transaction to close in the first half of 2025 [4] Customer and Industry Impact - Customers have expressed overwhelming support for the transaction, as the combined capabilities of Synopsys and Ansys are expected to drive innovation across industries by addressing the growing need for integrated system design solutions [4] - The transaction aims to deepen the integration of Electronic Design Automation (EDA) and Simulation and Analysis (S&A) software, which is increasingly demanded by customers [4] Company Overview and Strategic Focus - Synopsys delivers comprehensive silicon-to-systems design solutions, including EDA, silicon IP, and system verification and validation, partnering with semiconductor and systems customers across various industries to enhance R&D capabilities and productivity [5] - The company is focused on catalyzing the era of pervasive intelligence, enabling innovation in semiconductor and electronics industries, including artificial intelligence [5] Transaction Risks and Uncertainties - The proposed transaction faces uncertainties, including regulatory approvals, financing access, potential disruptions to business operations, and challenges in integrating Ansys' operations and product lines [3][7] - Macroeconomic and geopolitical uncertainties, as well as the competitive nature of the semiconductor and electronics industries, could impact the transaction's success [3][7]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-19807 | --- | --- | |------------------------------------------------------------------------------------------------- ...

Joint Solution to Speed SoC Development for Next-generation ADAS and IVI Applications SUNNYVALE, Calif. and SAN JOSE, Calif., Dec. 17, 2024 /PRNewswire/ -- Synopsys (Nasdaq: SNPS) and SiMa.ai today announced a strategic collaboration to jointly deliver a new solution for automotive companies to accelerate the development of workload-specific silicon and software needed to power artificial intelligence-enabled features in next-generation automobiles. The solution will combine Synopsys' best-in-class EDA, au ...

Synopsys (SNPS) shares have plunged 12.7% in the past six months, underperforming the Zacks Computer - Software industry, Zacks Computer and Technology sector and broader S&P 500’s return of 10%, 8.6% and 12.4%, respectively.While the stock’s decline is significant, holding onto Synopsys remains the most prudent strategy for investors, particularly given its strong foundation and strategic positioning in high-growth markets. Here’s why.Synopsys Price Performance ChartImage Source: Zacks Investment ResearchS ...

Best-in-Class Silicon IP Addresses Industry Need for Open Standard Solutions to Scale AI Accelerator Infrastructure Highlights Synopsys Ultra Ethernet IP solution will enable up to 1.6 Tbps of bandwidth to connect up to one million endpoints Synopsys UALink IP solution will offer up to 200 Gbps throughput per lane, linking up to 1,024 accelerators New Ultra Ethernet and UALink IP is built on Synopsys' industry-leading Ethernet and PCIe IP, which together have enabled more than 5,000 successful customer tape ...

Key TakeawaysThe S&P 500 declined 0.2% on Thursday, Dec. 5, as the record-setting stock rally cooled ahead of Friday morning's jobs report.Synopsys shares tumbled as U.S. restrictions on chipmaking exports to China weighed on the electronic design firm's 2025 outlook.Alcoholic beverage maker Brown-Forman topped quarterly estimates on strong whiskey demand, and its shares surged. Major U.S. equities indexes hovered near record levels in Thursday trading before closing lower ahead of Friday morning's employme ...