Synopsys (SNPS 0.63%) is the leader in EDA software, boasting a large portfolio of intellectual property and patents -- absolutely foundational stuff to the semiconductor industry and to AI development. Here's why the stock is, at the very least, worthy of your attention. VAL · Synopsys Inc (SNPS) Revenue (TTM) 6.190B 6.190B 5.00B 4.00B 3.00B 2020 2022 2023 2024 2021 VAL Synopsys Inc (SNPS) Free Cash Flow 1.096B 1.60B 20B 1.096B STORE POLOTY 400.00M 2022 2023 2024 2020 2021 VAL Synopsys Inc (SNPS) Net Incom ...

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Revisions to Earnings Estimates For the current fiscal year, the consensus earnings estimate of $13.03 points to a change of +16.4% from the prior year. Over the last 30 days, this estimate has changed -1.3%. Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue ...

Production-Ready Design Flows, Multi-Die Solution, and Synopsys IP Deliver a Proven Path to Unparalleled Power and Performance for AI and HPC Designs Highlights Test chip tapeouts validate product readiness of certified digital and analog design flows for Samsung Foundry SF2/SF2Z process Collaboration on design techniques for SF2, including backside power and nanosheet optimization delivers more efficient power distribution Synopsys IP, now available and silicon proven on Samsung SF2, reduces integration ri ...

Synopsys, Inc. (SNPS) recently unveiled its complete PCIe 7.0 IP solution, a significant development aimed at tackling the demanding bandwidth and latency requirements of artificial intelligence (AI) workloads. This innovative technology is designed to enhance data transfer speeds and efficiency, addressing a critical bottleneck in AI and high-performance computing (HPC) environments. The new PCIe 7.0 IP solution from Synopsys comprises a controller, IDE security module, PHY and verification IP. This compre ...

Highlights SUNNYVALE, Calif., June 10, 2024 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced the industry's first complete PCIe 7.0 IP solution consisting of controller, IDE security module, PHY, and verification IP. This solution will enable chip makers to address the demanding bandwidth and latency requirements of transferring massive amounts of data for compute-intensive AI workloads while supporting broad ecosystem interoperability. Large language models' demand for computational capabiliti ...

Synopsys (SNPS) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this maker of software used to test and develop chips have returned +11.1% over the past month versus the Zacks S&P 500 composite's +3.2% change. The Zacks Computer - Software industry, to which Synopsys belongs, has gained 5% over this period. Now the key question is: Where could the stock be headed in the near ...

Financial Performance - Revenue increased by 15% compared to the previous quarter [1]. - Net profit margin improved to 12%, up from 10% last year [2]. - Operating expenses rose by 8% due to increased marketing efforts [3]. - Earnings per share (EPS) reached $1.50, surpassing analyst expectations [4]. Market Expansion - The company entered two new international markets in Asia and Europe [1]. - Market share grew by 3% in the domestic market [2]. - A new product line was launched, contributing to 20% of total sales [3]. - Strategic partnerships were formed with local distributors in emerging markets [4]. Operational Efficiency - Production costs decreased by 5% due to process optimization [1]. - Inventory turnover ratio improved to 8x from 6x last year [2]. - Supply chain disruptions were minimized, reducing lead times by 10% [3]. - Employee productivity increased by 12% following training programs [4]. Risk Management - The company implemented new cybersecurity measures to protect customer data [1]. - A contingency plan was developed to address potential supply chain issues [2]. - Insurance coverage was expanded to mitigate risks associated with natural disasters [3]. - Compliance with new regulatory requirements was achieved ahead of schedule [4]. Innovation and R&D - R&D investment increased by 20% to support new product development [1]. - Two new patents were filed, enhancing the company's intellectual property portfolio [2]. - A new research facility was opened to focus on sustainable technologies [3]. - Collaboration with universities led to breakthroughs in material science [4]. Customer Satisfaction - Customer retention rate improved to 90%, up from 85% last year [1]. - Net Promoter Score (NPS) increased by 10 points, reflecting higher customer satisfaction [2]. - A new customer service platform was launched, reducing response times by 30% [3]. - Customer feedback was integrated into product development processes [4].

Synopsys (SNPS) missed both revenue and earnings estimates in the second quarter of 2024. The company's second-quarter non-GAAP earnings per share (EPS) of $3 marginally lagged the Zacks Consensus Estimate of $3.03. However, the bottom line improved 26% year over year, primarily driven by higher revenues and better cost management. Revenues jumped 15% year over year to $1.45 billion but missed the Zacks Consensus Estimate of $1.51 billion. The top line was driven by growth across multiple business segments. ...

Financial Data and Key Metrics Changes - Revenue for Q2 was $1.45 billion, representing a 15% year-over-year increase and at the high end of the guided range [22][17] - Non-GAAP operating margin improved to 37.3%, up approximately 3 percentage points year-over-year [17][117] - Non-GAAP EPS increased by 26% year-over-year, exceeding guidance [17] - Operating cash flow was $477 million, and free cash flow was $438 million for the quarter [8] - The company ended the quarter with cash and short-term investments totaling $1.66 billion [8] Business Line Data and Key Metrics Changes - Design Automation revenue grew by 14% year-over-year, driven by strength in EDA software and hardware [113] - Design IP segment revenue increased by 19%, supported by strong demand in automotive and advanced nodes [5][117] - The analog design environment saw significant adoption, with a reported 10x productivity gain using the ASO.ai engine [4] Market Data and Key Metrics Changes - Demand for interface IP for AI and data center applications is growing rapidly, with the launch of a 1.6 terabyte Ethernet solution [20] - The company secured over 10 design wins for PCIe 6.0 and CXL 3.0 solutions, indicating strong market traction [20] - The backlog stands at $7.9 billion, reflecting strong customer commitment [95] Company Strategy and Development Direction - The company is prioritizing growth investments in core EDA and IP businesses while accelerating its Silicon to Systems strategy [6] - The planned acquisition of Ansys is expected to expand the total addressable market (TAM) and enhance system design solutions [18][91] - The company is focusing on modernizing analog workflows and leveraging AI technologies to improve productivity [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth of 14.5% to 15.6% and non-GAAP EPS growth of 22% to 23% for fiscal year 2024 [23] - The company noted ongoing demand for advanced EDA technology driven by semiconductor companies and hyperscalers [101] - Management highlighted the importance of AI in driving customer adoption and improving operational efficiency [69] Other Important Information - The company announced the definitive agreement to sell its software integrity business, which will be classified as a discontinued operation [6][22] - The transaction with Clear Lake Capital and Francisco Partners is valued at up to $2.1 billion and is expected to close in the second half of 2024 [94][83] Q&A Session Summary Question: What is the uplift around ACV with customers adopting newer AI products? - Management indicated that the uplift is still being assessed for ASO.ai and VSO.ai, but confirmed that as customers use the technology, monetization opportunities will arise [25] Question: What drove the strength and upside in the quarter? - Management attributed the strength to strong execution and demand for their solutions, particularly in semiconductor and systems companies [11] Question: Can you provide insights on the regulatory approval process for the Ansys acquisition? - Management confirmed that they are following a thorough roadmap for regulatory approvals and are confident in the process [36] Question: How is the IP business expected to perform in the second half of the year? - Management expects continued growth in the IP business, with a strong Q4 anticipated [55] Question: What are the adoption rates for DSO.ai? - Management stated that they are currently at roughly 20% of the total addressable market for DSO.ai, with significant room for growth [79] Question: Are there any changes in purchasing behavior due to the Ansys acquisition? - Management noted that there have been no significant changes in customer behavior at this stage, as they continue to engage with established customers [131]