The latest trading session saw Synopsys (SNPS) ending at $494.40, denoting a -0.81% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.02%.The the stock of maker of software used to test and develop chips has fallen by 9.61% in the past month, lagging the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52%.The upcoming ear ...

Investors interested in stocks from the Computer - Software sector have probably already heard of Verint Systems (VRNT) and Synopsys (SNPS) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Sty ...

Synopsys Inc. (SNPS) is in advanced discussions to purchase ANSYS Inc. (ANSS) for an estimated $35 billion, Bloomberg reported last Friday, citing people familiar with the matter. The financial news and data provider’s sources suggest that Synopsys is considering paying $400 for each ANSYS shares, and a deal could be announced as soon as next week.We consider that the potential merger deal would mark a groundbreaking alliance in the realm of simulation software and semiconductor design. This proposed acquis ...

Table of Contents 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 SYNOPSYS, INC. (Exact name of registrant as specified in its charter) 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, 2023 (State or other jurisdiction of incorporat ...

Financial Data and Key Metrics - Q4 2023 revenue reached a record high of $1.599 billion, capping a record year with total revenue of $5.84 billion, up 15% YoY [96] - Non-GAAP operating margin improved to 35.1%, and non-GAAP EPS increased by 26% YoY [96] - Operating cash flow for the year was $1.7 billion, with cash and short-term investments totaling $1.59 billion and total debt of $18 million [24] - Backlog increased by $1.5 billion to $8.6 billion, driven by strong orders [96] - For FY 2024, revenue is expected to grow 12.4% to 13.5%, with non-GAAP operating margin expanding by approximately 2 percentage points and non-GAAP EPS growth of 19% to 20% [7] Segment Performance Design Automation - Revenue for the Design Automation segment was $3.78 billion, up 14% YoY, driven by strength in EDA software and hardware [8] - Adjusted operating margin for Design Automation was 38.1% [8] - Synopsys.ai received the World Electronics Achievement Award for EDA Software of the Year, with strong customer adoption across the design flow [2] - Major wins in verification and test, including a 10x faster turnaround time in verification and over 50% pattern reduction in test [2] Design IP - Revenue for the Design IP segment was $1.54 billion, up 17% YoY, driven by broad-based strength [8] - Adjusted operating margin for Design IP was 34.5% [8] - Key wins in automotive and multi-die ecosystems, including a marquee customer displacing competition in a multi-generation agreement [4] - Synopsys is the advanced node IP vendor of choice for all three leading-edge foundries [17] Software Integrity - Revenue for the Software Integrity segment was $525 million, up 13% YoY, with an adjusted operating margin of 14.5% [8] - Polaris software integrity platform saw over 50% YoY growth in Q4 [21] - The company is exploring strategic alternatives for the Software Integrity business to prioritize higher-growth opportunities in Design Automation and Design IP [1] Market and Geographic Performance - China is expected to grow in 2024 but at a slower rate than in 2023 due to export restrictions and macroeconomic challenges [15] - The company expects solid growth across geographies in 2024, with a balanced view of headwinds and tailwinds [107] Strategic Direction and Industry Competition - Synopsys is increasing investments in AI-driven capabilities, including Synopsys.ai Copilot, a breakthrough Generative AI capability for chip design [16] - The company is focusing on multi-die ecosystems and advanced node IP, with significant wins in 3D IC design and interoperability demonstrations [3][20] - Synopsys is aligning its portfolio investments with the greatest return potential, prioritizing Design Automation and Design IP over Software Integrity [1][76] Management Commentary on Operating Environment and Future Outlook - The company expects a challenging near-term growth environment in China but remains optimistic about long-term opportunities [102] - AI is seen as a key driver of future growth, with Synopsys increasing investments to accelerate its AI roadmap [16][103] - The company is confident in its business heading into 2024, driven by strong execution and leadership positions across its segments [22] Other Important Information - Synopsys will host its Investor Day on March 20th, 2024, in conjunction with the Synopsys Users Group event in Santa Clara [10] - The company completed $1.2 billion in share buybacks during the year, representing 80% of free cash flow [24] Q&A Session Summary Question: Backlog and Growth Outlook - The $8.6 billion backlog is broad-based, with strong momentum in Design Automation and Design IP, but growth in China is expected to slow, and Software Integrity is forecasted to grow at a single-digit rate [71][111] - The company is balancing headwinds (China, enterprise software spending) and tailwinds (AI-driven demand) in its 2024 guidance [107] Question: AI and Product Development - Synopsys is seeing strong adoption of AI capabilities, with a 20% contract-over-contract growth in EDA agreements that include AI features [43][63] - The company is offering AI capabilities through subscription licenses, with early adopters using it on select projects [60] Question: Hardware Verification and IP Business - Hardware-assisted verification is expected to continue its strong performance in 2024, following a record year in 2023 [50][51] - The IP business is expected to grow in line with the overall revenue profile, driven by increasing chip design complexity and protocol transitions [52] Question: Generative AI and Monetization - Synopsys is in the early stages of monetizing Generative AI, with initial results showing significant productivity improvements for customers [55][60] - The company is offering AI capabilities through flexible subscription and consumption-based models [60] Question: Cash Flow and Tax Impact - Cash flow from operations is expected to be impacted by $600 million in cash taxes, with $200 million paid in 2023 and $400 million due in 2024 [64][81] - The company expects cash tax growth to align with operating income growth over the long term [81] Question: Strategic Alternatives for Software Integrity - Synopsys is exploring strategic alternatives for its Software Integrity business to focus on higher-growth opportunities in Design Automation and Design IP [76]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JULY 31, 2023 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: 000-19807 SYNOPSYS, INC. (Exact name of registrant as specified in its charter) Delaware 56-1546236 (State or other jurisdiction of ...

Synopsys, Inc. (NASDAQ:SNPS) Q3 2023 Earnings Conference Call August 16, 2023 5:00 PM ET Company Participants Trey Campbell - SVP & IR Aart de Geus - Chairman & CEO Sassine Ghazi - President & COO Shelagh Glaser - CFO Conference Call Participants Jason Celino - KeyBanc Capital Markets Gary Mobley - Wells Fargo Joshua Tilton - Wolfe Research Joseph Vruwink - Robert W. Baird Vivek Arya - BofA Securities Ruben Roy - Stifel Jay Vleeschhouwer - Griffin Securities Charles Shi - Needham & Company Gianmarco Conti - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2023 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: 000-19807 SYNOPSYS, INC. (Exact name of registrant as specified in its charter) Delaware 56-1546236 (State or other jurisdiction of ...

Financial Data and Key Metrics Changes - GAAP earnings per share was $1.76, while non-GAAP earnings per share was $2.54, exceeding the high end of the target range [26] - Revenue for the quarter reached $1.395 billion, above the high end of guidance, with non-GAAP operating margin at 33.3% [49][65] - Operating cash flow generated was $703 million, with a backlog increase to $7.3 billion [26][66] - Full year revenue guidance raised to between $5.79 billion and $5.83 billion, with non-GAAP earnings per share growth expectation increased to 21% to 22% [40][67] Business Line Data and Key Metrics Changes - Design Automation segment revenue was $928 million, up 13%, driven by strength in EDA software and hardware, with an adjusted operating margin of 38.8% [42] - Design IP segment revenue was $335 million, down 4% due to a tough comparison to an exceptionally strong Q2 '22 [42] - Software Integrity segment revenue was $132 million, up 17%, with an adjusted operating margin of 13.9% [90] Market Data and Key Metrics Changes - Demand for Smart Everything is driving significant long-term growth for semiconductors, with a focus on performance-per-watt and security becoming mandatory [29][40] - The market is experiencing weaker demand for semiconductors overall, particularly in consumer markets, but R&D investments in new chip designs remain a priority [50][67] - The adoption of AI in chip design is accelerating, with over 200 AI-driven commercial tapeouts reported [31][34] Company Strategy and Development Direction - The company is embedding AI across its product offerings, with significant advancements in design flow automation and a focus on multi-die systems [30][57] - Collaborations with TSMC and Ansys aim to deliver advanced EDA solutions, enhancing the company's position in the semiconductor design market [35][36] - The vision of Smart Everything is expected to create substantial opportunities for both the company and its customers [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook, citing strong design activity and a healthy industry despite macroeconomic challenges [50][67] - The company anticipates a strong second half of the year, driven by increased renewals and IP consumption [73][96] - The management highlighted the importance of AI in enhancing design productivity and addressing the shortage of top designers [72][84] Other Important Information - The company has doubled its customer base every quarter this year, with the SaaS model accounting for 70% of users [34] - The Software Integrity segment is expected to grow by 15% to 20% in revenue with expanding margins [90] - The company is committed to maximizing its positive impact and driving change in the industry through its technology [62] Q&A Session All Questions and Answers Question: What is the outlook for renewals and growth into next year? - Management confirmed strong investment in chip design during downturns to prepare for future demand, emphasizing the importance of productivity enhancements through AI [71] Question: Are larger software renewals expected in the second half? - Management noted that while renewals vary across the industry, there is a healthy outlook for the coming decade, driven by software demand [75][76] Question: What is driving the expansion of operating margins this year? - The expansion is attributed to rigorous financial control and the ability to scale effectively in response to opportunities [146] Question: How is AI transforming the core EDA market? - AI is enhancing automation and efficiency in chip design, leading to significant productivity improvements and potentially encouraging more companies to pursue custom semiconductor designs [138][162]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2023 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: 000-19807 SYNOPSYS, INC. (Exact name of registrant as specified in its charter) Delaware 56-1546236 (State or other jurisdiction ...