Synopsys(US:SNPS) Prnewswireยท2025-02-26 21:05Core Insights - Synopsys reported Q1 fiscal year 2025 revenue of $1.455 billion, a decrease from $1.511 billion in Q1 fiscal year 2024, indicating a year-over-year decline of approximately 3.7% [1][8] - The company achieved non-GAAP earnings of $473.2 million, or $3.03 per diluted share, compared to $525.5 million, or $3.38 per diluted share in the same quarter last year, reflecting a decrease of about 9.9% in net income [4][8] - Synopsys reaffirmed its full-year guidance, expecting double-digit revenue growth, supported by strong design activity at advanced nodes driven by AI innovations [1][8] Financial Performance - GAAP net income for Q1 fiscal year 2025 was $295.7 million, or $1.89 per diluted share, down from $437.5 million, or $2.82 per diluted share in Q1 fiscal year 2024, representing a decline of approximately 32.4% [3][24] - Total revenue breakdown shows Design Automation segment revenue at $1.020 billion (70.1% of total), up from $985.3 million (65.2% of total) year-over-year, while Design IP segment revenue fell to $435.1 million (29.9% of total) from $525.7 million (34.8% of total) [31][32] Business Segments - The Design Automation segment demonstrated growth in adjusted operating income, reaching $404.7 million with a margin of 39.7%, compared to $359.5 million and a margin of 36.5% in the previous year [31][32] - Conversely, the Design IP segment's adjusted operating income decreased to $126.5 million with a margin of 29.1%, down from $245.7 million and a margin of 46.7% in the prior year [31][32] Future Outlook - Synopsys provided financial targets for Q2 and full fiscal year 2025, projecting revenue between $1.585 billion and $1.615 billion for Q2, and between $6.745 billion and $6.805 billion for the full year [6][7] - The company anticipates maintaining a non-GAAP tax rate of 16% and expects operating cash flow to be approximately $1.8 billion for the fiscal year [7][8]