Synopsys pulls full-year guidance, citing new China export restrictions

Core Insights - Synopsys plans to integrate artificial intelligence into the design of computer chips, as discussed by CEO Sassine Ghazi at the annual user conference in March 2025 [1] - The company has withdrawn its full fiscal year guidance due to a letter from the U.S. Commerce Department regarding sales restrictions in China, resulting in a 3% drop in stock price [1] - Ghazi has indicated that Synopsys is evaluating the potential impact of the Bureau of Industry and Security (BIS) letter on its business and financial condition [2] Financial Performance - Synopsys experienced a slowdown in its business in China during the fiscal second quarter ending April 30, 2025 [3] - The company has communicated ongoing deceleration in its operations due to cumulative impacts of restrictions in China and the macroeconomic situation, which have intensified over the past year and a half [4]