Synopsys Suffers Worst Rout Ever After Trade War Hits Sales

Core Viewpoint - Synopsys Inc. experienced its largest single-day stock decline after warning that US export restrictions are causing a slowdown in China, which is the largest market for semiconductors [1]. Group 1: Company Performance - The CEO of Synopsys, Sassine Ghazi, indicated that the company's efforts to develop its own intellectual property are not yielding the expected results, partly due to challenges in China [2]. - The company is refocusing resources and plans to reduce its workforce by approximately 10% [2]. - Synopsys reported that its results were significantly affected by underperformance in the IP business, with expectations for deals that did not materialize due to export restrictions and challenges at a major foundry customer [3]. Group 2: Stock Market Reaction - Shares of Synopsys fell by 36% in New York, marking the largest intraday drop since its IPO in 1992, despite having risen 25% earlier in the year [3]. Group 3: Industry Context - Synopsys and its competitor, Cadence Design Systems Inc., are the leading providers of software and services for designing electronic components, facing ongoing US government actions to limit Chinese access to advanced semiconductors due to national security concerns [4]. Group 4: Financial Forecast - Synopsys projected revenue of up to $2.26 billion for the quarter ending October 31, with expected profit between $2.76 and $2.80 per share, significantly below analysts' estimates of over $4 per share [5].