Synopsys Posts Financial Results for Second Quarter Fiscal Year 2024

Core Viewpoint - Synopsys, Inc. reported strong financial results for the second quarter of fiscal year 2024, with revenue of $1.455 billion, a 15% increase year-over-year, and raised its full-year revenue and non-GAAP EPS targets due to strong operational execution and business momentum [10][1][6]. Financial Performance - Revenue for Q2 FY2024 was $1.455 billion, compared to $1.263 billion in Q2 FY2023, marking a 15% increase [10][1]. - GAAP net income for Q2 FY2024 was $299.1 million, or $1.92 per diluted share, up from $275.6 million, or $1.78 per diluted share in Q2 FY2023 [3][10]. - Non-GAAP net income for Q2 FY2024 was $466.9 million, or $3.00 per diluted share, compared to $368.3 million, or $2.38 per diluted share in Q2 FY2023, reflecting a 26% increase [4][10]. Business Segments - Synopsys operates in two segments: Design Automation and Design IP. In Q2 FY2024, Design Automation generated $1.0549 billion in revenue, accounting for 72.5% of total revenue, while Design IP contributed $399.8 million, representing 27.5% [30][31]. Financial Targets - For Q3 FY2024, Synopsys targets revenue between $1.505 billion and $1.535 billion and expects full-year revenue to be between $6.090 billion and $6.150 billion [7][6]. - The company anticipates GAAP EPS for Q3 FY2024 to be between $2.22 and $2.35, and non-GAAP EPS to be between $3.25 and $3.30 [7][6]. Strategic Initiatives - The planned acquisition of Ansys was approved by Ansys shareholders, which is expected to enhance Synopsys' capabilities in providing essential silicon to systems design solutions [1][10]. - The divestiture of the Software Integrity business is presented as a discontinued operation, allowing Synopsys to focus on its core business segments [2][10].