Core Viewpoint - Synopsys' recent acquisition of Ansys positions the company for significant growth in the electronic design automation (EDA) market, particularly in AI-driven product design, although it may not lead to millionaire-making returns for investors [2][9][12]. Group 1: Acquisition Impact - The acquisition of Ansys enhances Synopsys' capabilities in engineering simulation, allowing for a more integrated approach to product design and performance analysis [5][8]. - This deal is expected to deepen relationships with existing customers and attract new ones, particularly in industries like defense, automotive, and healthcare [3][6]. Group 2: Market Potential - Synopsys operates in a growing market, with increasing complexity in integrated circuits driven by AI applications, leading to higher EDA sales [4][10]. - The company is projected to generate $10.4 billion in revenue by 2026, with a conservative estimate of 10% annual growth potentially reaching $27 billion in revenue over the next decade [9]. Group 3: Financial Projections - With a free cash flow (FCF) conversion rate of 35%, Synopsys could generate approximately $9.5 billion in FCF over the next decade [9]. - The company is expected to maintain non-GAAP operating margins in the mid-40% range and FCF margins in the mid-30% range, with earnings-per-share growth in the high-teens [10]. Group 4: Investment Outlook - While Synopsys may not provide millionaire-making returns, it offers excellent investment potential, particularly as a play on AI spending and the growth of semiconductors in everyday devices [12][13].

Core Viewpoint - ANSYS, Inc. reported a strong performance in Q1 2025, with revenue growth and improved earnings per share, while also progressing towards a significant acquisition by Synopsys, Inc. [2][3] Financial Performance - Q1 2025 revenue reached $504.9 million, marking an 8% increase in reported currency and a 10% increase in constant currency compared to Q1 2024 [2][14] - GAAP diluted earnings per share were $0.59, up 47.5% from $0.40 in Q1 2024, while non-GAAP diluted earnings per share increased to $1.64 from $1.39, a rise of 18% [2][7] - The company reported a net income of $51.9 million, a 49.1% increase from $34.8 million in the same quarter last year [5][26] - Annual Contract Value (ACV) for Q1 2025 was $410.1 million, reflecting a 0.7% increase compared to Q1 2024 [6][8] Revenue Breakdown - Revenue by license type showed that subscription lease revenue was $96.9 million (19.2% of total), maintenance revenue was $324.4 million (64.2%), and service revenue was $20.5 million (4.1%) [15] - Geographically, revenue from the Americas was $230.4 million (45.6% of total), while Asia-Pacific contributed $155.7 million (30.8%) [17] Acquisition Progress - ANSYS has entered into a definitive agreement with Synopsys for acquisition, with regulatory approvals from several jurisdictions, including the U.K. and Turkey [3][6] - The transaction is expected to close in the first half of 2025, pending further regulatory approvals [3] Cash Flow and Deferred Revenue - Operating cash flows for Q1 2025 were $398.9 million, a 41.1% increase from $282.8 million in Q1 2024 [6][39] - Total deferred revenue and backlog as of March 31, 2025, was $1.63 billion, down from $1.72 billion at the end of 2024 [19]