Q4 2019 Financial Highlights
MOUNTAIN VIEW, Calif., Dec. 4, 2019 — (PRNewswire) — Synopsys, Inc. (Nasdaq: SNPS) today reported results for its fourth quarter and fiscal year 2019. Revenue for the fourth quarter was $851.1 million, compared to $795.1 million for the fourth quarter of fiscal 2018. Revenue for fiscal year 2019 was $3.361 billion, an increase of 7.7 percent from $3.121 billion in fiscal year 2018."Fiscal 2019 was another outstanding year for Synopsys. Even as we navigated several external challenges, we significantly exceeded our beginning-of-year plan, and delivered strong growth in revenue, non-GAAP operating margin, earnings-per-share, and cash flow, and across both operating segments. We also returned $329 million to shareholders via stock repurchases," said Aart de Geus, chairman and co-CEO of Synopsys. "Against a challenging global market backdrop, design activity remains strong. Our unrelenting innovation push has resulted in stronger-than-ever platforms, which are driving notable benchmark wins and increased competitive displacements. As we move into 2020, well on our way to our next milestone of $4 billion in revenue and beyond, we are targeting solid revenue growth, continued non-GAAP operating margin expansion, mid-teens non-GAAP earnings per share growth, and strong cash flow."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal 2019 was $160.7 million, or $1.04 per share, compared to $254.3 million, or $1.66 per share, for the fourth quarter of fiscal 2018. GAAP net income for fiscal year 2019 was $532.4 million, or $3.45 per share, compared to $432.5 million, or $2.82 per share, for fiscal year 2018.
Non-GAAP Results
On a non-GAAP basis, net income for the fourth quarter of fiscal 2019 was $177.1 million, or $1.15 per share, compared to non-GAAP net income of $119.6 million, or $0.78 per share, for the fourth quarter of fiscal 2018. Non-GAAP net income for fiscal year 2019 was $702.5 million, or $4.56 per share, compared to non-GAAP net income of $599.7 million, or $3.91 per share, for fiscal year 2018.
For a reconciliation between GAAP and non-GAAP results, see "GAAP to Non-GAAP Reconciliation" and the accompanying tables below.
Business Segments
Synopsys reports revenue and operating income in two segments: (1) Semiconductor & System Design, which includes EDA tools, IP products, system integration solutions and associated services, and (2) Software Integrity, which includes security and quality solutions for software development across many industries. Further information regarding these segments is provided at the end of this press release.
Financial Targets
Synopsys also provides its consolidated financial targets for the first quarter and full fiscal year 2020. These financial targets do not assume any revenue from companies currently on the U.S. government's "Entity List." These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.
First Quarter and Fiscal Year 2020 Financial Targets | |||||
(in millions except per share amounts) | |||||
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| Q1 2020 |
| FY 2020 | ||
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| Low | High |
| Low | High |
Revenue | $ 805 | $ 835 |
| $ 3,600 | $ 3,650 |
GAAP Expenses | $ 715 | $ 744 |
| $ 2,934 | $ 2,983 |
Non-GAAP Expenses | $ 635 | $ 655 |
| $ 2,630 | $ 2,660 |
Other Income (Expense) | $ (5) | $ (3) |
| $ (16) | $ (12) |
| Normalized Annual Tax Rate (1) | 16% | 16% |
| 16% | 16% |
| Outstanding Shares (fully diluted) | 153 | 156 |
| 153 | 156 |
| GAAP EPS | $ 0.43 | $ 0.54 |
| $ 3.72 | $ 3.90 |
| Non-GAAP EPS | $ 0.89 | $ 0.94 |
| $ 5.18 | $ 5.25 |
| Operating Cash Flow |
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| $ 800 | $ 825 |
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| (1) Applied in non-GAAP net income calculations |
