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Synopsys Posts Financial Results for Second Quarter Fiscal Year 2023

MOUNTAIN VIEW, Calif., May 17, 2023 — (PRNewswire) — Synopsys, Inc. (Nasdaq: SNPS) today reported results for its second quarter of fiscal year 2023. Revenue for the second quarter of fiscal year 2023 was $1.395 billion, compared to $1.279 billion for the second quarter of fiscal year 2022.

"Synopsys generated excellent financial results and operational execution in the second quarter. We exceeded all our guidance targets, while reaching another quarterly revenue record," said Aart de Geus, Chair and CEO of Synopsys. "Our financial performance is the product of a relentless drive for technology innovation and years of building trust in our customer base. Our industry-leading AI-driven design platform, Synopsys.ai, unleashes our next wave of impact as our customers drive a groundswell of 'smart, secure, and safe' new products."

"Exceptional execution across the company drove strong quarterly financial performance," said Shelagh Glaser, CFO of Synopsys. "We have a resilient business model uncommon in software companies and remain confident in our business. We are raising our full year guidance and expect revenue growth of 14-15%, non-GAAP operating margin accretion of 150 basis points to 34.5%, and non-GAAP earnings per share growth of 21-22%."

GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the second quarter of fiscal year 2023 was $272.9 million, or $1.76 per diluted share, compared to $294.8 million, or $1.89 per diluted share, for the second quarter of fiscal year 2022.

Non-GAAP Results
On a non-GAAP basis, net income for the second quarter of fiscal year 2023 was $393.3 million, or $2.54 per diluted share, compared to non-GAAP net income of $390.8 million, or $2.50 per diluted share, for the second quarter of fiscal year 2022.

For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below. 

Business Segments
Synopsys reports revenue and operating income in three segments: (1) Design Automation, which includes digital and custom integrated circuit (IC) design software, verification hardware and software products, manufacturing-related design products, field-programmable gate array (FPGA) design software, optical products, professional services, and other; (2) Design IP, which includes our Synopsys IP portfolio; and (3) Software Integrity, which includes solutions that test software code for security vulnerabilities and quality defects, as well as professional and managed services. Further information regarding these segments is provided at the end of this press release.

Financial Targets
Synopsys also provided its consolidated financial targets for the third quarter and full fiscal year 2023. These financial targets assume no further changes to export control restrictions or the current U.S. government "Entity List" restrictions. 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. 

Third Quarter and Fiscal Year 2023 Financial Targets (1)

(in millions except per share amounts)








 Range for Three Months Ending


Range for Fiscal Year Ending


July 31, 2023


October 31, 2023


Low

High


Low

High

Revenue

$             1,465

$             1,495


$             5,790

$             5,830

GAAP Expenses

$             1,143

$             1,163


$             4,520

$             4,565

Non-GAAP Expenses

$                970

$                980


$             3,790

$             3,820

Non-GAAP Other Income (Expense)

$                     -

$                    2


$                    4

$                    8

Non-GAAP Tax Rate

16 %

16 %


16 %

16 %

Outstanding Shares (fully diluted)

155

158


155

158

GAAP EPS

$               1.88

$               1.99


$               7.44

$               7.60

Non-GAAP EPS

$               2.70

$               2.75


$             10.77

$             10.84

Operating Cash Flow




~ $1,650







(1) Synopsys' third quarter of fiscal year 2023 and fiscal year 2023 will end on July 29, 2023 and October 28, 2023, respectively.
For presentation purposes, we refer to the closest calendar month end.

For a reconciliation of Synopsys' third quarter and fiscal year 2023 targets, including expenses, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below. 

Earnings Call Open to Investors
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys' corporate website at www.synopsys.com. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the third quarter in August 2023. Synopsys will post copies of the prepared remarks on its website following today's call. In addition, Synopsys makes additional information available in a financial supplement and corporate overview presentation, also posted on the corporate website.

Effectiveness of Information
The targets included in this press release, the statements made during the earnings conference call and the information contained in the financial supplement and the corporate overview presentation (available on Synopsys' corporate website at www.synopsys.com) represent Synopsys' expectations and beliefs as of May 17, 2023. Although this press release, copies of the prepared remarks made during the earnings conference call, the financial supplement, and the corporate overview presentation will remain available on Synopsys' website through the date of the earnings call for the third quarter fiscal year 2023, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty and does not intend to update any forward-looking statement, whether as a result of new information or future events, or otherwise update, the targets given in this press release unless required by law.

Availability of Final Financial Statements
Synopsys will include final financial statements for the second quarter of fiscal year 2023 in its quarterly report on Form 10-Q to be filed on or before June 8, 2023.

About Synopsys
Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and offers the industry's broadest portfolio of application security testing tools and services. Whether you're a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing more secure, high-quality code, Synopsys has the solutions needed to deliver innovative products. Learn more at  www.synopsys.com.

GAAP to Non-GAAP Reconciliation
Synopsys continues to provide all information required in accordance with GAAP, but acknowledges evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys' operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal planning and forecasting purposes. These non-GAAP measures may be different from non-GAAP measures used by other companies. Synopsys' management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Synopsys' management believes it is useful for itself and investors to review, as applicable, both GAAP financial measures that include: (i) the amortization of acquired intangible assets, (ii) the impact of stock compensation, (iii) acquisition-related items, (iv) restructuring charges, (v) the effects of certain settlements, final judgments and loss contingencies related to legal proceedings, and (vi) the income tax effect of non-GAAP pre-tax adjustments; and the non-GAAP financial measures that exclude such information in order to assess the performance of Synopsys' business operations and for planning and forecasting in subsequent periods.

Synopsys utilizes an annual non-GAAP tax rate in calculating non-GAAP financial measures to provide better consistency across interim reporting periods by eliminating the effects of certain non-recurring and other period-specific items, which can vary in size and frequency and do not necessarily reflect Synopsys' normal operations, and to more closely align its tax rate with its expected geographic earnings mix. This annual non-GAAP tax rate was based on an evaluation of Synopsys' historical and projected mix of U.S. and international profit before tax, taking into account the impact of non-GAAP adjustments, U.S. tax law changes, as well as other factors such as our current tax structure, existing tax positions and expected recurring tax incentives.

Synopsys previously elected to maintain an annual non-GAAP tax rate of 18% for fiscal year 2023 given uncertainty surrounding further U.S. corporate tax law changes. Based on a re-evaluation of federal tax laws that require research and development expense to be capitalized commencing in Synopsys' first quarter of fiscal year 2023, Synopsys elected to update its annual non-GAAP tax rate for fiscal year 2023 to 16% on February 17, 2023. Synopsys does not currently anticipate any additional significant changes to U.S. corporate tax law, its geographic earnings mix, or significant tax law changes in major jurisdictions where it operates that would result in further adjustment to its fiscal year 2023 annual non-GAAP tax rate.

When possible, Synopsys provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed below, as well as Item 2.02 of Synopsys' Current Report on Form 8-K filed on May 17, 2023, for additional information about the measures Synopsys uses to evaluate its core business operations. Synopsys is unable to provide a reconciliation of certain non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis because doing so would not be possible without unreasonable effort due to, among other things, the potential variability and limited visibility of the excluded items. For the same reasons, Synopsys is unable to address the probable significance of the unavailable information. 

Reconciliation of Second Quarter Fiscal Year 2023 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per diluted share for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Second Quarter Fiscal Year 2023 Results(1)

(unaudited and in thousands, except per share amounts)










Three Months Ended


Six Months Ended


April 30,


April 30,


2023


2022


2023


2022

GAAP net income attributed to Synopsys

$     272,910


$     294,781


$     544,446


$     608,468

Adjustments:








Amortization of intangible assets

23,449


21,367


47,827


43,727

Stock compensation

143,012


110,061


276,879


205,832

Acquisition-related items

2,711


4,023


5,306


6,100

Restructuring charges

4,140


311


44,999


12,057

Tax adjustments

(52,947)


(39,703)


(119,512)


(108,456)

Non-GAAP net income attributed to
Synopsys

$     393,275


$     390,840


$     799,945


$     767,728


























Three Months Ended


Six Months Ended


April 30,


April 30,


2023


2022


2023


2022

GAAP net income per diluted share
attributed to Synopsys

$           1.76


$           1.89


$           3.51


$           3.88

Adjustments:








Amortization of intangible assets

0.15


0.14


0.31


0.28

Stock compensation

0.92


0.70


1.79


1.31

Acquisition-related items

0.02


0.03


0.03


0.04

Restructuring charges

0.03


-


0.29


0.08

Tax adjustments

(0.34)


(0.26)


(0.77)


(0.69)

Non-GAAP net income per diluted share
attributed to Synopsys

$           2.54


$           2.50


$           5.16


$           4.90









Shares used in computing net income per
diluted share amounts:

154,730


156,167


155,044


156,815









(1) Synopsys' second quarter of fiscal year 2023 and 2022 ended on April 29, 2023 and April 30, 2022, respectively. For
presentation purposes, we refer to the closest calendar month end.

 

Reconciliation of 2023 Targets
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Third Quarter Fiscal Year 2023 Targets (1)

(in thousands, except per share amounts)











 Range for Three Months Ending



July 31, 2023



Low


High

Target GAAP expenses


$        1,143,000


$        1,163,000

Adjustments:





      Amortization of intangible assets


(25,000)


(28,000)

      Stock compensation


(148,000)


(155,000)

Target non-GAAP expenses


$           970,000


$           980,000
















Range for Three Months Ending



July 31, 2023



Low


High

Target GAAP earnings per diluted share attributed to Synopsys


$                 1.88


$                 1.99

Adjustments:





      Amortization of intangible assets


0.18


0.16

      Stock compensation


0.99


0.95

      Tax adjustments


(0.35)


(0.35)

Target non-GAAP earnings per diluted share attributed to
Synopsys


$                 2.70


$                 2.75






Shares used in non-GAAP calculation (midpoint of target range)


156,500


156,500

 

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2023 Targets (1)

(in thousands, except per share amounts)









Range for Fiscal Year Ending



October 31, 2023



Low


High

Target GAAP expenses


$        4,520,305


$        4,565,305

Adjustments:





      Amortization of intangible assets


(100,000)


(105,000)

      Stock compensation


(580,000)


(590,000)

      Acquisition-related items


(5,306)


(5,306)

      Restructuring charges


(44,999)


(44,999)

Target non-GAAP expenses


$        3,790,000


$        3,820,000
















Range for Fiscal Year Ending



October 31, 2023



Low


High

Target GAAP earnings per diluted share attributed to
Synopsys


$                 7.44


$                 7.60

Adjustments:





      Amortization of intangible assets


0.67


0.64

      Stock compensation


3.77


3.71

      Acquisition-related items


0.03


0.03

      Restructuring charges


0.29


0.29

      Tax adjustments


(1.43)


(1.43)

Target non-GAAP earnings per diluted share attributed
to Synopsys


$               10.77


$               10.84






Shares used in non-GAAP calculation (midpoint of
target range)


156,500


156,500






(1) Synopsys' third quarter of fiscal year 2023 and fiscal year 2023 will end on July 29, 2023 and October 28, 2023,
respectively. For presentation purposes, we refer to the closest calendar month end.

 

Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements regarding Synopsys' short-term and long-term financial targets, expectations and objectives; strategies related to our products, technology and services; business and market outlook, opportunities and strategies; the expected impact of U.S. and foreign government actions and regulatory changes, including export control restrictions on our financial results; the potential impact of the uncertain macroeconomic environment on our financial results; customer demand and market expansion; our planned product releases and capabilities; industry growth rates; software trends; planned acquisitions and stock repurchases; our expected tax rate; and the impact and result of pending legal, administrative and tax proceedings. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: macroeconomic conditions and uncertainty in the global economy; uncertainty in the growth of the semiconductor and electronics industries; the highly competitive industry we operate in; actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022 and in our latest Quarterly Report on Form 10-Q. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in Synopsys' most recent reports on Forms 10-K and 10-Q each as may be amended from time to time. Synopsys' financial results for its second quarter fiscal year 2023 are not necessarily indicative of Synopsys' operating results for any future periods. The information provided herein is as of May 17, 2023. Synopsys undertakes no duty, and does not intend, to update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law.

SYNOPSYS, INC.


Unaudited Condensed Consolidated Statements of Income(1)


(in thousands, except per share amounts)







Three Months Ended


Six Months Ended



April 30,


April 30,



2023


2022


2023


2022


Revenue:









  Time-based products

$           808,196


$           723,821


$        1,590,509


$        1,431,304


  Upfront products

345,524


336,625


682,182


704,899


    Total products revenue

1,153,720


1,060,446


2,272,691


2,136,203


  Maintenance and service

241,143


218,783


483,512


413,281


      Total revenue

1,394,863


1,279,229


2,756,203


2,549,484


Cost of revenue:









  Products

184,732


150,690


359,099


316,089


  Maintenance and service

95,410


87,666


186,757


165,891


  Amortization of intangible assets

17,872


14,455


36,512


27,815


      Total cost of revenue

298,014


252,811


582,368


509,795


Gross margin

1,096,849


1,026,418


2,173,835


2,039,689


Operating expenses:









  Research and development

485,597


389,964


950,926


773,935


  Sales and marketing

222,115


191,573


432,900


372,083


  General and administrative

91,083


73,957


188,447


154,965


  Amortization of intangible assets

6,582


6,912


13,299


15,912


  Restructuring charges

4,140


311


44,999


12,057


      Total operating expenses

809,517


662,717


1,630,571


1,328,952


Operating income

287,332


363,701


543,264


710,737


Other income (expense), net

4,253


(23,913)


27,545


(43,706)


Income before income taxes

291,585


339,788


570,809


667,031


Provision (benefit) for income taxes

21,637


45,896


32,234


59,798


Net income

269,948


293,892


538,575


607,233


Net income (loss) attributed to non-
controlling interest and redeemable
non-controlling interest

(2,962)


(889)


(5,871)


(1,235)


Net income attributed to Synopsys

$           272,910


$           294,781


$           544,446


$           608,468











Net income per share attributed to
Synopsys:









  Basic

$                 1.79


$                 1.93


$                 3.57


$                 3.97


  Diluted

$                 1.76


$                 1.89


$                 3.51


$                 3.88











Shares used in computing per share
amounts:









  Basic

152,187


153,090


152,294


153,154


  Diluted

154,730


156,167


155,044


156,815











(1) Synopsys' second quarter of fiscal year 2023 and 2022 ended on April 29, 2023 and April 30, 2022, respectively. For
presentation purposes, we refer to the closest calendar month end.


 

SYNOPSYS, INC.



Unaudited Condensed Consolidated Balance Sheets (1)



(in thousands, except par value amounts)










April 30, 2023


October 31, 2022



ASSETS:









Current assets:









  Cash and cash equivalents




$                  1,544,592


$                  1,417,608



  Short-term investments




150,846


147,913



          Total cash, cash equivalents & short-term investments




1,695,438


1,565,521



  Accounts receivable, net




779,892


796,091



  Inventories




256,426


211,927



  Prepaid and other current assets




429,179


439,130



          Total current assets




3,160,935


3,012,669



Property and equipment, net




546,439


483,300



Operating lease right-of-use assets, net




576,727


559,090



Goodwill




3,888,249


3,842,234



Intangible assets, net




357,113


386,446



Deferred income taxes




774,391


670,653



Other long-term assets




486,878


463,695



           Total assets




$                  9,790,732


$                  9,418,087












LIABILITIES, REDEEMABLE NON-CONTROLLING
INTEREST AND STOCKHOLDERS' EQUITY:









Current liabilities:









  Accounts payable and accrued liabilities




$                     701,816


$                     809,403



  Operating lease liabilities




78,056


54,274



  Deferred revenue




1,968,808


1,910,822



           Total current liabilities




2,748,680


2,774,499



Long-term operating lease liabilities




591,667


581,273



Long-term deferred revenue




191,413


154,472



Long-term debt




20,201


20,824



Other long-term liabilities




365,949


327,829



           Total liabilities




3,917,910


3,858,897



Redeemable non-controlling interest




35,877


38,664



Stockholders' equity:









  Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding




  Common stock, $0.01 par value: 400,000 shares authorized; 152,251 and







 152,375 shares outstanding, respectively




1,523


1,524



  Capital in excess of par value




1,330,072


1,487,126



  Retained earnings




6,075,009


5,534,307



  Treasury stock, at cost: 5,010 and 4,886 shares, respectively




(1,428,748)


(1,272,955)



  Accumulated other comprehensive income (loss)




(145,997)


(234,277)



           Total Synopsys stockholders' equity




5,831,859


5,515,725



  Non-controlling interest




5,086


4,801



           Total stockholders' equity




5,836,945


5,520,526



           Total liabilities, redeemable non-controlling interest and    
           stockholders' equity




$                  9,790,732


$                  9,418,087












(1) Synopsys' second quarter of fiscal year 2023 ended April 29, 2023 and its fiscal year 2022 ended on October 29, 2022, respectively. For
presentation purposes, we refer to the closest calendar month end.





 

SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows (1)

(in thousands)



Six Months Ended


April 30,


2023


2022

CASH FLOWS FROM OPERATING ACTIVITIES:




Net income

$            538,575


$            607,233

Adjustments to reconcile net income to net cash provided by




operating activities:




Amortization and depreciation

116,922


111,962

Reduction of operating lease right-of-use assets

48,073


42,412

Amortization of capitalized costs to obtain revenue contracts

39,588


34,574

Stock-based compensation

277,485


205,832

Allowance for credit losses

6,134


(4,516)

Deferred income taxes

(125,090)


8,944

Other non-cash

4,972


7,479

Net changes in operating assets and liabilities, net of




acquired assets and liabilities:




Accounts receivable

9,289


(169,785)

Inventories

(48,648)


7,725

Prepaid and other current assets

49,437


(2,417)

Other long-term assets

(75,324)


(8,701)

Accounts payable and accrued liabilities

(162,840)


(181,008)

Operating lease liabilities

(31,634)


(43,963)

Income taxes

94,587


(34,246)

Deferred revenue

76,165


324,176

Net cash provided by operating activities

817,691


905,701





CASH FLOWS FROM INVESTING ACTIVITIES:




Proceeds from sales and maturities of short-term investments

67,717


43,653

Purchases of short-term investments

(68,738)


(45,158)

Proceeds from sales of long-term investments

7,248


582

Purchases of long-term investments

-


(7,000)

Purchases of property and equipment

(91,368)


(67,367)

Acquisitions, net of cash acquired

(41,324)


(109,060)

Capitalization of software development costs

(1,247)


(1,065)

Other

-


(600)

Net cash used in investing activities

(127,712)


(186,015)





CASH FLOWS FROM FINANCING ACTIVITIES:




Repayment of debt

(1,294)


(75,938)

Issuances of common stock

132,808


120,710

Payments for taxes related to net share settlement of equity awards

(116,838)


(101,126)

Purchase of equity forward contract

(45,000)


-

Purchases of treasury stock

(560,724)


(500,000)

Other

(122)


(2,709)

Net cash used in financing activities

(591,170)


(559,063)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

27,708


(19,955)

Net change in cash, cash equivalents and restricted cash

126,517


140,668

Cash, cash equivalents and restricted cash, beginning of year

1,419,864


1,435,183

Cash, cash equivalents and restricted cash, end of period

$         1,546,381


$         1,575,851









(1) Synopsys' second quarter of fiscal year 2023 and 2022 ended on April 29, 2023 and April 30, 2022, respectively. For presentation
purposes, we refer to the closest calendar month end.

 

SYNOPSYS, INC.

Business Segment Reporting (1)(3)

(in millions)



Three Months Ended


Three Months Ended


Six Months Ended


Six Months Ended


April 30, 2023


April 30, 2022


April 30, 2023


April, 2022

Revenue by segment








- Design Automation

$                       927.6


$                       817.8


$              1,817.4


$             1,621.7

% of Total

66.5 %


64.0 %


66.0 %


63.7 %

- Design IP

$                       335.2


$                       348.5


$                678.8


$                707.4

% of Total

24.0 %


27.2 %


24.6 %


27.7 %

- Software Integrity

$                       132.1


$                       112.9


$                260.0


$                220.4

% of Total

9.5 %


8.8 %


9.4 %


8.6 %

Total segment revenue

$                    1,394.9


$                    1,279.2


$              2,756.2


$             2,549.5









Adjusted operating income by segment








- Design Automation

$                       360.1


$                       321.4


$                706.1


$                614.7

- Design IP

$                         86.3


$                       135.7


$                203.9


$                289.9

- Software Integrity

$                         18.3


$                         13.0


$                  33.8


$                  25.0

Total adjusted segment operating income

$                       464.7


$                       470.2


$                943.9


$                929.5









Adjusted operating margin by segment








- Design Automation

38.8 %


39.3 %


38.9 %


37.9 %

- Design IP

25.8 %


38.9 %


30.0 %


41.0 %

- Software Integrity

13.9 %


11.5 %


13.0 %


11.4 %

Total adjusted segment operating margin

33.3 %


36.8 %


34.2 %


36.5 %

 

Total Adjusted Segment Operating Income Reconciliation (1)(2)(3)

(in millions)










Three Months Ended


Three Months Ended


Six Months Ended


Six Months Ended


April 30, 2023


April 30, 2022


April 30, 2023


April 30, 2022

GAAP total operating income – as reported

$                       287.3


$                       363.7


$                543.3


$                710.7

Other expenses managed at consolidated level








-Amortization of intangible assets (4)

24.5


21.4


49.8


43.7

-Stock compensation (4)

143.3


110.1


277.5


205.8

-Non-qualified deferred compensation plan

2.8


(29.3)


23.0


(48.9)

-Acquisition-related items

2.7


4.0


5.3


6.1

-Restructuring charges

4.1


0.3


45.0


12.1

Total adjusted segment operating income

$                       464.7


$                       470.2


$             943.9


$                929.5









(1) Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue and profitability as normal elements of
our business. Amounts may not foot due to rounding.

(2) These segments results are consistent with the information required by ASC 280, Segment Reporting. Synopsys' chief operating decision maker
(CODM) is our Chief Executive Officer. The CODM does not allocate certain operating expenses managed at a consolidated level to our reportable
segments and, as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table above.

(3) Synopsys' second quarter of fiscal year 2023 and 2022 ended on April 29, 2023 and April 30, 2022, respectively. For presentation purposes, we refer
to the closest calendar month end.

(4) The adjustment includes non-GAAP expenses attributable to non-controlling interest and redeemable non-controlling interest.

 

INVESTOR CONTACT:
Trey Campbell
Synopsys, Inc.
650-584-4289
Email Contact 

EDITORIAL CONTACT:
Jim Brady
Synopsys, Inc.
408-482-4719
Email Contact

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SOURCE Synopsys, Inc.

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Company Name: Synopsys, Inc.
Financial data for Synopsys, Inc.