MOUNTAIN VIEW, Calif.,
Aug. 19, 2020 /PRNewswire/ --
Synopsys, Inc. (Nasdaq: SNPS) today reported results for its third
quarter fiscal year 2020. Revenue for the third quarter was
$964.1 million, compared to
$853.0 million for the third quarter
of fiscal 2019.
"Synopsys again executed very well in the third quarter,
delivering record revenue, non-GAAP earnings per share and
operating cash flow. We saw double-digit revenue growth across all
product groups and strength in all geographies. Our intense,
multi-year innovation push is driving increased momentum in product
successes and production adoptions," said Aart de Geus, chairman and co-CEO of Synopsys.
"Even as the world navigates through the pandemic and economic
challenges, global design activity and customer engagements are
flourishing. Due to our very strong fiscal third quarter,
confidence in our outlook and resilient business model, we are
raising 2020 revenue, operating margin, non-GAAP earnings-per-share
and operating cash flow targets."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net
income for the third quarter of fiscal 2020 was $252.9 million, or $1.62 per share, compared to $99.9 million, or $0.65 per share, for the third quarter of fiscal
2019.
Non-GAAP Results
On a non-GAAP basis, net income for the third quarter of fiscal
2020 was $271.9 million, or
$1.74 per share, compared to non-GAAP
net income of $182.5 million, or
$1.18 per share, for the third
quarter of fiscal 2019.
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 provided its consolidated financial targets for
the fourth quarter and full fiscal year 2020. These financial
targets assume that the current U.S. government "Entity List"
restrictions remain in place for the rest of the fiscal year. 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.
|
Fourth Quarter and
Fiscal Year 2020 Financial Targets
|
(in millions
except per share amounts)
|
|
|
|
|
|
|
|
Q4
FY2020
|
|
FY
2020
|
|
Low
|
High
|
|
Low
|
High
|
Revenue
|
$
1,000
|
$
1,030
|
|
$
3,660
|
$
3,690
|
GAAP
Expenses
|
$
802
|
$
822
|
|
$
3,037
|
$
3,057
|
Non-GAAP
Expenses
|
$
717
|
$
727
|
|
$
2,645
|
$
2,655
|
Other Income
(Expense)
|
$
(6)
|
$
(4)
|
|
$
(4)
|
$
(2)
|
Normalized Annual Tax
Rate (1)
|
16%
|
16%
|
|
16%
|
16%
|
Outstanding Shares
(fully diluted)
|
154
|
157
|
|
154
|
157
|
GAAP EPS
|
$
1.10
|
$
1.21
|
|
$
4.10
|
$
4.21
|
Non-GAAP
EPS
|
$
1.51
|
$
1.56
|
|
$
5.48
|
$
5.53
|
Operating Cash
Flow
|
|
|
|
approximately
|
$
900
|
|
|
|
|
|
|
(1) Applied in
non-GAAP net income calculations
|
|
|
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 recording of the call will be available by
calling +1-866-207-1041 (+1-402-970-0847 for international
callers), access code 8385903, beginning at 5:00 p.m. Pacific Time today, until 11:59 p.m. Pacific Time on August 26, 2020. A webcast replay will also be
available on the website from approximately 5:30 p.m. Pacific Time today through the time
Synopsys announces its results for the fourth quarter and fiscal
year 2020 in December 2020. Synopsys will post copies of the
prepared remarks of Aart de Geus,
chairman and co-chief executive officer, and Trac Pham, chief financial officer, on its
website following today's call. In addition, Synopsys makes
additional information available in a financial supplement and
corporate overview presentation, which are 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 corporate overview presentation
(available in the Investor Relations section of Synopsys' corporate
website at www.synopsys.com) represent Synopsys' expectations and
beliefs as of the date of this release only. Although this press
release, copies of the prepared remarks of the co-chief executive
officer and chief financial officer made during the call, the
financial supplement, and the corporate overview presentation will
remain available on Synopsys' website through the date of the
fourth quarter and fiscal year 2020 earnings call in December 2020, their continued availability
through such date does not mean that Synopsys is reaffirming or
confirming their continued validity. Synopsys does not currently
intend to report on its progress during the fourth quarter of
fiscal year 2020 or comment to analysts or investors on, or
otherwise update, the targets given in this release.
Availability of Final Financial Statements
Synopsys will include final financial statements for the third
quarter of fiscal year 2020 in its quarterly report on Form 10-Q to
be filed by September 10, 2020.
About Synopsys
Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Softwareâ„¢
partner for innovative companies developing the electronic products
and software applications we rely on every day. As the world's 15th
largest software company, Synopsys has a long history of being a
global leader in electronic design automation (EDA) and
semiconductor IP and is also growing its leadership in software
security and quality solutions. Whether you're a system-on-chip
(SoC) designer creating advanced semiconductors, or a software
developer writing applications that require the highest security
and quality, Synopsys has the solutions needed to deliver
innovative, high-quality, secure products. Learn more at
www.synopsys.com.
GAAP to Non-GAAP Reconciliation
Synopsys continues to provide all information required in
accordance with GAAP but believes 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. Synopsys' management does not itself, nor
does it suggest that investors should, consider such non-GAAP
financial measures in isolation from, 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 information that includes: (i) the
amortization of acquired intangible assets, (ii) the impact of
stock compensation, (iii) acquisition-related costs, (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 measures that exclude such
information in order to assess the performance of Synopsys'
business and for planning and forecasting in subsequent
periods.
Synopsys utilizes a normalized annual non-GAAP tax rate in the
calculation of its non-GAAP measures to provide better consistency
across interim reporting periods by eliminating the effects of
non-recurring and period-specific items such as tax audit
settlements, which can vary in size and frequency and not
necessarily reflect our normal operations, and to more clearly
align our tax rate with our expected geographic earnings mix.
In projecting this rate, we evaluate our historical and projected
mix of U.S. and international profit before tax, excluding the
non-GAAP adjustments described above. We also consider other
factors including our current tax structure, our existing tax
positions, and expected recurring tax incentives, such as the U.S.
federal research and development tax credit. On an annual basis, we
re-evaluate this rate for significant events that may materially
affect our projections. Based upon our review, our projected
normalized annual non-GAAP tax rate remains 16% through fiscal year
2021. We will re-evaluate this rate on an annual basis, but further
regulatory guidance regarding specific parts of recent U.S. Tax
reform legislation could materially change our projections.
Whenever Synopsys uses a non-GAAP financial measure, it 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 the Current Report on Form 8-K filed on
August 19, 2020 for additional
information about the measures Synopsys uses to evaluate its core
business operations.
Reconciliation of Third Quarter Fiscal Year 2020 Results
The following tables reconcile the specific items excluded from
GAAP in the calculation of non-GAAP net income and earnings per
share for the periods indicated below.
|
GAAP to Non-GAAP
Reconciliation of Third Quarter Fiscal Year 2020 Results
(1)
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
July
31,
|
|
July
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP net
income
|
$
252,911
|
|
$
99,929
|
|
$
466,892
|
|
$
371,653
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
23,649
|
|
23,714
|
|
70,277
|
|
77,138
|
Stock
compensation
|
61,837
|
|
39,453
|
|
170,155
|
|
114,827
|
Acquisition-related
costs
|
3,293
|
|
1,796
|
|
10,837
|
|
3,948
|
Restructuring
charges
|
(1,977)
|
|
19,338
|
|
36,446
|
|
33,746
|
Legal
matters
|
-
|
|
-
|
|
-
|
|
(18,000)
|
Tax
settlement
|
-
|
|
-
|
|
-
|
|
17,418
|
Tax
adjustments
|
(67,767)
|
|
(1,772)
|
|
(137,714)
|
|
(75,275)
|
Non-GAAP net
income
|
$
271,946
|
|
$
182,458
|
|
$
616,893
|
|
$
525,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
July
31,
|
|
July
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP diluted net
income per share
|
$
1.62
|
|
$
0.65
|
|
$
3.01
|
|
$
2.42
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
0.15
|
|
0.15
|
|
0.45
|
|
0.50
|
Stock
compensation
|
0.40
|
|
0.25
|
|
1.10
|
|
0.75
|
Acquisition-related
costs
|
0.02
|
|
0.01
|
|
0.07
|
|
0.03
|
Restructuring
charges
|
(0.01)
|
|
0.13
|
|
0.24
|
|
0.22
|
Legal
matters
|
-
|
|
-
|
|
-
|
|
(0.12)
|
Tax
settlement
|
-
|
|
-
|
|
-
|
|
0.11
|
Tax
adjustments
|
(0.44)
|
|
(0.01)
|
|
(0.89)
|
|
(0.49)
|
Non-GAAP diluted net
income per share
|
$
1.74
|
|
$
1.18
|
|
$
3.98
|
|
$
3.42
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share amounts:
|
155,973
|
|
154,600
|
|
155,074
|
|
153,859
|
|
|
|
|
|
|
|
|
(1) Synopsys' third
quarter of fiscal year 2020 and 2019 ended on August 1, 2020 and
August 3, 2019, respectively. For presentation purposes, we refer
to the closest calendar month end.
|
|
|
Reconciliation of 2020 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 Fourth Quarter Fiscal Year 2020 Targets
(1)
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Range for
Three Months
|
|
|
Ending October 31,
2020
|
|
|
Low
|
|
High
|
Target GAAP
expenses
|
|
$
802,000
|
|
$
822,000
|
Adjustments:
|
|
|
|
|
Estimated impact of
amortization of intangible assets
|
|
(20,000)
|
|
(25,000)
|
Estimated impact of
stock compensation
|
|
(65,000)
|
|
(70,000)
|
Target non-GAAP
expenses
|
|
$
717,000
|
|
$
727,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range for Three
Months
|
|
|
Ending October 31,
2020
|
|
|
Low
|
|
High
|
Target GAAP earnings
per share
|
|
$
1.10
|
|
$
1.21
|
Adjustments:
|
|
|
|
|
Estimated impact of
amortization of intangible assets
|
|
0.16
|
|
0.13
|
Estimated impact of
stock compensation
|
|
0.45
|
|
0.42
|
Estimated impact of
tax adjustments
|
|
(0.20)
|
|
(0.20)
|
Target non-GAAP
earnings per share
|
|
$
1.51
|
|
$
1.56
|
|
|
|
|
|
Shares used in
non-GAAP calculation (midpoint of target range)
|
|
155,500
|
|
155,500
|
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP
Reconciliation of Full Fiscal Year 2020 Targets
(1)
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Range for Fiscal
Year
|
|
|
October 31,
2020
|
|
|
Low
|
|
High
|
Target GAAP
expenses
|
|
$
3,037,449
|
|
$
3,057,449
|
Adjustments:
|
|
|
|
|
Estimated impact of
amortization of intangible assets
|
|
(90,000)
|
|
(95,000)
|
Estimated impact of
stock compensation
|
|
(235,000)
|
|
(240,000)
|
Acquisition-related
costs
|
|
(10,837)
|
|
(10,837)
|
Estimated impact of
restructuring charges
|
|
(36,446)
|
|
(36,446)
|
Fair value changes in
executive deferred compensation plan
|
|
(20,166)
|
|
(20,166)
|
Target non-GAAP
expenses
|
|
$
2,645,000
|
|
$
2,655,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range for Fiscal
Year
|
|
|
October 31,
2020
|
|
|
Low
|
|
High
|
Target GAAP earnings
per share
|
|
$
4.10
|
|
$
4.21
|
Adjustments:
|
|
|
|
|
Estimated impact of
amortization of intangible assets
|
|
0.61
|
|
0.58
|
Estimated impact of stock
compensation
|
|
1.55
|
|
1.52
|
Acquisition-related
costs
|
|
0.07
|
|
0.07
|
Estimated impact of
restructuring charges
|
|
0.24
|
|
0.24
|
Impact of tax
adjustments
|
|
(1.09)
|
|
(1.09)
|
Target non-GAAP
earnings per share
|
|
$
5.48
|
|
$
5.53
|
|
|
|
|
|
Shares used in
non-GAAP calculation (midpoint of target range)
|
|
155,500
|
|
155,500
|
|
|
|
|
|
(1) Synopsys' fourth
fiscal quarter and fiscal year will end on October 31,
2020.
|
|
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; business outlook, opportunities and strategies;
customer demand and market expansion; strategies related to our
products and technology; our planned product releases and
capabilities; industry growth rates; software trends; planned
acquisitions and buybacks; our expected tax rate; the expected
impact of U.S. and foreign government action on our results; and
the expected impact of the COVID-19 pandemic. 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 our forward-looking statements.
Such risks, uncertainties and factors include, but are not limited
to: risks from the effect of the COVID-19 pandemic and the
associated economic downturn on our business, operations and
financial condition; uncertainty in the growth of the semiconductor
and electronics industries; 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 as well as actions by the U.S. or foreign
governments, such as measures in response to the COVID-19 pandemic
or the imposition of additional tariffs or export restrictions;
macroeconomic conditions and uncertainty in the global economy;
fluctuation of our operating results; increased variability in our
revenue due to the adoption of ASC 606, including the resulting
increase in recognizing upfront revenue as a percentage of total
revenue; and more. Additional information on potential risks,
uncertainties and other factors that could affect Synopsys' results
is included in filings it makes with the Securities and Exchange
Commission from time to time, including in the sections entitled
"Risk Factors" in its Annual Report on Form 10-K for the fiscal
year ended October 31, 2019 and its
latest Quarterly Report on Form 10-Q. The information provided
herein is as of August 19,
2020. 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.
INVESTOR CONTACT:
Lisa L.
Ewbank
Synopsys, Inc.
650-584-1901
Synopsys-ir@synopsys.com
EDITORIAL CONTACT:
Simone
Souza
Synopsys, Inc.
650-584-6454
simone@synopsys.com
|
|
SYNOPSYS,
INC.
|
Unaudited
Consolidated Statements of Operations (1)
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
July
31,
|
|
July
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue:
|
|
|
|
|
|
|
|
Time-based
products
|
$
612,065
|
|
$
537,569
|
|
$
1,758,601
|
|
$
1,649,590
|
Upfront
products
|
210,931
|
|
177,552
|
|
491,417
|
|
451,466
|
Maintenance
and service
|
141,138
|
|
137,849
|
|
409,824
|
|
408,557
|
Total
revenue
|
964,134
|
|
852,970
|
|
2,659,842
|
|
2,509,613
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Products
|
118,478
|
|
113,533
|
|
344,469
|
|
346,163
|
Maintenance
and service
|
60,812
|
|
59,496
|
|
184,940
|
|
178,113
|
Amortization
of intangible assets
|
13,718
|
|
13,603
|
|
40,732
|
|
45,927
|
Total cost of
revenue
|
193,008
|
|
186,632
|
|
570,141
|
|
570,203
|
Gross
margin
|
771,126
|
|
666,338
|
|
2,089,701
|
|
1,939,410
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
322,602
|
|
284,804
|
|
939,456
|
|
846,429
|
Sales and
marketing
|
156,456
|
|
157,109
|
|
455,511
|
|
471,720
|
General and
administrative
|
73,516
|
|
67,382
|
|
204,734
|
|
165,794
|
Amortization
of intangible assets
|
9,931
|
|
10,111
|
|
29,545
|
|
31,211
|
Restructuring
charges
|
(1,977)
|
|
19,338
|
|
36,446
|
|
33,746
|
Total operating
expenses
|
560,528
|
|
538,744
|
|
1,665,692
|
|
1,548,900
|
Operating
income
|
210,598
|
|
127,594
|
|
424,009
|
|
390,510
|
Other income
(expense), net
|
26,256
|
|
5,317
|
|
22,584
|
|
23,373
|
Income before income
taxes
|
236,854
|
|
132,911
|
|
446,593
|
|
413,883
|
Provision (benefit)
for income taxes
|
(16,057)
|
|
32,982
|
|
(20,299)
|
|
42,230
|
Net income
|
$
252,911
|
|
$
99,929
|
|
$
466,892
|
|
$
371,653
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
1.67
|
|
$
0.67
|
|
$
3.10
|
|
$
2.48
|
Diluted
|
$
1.62
|
|
$
0.65
|
|
$
3.01
|
|
$
2.42
|
|
|
|
|
|
|
|
|
Shares used in
computing per share amounts:
|
|
|
|
|
|
|
|
Basic
|
151,352
|
|
150,123
|
|
150,731
|
|
149,708
|
Diluted
|
155,973
|
|
154,600
|
|
155,074
|
|
153,859
|
|
|
|
|
|
|
|
|
(1) Synopsys' third
quarter of fiscal year 2020 and 2019 ended on August 1, 2020 and
August 3, 2019, respectively. For presentation purposes, we refer
to the closest calendar month end.
|
|
|
|
SYNOPSYS,
INC.
|
Unaudited
Consolidated Balance Sheets (1)
|
(in thousands,
except par value amounts)
|
|
|
|
|
|
July 31,
2020
|
|
October 31,
2019
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,049,922
|
|
$
728,597
|
Accounts
receivable, net
|
638,489
|
|
553,895
|
Inventories,
net
|
159,813
|
|
141,518
|
Income taxes
receivable and prepaid taxes
|
20,960
|
|
24,855
|
Prepaid and
other current assets
|
316,831
|
|
290,052
|
Total current assets
|
2,186,015
|
|
1,738,917
|
Property and
equipment, net
|
484,529
|
|
429,532
|
Operating lease
right-of-use assets, net
|
472,244
|
|
-
|
Goodwill
|
3,356,407
|
|
3,171,179
|
Intangible assets,
net
|
275,338
|
|
279,374
|
Long-term prepaid
taxes
|
8,279
|
|
15,503
|
Deferred income
taxes
|
463,894
|
|
390,129
|
Other long-term
assets
|
416,544
|
|
380,526
|
Total assets
|
$
7,663,250
|
|
$
6,405,160
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY:
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable and accrued liabilities
|
$
549,906
|
|
$
506,459
|
Operating
lease liabilities, current
|
71,861
|
|
-
|
Accrued income
taxes
|
20,653
|
|
15,904
|
Deferred
revenue
|
1,389,609
|
|
1,212,476
|
Short-term
debt
|
24,248
|
|
17,614
|
Total current liabilities
|
2,056,277
|
|
1,752,453
|
Operating lease
liabilities, non-current
|
470,215
|
|
-
|
Long-term accrued
income taxes
|
27,011
|
|
29,911
|
Long-term deferred
revenue
|
111,915
|
|
90,102
|
Long-term
debt
|
107,104
|
|
120,093
|
Other long-term
liabilities
|
289,411
|
|
323,725
|
Total liabilities
|
3,061,933
|
|
2,316,284
|
Stockholders'
equity:
|
|
|
|
Preferred
stock, $0.01 par value: 2,000 shares authorized; none
outstanding
|
-
|
|
-
|
Common stock,
$0.01 par value: 400,000 shares authorized; 151,758 and 150,331
shares outstanding, respectively
|
1,519
|
|
1,503
|
Capital in
excess of par value
|
1,623,586
|
|
1,635,455
|
Retained
earnings
|
3,597,944
|
|
3,164,144
|
Treasury
stock, at cost: 5,503 and 6,930 shares, respectively
|
(554,304)
|
|
(625,642)
|
Accumulated
other comprehensive income (loss)
|
(72,820)
|
|
(92,447)
|
Total Synopsys stockholders' equity
|
4,595,925
|
|
4,083,013
|
Non-controlling
interest
|
5,392
|
|
5,863
|
Total stockholders' equity
|
4,601,317
|
|
4,088,876
|
Total liabilities and stockholders' equity
|
$
7,663,250
|
|
$
6,405,160
|
|
|
|
|
(1) Synopsys' third
quarter of fiscal year 2020 ended on August 1, 2020, and its fiscal
year 2019 ended on November 2, 2019. For presentation purposes, we
refer to the closest calendar month end.
|
|
|
|
SYNOPSYS,
INC.
|
Unaudited
Consolidated Statements of Cash Flows (1)
|
(in
thousands)
|
|
|
|
|
|
Nine Months
Ended
|
|
July
31,
|
|
2020
|
|
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net income
|
$
466,892
|
|
$
371,653
|
Adjustments to
reconcile net income to net cash provided by
|
|
|
|
operating
activities:
|
|
|
|
Amortization and
depreciation
|
159,156
|
|
152,133
|
Reduction of
operating lease right-of-use assets
|
62,585
|
|
-
|
Amortization of
capitalized costs to obtain revenue contracts
|
44,851
|
|
46,230
|
Stock
compensation
|
170,155
|
|
114,826
|
Allowance for
doubtful accounts
|
14,875
|
|
8,950
|
(Gain) loss on sale
of property and investments
|
(1,994)
|
|
(4,052)
|
Deferred income
taxes
|
(74,374)
|
|
(9,664)
|
Net changes in
operating assets and liabilities, net of
|
|
|
|
acquired assets and
liabilities:
|
|
|
|
Accounts
receivable
|
(89,667)
|
|
89,370
|
Inventories
|
(17,040)
|
|
(39,431)
|
Prepaid and other
current assets
|
(21,350)
|
|
(38,224)
|
Other long-term
assets
|
(77,895)
|
|
(114,344)
|
Accounts payable and
accrued liabilities
|
43,842
|
|
(45,200)
|
Operating lease
liabilities
|
(57,968)
|
|
-
|
Income
taxes
|
6,128
|
|
(6,963)
|
Deferred
revenue
|
160,966
|
|
53,980
|
Net cash provided by
operating activities
|
789,162
|
|
579,264
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Proceeds from sales
of long-term investments
|
2,151
|
|
6,361
|
Purchases of
long-term investments
|
(2,762)
|
|
-
|
Purchases of property
and equipment
|
(120,234)
|
|
(122,358)
|
Cash paid for
acquisitions and intangible assets, net of cash acquired
|
(201,045)
|
|
-
|
Capitalization of
software development costs
|
(3,035)
|
|
(2,245)
|
Net cash used in
investing activities
|
(324,925)
|
|
(118,242)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from credit
facilities
|
276,490
|
|
192,897
|
Repayment of
debt
|
(284,218)
|
|
(520,312)
|
Issuances of common
stock
|
123,237
|
|
107,354
|
Payments for taxes
related to net share settlement of equity awards
|
(66,985)
|
|
(52,309)
|
Purchase of equity
forward contract
|
-
|
|
(20,000)
|
Purchases of treasury
stock
|
(200,000)
|
|
(209,185)
|
Other
|
-
|
|
(762)
|
Net cash used in
financing activities
|
(151,476)
|
|
(502,317)
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
8,700
|
|
4,975
|
Net change in cash,
cash equivalents and restricted cash
|
321,461
|
|
(36,320)
|
Cash, cash
equivalents and restricted cash, beginning of year
|
730,527
|
|
725,001
|
Cash, cash
equivalents and restricted cash, end of period
|
$
1,051,988
|
|
$
688,681
|
|
|
|
|
(1) Synopsys' third
quarter of fiscal year 2020 and 2019 ended on August 1, 2020 and
August 3, 2019, respectively. For presentation purposes, we refer
to the closest calendar month end.
|
|
|
|
SYNOPSYS,
INC.
|
Business Segment
Reporting (1)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
Q3'20
|
|
Q3'19
|
|
YTD
Q3'20
|
|
YTD
Q3'19
|
Revenue by
segment
|
|
|
|
|
|
|
|
- Semiconductor &
System Design
|
$
870.7
|
|
$
769.4
|
|
$
2,392.5
|
|
$
2,260.3
|
% of
Total
|
90.3%
|
|
90.2%
|
|
90.0%
|
|
90.1%
|
- Software
Integrity
|
$
93.4
|
|
$
83.6
|
|
$
267.3
|
|
$
249.3
|
% of
Total
|
9.7%
|
|
9.8%
|
|
10.0%
|
|
9.9%
|
Total segment
revenue
|
$
964.1
|
|
$
853.0
|
|
$
2,659.8
|
|
$
2,509.6
|
|
|
|
|
|
|
|
|
Adjusted operating
income by segment
|
|
|
|
|
|
|
|
- Semiconductor &
System Design
|
$
308.7
|
|
$
207.8
|
|
$
697.3
|
|
$
604.5
|
- Software
Integrity
|
$
14.8
|
|
$
8.8
|
|
$
34.6
|
|
$
22.9
|
Total adjusted
segment operating income
|
$
323.6
|
|
$
216.6
|
|
$
731.9
|
|
$
627.4
|
|
|
|
|
|
|
|
|
Adjusted operating
margin by segment
|
|
|
|
|
|
|
|
- Semiconductor &
System Design
|
35.4%
|
|
27.0%
|
|
29.1%
|
|
26.7%
|
- Software
Integrity
|
15.8%
|
|
10.5%
|
|
12.9%
|
|
9.2%
|
Total adjusted
segment operating margin
|
33.6%
|
|
25.4%
|
|
27.5%
|
|
25.0%
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted
Segment Operating Income Reconciliation
(1)(2)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Three
Months
|
|
Nine
Months
|
|
Nine
Months
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
July 31, 2020
(3)
|
|
July 31, 2019
(3)
|
|
July 31, 2020
(3)
|
|
July 31, 2019
(3)
|
GAAP total operating
income – as reported
|
$
210.6
|
|
$
127.6
|
|
$
424.0
|
|
$
390.5
|
Other expenses
managed at consolidated level
|
|
|
|
|
|
|
|
-Amortization of
intangible assets
|
23.6
|
|
23.7
|
|
70.3
|
|
77.1
|
-Stock
compensation
|
61.8
|
|
39.5
|
|
170.2
|
|
114.8
|
-Fair value changes
in executive deferred compensation plan
|
26.2
|
|
4.7
|
|
20.2
|
|
25.2
|
-Acquisition-related
costs
|
3.3
|
|
1.8
|
|
10.8
|
|
3.9
|
-Restructuring
|
(2.0)
|
|
19.3
|
|
36.4
|
|
33.7
|
-Legal
matters
|
-
|
|
-
|
|
-
|
|
(18.0)
|
Total adjusted
segment operating income
|
$
323.6
|
|
$
216.6
|
|
$
731.9
|
|
$
627.4
|
|
|
|
|
|
|
|
|
(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. Quarterly variability, which increases as
a result of ASC 606, should be expected. Amounts may not foot due
to rounding.
|
|
(2) These
segment results are consistent with the information required by ASC
280, Segment Reporting. They are presented to reflect the
information that is considered by Synopsys' chief operating
decision makers (CODMs) to evaluate the operating performance of
its segments. The CODMs do 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.
Amounts may not foot due to rounding.
|
|
(3) Synopsys' third
quarter of fiscal year 2020 and 2019 ended on August 1, 2020 and
August 3, 2019, respectively. For presentation purposes, we refer
to the closest calendar month end.
|
View original
content:http://www.prnewswire.com/news-releases/synopsys-posts-financial-results-for-third-quarter-fiscal-year-2020-301115089.html
SOURCE Synopsys, Inc.