Technology
Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2024
Published
2 years agoon
By
Results Summary1
Record quarterly revenue of $1.636 billion, up approximately 11% year over year (YoY), exceeding the mid-point of guidance.Quarterly GAAP earnings per diluted share (EPS) of $1.79; non-GAAP EPS of $3.40, up approximately 13% YoY, exceeding guidance.Achieved record full-year 2024 revenue of $6.127 billion, up approximately 15% YoY, while improving non-GAAP operating margin and delivering approximately 25% non-GAAP EPS growth.Expecting to deliver double digit revenue growth in 2025 while preparing for Ansys acquisition close, which remains on-track for the first half of 2025.
SUNNYVALE, Calif., Dec. 4, 2024 /PRNewswire/ — Synopsys, Inc. (Nasdaq: SNPS) today reported results for its fourth quarter and fiscal year 2024. Revenue for the fourth quarter of fiscal year 2024 was $1.636 billion, compared to $1.467 billion for the fourth quarter of fiscal year 2023. Revenue for fiscal year 2024 was $6.127 billion, an increase of approximately 15% from $5.318 billion in fiscal year 2023.
“The fourth quarter was a strong finish to a transformational year for Synopsys. We achieved record financial results while doubling down on our strategy with the sale of our Software Integrity business and the pending acquisition of Ansys,” said Sassine Ghazi, president and CEO of Synopsys. “Looking ahead, the AI-driven reinvention of compute is accelerating the pace, scale and complexity of technology R&D, which expands our opportunity to solve engineering challenges from silicon to systems.”
“Continued strong execution drove excellent Q4 results, which exceeded the midpoint of our guidance targets and capped a year of 15% revenue growth for the company,” said Shelagh Glaser, CFO of Synopsys. “The combination of our execution focus, operating discipline, and the critical nature of our industry-leading technology positions us well for the future. In 2025, we expect to deliver double-digit revenue growth grounded in pragmatism given continued macro uncertainties and the impact of our fiscal year calendar change.”
Synopsys’ previously announced acquisition of Ansys is expected to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. This week marked the expiration of the Hart-Scott-Rodino (HSR) Act waiting period, and Synopsys is working cooperatively with Federal Trade Commission (FTC) staff to conclude the investigation and the staff’s review of Synopsys’ proposed remedies.
_______________________________________________
1 On September 30, 2024, Synopsys completed the sale of its Software Integrity business. Synopsys’ Software Integrity business has been presented as a discontinued operation in the consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis unless otherwise noted.
Continuing Operations
On September 30, 2024, Synopsys completed the sale of its Software Integrity business. Unless otherwise noted, Synopsys’ Software Integrity business has been presented as a discontinued operation in the Synopsys’ consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis.
GAAP Results
On a U.S. generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2024 was $279.3 million, or $1.79 per diluted share, compared to $346.1 million, or $2.23 per diluted share, for the fourth quarter of fiscal year 2023. GAAP net income for fiscal year 2024 was $1.442 billion, or $9.25 per diluted share, compared to $1.227 billion, or $7.91 per diluted share, for fiscal year 2023.
Non-GAAP Results
On a non-GAAP basis, net income for the fourth quarter of fiscal year 2024 was $529.9 million, or $3.40 per diluted share, compared to non-GAAP net income of $464.1 million, or $3.00 per diluted share, for the fourth quarter of fiscal year 2023. Non-GAAP net income for fiscal year 2024 was $2.058 billion, or $13.20 per diluted share, compared to non-GAAP net income of $1.636 billion, or $10.54 per diluted share, for fiscal year 2023.
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 two segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, system integration products and services, digital, custom and field programmable gate array IC design software, verification software and hardware products, manufacturing software products and other and (2) Design IP, which includes our interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services.
Financial Targets
Synopsys also provided its consolidated financial targets for the first quarter and full fiscal year 2025. These targets reflect a change in Synopsys’ fiscal year from a 52/53-week period ending on the Saturday nearest to October 31 of each year to October 31 of each year. As a result of this change, there will be ten fewer days in the first half of fiscal year 2025 and two extra days in the second half of fiscal year 2025, which results in eight fewer days in the aggregate in Synopsys’ fiscal year 2025 as compared to its fiscal year 2024. These targets also 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.
First Quarter and Full Fiscal Year 2025 Financial Targets (1)
(in millions except per share amounts)
Range for Three Months Ending
Range for Fiscal Year Ending
January 31, 2025
October 31, 2025
Low
High
Low
High
Revenue
$ 1,435
$ 1,465
$ 6,745
$ 6,805
GAAP Expenses
$ 1,142
$ 1,162
$ 4,926
$ 4,983
Non-GAAP Expenses
$ 945
$ 955
$ 4,045
$ 4,085
Non-GAAP Interest and Other Income (Expense), net
$ 20
$ 22
$ 94
$ 98
Non-GAAP Tax Rate
16 %
16 %
16 %
16 %
Outstanding Shares (fully diluted)
156
158
157
159
GAAP EPS
$ 1.81
$ 1.95
$ 10.42
$ 10.63
Non-GAAP EPS
$ 2.77
$ 2.82
$ 14.88
$ 14.96
Operating Cash Flow
~ $1,800
Free Cash Flow(2)
~ $1,600
Capital Expenditures
~ $170
(1) Synopsys’ first quarter of fiscal year 2025 will end on January 31, 2025 and its fiscal year 2025 will end on October 31, 2025.
(2) Free cash flow is calculated as cash provided from operating activities less capital expenditures.
For a reconciliation of Synopsys’ first quarter and fiscal year 2025 targets, including expenses, earnings per diluted share and other measures on a GAAP and non-GAAP basis and a discussion of the financial targets that we are not able to reconcile without unreasonable efforts, 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 investor.synopsys.com. Synopsys uses its website as a tool to disclose important information about Synopsys and comply with its disclosure obligations under Regulation Fair Disclosure. 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 first quarter of fiscal year 2025 in February 2025.
Effectiveness of Information
The targets included in this press release, the statements made during the earnings conference call, the information contained in the financial supplement and the corporate overview presentation, each of which are available on Synopsys’ corporate website at www.synopsys.com (collectively, the “Earnings Materials”), represent Synopsys’ expectations and beliefs as of December 4, 2024. Although these Earnings Materials will remain available on Synopsys’ website through the date of the earnings call for the first quarter of fiscal year 2025, 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 fiscal year 2024 in its annual report on Form 10-K to be filed on or before January 2, 2025.
About Synopsys
Catalyzing the era of pervasive intelligence, Synopsys, Inc. (Nasdaq: SNPS) delivers trusted and comprehensive silicon to systems design solutions, from electronic design automation to silicon IP and system verification and validation. We partner closely with semiconductor and systems customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com.
Reconciliation of Fourth Quarter and Fiscal Year 2024 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income, earnings per diluted share, and tax rate for the periods indicated below.
GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2024 Results(1)
(unaudited and in thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2024
2023
2024
2023
GAAP net income from continuing operations attributed to Synopsys
$ 279,281
$ 346,051
$ 1,441,710
$ 1,227,045
Adjustments:
Amortization of acquired intangible assets
54,258
14,886
104,220
50,477
Stock-based compensation
165,116
128,286
656,632
511,730
Acquisition/divestiture related items
62,428
4,016
172,638
13,831
Restructuring charges
—
(1,348)
—
53,091
Gain on sale of strategic investments
—
—
(55,077)
—
Tax settlement
—
—
—
(23,752)
Tax adjustments
(31,158)
(27,753)
(262,322)
(196,471)
Non-GAAP net income from continuing operations attributed to Synopsys
$ 529,925
$ 464,138
$ 2,057,801
$ 1,635,951
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2024
2023
2024
2023
GAAP net income from continuing operations per diluted share attributed to Synopsys
$ 1.79
$ 2.23
$ 9.25
$ 7.91
Adjustments:
Amortization of acquired intangible assets
0.35
0.10
0.67
0.33
Stock-based compensation
1.06
0.83
4.21
3.30
Acquisition/divestiture related items
0.40
0.03
1.11
0.09
Restructuring charges
—
(0.01)
—
0.34
Gain on sale of strategic investments
—
—
(0.35)
—
Tax settlement
—
—
—
(0.15)
Tax adjustments
(0.20)
(0.18)
(1.69)
(1.28)
Non-GAAP net income from continuing operations per diluted share attributed to Synopsys
$ 3.40
$ 3.00
$ 13.20
$ 10.54
Shares used in computing net income per diluted share amounts:
155,991
154,845
155,944
155,195
(1) Synopsys’ fourth quarter of fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation
purposes, we refer to the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter.
GAAP to Non-GAAP Tax Rate Reconciliation (1)(2)
(unaudited)
Twelve Months Ended
October 31, 2024
GAAP effective tax rate
6.6 %
Stock-based compensation
2.9 %
Income tax adjustments (3)
5.5 %
Non-GAAP effective tax rate
15.0 %
(1) Synopsys’ fiscal year 2024 ended on November 2, 2024. For presentation purposes, we refer to
the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra
week in the first quarter.
(2) Presented on a continuing operations basis.
(3) The adjustments are primarily related to the differences in the tax rate effect of certain
deductions, such as the deduction for foreign-derived intangible income and credits.
GAAP to Non-GAAP Reconciliation of 2025 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 First Quarter Fiscal Year 2025 Targets
(in thousands, except per share amounts)
Range for Three Months Ending
January 31, 2025
Low
High
Target GAAP expenses
$ 1,142,000
$ 1,162,000
Adjustments:
Amortization of acquired intangible assets
(12,000)
(15,000)
Stock-based compensation
(185,000)
(192,000)
Target non-GAAP expenses
$ 945,000
$ 955,000
Range for Three Months Ending
January 31, 2025
Low
High
Target GAAP earnings per diluted share attributed to Synopsys
$ 1.81
$ 1.95
Adjustments:
Amortization of acquired intangible assets
0.10
0.08
Stock-based compensation
1.22
1.18
Acquisition/divestiture related items (1)
0.08
0.06
Tax adjustments
(0.44)
(0.45)
Target non-GAAP earnings per diluted share attributed to Synopsys
$ 2.77
$ 2.82
Shares used in non-GAAP calculation (midpoint of target range)
157,000
157,000
GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2025 Targets
(in thousands, except per share amounts)
Range for Fiscal Year Ending
October 31, 2025
Low
High
Target GAAP expenses
$ 4,926,000
$ 4,983,000
Adjustments:
Amortization of acquired intangible assets
(46,000)
(51,000)
Stock-based compensation
(835,000)
(847,000)
Target non-GAAP expenses
$ 4,045,000
$ 4,085,000
Range for Fiscal Year Ending
October 31, 2025
Low
High
Target GAAP earnings per diluted share attributed to Synopsys
$ 10.42
$ 10.63
Adjustments:
Amortization of acquired intangible assets
0.32
0.29
Stock-based compensation
5.36
5.28
Acquisition/divestiture related items (1)
0.29
0.26
Tax adjustments
(1.51)
(1.50)
Target non-GAAP earnings per diluted share attributed to Synopsys
$ 14.88
$ 14.96
Shares used in non-GAAP calculation (midpoint of target range)
158,000
158,000
(1) Adjustments reflect certain contractually obligated financing fees and related amortization expenses, and do not fully
reflect all potential adjustments for future periods for the reasons set forth in “GAAP to Non-GAAP Reconciliation” below.
Forward-Looking Statements
This press release and the investor conference call contain forward-looking statements, including, but not limited to, statements regarding short-term and long-term financial targets, expectations and objectives including, among others, our long-term financial objectives, which include the anticipated effects of our pending acquisition of ANSYS, Inc. (the Ansys Merger); business and market outlook, opportunities, strategies and technological trends, such as artificial intelligence; planned acquisitions and their expected impact, including the Ansys Merger; the potential impact of the uncertain macroeconomic and geopolitical environment on our financial results; the expected impact of U.S. and foreign government trade restrictions and regulatory changes, including export control restrictions and tariffs on our financial results; customer license renewals and the expected realization and timing of our contracted but unsatisfied or partially unsatisfied performance obligations (backlog); planned dispositions and their expected impact; customer demand and market expansion for our products and our customers’ products; our ability to successfully compete in the markets we serve; our planned product releases and capabilities; industry growth rates; software trends; planned stock repurchases; our expected tax rate; and the impact and result of pending legal, regulatory, 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 geopolitical 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; failure to complete the Ansys Merger on the terms described in our filings with the SEC, if at all; failure to obtain required governmental approvals related to the Ansys Merger or the imposition of conditions to such governmental approvals that may have an adverse effect on us; failure to realize the benefits expected from the Ansys Merger; 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 latest Annual Report on Form 10-K 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 fourth quarter and fiscal year 2024 are not necessarily indicative of Synopsys’ operating results for any future periods. The information provided herein is as of December 4, 2024. Synopsys undertakes no duty to, 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 Consolidated Statements of Income (1)
(in thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2024
2023
2024
2023
Revenue:
Time-based products
$ 834,375
$ 780,725
$ 3,224,299
$ 3,016,256
Upfront products
520,939
441,494
1,802,222
1,400,125
Total products revenue
1,355,314
1,222,219
5,026,521
4,416,381
Maintenance and service
280,672
245,164
1,100,915
901,633
Total revenue
1,635,986
1,467,383
6,127,436
5,318,014
Cost of revenue:
Products
216,485
197,540
770,238
697,686
Maintenance and service
91,707
76,043
367,055
287,876
Amortization of acquired intangible assets
66,831
12,598
107,996
45,281
Total cost of revenue
375,023
286,181
1,245,289
1,030,843
Gross margin
1,260,963
1,181,202
4,882,147
4,287,171
Operating expenses:
Research and development
554,818
465,815
2,082,360
1,849,935
Sales and marketing
219,225
186,953
859,342
724,934
General and administrative
172,032
102,271
568,496
376,677
Amortization of acquired intangible assets
4,086
3,346
16,238
9,295
Restructuring charges
—
(1,348)
—
53,091
Total operating expenses
950,161
757,037
3,526,436
3,013,932
Operating income
310,802
424,165
1,355,711
1,273,239
Interest and other income (expense), net
12,077
(20,400)
158,147
32,231
Income before income taxes
322,879
403,765
1,513,858
1,305,470
Provision (benefit) for income taxes
62,084
60,409
99,718
90,188
Net income from continuing operations
260,795
343,356
1,414,140
1,215,282
Income from discontinued operations, net of income taxes
834,825
3,139
821,670
2,843
Net income
1,095,620
346,495
2,235,810
1,218,125
Less: Net income (loss) attributed to non-controlling interest and
redeemable non-controlling interest
(18,486)
(2,695)
(27,570)
(11,763)
Net income attributed to Synopsys
$ 1,114,106
$ 349,190
$ 2,263,380
$ 1,229,888
Net income attributed to Synopsys
Continuing operations
$ 279,281
$ 346,051
$ 1,441,710
$ 1,227,045
Discontinued operations
834,825
3,139
821,670
2,843
Net income
$ 1,114,106
$ 349,190
$ 2,263,380
$ 1,229,888
Net income per share attributed to Synopsys – basic:
Continuing operations
$ 1.81
$ 2.28
$ 9.41
$ 8.06
Discontinued operations
5.43
0.02
5.37
0.02
Basic net income per share
$ 7.24
$ 2.30
$ 14.78
$ 8.08
Net income per share attributed to Synopsys – diluted:
Continuing operations
$ 1.79
$ 2.23
$ 9.25
$ 7.91
Discontinued operations
5.35
0.03
5.26
0.01
Diluted net income per share
$ 7.14
$ 2.26
$ 14.51
$ 7.92
Shares used in computing per share amounts:
Basic
153,916
151,972
153,138
152,146
Diluted
155,991
154,845
155,944
155,195
(1) Synopsys’ fourth quarter of fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation purposes, we refer to
the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter.
SYNOPSYS, INC.
Unaudited Consolidated Balance Sheets (1)
(in thousands, except par value amounts)
October 31, 2024
October 31, 2023
ASSETS:
Current assets:
Cash and cash equivalents
$ 3,896,532
$ 1,433,966
Short-term investments
153,869
151,639
Total cash, cash equivalents and short-term investments
4,050,401
1,585,605
Accounts receivable, net
934,470
856,660
Inventories
361,849
325,590
Prepaid and other current assets
1,122,946
548,115
Current assets of discontinued operations
—
114,654
Total current assets
6,469,666
3,430,624
Property and equipment, net
563,006
549,837
Operating lease right-of-use assets, net
565,917
559,923
Goodwill
3,448,850
3,346,065
Intangible assets, net
195,164
239,577
Deferred income taxes
1,247,258
853,526
Other long-term assets
583,700
444,820
Long-term assets of discontinued operations
—
908,759
Total assets
$ 13,073,561
$ 10,333,131
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND
STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable and accrued liabilities
$ 1,163,592
$ 1,059,914
Operating lease liabilities
94,791
79,832
Deferred revenue
1,391,737
1,559,461
Current liabilities of discontinued operations
—
286,244
Total current liabilities
2,650,120
2,985,451
Long-term operating lease liabilities
574,065
579,686
Long-term deferred revenue
340,831
150,827
Long-term debt
15,601
18,078
Other long-term liabilities
469,738
381,531
Long-term liabilities of discontinued operations
—
33,257
Total liabilities
4,050,355
4,148,830
Redeemable non-controlling interest
30,000
31,043
Stockholders’ equity:
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding
—
—
Common stock, $0.01 par value: 400,000 shares authorized; 154,112 and
152,053 shares outstanding, respectively
1,541
1,521
Capital in excess of par value
1,211,206
1,276,152
Retained earnings
8,984,105
6,741,699
Treasury stock, at cost: 3,148 and 5,207 shares, respectively
(1,025,770)
(1,675,650)
Accumulated other comprehensive income (loss)
(180,380)
(196,414)
Total Synopsys stockholders’ equity
8,990,702
6,147,308
Non-controlling interest
2,504
5,950
Total stockholders’ equity
8,993,206
6,153,258
Total liabilities, redeemable non-controlling interest and stockholders’
equity
$ 13,073,561
$ 10,333,131
(1) Synopsys’ fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation purposes, we
refer to the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter.
SYNOPSYS, INC.
Unaudited Consolidated Statements of Cash Flows (1)
(in thousands)
Twelve Months Ended
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$ 2,235,810
$ 1,218,125
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation
295,065
247,120
Reduction of operating lease right-of-use assets
97,273
97,705
Amortization of capitalized costs to obtain revenue contracts
73,587
82,190
Stock-based compensation
692,316
563,292
Allowance for credit losses
19,724
19,932
Gain on sale of strategic investments
(55,077)
—
Gain on divestitures, net of transaction costs
(868,830)
—
Amortization of bridge financing costs
33,677
—
Deferred income taxes
(407,649)
(211,045)
Other
(1,295)
13,295
Net changes in operating assets and liabilities, net of effects from acquisitions and
dispositions:
Accounts receivable
(103,460)
(178,432)
Inventories
(51,449)
(123,752)
Prepaid and other current assets
(410,432)
(106,396)
Other long-term assets
(168,255)
(100,618)
Accounts payable and accrued liabilities
187,564
170,496
Operating lease liabilities
(96,966)
(73,281)
Income taxes
(73,215)
198,078
Deferred revenue
8,641
(113,435)
Net cash provided by operating activities
1,407,029
1,703,274
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities and sales of short-term investments
138,961
130,435
Purchases of short-term investments
(136,821)
(131,079)
Proceeds from sales of strategic investments
55,696
8,492
Purchases of strategic investments
(1,293)
(435)
Purchases of property and equipment, net
(123,161)
(189,618)
Acquisitions, net of cash acquired
(156,947)
(297,692)
Proceeds from business divestiture, net of cash divested
1,446,578
—
Capitalization of software development costs
—
(2,204)
Net cash provided by (used in) investing activities
1,223,013
(482,101)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of debt
(2,607)
(2,603)
Payment of bridge financing and term loan costs
(72,265)
—
Issuances of common stock
232,212
252,986
Payments for taxes related to net share settlement of equity awards
(337,541)
(241,408)
Purchase of equity forward contract
—
(45,000)
Purchases of treasury stock
—
(1,160,724)
Other
(1,096)
(122)
Net cash used in financing activities
(181,297)
(1,196,871)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
8,797
(2,979)
Net change in cash, cash equivalents and restricted cash
2,457,542
21,323
Cash, cash equivalents and restricted cash, beginning of year, including cash from
discontinued operations
1,441,187
1,419,864
Cash, cash equivalents and restricted cash, end of period, including cash from
discontinued operations
3,898,729
1,441,187
Less: Cash, cash equivalents and restricted cash from discontinued operations
—
4,947
Cash, cash equivalents and restricted cash from continuing operations
$ 3,898,729
$ 1,436,240
(1) Synopsys’ fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation purposes, we
refer to the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter.
Synopsys provides segment information, namely revenue, adjusted segment operating income and adjusted segment operating margin, in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 280, Segment Reporting. Synopsys’ chief operating decision maker (“CODM”) is our Chief Executive Officer. In evaluating our business segments, the CODM considers the income and expenses that the CODM believes are directly related to those segments. The CODM does not allocate certain operating expenses managed at a consolidated level to our business segments and, as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table below. These unallocated expenses are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income from continuing operations:
SYNOPSYS, INC.
Business Segment Reporting (1)(2)(5)
(in millions)
Three Months Ended
October 31, 2024
Three Months Ended
October 31, 2023
Twelve Months Ended
October 31, 2024
Twelve Months Ended
October 31, 2023
Revenue by segment
– Design Automation
$ 1,118.2
$ 953.7
$ 4,221.1
$ 3,775.3
% of Total
68.3 %
65.0 %
68.9 %
71.0 %
– Design IP
$ 517.8
$ 513.7
$ 1,906.3
$ 1,542.7
% of Total
31.7 %
35.0 %
31.1 %
29.0 %
Adjusted operating income by segment
– Design Automation
$ 413.3
$ 311.1
$ 1,631.9
$ 1,413.9
– Design IP
$ 189.9
$ 236.4
$ 730.2
$ 514.1
Adjusted operating margin by segment
– Design Automation
37.0 %
32.6 %
38.7 %
37.5 %
– Design IP
36.7 %
46.0 %
38.3 %
33.3 %
Total Adjusted Segment Operating Income Reconciliation (1)(2)(5)
(in millions)
Three Months Ended
October 31, 2024
Three Months Ended
October 31, 2023
Twelve Months Ended
October 31, 2024
Twelve Months Ended
October 31, 2023
GAAP total operating income – as reported
$ 310.8
$ 424.2
$ 1,355.7
$ 1,273.2
Other expenses managed at consolidated level
-Amortization of acquired intangible assets (3)
70.9
15.9
124.2
54.6
-Stock-based compensation (3)
165.4
128.6
657.9
513.1
-Non-qualified deferred compensation plan
9.2
(23.9)
85.4
20.2
-Acquisition/divestiture related items (4)
47.0
4.0
138.7
13.8
-Restructuring charges
—
(1.3)
—
53.1
Total adjusted segment operating income
$ 603.2
$ 547.5
$ 2,362.1
$ 1,928.0
(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) Synopsys’ fourth quarter of fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation purposes, we refer to
the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter.
(3) The adjustment includes non-GAAP expenses attributable to non-controlling interest and redeemable non-controlling interest.
(4) The adjustment excludes the amortization of bridge financing costs entered into in connection with the pending acquisition of Ansys, that was recorded in
interest and other income (expense), net, in our unaudited condensed consolidated statements of income.
(5) Presented on a continuing operations basis.
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 budgeting and resource allocation purposes. This press release includes non-GAAP earnings per diluted share, non-GAAP net income and non-GAAP tax rate for the periods presented. It also includes future estimates for non-GAAP expenses, non-GAAP interest and other income (expense), non-GAAP tax rate, non-GAAP earnings per diluted share and free cash flow. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.
When possible, Synopsys provides a reconciliation of non-GAAP financial measures to their most closely applicable GAAP financial measures. Synopsys is unable to provide a full reconciliation of certain first quarter and full fiscal year 2025 non-GAAP financial targets to the corresponding GAAP financial measures on a forward-looking basis because Synopsys believes that it would not be possible for it to have the required information necessary to quantitatively reconcile such measures with sufficient precision without unreasonable efforts due to, among other things, the potential variability and limited predictability of the excluded adjustment items necessary for a full reconciliation such as certain acquisition/divestiture related items, restructuring charges, tax deduction variability, changes in the fair value of non-qualified deferred compensation plan, and gains (losses) on the sale of strategic investments. For the same reasons, Synopsys is unable to address the probable significance of the unavailable information.
Synopsys’ management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, as superior to, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, the corresponding GAAP financial measures. Synopsys’ management believes presentation of non-GAAP financial measures, when shown in conjunction with the corresponding GAAP financial measures, provides useful information to investors allowing them to view financial and business trends relating to our financial condition and results of operations through the eyes of management. Synopsys’ management evaluates and makes decisions about our business operations using both GAAP financial measures and non-GAAP financial measures to help facilitate internal comparisons to Synopsys’ historical operating results and forecasted targets, planning and forecasting in subsequent periods and comparisons to competitors’ operating results.
The following are descriptions of the adjustments made to reconcile non-GAAP financial measures (other than free cash flow, which is defined in the footnote to the Financial Targets table above) to the most directly comparable GAAP financial measures:
(i) Amortization of acquired intangible assets. We incur expenses from amortization of acquired intangible assets, which may include impairment charges from write-downs of acquired intangible assets. Acquired intangible assets include, among other things, core/developed technology, customer relationships, contract rights, trademarks and trade names, and other intangibles related to acquisitions. We amortize the intangible assets over their estimated useful lives. We do not enter into acquisitions on a predictable cycle. The amount of an acquisition’s purchase price allocated to intangible assets and their estimated useful lives can vary significantly and are unique to each acquisition. From time to time, we incur impairment charges due to write-downs of acquired intangible assets. We believe that the presentation of non-GAAP financial measures that adjust for the amortization of intangible assets, including impairment charges, provides investors and others with a consistent basis for comparison across accounting periods. We also exclude this item because such expenses are non-cash in nature and we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our core operational performance and liquidity, and ability to invest in research and development and fund future acquisitions and capital expenditures.
(ii) Stock-based compensation. Stock-based compensation expenses consist primarily of expenses related to restricted stock units, stock options, employee stock purchase rights and other stock awards, including such expenses associated with acquisitions. We exclude stock-based compensation expense from our non-GAAP financial measures primarily because it is not an expense that typically requires or will require cash settlement by us. Further, the expense for the fair value of the stock-based instruments we utilize may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards and, therefore, is not used by management to assess the core profitability of our business operations.
(iii) Acquisition/divestiture related items. In connection with certain of our business combinations and/or divestitures, we incur significant expenses that we would not have otherwise incurred as part of our business operations. These expenses include, among other things, compensation expenses, professional fees and other direct expenses, concurrent restructuring activities and divestiture activities, including employee severance and other exit costs, bridge financing costs, costs related to integration activities, changes to the fair value of contingent consideration related to the acquired company, and amortization of the fair value difference of below-market value assets arising from arrangements entered into or acquired in conjunction with an acquisition. We also recognize the gains and losses from the mark-up of equity or cost method investments to fair value upon obtaining control through acquisition. We exclude these items because they are related to acquisitions and have no direct correlation to the core operation of our business. Further, because we do not acquire businesses on a predictable cycle and the terms of each transaction can vary significantly and are unique to each transaction, we believe it is useful to exclude such expenses when looking for a consistent basis for comparison across accounting periods.
(iv) Restructuring charges. We initiate restructuring activities to align our costs to our operating plans and business strategies based on then-current economic conditions, and such activities have a specific and defined term. Restructuring costs generally include severance and other termination benefits related to voluntary retirement programs, involuntary headcount reductions and facilities closures. Such restructuring costs include elimination of operational redundancy, permanent reductions in workforce and facilities closures and, therefore, are not considered by us to be a part of the core operation of our business and are not used by management when assessing the core profitability and performance of our business operations.
(v) Gains (losses) on the sale of strategic investments. We exclude gains and losses on the sale of equity investments in privately held companies because we do not believe they are reflective of our core business and operating results.
(vi) Deferred compensation. We exclude changes in the fair value of our non-qualified deferred compensation plan because we do not use these to assess the core profitability of our business operations.
(vii) Income tax effect of non-GAAP pre-tax adjustments. Excluding the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes assists investors in understanding the tax provision associated with those adjustments and the effect on net income. We utilize 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 our normal operations, and to more closely align our tax rate with our expected geographic earnings mix. This annual non-GAAP tax rate is based on an evaluation of our 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. Based on these considerations, we have elected to adopt a non-GAAP tax rate of 16% for fiscal year 2025.
INVESTOR CONTACT:
Trey Campbell
Synopsys, Inc.
650-584-4289
Synopsys-ir@synopsys.com
EDITORIAL CONTACT:
Cara Walker
Synopsys, Inc.
650-584-5000
corp-pr@synopsys.com
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SOURCE Synopsys, Inc.
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IIFL Capital’s Maiden Late-Stage Private Equity Fund Announces First Close at ~ ₹500 Crore
Published
27 minutes agoon
October 22, 2026By
IIFL Capital’s Late-Stage Private Equity Fund targets a final close in excess of ₹1,000 crore within nine months from First CloseTwo transactions have already been committed with a pipeline of seven to eight deals under evaluation
MUMBAI, India, Oct. 22, 2026 /PRNewswire/ — IIFL Capital Asset Management Limited, the Asset Management arm of IIFL Capital, today announced that the IIFL Late-Stage Private Equity Fund, the maiden fund of its private equity platform, achieved its first close on 15 September 2026 with aggregate capital commitments of ~ ₹500 crore. The Fund invests in scaled-up, profitable Indian enterprises that are preparing to list on the public markets in the near term.
The Fund is targeting a total corpus of ₹1,000 crore, with a greenshoe option of additional ₹1,000 crore. It will remain open for subscription after the first close and aims to reach its final close within the next nine months. A larger corpus allows the Fund to back high-quality companies operating on a scale, in line with its late-stage, pre-IPO strategy.
The Fund is also evaluating a robust pipeline of opportunities, ranging from term sheet negotiations to transactions under diligence. The pipeline is diversified across integrated security-as-a-service, railway and wind energy components, specialty chemicals, defence equipment, IT-enabled services, pre-engineered buildings and consumer technology.
The Fund follows a clear mandate focused on scaled businesses nearing a public listing. The fund looks at sectors that envisage growth rate of 15%-18% per annum. The investee company should be amongst the top three-five players in its category, should have an EBITDA of at least ₹75-100 crore at investment with the intention to pursue IPO within three years. The average deal size is expected to be ₹50-100 crore per transaction.
Commenting on the milestone, Mr. Deepak Mittal, Chief Investment Officer and Head – Private Equity, IIFL Capital Asset Management Limited, said: “The first close marks the point at which this Fund moves from being a proposition to being a portfolio. We are grateful to our investors for their confidence in a volatile global environment. With two high-quality transactions already committed and a live pipeline of seven to eight opportunities, we believe IIFL’s capabilities give us a distinct advantage in backing scaled enterprises on their journey to the public markets.”
The first close comes in the backdrop of India’s primary market revival. After a subdued April-June quarter, July and August 2026 together saw 35 mainboard IPOs, and foreign portfolio investors returned as net buyers, including through IPOs. Real GDP grew 7.8% in Q1 FY27, with gross fixed capital formation up 11.9%, supporting the sectors the Fund is targeting.
About IIFL Capital Asset Management Limited
IIFL Capital Asset Management Limited (formerly IIFL Securities Alternate Asset Management Limited) is the Investment Manager for Alternative Investment Funds sponsored by IIFL Capital Services Limited. It is registered with SEBI as an Alternative Investment Fund manager (IN/AIF3/19-20/0770, IN/AIF2/21-22/088), Investment Adviser (INA000019956) and Portfolio Manager (INP000009445). Registered office: Ground Floor 01, Hubtown Solaris, Saiwadi, N S Phadke Road, Andheri East, Mumbai 400069. Website: assetmanagement.iiflcapital.com
About IIFL Capital Services Ltd
IIFL Capital Services Ltd (formerly known as IIFL Securities Limited) (NSE: IIFLCAPS) (BSE: 542773) is one of the key capital market players in the Indian financial services space. IIFL Capital offers broking services, wealth management, financial products distribution, institutional broking, research and investment banking services.
Disclaimer: This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any units of the IIFL Late-Stage Private Equity Fund or any securities. Investments in alternative investment funds are subject to market and other risks, including loss of capital. Investors should read the Private Placement Memorandum, including the risk factors, before investing. Registration granted by SEBI, enlistment with BSE, and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Past performance of securities/instruments is not indicative of their future performance.
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Technology
Snapmaker Introduces New Filament Bundle, Expanding Its Full Spectrum Printing Ecosystem
Published
28 minutes agoon
October 22, 2026By
The Snapmaker PLA Full Spectrum Filament Bundle (White Edition) combines pure-white capability, more saturated cyan, magenta, and yellow filaments, and finely tuned light-transmission properties for vibrant, natural-looking color mixes. It expands Snapmaker’s integrated ecosystem of dedicated materials, Snapmaker Orca software, and U1 hardware.
SHENZHEN, China, Oct. 22, 2026 /PRNewswire-PRWeb/ — Snapmaker has introduced the Snapmaker PLA Full Spectrum Filament Bundle (White Edition), expanding the creative possibilities of layered color mixing on Snapmaker U1. The four-spool set combines semi-translucent cyan, magenta, yellow, and white PLA filaments to produce a broader palette, from vivid color mixes and soft pastels to directly printed pure-white details.
Four Filaments, Beyond Four Colors
Full Spectrum color mixing creates additional perceived colors by alternating thin layers of semi-translucent filaments along the Z-axis. As light interacts with these layers, their colors blend visually, allowing a single print to go beyond the four loaded filament colors.
Snapmaker Orca, Snapmaker’s official slicing software, supports this layered color mixing workflow. Together with U1’s multi-toolhead architecture, it provides a practical foundation for exploring more colors with a small set of materials.
Radu “Ratdoux,” creator of Full Spectrum and now part of the Snapmaker team, said: “Full Spectrum changes the way we think about color in consumer FDM printing. Instead of adding more and more individual filament colors, we can use a small set of calibrated materials together with software and multi-toolhead hardware to generate a much broader spectrum. Our goal is to make that process simple enough that users can focus on what they want to create rather than how to engineer the color.”
Filaments Engineered for Brighter Color
White filament brings two distinct benefits: it enables pure-white areas that layered color mixing alone cannot produce, and it brightens mixed colors while reducing saturation for lighter, softer tones. Reformulated cyan, magenta, and yellow filaments offer stronger saturation, helping deliver more vibrant mixes.
The filaments’ color and Transmission Distance properties are tuned to promote natural blending and help reduce visible horizontal stripes. On Snapmaker U1, RFID recognition automatically loads preset filament information, simplifying setup.
These properties give creators more flexibility to combine vivid accents, gentle shades, and white details in character models, collectibles, home décor, and sculptural artwork. The four-spool approach also reduces the need to store separate filament colors for occasional use.
“Adding white is a meaningful step for creators who want lighter palettes and pure-white details within the same four-spool setup,” said Blayne Sapelli, Creative Marketing Manager at Snapmaker, “Together with the reformulated color filaments, it opens up a different range of visual styles. It also reflects how we are building our ecosystem: developing dedicated materials around real creative needs and connecting them with the tools people use to print.”
An Integrated Ecosystem for Color Creation
The Snapmaker PLA Full Spectrum Filament Bundle (White Edition) joins the Snapmaker PLA Full Spectrum Filament Bundle (Gray Edition) and the SnapSpeed PLA CMYK Lithophane Filament Bundle, expanding Snapmaker’s official lineup to three purpose-designed bundles.
The two PLA Full Spectrum bundles are designed for three-dimensional color mixing. The new bundle enables brighter mixes, softer pastels, and pure-white details, while the Gray Edition offers darker, more muted tones. The CMYK Lithophane bundle is optimized for flat, layered-color printing, including colorful backlit lithophanes made from photographs and illustrations.
Built around U1 and Snapmaker Orca, the lineup connects specialized materials with hardware and software support.
Pricing and Product Information
The bundle is priced at US$89 and contains four 1 kg spools, totaling 4 kg. For product details and regional purchasing information, visit the official product page.
About Snapmaker
Snapmaker makes products that empower everyone to change the world — literally. From 3-in-1 desktop fabrication machines to the Snapmaker U1 multicolor, multimaterial, toolchanger 3D printer, to the software that powers it all, Snapmaker is building an ecosystem that democratizes creation. Snapmaker: Make Something Wonderful.
For more information, visit Snapmaker.com.
Media Contact
Hao Jiang, Snapmaker, 86 13588745216, jianghao@snapmaker.com, www.snapmaker.com
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SOURCE Snapmaker
Technology
Today, Intelligent Legal Solutions (ILS) and Anduin announced a partnership to provide a more streamlined service for both fund managers and law firms
Published
28 minutes agoon
October 22, 2026By
PALO ALTO, Calif., Oct. 22, 2026 /PRNewswire/ — Intelligent Legal Solutions (ILS) and Anduin have announced a partnership to create a more connected fundraising experience for private markets fund managers and law firms.
ILS is the legal technology company behind ProVision, a platform for private investment funds lawyers and their clients, while Anduin provides technology for private markets fundraising and investor operations. Through the partnership, the companies will build an integration connecting their platforms to support a more streamlined, end-to-end fundraising process.
Launched in 2024, ILS works with 89% of law firms ranked in the top three bands by Chambers USA for Private Equity: Fund Formation nationwide. Its technology has supported fundraises totaling more than $825 billion across North America, the UK, EMEA and APAC.
Anduin’s platform has supported more than 1,300 private investment funds, onboarded over 76,000 investors and powered more than $265 billion in capital raised. Its customers represent more than $7 trillion in aggregate assets under management.
Fergus Plant, Co-Founder of ILS, said: “We are hugely excited to announce our partnership with Anduin. They are a mainstay of the private markets tech space, and we are proud to collaborate to bring a more complete solution to our customers. Our recent launch of the Fund Manager Portal for ProVision more closely aligns our customers, deepening the benefits of this relationship.”
Eliot Hodges, CEO of Anduin, said: “Fundraising still involves too many handoffs between systems, teams and advisers. By connecting Anduin’s subscription and investor onboarding workflows with ProVision’s side letter, comment memo, MFN and obligation management capabilities, we can help firms carry data more seamlessly through the fundraising process and reduce the operational burden around close.”
Read more at https://anduintransact.com/blog/anduin-partners-with-ils
Fund managers and law firms interested in learning more can contact:
About Anduin
Anduin is the leading digital platform for managing fund lifecycles and LP relationships. The company has facilitated $118 billion in global capital and supports 48,000+ investors across 890+ funds. Learn more at anduintransact.com.
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IIFL Capital’s Maiden Late-Stage Private Equity Fund Announces First Close at ~ ₹500 Crore
Snapmaker Introduces New Filament Bundle, Expanding Its Full Spectrum Printing Ecosystem
Today, Intelligent Legal Solutions (ILS) and Anduin announced a partnership to provide a more streamlined service for both fund managers and law firms
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