10-KPeriod: FY2003

SYNOPSYS INC Annual Report, Year Ended Oct 31, 2003

Filed January 29, 2004For Securities:SNPS

Summary

Synopsys Inc. (SNPS) reported significant revenue growth of 30% in fiscal year 2003, reaching $1.177 billion. This growth was primarily driven by the full year's contribution from the Avant! Corporation acquisition and the increasing adoption of time-based licenses. The company successfully transitioned from a net loss in fiscal 2002 to a net income of $149.7 million in fiscal 2003, reflecting effective cost management and integration of recent acquisitions, including Numerical Technologies, Inc. Financially, Synopsys demonstrated improved operational cash flow and a strong cash position, ending the year with $698.4 million in cash, cash equivalents, and short-term investments. The company also repurchased approximately 9.4 million shares of its common stock during the year, underscoring its commitment to shareholder returns. The strategic focus on integrated design and verification platforms, such as Galaxy and Discovery, along with a robust intellectual property portfolio, positions Synopsys to address the increasing complexity of semiconductor design and maintain its market leadership.

Key Highlights

  • 1Revenue increased by 30% to $1.177 billion in fiscal 2003, largely due to the Avant! acquisition and the shift to time-based licenses.
  • 2The company returned to profitability, reporting a net income of $149.7 million in fiscal 2003, a significant improvement from the net loss of $200.0 million in fiscal 2002.
  • 3Cash provided by operations was $391.5 million in fiscal 2003, a substantial increase from the cash used in operations of $181.0 million in fiscal 2002.
  • 4Year-end cash, cash equivalents, and short-term investments grew to $698.4 million, up 68% from the prior year.
  • 5Synopsys continued its commitment to shareholder value by repurchasing approximately 9.4 million shares of common stock for $260.7 million during fiscal 2003.
  • 6The company completed the acquisition of Numerical Technologies, Inc., strengthening its design-for-manufacturing offerings.
  • 7Strategic platform introductions, including the Galaxy Design Platform and Discovery Verification Platform, aim to provide integrated solutions for customers.

Frequently Asked Questions

Synopsys reported a significant turnaround in fiscal year 2003, with revenue increasing by 30% to $1.177 billion. The company achieved a net income of $149.7 million, a substantial recovery from the net loss of $200.0 million recorded in fiscal year 2002. This improvement was driven by the full impact of the Avant! acquisition and the successful integration of new technologies.

The acquisition of Avant! Corporation in mid-2002 significantly contributed to Synopsys' revenue growth in fiscal year 2003, providing a full year of its financial contribution. While the acquisition involved substantial integration costs and expenses in fiscal 2002, it bolstered Synopsys' position in physical design and verification, complementing its existing product portfolio.

Synopsys demonstrated strong liquidity and improved cash flow in fiscal 2003. Cash provided by operations increased significantly to $391.5 million, compared to cash used in operations of $181.0 million in the prior year. The company ended fiscal 2003 with a robust $698.4 million in cash, cash equivalents, and short-term investments, indicating a healthy financial position.

Synopsys is focused on providing a comprehensive, end-to-end design flow for semiconductor design. The company has launched integrated platforms like the Galaxy Design Platform (for implementation) and the Discovery Verification Platform (for verification). These platforms aim to enhance customer efficiency by tightly integrating individual products and leveraging common technologies, supported by their Milkyway design database.