Summary
Synopsys, Inc. (SNPS) reported total revenues of $2.72 billion for the fiscal year ended October 31, 2017, representing a 12% increase over the previous year. This growth was driven by strong performance in time-based product revenues, hardware sales, and professional services, reflecting the company's sustained leadership in electronic design automation (EDA) software, intellectual property (IP), and increasingly, software integrity solutions. Despite global economic uncertainties, Synopsys demonstrated resilience, a testament to its time-based revenue model which provides revenue predictability. The company's strategic focus on expanding its IP offerings and driving growth in the software security and quality market, as evidenced by the acquisition of Black Duck Software in December 2017, signals a commitment to broadening its market reach and technological capabilities. Synopsys also continued its capital return strategy by repurchasing its common stock, underscoring its confidence in its financial position and future prospects.
Financial Highlights
56 data points| Revenue | $2.72B |
| Cost of Revenue | $654.18M |
| Gross Profit | $2.07B |
| R&D Expenses | $908.84M |
| Operating Expenses | $1.72B |
| Operating Income | $347.56M |
| Interest Expense | $7.30M |
| Net Income | $136.56M |
| EPS (Basic) | $0.91 |
| EPS (Diluted) | $0.88 |
| Shares Outstanding (Basic) | 150.46M |
| Shares Outstanding (Diluted) | 154.87M |
Key Highlights
- 1Revenue increased by 12% to $2.72 billion in fiscal year 2017.
- 2Time-based revenue, which constitutes the majority of the business, grew, contributing to revenue stability.
- 3The company actively engaged in stock repurchases, reflecting a commitment to shareholder value.
- 4Synopsys continued to invest heavily in Research and Development, with R&D expenses of $908.8 million, highlighting its focus on innovation.
- 5The company reported significant international revenue, with 50% of total revenue derived from sales outside the United States.
- 6A major event subsequent to year-end was the acquisition of Black Duck Software for approximately $547 million, strengthening its software security and management capabilities.
- 7The company faced ongoing patent litigation with Mentor Graphics, which resulted in a $39.0 million accrual as a loss contingency in fiscal year 2017.