SYNOPSYS INC Quarterly Report for Q3 Ended Jul 31, 2020

Summary

Synopsys Inc. reported strong financial results for the third quarter and the first nine months of fiscal year 2020, ending July 31, 2020. Revenue increased by 13% year-over-year for the quarter to $964.1 million, driven by growth in both its Semiconductor & System Design and Software Integrity segments. This robust top-line performance translated into significant operating income growth of 65% for the quarter, reaching $210.6 million. The company also demonstrated strong cash flow generation, with operating cash flow increasing by $209.9 million for the nine-month period compared to the prior year. The balance sheet showed a healthy increase in cash and cash equivalents, up 44% to over $1 billion. The company maintained a strong liquidity position, despite some investments in acquisitions and share repurchases. Management expressed confidence in their ability to meet ongoing liquidity needs. While the COVID-19 pandemic caused some minor disruptions, Synopsys has largely navigated the challenges effectively, with no material adverse impacts identified to date, though ongoing uncertainty remains.

Key Highlights

• 1Revenue increased by 13% to $964.1 million in Q3 FY2020 compared to the prior year, driven by growth in both reporting segments.
• 2Operating income surged by 65% to $210.6 million in Q3 FY2020.
• 3Net income for Q3 FY2020 was $252.9 million, a significant increase from $99.9 million in Q3 FY2019.
• 4Diluted earnings per share (EPS) rose to $1.62 in Q3 FY2020 from $0.65 in Q3 FY2019.
• 5Cash and cash equivalents increased by 44% to $1,049.9 million as of July 31, 2020, compared to October 31, 2019.
• 6Operating cash flow for the nine months ended July 31, 2020, was $789.2 million, a substantial increase from $579.3 million in the prior year.
• 7The company completed several acquisitions during the nine months ended July 31, 2020, for an aggregate consideration of $238.3 million.

Frequently Asked Questions