SYNOPSYS INC Quarterly Report for Q1 Ended Jan 31, 2021

Summary

Synopsys Inc. (SNPS) reported strong financial results for the quarter ended January 31, 2021, with total revenue increasing by 16% year-over-year to $970.3 million. This growth was driven by both the Semiconductor & System Design segment, which saw a 17% increase in revenue, and the Software Integrity segment, which grew by 7%. The company demonstrated robust profitability, with operating income rising significantly by 70% to $148.3 million, and net income attributed to Synopsys increasing to $162.3 million from $104.1 million in the prior year period. Diluted earnings per share improved to $1.03. The company's balance sheet remains solid, with total assets of $8.01 billion and total liabilities of $3.13 billion. Cash and cash equivalents stood at $1.02 billion, although this represents a decrease from the previous quarter, primarily due to significant share repurchase activities. The company also executed an accelerated share repurchase agreement for $250.0 million during the quarter. Synopsys continues to invest in research and development, which increased by 14% year-over-year, underscoring its commitment to innovation in the dynamic semiconductor and software security markets.

Key Highlights

• 1Total revenue increased by 16% year-over-year to $970.3 million.
• 2Operating income surged by 70% to $148.3 million, indicating strong operational leverage.
• 3Net income attributed to Synopsys grew substantially to $162.3 million, up from $104.1 million in the prior year.
• 4Diluted earnings per share improved to $1.03 from $0.67 in the same period last year.
• 5The Semiconductor & System Design segment revenue grew by 17%, driven by ongoing organic growth.
• 6Despite a planned decrease in cash due to share repurchases, the company maintains a healthy cash position of $1.02 billion.
• 7Research and Development expenses increased by 14% to $357.5 million, reflecting continued investment in innovation.

Frequently Asked Questions