Early Access

10-QPeriod: Q2 FY2021

SYNOPSYS INC Quarterly Report for Q2 Ended Apr 30, 2021

Filed May 21, 2021For Securities:SNPS

Summary

Synopsys Inc. (SNPS) reported strong financial results for the quarter and six months ended April 30, 2021. Total revenue increased by 19% year-over-year for the quarter to $1.024 billion and by 18% for the six-month period to $1.995 billion. This growth was primarily driven by the Semiconductor & System Design segment, which saw a 20% increase in quarterly revenue, reflecting continued demand for their EDA and IP products. The Software Integrity segment also showed growth, albeit at a slower pace. The company demonstrated robust profitability, with operating income increasing by 54% year-over-year for the quarter to $194.2 million. Net income also saw a significant jump. Cash flow from operations remained strong, indicating healthy underlying business performance. Synopsys continues to execute its growth strategy, investing in R&D and also actively engaging in share repurchases.

Financial Statements
Beta
Revenue$1.02B
Cost of Revenue$213.99M
Gross Profit$810.34M
R&D Expenses$362.35M
Operating Expenses$616.11M
Operating Income$194.23M
Interest Expense$807K
Net Income$195.08M
EPS (Basic)$1.28
EPS (Diluted)$1.24
Shares Outstanding (Basic)152.72M
Shares Outstanding (Diluted)157.08M

Key Highlights

  • 1Total revenue for the three months ended April 30, 2021, was $1.024 billion, an increase of 19% compared to the prior year's quarter.
  • 2For the six months ended April 30, 2021, total revenue reached $1.995 billion, an 18% increase year-over-year.
  • 3The Semiconductor & System Design segment continues to be the primary growth driver, with revenue up 20% for the quarter.
  • 4Operating income increased significantly by 54% to $194.2 million for the three months ended April 30, 2021.
  • 5Net income attributed to Synopsys for the quarter was $195.1 million, a substantial increase from $109.9 million in the prior year.
  • 6Cash provided by operating activities for the six months ended April 30, 2021, was $700.3 million, demonstrating strong cash generation.
  • 7The company repurchased approximately 0.4 million shares of common stock for $100 million in April 2021 as part of its ongoing share repurchase program.

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