10-QPeriod: Q3 FY2021

SYNOPSYS INC Quarterly Report for Q3 Ended Jul 31, 2021

Filed August 20, 2021For Securities:SNPS

Summary

Synopsys Inc. (SNPS) reported solid financial results for the third quarter and first nine months of fiscal year 2021, ending July 31, 2021. Revenue for the third quarter increased by 10% year-over-year to $1.06 billion, driven by continued organic growth, particularly in the Semiconductor & System Design segment. For the nine-month period, revenue grew by 15% to $3.05 billion. Profitability saw a slight decrease in operating income for the quarter due to restructuring charges, but net income remained strong. The company's balance sheet is robust, with total assets growing to $8.49 billion and total stockholders' equity increasing to $5.16 billion. Cash and cash equivalents, along with short-term investments, saw a significant increase, indicating healthy liquidity. Synopsys also continued its strategic share repurchase program, demonstrating a commitment to returning value to shareholders.

Financial Highlights

58 data points
Beta

Revenue

$1.06B

80.6% Gross Margin

Net Income

$198.65M

18.8% Net Margin

EPS (Diluted)

$1.27

Total Assets

$8.49B

Cash & Equivalents

$1.39B

Free Cash Flow

$398.87M

Financial Statements
Beta
Revenue$1.06B
Cost of Revenue$205.07M
Gross Profit$852.06M
R&D Expenses$371.15M
Operating Expenses$650.14M
Operating Income$201.92M
Interest Expense$757K
Net Income$198.65M
EPS (Basic)$1.30
EPS (Diluted)$1.27
Shares Outstanding (Basic)152.63M
Shares Outstanding (Diluted)156.91M

Key Highlights

  • 1Revenue increased 10% year-over-year to $1.06 billion in Q3 fiscal 2021, and 15% for the nine-month period to $3.05 billion.
  • 2The Semiconductor & System Design segment remains the primary revenue driver, showing robust growth.
  • 3Operating income decreased slightly in Q3 due to restructuring charges, but net income remained strong.
  • 4The company maintained a strong balance sheet with total assets of $8.49 billion and total stockholders' equity of $5.16 billion as of July 31, 2021.
  • 5Cash, cash equivalents, and short-term investments increased by 24% to $1.53 billion, reflecting strong operational cash flow.
  • 6Synopsys continued its stock repurchase program, with $325.0 million remaining available for future repurchases as of July 31, 2021.

Frequently Asked Questions

Synopsys reported a 10% increase in total revenue for the third quarter ended July 31, 2021, reaching $1.057 billion, up from $964.1 million in the same period of fiscal 2020. This growth was primarily attributed to continued organic growth across its business segments.

Synopsys maintained a strong financial position. Total assets grew to $8.49 billion as of July 31, 2021, while total stockholders' equity stood at $5.16 billion. The company also reported a healthy increase in its liquidity, with cash, cash equivalents, and short-term investments totaling $1.53 billion.

Yes, Synopsys initiated a restructuring plan in the third quarter of fiscal 2021, resulting in restructuring charges of $15.1 million. These charges impacted the operating income for the quarter, causing a slight decrease compared to the prior year, although net income remained robust.

Synopsys demonstrated strong cash flow from operations, increasing by $332.9 million year-over-year for the nine-month period. The company also continued its share repurchase program, with $325.0 million available for future repurchases as of July 31, 2021, indicating a commitment to shareholder value.