Early Access

10-QPeriod: Q3 FY2022

SYNOPSYS INC Quarterly Report for Q3 Ended Jul 31, 2022

Filed August 19, 2022For Securities:SNPS

Summary

Synopsys Inc. (SNPS) reported strong financial results for the third quarter of fiscal year 2022, demonstrating robust growth across its business segments. Total revenue increased by 18% year-over-year to $1.25 billion, driven by growth in both its Semiconductor & System Design and Software Integrity segments. The company's profitability also saw a healthy increase, with operating income rising 16% to $233.9 million. This performance reflects continued demand for Synopsys's advanced electronic design automation (EDA) tools and intellectual property (IP) solutions, as well as its growing presence in the software security and quality market. The company's balance sheet remains strong, with total assets growing to $9.33 billion. While cash and cash equivalents saw a slight decrease, the company maintained a significant liquidity position. Synopsys also demonstrated its commitment to returning value to shareholders through active share repurchases, with $242.7 million remaining available under its repurchase program. The company's strategic acquisitions, such as the purchase of WhiteHat Security, are contributing to its growth and market expansion, particularly in the Software Integrity segment.

Financial Statements
Beta
Revenue$1.25B
Cost of Revenue$271.18M
Gross Profit$976.59M
R&D Expenses$444.83M
Operating Expenses$742.66M
Operating Income$233.93M
Interest Expense$439K
Net Income$222.63M
EPS (Basic)$1.46
EPS (Diluted)$1.43
Shares Outstanding (Basic)152.94M
Shares Outstanding (Diluted)155.81M

Key Highlights

  • 1Total revenue for the third quarter of fiscal 2022 increased by 18% to $1.25 billion, compared to $1.06 billion in the prior year period.
  • 2Operating income grew by 16% to $233.9 million in the third quarter of fiscal 2022, up from $201.9 million in the prior year period.
  • 3The Semiconductor & System Design segment continues to be the primary revenue driver, with revenue up 18% year-over-year.
  • 4The Software Integrity segment showed strong growth, with revenue increasing by 21% year-over-year.
  • 5The company acquired WhiteHat Security for $330.1 million, enhancing its Software Integrity offerings.
  • 6Synopsys maintained a strong liquidity position with $1.53 billion in cash, cash equivalents, and short-term investments as of July 31, 2022.
  • 7The company repurchased $217.3 million of common stock in the third quarter of fiscal 2022, with $242.7 million remaining under its authorized repurchase program.

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