Summary
Synopsys, Inc. (SNPS) reported strong financial results for the quarter ending April 30, 2024, with total revenue increasing by 15% year-over-year to $1.45 billion. This growth was driven by broad-based performance across both its Design Automation and Design IP segments. Net income attributed to Synopsys was $292.1 million, up from $272.9 million in the prior year's quarter, with diluted EPS reaching $1.88. The company also provided an update on its significant pending acquisition of Ansys, Inc., expected to close in the first half of calendar year 2025, which is valued at approximately $35 billion and is subject to regulatory approvals. Additionally, Synopsys announced the divestiture of its Software Integrity business for up to $2.1 billion, which is classified as discontinued operations and expected to close in the second half of 2024. Looking ahead, Synopsys has secured significant debt financing for the Ansys acquisition and is navigating a dynamic macroeconomic environment. The company's time-based revenue model provides a degree of stability, but it continues to monitor global economic and geopolitical factors. The company's balance sheet remains robust, with substantial cash and investments, and it continues to invest in research and development to maintain its leadership position in the semiconductor design and software security markets.
Financial Highlights
56 data points| Revenue | $1.45B |
| Cost of Revenue | $300.40M |
| Gross Profit | $1.15B |
| R&D Expenses | $493.14M |
| Operating Expenses | $822.24M |
| Operating Income | $332.07M |
| Net Income | $292.11M |
| EPS (Basic) | $1.91 |
| EPS (Diluted) | $1.88 |
| Shares Outstanding (Basic) | 152.97M |
| Shares Outstanding (Diluted) | 155.77M |
Key Highlights
- 1Total revenue increased 15% year-over-year to $1.45 billion for the third quarter of fiscal year 2024.
- 2Net income attributed to Synopsys rose to $292.1 million, resulting in diluted EPS of $1.88.
- 3The company announced a pending acquisition of Ansys, Inc. for approximately $35 billion, with an expected close in the first half of calendar year 2025.
- 4Synopsys entered into an agreement to sell its Software Integrity business for up to $2.1 billion, with the divestiture expected to close in the second half of 2024.
- 5The Software Integrity business has been classified as discontinued operations.
- 6The company generated $388.8 million in cash flow from operating activities for the six months ended April 30, 2024, though this was lower than the prior year due to increased tax payments.