Summary
Synopsys, Inc. (SNPS) filed an 8-K on June 15, 2007, to report the completion of the Securities and Exchange Commission's (SEC) review of its 2006 Form 10-K filing and related submissions. The SEC Staff indicated they have no further comments at this time. This report follows previous communications between Synopsys and the SEC Staff regarding the company's planned adoption of Staff Accounting Bulletin No. 108 (SAB 108) and the correction of historical non-material uncorrected differences related to share-based compensation. This update is significant for investors as it signifies the closure of an SEC review process. The primary focus of the SEC's inquiry was the company's accounting for share-based compensation and the impact of adopting SAB 108, which addresses how to quantify and correct prior-period financial statement errors. The SEC's acceptance of Synopsys' filings and lack of further comments suggests that the company's accounting practices, particularly concerning share-based compensation, are in order according to SEC guidelines.
Key Highlights
- 1SEC has completed its review of Synopsys' 2006 Form 10-K and related filings.
- 2The SEC Staff has no further comments regarding the company's filings at this time.
- 3The SEC's review focused on Synopsys' planned adoption of Staff Accounting Bulletin No. 108 (SAB 108).
- 4The review also covered the correction of historical non-material uncorrected differences related to share-based compensation.
- 5Synopsys had previously responded to SEC Staff letters dated February 5, 2007, and April 11, 2007, concerning these matters.
- 6This filing serves as official notification from the SEC that the review process is concluded without further action required from Synopsys.
- 7The company's Vice President, General Counsel, and Corporate Secretary, Brian E. Cabrera, signed the report.