8-KEarnings & ResultsExhibits & Filings

SYNOPSYS INC 8-K Report, Financial Results (Feb 17, 2016)

Filed February 17, 2016For Securities:SNPS

Summary

Synopsys, Inc. (SNPS) filed an 8-K on February 17, 2016, to report its financial results for the first fiscal quarter ended January 31, 2016. This filing primarily incorporates by reference a press release announcing these results. Investors should note that the company provides both GAAP and non-GAAP financial measures, with a detailed explanation of the adjustments made to arrive at the non-GAAP figures. Key adjustments for non-GAAP reporting include the exclusion of amortization of acquired intangible assets, stock compensation expenses, acquisition-related costs, and other significant items such as restructuring charges and certain legal/tax matters. Furthermore, starting in fiscal year 2016, Synopsys is utilizing a normalized annual non-GAAP tax rate of 19% to provide better consistency across reporting periods. Investors are advised to review these non-GAAP measures in conjunction with the corresponding GAAP figures to gain a comprehensive understanding of the company's financial performance.

Key Highlights

  • 1Synopsys announced its financial results for the first fiscal quarter ended January 31, 2016, via an 8-K filing.
  • 2The filing incorporates a press release (Exhibit 99.1) containing the detailed financial results.
  • 3The company presents both GAAP and non-GAAP financial measures.
  • 4Non-GAAP measures exclude items such as amortization of acquired intangibles, stock compensation, and acquisition-related costs.
  • 5Synopsys is using a normalized annual non-GAAP tax rate of 19% effective fiscal year 2016.
  • 6This normalized tax rate aims to provide consistency by eliminating the effects of non-recurring and period-specific items.
  • 7The company emphasizes that non-GAAP measures are supplementary and should be viewed alongside GAAP measures.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Synopsys's financial results for its first fiscal quarter ended January 31, 2016, by incorporating a press release that details these results.

Synopsys provides both GAAP (Generally Accepted Accounting Principles) and non-GAAP financial measures. The non-GAAP measures are adjusted to exclude certain items that management believes do not reflect ongoing operational performance.

Key adjustments include the exclusion of amortization of acquired intangible assets, the impact of stock compensation expenses, acquisition-related costs, and other significant items like restructuring charges and certain legal/tax adjustments. Additionally, starting in fiscal 2016, a normalized annual non-GAAP tax rate of 19% is applied.

Synopsys believes that non-GAAP measures provide valuable supplemental information to investors and management regarding operational performance and business trends. They are used internally for decision-making, budgeting, and comparisons with historical results and competitors, offering a perspective that excludes items deemed non-operational or non-cash.