8-KEarnings & ResultsLeadership ChangesExhibits & Filings

SYNOPSYS INC 8-K Report, Financial Results (Feb 15, 2017)

Filed February 15, 2017For Securities:SNPS

Summary

This Form 8-K filing by Synopsys, Inc. (SNPS) on February 15, 2017, primarily announces the company's financial results for its first fiscal quarter ended January 31, 2017, via an attached press release. While the filing itself doesn't detail the specific financial numbers, it references the press release as the source of this information. Notably, the filing also discloses an important board change: the appointment of Mercedes Johnson as a new director and Audit Committee member. Investors should pay close attention to the attached press release (Exhibit 99.1) for the actual financial performance metrics of the quarter. The filing also emphasizes Synopsys' use of non-GAAP financial measures, detailing the specific adjustments made (amortization of acquired intangibles, stock compensation, acquisition-related costs, restructuring charges, and a normalized tax rate) and management's rationale for providing these figures as a supplement to GAAP measures to better reflect core operational performance and facilitate comparisons.

Key Highlights

  • 1Synopsys announced its financial results for the first fiscal quarter ended January 31, 2017, via a press release furnished as an exhibit.
  • 2The company detailed its methodology and rationale for using non-GAAP financial measures, excluding items like amortization of acquired intangibles, stock compensation, acquisition-related costs, and restructuring charges.
  • 3A normalized annual non-GAAP tax rate of 19% was implemented to provide reporting consistency.
  • 4The Board of Directors was expanded from ten to eleven members.
  • 5Mercedes Johnson was appointed as a new director and a member of the Audit Committee.
  • 6Ms. Johnson will receive standard non-employee director compensation, including a cash retainer and equity awards (initial stock option for 30,000 shares and an interim prorated award).
  • 7Ms. Johnson will also receive an additional annual cash retainer of $15,000 for her Audit Committee membership.

Frequently Asked Questions

The financial results for the first fiscal quarter ended January 31, 2017, are detailed in the press release furnished as Exhibit 99.1 to this 8-K filing. Investors should refer to that document for specific revenue, earnings, and other financial performance data.

Synopsys excludes several items when calculating its non-GAAP financial measures. These typically include the amortization of acquired intangible assets, the impact of stock compensation, acquisition-related costs, and restructuring charges. The company also uses a normalized annual non-GAAP tax rate.

Synopsys believes that non-GAAP measures provide valuable insights into its core operational performance and liquidity. By excluding certain non-cash or acquisition-related items, management aims to offer a clearer view of the company's ongoing business trends and facilitate comparisons with historical results and competitors, aiding in investment and strategic decisions.

Mercedes Johnson was appointed as a new director and a member of the Audit Committee. She previously held senior finance roles at Avago Technologies, Inc. and Lam Research Corporation.