8-KEarnings & ResultsExhibits & Filings

SYNOPSYS INC 8-K Report, Financial Results (Feb 21, 2018)

Filed February 21, 2018For Securities:SNPS

Summary

This 8-K filing by Synopsys, Inc. (SNPS) on February 21, 2018, primarily announces the company's financial results for its first fiscal quarter ended January 31, 2018, as detailed in an accompanying press release (Exhibit 99.1). The report emphasizes the company's use of non-GAAP financial measures to provide a clearer view of core operational performance. These non-GAAP measures exclude items such as amortization of acquired intangibles, stock compensation, acquisition-related costs, restructuring charges, legal matters, and the impact of U.S. tax reform. Key to the financial reporting is the adjustment to Synopsys' normalized annual non-GAAP tax rate. Following the U.S. tax reform enacted in December 2017, which significantly lowered the federal statutory tax rate, Synopsys adjusted its non-GAAP tax rate from 19% to 13% for fiscal year 2018. The company expects this rate to be between 13% and 19% for fiscal year 2019. Investors should note that while these non-GAAP measures are presented as supplemental information, they are not prepared in accordance with GAAP and should be viewed alongside GAAP figures.

Key Highlights

  • 1Synopsys reported its financial results for the first fiscal quarter ended January 31, 2018, via a press release furnished as part of this 8-K filing.
  • 2The company utilizes non-GAAP financial measures to present core operational performance, excluding items like amortization of intangibles, stock compensation, and acquisition costs.
  • 3A significant update concerns the non-GAAP tax rate: following U.S. tax reform, Synopsys adjusted its normalized annual non-GAAP tax rate from 19% to 13% for fiscal year 2018.
  • 4The company expects its normalized annual non-GAAP tax rate to be between 13% and 19% for fiscal year 2019.
  • 5Specific non-GAAP exclusions related to U.S. tax reform include a $73 million expense for deemed repatriation and a $46 million expense for the write-down of deferred tax assets.
  • 6Synopsys emphasizes that non-GAAP measures are supplemental and should be considered in conjunction with GAAP financial measures.
  • 7The press release (Exhibit 99.1) is incorporated by reference and contains detailed financial results and non-GAAP reconciliations.

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