8-KEarnings & ResultsExhibits & Filings

SYNOPSYS INC 8-K Report, Financial Results (Aug 22, 2018)

Filed August 22, 2018For Securities:SNPS

Summary

Synopsys, Inc. (SNPS) filed an 8-K on August 22, 2018, to report its third fiscal quarter financial results ended July 31, 2018. The filing primarily incorporates by reference a press release that details these results. A key aspect of this report is the extensive explanation of Synopsys' use of non-GAAP financial measures, which are presented alongside GAAP figures. These non-GAAP measures exclude items such as amortization of acquired intangibles, stock-based compensation, acquisition-related costs, restructuring charges, legal matters, and the impact of U.S. tax reform. The company emphasizes that these non-GAAP metrics are used internally for operational decision-making and provide a more accurate view of core business performance. Management believes that these non-GAAP adjustments offer valuable insights into the company's operational performance and provide a better understanding of how the company invests in research and development, as well as its strategies for product and market development. The company also updated its normalized annual non-GAAP tax rate from 19% to 13% for fiscal year 2018, reflecting the impact of U.S. tax reform which lowered the federal statutory rate. This adjustment is aimed at providing better consistency across reporting periods.

Key Highlights

  • 1Synopsys reported its third fiscal quarter 2018 financial results on August 22, 2018.
  • 2The 8-K filing incorporates a press release containing the company's Q3 2018 earnings.
  • 3The company extensively details its use of non-GAAP financial measures and the specific adjustments made.
  • 4Key non-GAAP adjustments include amortization of intangibles, stock compensation, acquisition costs, and restructuring charges.
  • 5Synopsys updated its normalized annual non-GAAP tax rate from 19% to 13% for fiscal year 2018 due to U.S. tax reform.
  • 6The company believes non-GAAP measures provide a clearer view of core operational performance and investment strategies.
  • 7The filing includes a disclaimer that the information furnished is not deemed 'filed' for certain legal purposes.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Synopsys' financial results for its third fiscal quarter ended July 31, 2018, by incorporating a press release that contains these details. It also serves to inform investors about the company's specific accounting practices, particularly its use of non-GAAP financial measures.

Synopsys uses non-GAAP financial measures because management believes they provide a more meaningful view of the company's core operational performance. These measures exclude items like amortization of acquired intangibles, stock compensation, and acquisition-related costs, which are not considered part of day-to-day operations or are non-cash expenses. This allows for better analysis of operational trends and comparisons to historical performance and competitors.

U.S. tax reform, specifically the Tax Cuts and Jobs Act enacted in December 2017, led to a reduction in the U.S. federal statutory tax rate from 35% to 21%. Synopsys adjusted its normalized annual non-GAAP tax rate from 19% to 13% for fiscal year 2018 to reflect this change, aiming for greater consistency in its non-GAAP reporting. The filing also notes specific one-time tax expenses related to this reform.

No, the information contained in the press release, and thus in this 8-K, is furnished and not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934 or subject to the liabilities of that section. It also won't be automatically incorporated into other SEC filings unless explicitly stated.