8-KEarnings & ResultsExhibits & Filings

SYNOPSYS INC 8-K Report, Financial Results (May 22, 2019)

Filed May 22, 2019For Securities:SNPS

Summary

Synopsys Inc. (SNPS) filed an 8-K on May 22, 2019, to report its financial results for the second fiscal quarter ended April 30, 2019. The filing primarily serves to attach a press release detailing these results, which includes both GAAP and non-GAAP financial measures. Investors should note the company's detailed explanation of its non-GAAP reporting, which excludes items such as amortization of acquired intangibles, stock compensation, acquisition-related costs, and restructuring charges, among others. Management utilizes these non-GAAP metrics to analyze core operational performance and make strategic decisions. The company also provided forward-looking guidance on its expected normalized annual non-GAAP tax rate for fiscal year 2019, which is projected to be 16%. This rate is expected to be re-evaluated annually. While Synopsys believes these non-GAAP measures offer valuable insights into operational trends and comparisons, investors are reminded that these are not a substitute for GAAP measures and have limitations as they do not reflect all accounting rules.

Key Highlights

  • 1Synopsys filed an 8-K on May 22, 2019, to announce Q2 2019 financial results.
  • 2The filing includes a press release with both GAAP and non-GAAP financial results.
  • 3The company provided a detailed explanation of its non-GAAP reporting methodology, highlighting excluded items like amortization, stock compensation, and acquisition costs.
  • 4Management uses non-GAAP measures to assess core operational performance and for strategic decision-making.
  • 5Synopsys expects a normalized annual non-GAAP tax rate of 16% for fiscal year 2019.
  • 6This normalized non-GAAP tax rate will be re-evaluated annually.
  • 7Investors are cautioned that non-GAAP measures are supplementary and do not replace GAAP reporting.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Synopsys Inc.'s financial results for the second fiscal quarter ended April 30, 2019. It includes a press release with detailed financial performance information.

Synopsys uses various non-GAAP financial measures, including non-GAAP earnings per share, net income, expenses, and operating margin. They are used to provide a clearer view of core operational performance by excluding items like amortization of acquired intangibles, stock compensation, acquisition-related costs, and restructuring charges. Management believes these measures offer meaningful supplemental information for analyzing trends and making business decisions.

Synopsys projects a normalized annual non-GAAP tax rate of 16% for fiscal year 2019. This rate is intended to provide consistency across reporting periods and is based on historical and projected earnings mix, excluding the impact of non-recurring or period-specific items.

The filing includes a disclaimer stating that the information in the Current Report and attached exhibit is furnished and not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934. It also clarifies that non-GAAP measures have limitations, are not a substitute for GAAP measures, and should be viewed in conjunction with GAAP results.