What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to report Synopsys Inc.'s financial results for its third fiscal quarter ended July 31, 2019, which were released via a press release.

Why does Synopsys use non-GAAP financial measures?

Synopsys uses non-GAAP financial measures because management believes they provide a more meaningful supplemental view of the company's core operational performance and liquidity by excluding items that do not directly reflect ongoing business operations or are non-cash in nature. These measures are used alongside GAAP results for a more comprehensive understanding.

What are the main items excluded from Synopsys' non-GAAP calculations?

The main items excluded from Synopsys' non-GAAP calculations typically include amortization of acquired intangible assets, the impact of stock-based compensation, acquisition-related costs, restructuring charges, and effects of certain legal proceedings and income tax adjustments, including those from U.S. Tax Reform.

What is Synopsys' expected non-GAAP tax rate for fiscal year 2019?

Synopsys expects its normalized annual non-GAAP tax rate to be 16% for fiscal year 2019 and projects this rate through fiscal year 2021, subject to potential adjustments based on regulatory guidance and business performance.

SNPS 8-K: Earnings & Results

Summary

Synopsys Inc. (SNPS) filed an 8-K on August 21, 2019, to report its third fiscal quarter results ending July 31, 2019. The report primarily includes a press release detailing financial performance. A significant portion of the filing is dedicated to explaining Synopsys' use of non-GAAP financial measures, which the company believes provide a more meaningful view of its core operations by excluding items such as amortization of acquired intangibles, stock-based compensation, acquisition-related costs, restructuring charges, and certain legal and tax-related impacts. Investors are encouraged to review these non-GAAP measures in conjunction with the company's GAAP results to gain a comprehensive understanding of financial performance and business trends. The company also provided an updated normalized annual non-GAAP tax rate of 16% for fiscal year 2019, projecting this rate through fiscal year 2021, subject to potential changes based on further regulatory guidance related to U.S. Tax Reform. This consistent tax rate aims to eliminate the effects of non-recurring items and better align the tax rate with the company's expected geographic earnings mix.

Key Highlights

1Synopsys announced its third fiscal quarter results for the period ending July 31, 2019, via an 8-K filing on August 21, 2019.
2The filing emphasizes the company's use of non-GAAP financial measures, which management believes are valuable for analyzing core operations.
3Key exclusions in non-GAAP calculations include amortization of acquired intangibles, stock compensation, acquisition-related costs, and restructuring charges.
4The company also excludes certain legal matters and specific income tax impacts, including those related to the Tax Cuts and Jobs Act of 2017.
5Synopsys provided segment information, including adjusted segment operating income and adjusted segment operating margin, to reflect management's evaluation of segment performance.
6An updated normalized annual non-GAAP tax rate of 16% for fiscal year 2019 was provided, projected through fiscal year 2021.
7The filing includes a press release as Exhibit 99.1, which contains detailed financial results and explanations of non-GAAP measures.

SYNOPSYS INC 8-K Report, Financial Results (Aug 21, 2019)

Summary

Key Highlights

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