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

The primary purpose of this 8-K filing is to announce Synopsys's financial results for its third fiscal quarter ended July 31, 2020, via an accompanying press release.

What are non-GAAP financial measures and why does Synopsys use them?

Non-GAAP financial measures are financial performance metrics that exclude certain items from the corresponding GAAP measures. Synopsys uses them because management believes they provide a more meaningful view of the company's core operational performance, liquidity, and trends by excluding non-cash expenses, acquisition-related costs, and other items not directly tied to ongoing operations. They are also used for internal comparisons and budgeting.

Are the non-GAAP measures presented in this report comparable to other companies?

The filing states that these non-GAAP measures may differ from those used by other companies, as they are not based on a comprehensive set of accounting rules and involve management judgment in determining which items to exclude. Investors should use caution when comparing Synopsys's non-GAAP results to those of other firms.

SNPS 8-K: Earnings & Results

Q: What specific items are excluded from Synopsys's non-GAAP measures?

Synopsys typically excludes the following from its non-GAAP measures: amortization of acquired intangible assets, the impact of stock compensation, acquisition-related costs, restructuring charges, effects of certain legal proceedings, and the income tax effect of these adjustments. They also use a normalized annual non-GAAP tax rate.

Summary

This 8-K filing by Synopsys, Inc. (SNPS) on August 19, 2020, primarily announces the company's financial results for its third fiscal quarter ended July 31, 2020. The report details the company's financial performance, with a significant emphasis on its use of non-GAAP financial measures. Synopsys clarifies that these non-GAAP measures, which exclude items such as amortization of acquired intangibles, stock compensation, acquisition-related costs, restructuring charges, and certain legal matters, are used internally to evaluate core operational performance and provide a better understanding of business trends. Investors should note that while Synopsys believes these non-GAAP measures offer valuable insights into its core operations and liquidity, they are not prepared in accordance with GAAP and may differ from similar measures used by other companies. The company uses these measures for internal budgeting, resource allocation, and performance comparisons. This filing also includes a press release with the detailed financial results and explicitly states that the information furnished will not be deemed "filed" under the Securities Exchange Act of 1934, thus limiting liability under specific sections of securities laws.

Key Highlights

1Synopsys announced its financial results for the third fiscal quarter ended July 31, 2020.
2The company relies heavily on non-GAAP financial measures to report performance, excluding items like amortization, stock compensation, and acquisition costs.
3Synopsys believes these non-GAAP measures offer a clearer view of core operational performance and liquidity.
4The filing includes a press release (Exhibit 99.1) detailing the quarterly financial results.
5The information provided is furnished and not considered 'filed' for certain SEC liability purposes.
6The company provides a normalized annual non-GAAP tax rate of 16% through fiscal 2021.
7Management uses non-GAAP measures, including adjusted segment operating income, to evaluate business segment performance.

SYNOPSYS INC 8-K Report, Financial Results (Aug 19, 2020)

Summary

Key Highlights

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