8-KEarnings & ResultsExhibits & Filings

SYNOPSYS INC 8-K Report, Financial Results (Feb 17, 2021)

Filed February 17, 2021For Securities:SNPS

Summary

This 8-K filing from Synopsys, Inc. (SNPS) announces their financial results for the first fiscal quarter ended January 31, 2021, via a press release furnished as an exhibit. The report highlights the company's use of non-GAAP financial measures to provide investors with insights into their core operational performance. These non-GAAP measures exclude items such as amortization of acquired intangible assets, stock-based compensation, acquisition-related costs, restructuring charges, and legal matters, which management believes do not reflect the ongoing core operations of the business. Investors should note that while these non-GAAP figures are presented to supplement GAAP measures, they are not universally defined and can differ significantly from GAAP results. Synopsys believes these adjusted metrics offer a clearer understanding of operational performance, liquidity, and the ability to invest in research and development and strategic initiatives. The company also reiterated its normalized annual non-GAAP tax rate of 16% for fiscal 2021, aiming for consistency across reporting periods.

Key Highlights

  • 1Synopsys reported its financial results for the first fiscal quarter ended January 31, 2021, via an 8-K filing.
  • 2The company utilizes and discloses non-GAAP financial measures to provide insights into core operational performance.
  • 3Key exclusions from non-GAAP measures include amortization of acquired intangibles, stock compensation, acquisition costs, and restructuring charges.
  • 4Synopsys management believes non-GAAP measures offer a better understanding of operational performance and investment capabilities.
  • 5The filing includes a cautionary note that non-GAAP measures are not a substitute for GAAP and may differ from those of other companies.
  • 6Synopsys maintained its projected normalized annual non-GAAP tax rate of 16% for fiscal year 2021.
  • 7The press release containing detailed financial results is furnished as Exhibit 99.1.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce and provide Synopsys' financial results for its first fiscal quarter ended January 31, 2021, through a furnished press release. It also details the company's use of non-GAAP financial measures and the rationale behind them.

Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) results. Synopsys uses them to provide a clearer view of their core operational performance, liquidity, and ability to invest in R&D and strategic initiatives by excluding non-cash items like amortization, stock compensation, and expenses related to acquisitions or restructuring, which management believes are not indicative of ongoing operations.

No, the filing explicitly states that non-GAAP measures may differ from those used by other companies and are not based on a comprehensive set of accounting rules. Management exercises judgment in determining which items to exclude. Investors should view these measures as supplementary to, and in conjunction with, GAAP measures.

Synopsys has maintained its projected normalized annual non-GAAP tax rate at 16% for fiscal year 2021. This rate is used to provide consistency across reporting periods by eliminating the effects of non-recurring and period-specific tax items.