8-KEarnings & ResultsExhibits & Filings

SYNOPSYS INC 8-K Report, Financial Results (May 18, 2022)

Filed May 18, 2022For Securities:SNPS

Summary

Synopsys Inc. (SNPS) filed an 8-K on May 18, 2022, to announce its financial results for the second fiscal quarter ended April 30, 2022. The report includes a press release detailing the company's performance, emphasizing non-GAAP financial measures. These non-GAAP figures are presented to offer investors a view of core operational performance and liquidity, excluding items such as amortization of acquired intangibles, stock-based compensation, acquisition-related costs, restructuring charges, and legal settlements. The company's management believes these non-GAAP measures provide valuable insights into core operations and facilitate comparisons with historical results and competitors. The filing also clarifies Synopsys's use of a normalized non-GAAP tax rate, which was adjusted to 18% for fiscal year 2022, reflecting a shift from the previous three-year normalized rate and incorporating updated considerations for tax reform and geographic earnings mix.

Key Highlights

  • 1Synopsys announced its second fiscal quarter results ending April 30, 2022.
  • 2The filing includes a press release containing financial results and is furnished as an exhibit.
  • 3Synopsys utilizes non-GAAP financial measures, excluding specific items to reflect core operational performance.
  • 4Excluded items from non-GAAP measures include amortization of acquired intangibles, stock compensation, acquisition-related costs, restructuring charges, and legal matters.
  • 5The company believes non-GAAP measures offer a better understanding of core operations and aid in comparisons.
  • 6Synopsys has adopted an annual non-GAAP tax rate of 18% for fiscal year 2022.
  • 7The report clarifies that the information furnished is not deemed 'filed' under Section 18 of the Exchange Act.

Frequently Asked Questions

The primary purpose of this 8-K filing is to publicly announce Synopsys Inc.'s financial results for its second fiscal quarter ended April 30, 2022, through an accompanying press release.

Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) financial results. Synopsys uses them to provide investors with a view of its core operational performance and liquidity, excluding items like amortization of acquired intangibles, stock compensation, acquisition costs, and restructuring charges, which management believes do not reflect the ongoing operational performance of the business.

For fiscal year 2022, Synopsys adopted an annual non-GAAP tax rate of 18%. This rate is based on an evaluation of historical and projected earnings mix, tax structure, and other factors, and differs from the previous three-year normalized non-GAAP tax rate.

The filing explicitly states that the information contained in this Current Report, including the exhibit, shall not be deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.