8-KEarnings & ResultsExhibits & Filings

SYNOPSYS INC 8-K Report, Financial Results (Aug 17, 2022)

Filed August 17, 2022For Securities:SNPS

Summary

Synopsys Inc. (SNPS) filed an 8-K on August 17, 2022, primarily to furnish a press release detailing its third fiscal quarter ended July 31, 2022. The report highlights Synopsys' use of non-GAAP financial measures, which management believes provide a clearer view of core operational performance by excluding items such as amortization of acquired intangible assets, stock-based compensation, acquisition-related costs, restructuring charges, and legal matters. These non-GAAP metrics are intended to supplement, not replace, GAAP figures and are used by management for operational decision-making, internal comparisons, and benchmarking against competitors. The company also detailed its non-GAAP tax rate calculation methodology. For fiscal year 2022, Synopsys adopted an annual non-GAAP tax rate of 18%, adjusted from previous multi-year normalized rates due to corporate tax reform uncertainties. This rate is based on an evaluation of historical and projected earnings mix and is subject to annual re-evaluation. Investors should note that these non-GAAP measures, while providing management's perspective, are not prepared under comprehensive accounting rules and require careful consideration alongside GAAP results.

Key Highlights

  • 1Synopsys announced its third fiscal quarter 2022 financial results via a furnished press release on August 17, 2022.
  • 2The report emphasizes the company's reliance on non-GAAP financial measures, including non-GAAP earnings per diluted share and non-GAAP net income.
  • 3Management utilizes non-GAAP measures to assess core operational performance, excluding items like amortization of intangibles, stock compensation, and acquisition costs.
  • 4These non-GAAP metrics are presented to offer insights into the company's operations through management's perspective and for internal comparisons.
  • 5Synopsys details specific exclusions for non-GAAP calculations, including amortization of acquired intangibles, stock compensation, acquisition-related costs, restructuring charges, and legal matters.
  • 6For fiscal year 2022, the company is using an annual non-GAAP tax rate of 18%, a shift from previous multi-year normalized rates, citing corporate tax reform uncertainties.
  • 7The non-GAAP information is explicitly stated as supplementary to, and not a substitute for, GAAP financial measures.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce and provide details regarding Synopsys' financial results for its third fiscal quarter ended July 31, 2022, through a furnished press release.

Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) results. Synopsys uses them because management believes they offer a better understanding of core operational performance by excluding non-cash expenses (like amortization of intangibles and stock compensation) or one-time costs (like acquisition-related expenses and restructuring charges). These measures are intended to supplement GAAP results and facilitate comparisons.

For fiscal year 2022, Synopsys has adopted an annual non-GAAP tax rate of 18%. This rate is based on an evaluation of the company's historical and projected earnings mix and may be re-evaluated annually due to factors like tax reform and changes in the company's geographic earnings.

Investors should interpret the non-GAAP information as a supplementary view of the company's performance, provided by management. It's crucial to view these measures alongside the comparable GAAP financial measures. Non-GAAP measures are not prepared under comprehensive accounting rules and may differ from similar measures used by other companies.