8-KEarnings & ResultsExhibits & Filings

SYNOPSYS INC 8-K Report, Financial Results (May 17, 2023)

Filed May 17, 2023For Securities:SNPS

Summary

Synopsys Inc. filed an 8-K on May 17, 2023, primarily to furnish a press release announcing its financial results for the second fiscal quarter ended April 30, 2023. The report highlights the company's use of non-GAAP financial measures, explaining the rationale behind excluding items such as amortization of acquired intangibles, stock compensation, acquisition-related costs, restructuring charges, and legal matters. Management believes these non-GAAP measures provide a clearer view of the company's core operational performance and liquidity, facilitating better analysis of trends and comparisons. The company also detailed its updated non-GAAP tax rate for fiscal year 2023, adjusting it to 16% from a previously maintained 18% due to changes in U.S. federal tax laws regarding research and development expense capitalization.

Key Highlights

  • 1Synopsys reported its second fiscal quarter 2023 financial results on May 17, 2023, via an 8-K filing.
  • 2The filing emphasizes the company's use of non-GAAP financial measures to present operational performance.
  • 3Key exclusions from non-GAAP measures include amortization of acquired intangibles, stock compensation, and acquisition-related costs.
  • 4Management believes these non-GAAP adjustments offer investors a better understanding of core business trends and liquidity.
  • 5The company's non-GAAP tax rate for fiscal year 2023 has been updated to 16%.
  • 6This tax rate adjustment is a result of U.S. federal tax law changes requiring R&D expenses to be capitalized.
  • 7The press release, furnished as an exhibit, contains detailed financial results and forward-looking estimates (non-GAAP).

Frequently Asked Questions

The main purpose of this 8-K filing is to furnish a press release that announces Synopsys' financial results for its second fiscal quarter ended April 30, 2023. It also explains the company's methodology and rationale for using non-GAAP financial measures.

Synopsys uses non-GAAP financial measures because management believes they provide a more meaningful view of the company's core operational performance, liquidity, and business trends by excluding certain non-cash expenses (like stock compensation and amortization of intangibles) and transaction-specific costs (like acquisition-related items and restructuring charges) that can fluctuate and obscure underlying performance.

Synopsys updated its annual non-GAAP tax rate for fiscal year 2023 to 16%, down from 18%. This adjustment was made due to recent U.S. federal tax law changes that require the capitalization of research and development expenses starting in fiscal year 2023.

The detailed financial results for the second fiscal quarter ended April 30, 2023, are contained within the press release furnished as Exhibit 99.1 to this 8-K filing. This press release should be reviewed in conjunction with the company's GAAP financial statements.