Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2019

Earnings Call Open to Investors

Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys' corporate website at www.synopsys.com. A recording of the call will be available by calling +1-866-207-1041 (+1-402-970-0847 for international callers), access code 1966519, beginning at 5:00 p.m. Pacific Time today, until 11:59 p.m. Pacific Time on December 11, 2019. A webcast replay will also be available on the website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the first quarter of fiscal year 2020 in February 2020.  Synopsys will post copies of the prepared remarks of Aart de Geus, chairman and co-chief executive officer, and Trac Pham, chief financial officer, on its website following today's call.  In addition, Synopsys makes additional information available in a financial supplement and corporate overview presentation, also posted on the corporate website.

Effectiveness of Information

The targets included in this press release, the statements made during the earnings conference call and the information contained in the financial supplement and corporate overview presentation (available in the Investor Relations section of Synopsys' corporate website at www.synopsys.com) represent Synopsys' expectations and beliefs as of the date of this release only. Although this press release, copies of the prepared remarks of the co-chief executive officer and chief financial officer made during the call, the financial supplement, and the corporate overview presentation will remain available on Synopsys' website through the date of the first quarter fiscal year 2020 earnings call in February 2020, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys does not currently intend to report on its progress during the first quarter of fiscal year 2020 or comment to analysts or investors on, or otherwise update, the targets given in this release.

Availability of Final Financial Statements

Synopsys will include final financial statements for fiscal year 2019 in its annual report on Form 10-K to be filed by January 1, 2020.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As the world's 15th largest software company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and is also growing its leadership in software security and quality solutions. Whether you're a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing applications that require the highest security and quality, Synopsys has the solutions needed to deliver innovative, high-quality, secure products. Learn more at www.synopsys.com.     

GAAP to Non-GAAP Reconciliation

Synopsys continues to provide all information required in accordance with GAAP but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys' operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal planning and forecasting purposes. Synopsys' management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Synopsys' management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes: (i) the amortization of acquired intangible assets, (ii) the impact of stock compensation, (iii) acquisition-related costs, (iv) restructuring charges, (v) the effects of certain settlements, final judgments and loss contingencies related to legal proceedings, (vi) the various income tax impacts prompted by the Tax Cut and Jobs Act of 2017 enacted on December 22, 2017 ("U.S. Tax Reform"), including the income tax related to transition tax and the tax rate change, and (vii) the income tax effect of non-GAAP pre-tax adjustments; and the non-GAAP measures that exclude such information in order to assess the performance of Synopsys' business and for planning and forecasting in subsequent periods.

Synopsys utilizes a normalized annual non-GAAP tax rate in the calculation of its non-GAAP measures to provide better consistency across interim reporting periods by eliminating the effects of non-recurring and period-specific items such as tax audit settlements, which can vary in size and frequency and not necessarily reflect our normal operations, and to more clearly align our tax rate with our expected geographic earnings mix.  In projecting this rate, we evaluate our historical and projected mix of U.S. and international profit before tax, excluding the impact of stock-based compensation, the amortization of purchased intangibles and other non-GAAP adjustments described above. We also consider other factors including our current tax structure, our existing tax positions, and expected recurring tax incentives, such as the U.S. federal research and development tax credit. On an annual basis we re-evaluate this rate for significant events that may materially affect our projections.  Based upon our review, our projected normalized annual non-GAAP tax rate remains 16% through fiscal year 2021. We will re-evaluate this rate on an annual basis, but further regulatory guidance regarding specific parts of U.S. Tax Reform could materially change our projections. Notwithstanding the foregoing, we excluded from the normalized annual non-GAAP tax rate unusual and infrequent events, such as tax audit settlements and certain impacts of U.S. Tax Reform as described above.

Whenever Synopsys uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed below, as well as Item 2.02 of the Current Report on Form 8-K filed on December 4, 2019 for additional information about the measures Synopsys uses to evaluate its core business operations.

Reconciliation of Fourth Quarter and Fiscal Year 2019 Results

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per share for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2019 Results (1)

(unaudited and in thousands, except per share amounts)










Three Months Ended


Twelve Months Ended


October 31,


October 31,


2019


2018


2019


2018

GAAP net income

$  160,714


$  254,328


$  532,367


$  432,518

Adjustments:








Amortization of intangible assets

23,776


35,126


100,914


125,664

Stock compensation

40,174


37,492


155,001


140,032

Acquisition-related costs

1,782


1,557


5,730


21,179

Restructuring charges

13,440


11,028


47,186


12,945

Legal matters

-


-


(18,000)


26,000

Income tax related to transition tax

-


(10,327)


-


63,107

Income tax related to tax rate change

-


5,439


-


51,075

Income tax related to tax restructuring

-


(171,979)


-


(171,979)

Tax settlement

-


-


17,418


-

Tax adjustments

(62,818)


(43,082)


(138,093)


(100,796)

Non-GAAP net income 

$  177,068


$  119,582


$  702,523


$  599,745


























Three Months Ended


Twelve Months Ended


October 31,


October 31,


2019


2018


2019


2018

GAAP diluted net income per share

$        1.04


$        1.66


$        3.45


$        2.82

Adjustments:








Amortization of intangible assets

0.15


0.23


0.65


0.82

Stock compensation

0.26


0.24


1.01


0.91

Acquisition-related costs

0.01


0.01


0.04


0.14

Restructuring charges

0.09


0.07


0.31


0.08

Legal matters

-


-


(0.12)


0.17

Income tax related to transition tax

-


(0.07)


-


0.41

Income tax related to tax rate change

-


0.04


-


0.33

Income tax related to tax restructuring

-


(1.12)


-


(1.12)

Tax settlement

-


-


0.11


-

Tax adjustments

(0.40)


(0.28)


(0.89)


(0.65)

Non-GAAP diluted net income per share

$        1.15


$        0.78


$        4.56


$        3.91









Shares used in computing diluted net income per share amounts:

154,532


153,038


154,190


153,393



(1) Synopsys' fourth quarter of fiscal year 2019 and 2018 ended on November 2, 2019 and November 3, 2018, respectively. For presentation purposes, we refer to the closest calendar month end. The first quarter of fiscal 2018 included an extra week.


« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10  Next Page »

Reviews:
Review Article
  • online works December 05, 2019
    Reviewed by 'Nelsonr Jeynolds'
    Synopsys likewise gives its combined budgetary focuses to the fourth quarter and full financial year 2019, which do exclude any effect of future obtaining related exercises or expenses.
    Thesis writing service

      Was this review helpful to you?   (Report this review as inappropriate)


For more discussions, follow this link …
Aldec


Featured Video
Jobs
Salesforce Technical Lead   East Coast  for EDA Careers at Cherry Hill, New Jersey
Senior Account Managers… FORMAL VERIFICATION...VALLEY for EDA Careers at San Jose, California
Sr. Application Engineer for Mentor Graphics at Fremont, California
Hardware Engineer, Board Design for Arista Networks at Santa Clara, California
Senior Software Architect Internet for EDA Careers at San Jose, California
Upcoming Events
FLEX 2020 and MSTC 2020 at DoubleTree by Hilton 2050 Gateway Place San Jose CA - Feb 24 - 27, 2020
DVCon U.S. 2020 at DoubleTree Hotel San Jose CA - Mar 2 - 5, 2020
OFC 2020 - The Optical Networking and Communication Conference & Exhibition at San Diego Convention Center San Diego CA - Mar 8 - 12, 2020
DATE '2020 at ALPEXPO Grenoble France - Mar 9 - 13, 2020
DownStream: Solutions for Post Processing PCB Designs
Verific: SystemVerilog & VHDL Parsers
TrueCircuits: DDR 4/3



© 2020 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise