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SYNOPSYS INC[SNPS]

Date Filed : Dec 01, 2021

Click here be alerted whenever SYNOPSYS INC [SNPS] files 8-K

EX-99.12d123849dex991.htmEX-99.1EX-99.1

Exhibit 99.1

PRESS RELEASE

INVESTOR CONTACT:

Lisa L. Ewbank

Synopsys, Inc.

650-584-1901

Synopsys-ir@synopsys.com

EDITORIAL CONTACT:

Simone Souza

Synopsys, Inc.

650-584-6454

simone@synopsys.com

Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2021

Q4 FY 2021 Financial Highlights

 

  

Revenue: $1.152 billion

 

  

GAAP earnings per share: $1.28

 

  

Non-GAAP earnings per share: $1.82

FY 2021 Financial Highlights

 

  

Revenue: $4.204 billion

 

  

GAAP earnings per share: $4.81

 

  

Non-GAAP earnings per share: $6.84

 

  

Cash flow from operations: $1.493 billion

 

  

Cash, cash equivalents and short-term investments: $1.581 billion

MOUNTAIN VIEW, Calif. Dec. 1, 2021Synopsys, Inc. (Nasdaq: SNPS) today reported results for its fourth quarter andfiscal year 2021. Revenue for the fourth quarter of fiscal year 2021 was $1.152 billion, compared to $1.025 billion for the fourth quarter of fiscal year 2020. Revenue for fiscal year 2021 was $4.204 billion, an increase of14.1 percent from $3.685 billion in fiscal year 2020.

“Synopsys delivered another record fiscal year in 2021, substantially exceeding ouroriginal targets, with strength in all product groups and geographies. We are entering fiscal year 2022 with significant financial, technology and customer momentum,” said Aart de Geus, chairman andco-CEO of Synopsys. “Over the past several years, we have delivered disruptive innovations that are enabling the new era of ‘smart everything,’ an era that brings with it many new marketentrants and increased investments. As a result, we are seeing a growing number of substantially expanded customer commitments and collaborations. In addition to fiscal year 2022 expectations of strong double-digit revenue growth, continuedoperating margin expansion, EPS growth in the mid-teens range, and nearly $1.5 billion in operating cash flow, we are also raising our long-term financial objectives, with increased EDA and IP revenuegrowth expectations.”

 

1


GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2021 was $201.4 million, or $1.28 per share,compared to $197.5 million, or $1.26 per share, for the fourth quarter of fiscal year 2020. GAAP net income for fiscal year 2021 was $757.5 million, or $4.81 per share, compared to $664.3 million, or $4.27 per share, for fiscal year2020.

Non-GAAP Results

On a non-GAAP basis, net income for the fourth quarter of fiscal year 2021 was $285.8 million, or $1.82 per share,compared to non-GAAP net income of $247.7 million, or $1.58 per share, for the fourth quarter of fiscal year 2020. Non-GAAP net income for fiscal year 2021 was$1.077 billion, or $6.84 per share, compared to non-GAAP net income of $864.6 million, or $5.55 per share, for fiscal year 2020.

For a reconciliation between GAAP and non-GAAP results, see “GAAP toNon-GAAP Reconciliation” in the accompanying tables below.

Business Segments

Synopsys reports revenue and operating income in two segments: (1) Semiconductor & System Design, which includes EDA and IP products, systemintegration solutions and associated services, and (2) Software Integrity, which includes security and quality solutions for software development. Further information regarding these segments is provided at the end of this press release.

Financial Targets

Synopsys also provided itsconsolidated financial targets for the first quarter and full fiscal year 2022. These financial targets assume that there are no further changes to the current U.S. government “Entity List” restrictions. These targets constituteforward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see “Forward-Looking Statements” below.

 

2


First Quarter and Fiscal Year 2022 Financial Targets

(in millions except per share amounts)

 

   Range for Three Months  Range for Fiscal Year 
   January 31, 2022  October 31, 2022 
   Low  High  Low  High 

Revenue

  $1,250  $1,280  $4,725  $4,775 

GAAP Expenses

  $934  $964  $3,778  $3,835 

Non-GAAP Expenses

  $802  $812  $3,225  $3,255 

Other Income (Expense)

  $(5 $(3 $(11 $(7

Annual non-GAAP Tax Rate

   18  18  18  18

Outstanding Shares (fully diluted)

   156   159   157   160 

GAAP EPS

  $1.75  $1.92  $5.39  $5.65 

Non-GAAP EPS

  $2.35  $2.40  $7.73  $7.80 

Operating Cash Flow

    $1,400  $1,500 

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 onSynopsys’ 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 6504511, beginning at 5:45 p.m. Pacific Time today, until 11:59 p.m. PacificTime on December 8, 2021. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the first quarter of fiscal year 2022 in February2022. 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. Inaddition, 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 inthis 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’ corporatewebsite 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

 

3


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 thefirst quarter of fiscal year 2022 earnings call in February 2022, 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 itsprogress during the first quarter of fiscal year 2022 or comment to analysts or investors on, or otherwise update, the targets given in this release.

Availability of Final Financial Statements

Synopsys willinclude final financial statements for fiscal year 2021 in its annual report on Form 10-K to be filed by December 29, 2021.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is theSilicon to Software partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long historyof being a global leader in electronic design automation (EDA) and semiconductor IP and offers the industry’s broadest portfolio of application security testing tools and services. Whether you’re a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing more secure, high-quality code, Synopsys has the solutions needed to deliver innovative products. Learn moreat 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 aninvestor 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 toevaluate 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 inaccordance with GAAP. Synopsys’ management believes it is useful for itself and investors to review, as applicable, both GAAP information that

 

4


includes: (i) the amortization of acquired intangible assets, (ii) the impact of stock compensation, (iii) acquisition-related costs, (iv) restructuring charges, (v) theeffects of certain settlements, final judgments and loss contingencies related to legal proceedings, and (vi) 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 adopted a three-year normalized non-GAAP tax rate of 16% for fiscal year 2019 through 2021 in the calculationof its non-GAAP financial measures to provide better consistency across interim reporting periods by eliminating the effects of non-recurring and period-specific items,which can vary in size and frequency and not necessarily reflect our normal operations, and to align our tax rate more clearly with our expected geographic earnings mix. Synopsys re-evaluated this rate on anannual basis for any significant events that could have materially affected its projections, such as significant changes in its geographic earnings mix or significant tax law changes in major jurisdictions where it operates.

Given the uncertainty surrounding corporate tax reform, Synopsys has elected to provide a projected annual non-GAAPtax rate for fiscal year 2022 rather than a three-year normalized non-GAAP tax rate in calculating its non-GAAP financial measures. Based on an evaluation ofSynopsys’ historical and projected mix of U.S. and international profit before tax, taking into account the impact of non-GAAP adjustments described above, as well as other factors such as its current taxstructure, existing tax positions, and expected recurring tax incentives, its projected annual non-GAAP tax rate is 18% for fiscal 2022. Synopsys intends to re-evaluatethe projected fiscal 2022 annual non-GAAP tax rate on an interim basis to determine the appropriateness of adopting a multi-year normalized non-GAAP tax rate.

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 thesenon-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 onDecember 1, 2021 for additional information about the measures Synopsys uses to evaluate its core business operations.

 

5


Reconciliation of Fourth Quarter and Fiscal Year 2021 Results

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

GAAP to Non-GAAP Reconciliation of FourthQuarter and Fiscal Year 2021 Results (1)

(unaudited and in thousands,except per share amounts)

 

   Three Months Ended   Twelve Months Ended 
   October 31,   October 31, 
   2021   2020   2021   2020 

GAAP net income

  $ 201,447   $197,455   $757,516   $664,347 

Adjustments:

        

Amortization of intangible assets

   21,943    21,004    82,380    91,281 

Stock compensation

   96,742    78,429    345,272    248,584 

Acquisition-related costs

   3,800    3,259    15,394    14,096 

Restructuring charges

   18,254    (387   33,405    36,059 

Legal matters

   —      —      (1,455   —   

Tax adjustments

   (56,430   (52,084   (155,727   (189,798
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income

  $ 285,756   $247,676   $1,076,785   $864,569 
  

 

 

   

 

 

   

 

 

   

 

 

 
   Three Months Ended   Twelve Months Ended 
   October 31,   October 31, 
   2021   2020   2021   2020 

GAAP diluted net income per share

  $1.28   $1.26   $4.81   $4.27 

Adjustments:

        

Amortization of intangible assets

   0.14    0.13    0.52    0.59 

Stock compensation

   0.62    0.50    2.19    1.60 

Acquisition-related costs

   0.02    0.02    0.10    0.08 

Restructuring charges

   0.12    —      0.21    0.23 

Legal matters

   —      —      (0.01   —   

Tax adjustments

   (0.36   (0.33   (0.98   (1.22
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP diluted net income per share

  $1.82   $1.58   $6.84   $5.55 
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in computing diluted net income per share amounts

   157,243    156,825    157,340    155,706 

 

(1)

Synopsys’ fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31,2020, respectively. For presentation purposes, we refer to the closest calendar month end.

Reconciliation of 2022Targets

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAPtargets for the periods indicated below.

 

6


GAAP to Non-GAAP Reconciliation of First QuarterFiscal Year 2022 Targets (1)

(in thousands, except per share amounts)

 

   Range for Three Months 
   January 31, 2022 
   Low   High 

Target GAAP expenses

  $ 934,000   $964,000 

Adjustments:

    

Amortization of intangible assets

   (22,000   (25,000

Stock compensation

   (102,000   (107,000

Restructuring charges

   (8,000   (20,000
  

 

 

   

 

 

 

Target non-GAAP expenses

  $ 802,000   $812,000 
  

 

 

   

 

 

 
   Range for Three Months 
   January 31, 2022 
   Low   High 

Target GAAP earnings per share

  $1.75   $1.92 

Adjustments:

    

Amortization of intangible assets

   0.16    0.14 

Stock compensation

   0.68    0.65 

Restructuring charges

   0.13    0.05 

Tax adjustments

   (0.37   (0.36
  

 

 

   

 

 

 

Target non-GAAP earnings per share

  $2.35   $2.40 
  

 

 

   

 

 

 

Shares used in non-GAAP calculation (midpoint of targetrange)

   157,500    157,500 

 

7


GAAP to Non-GAAP Reconciliation of Full FiscalYear 2022 Targets (1)

(in thousands, except per share amounts)

 

                                          
   Range for Fiscal Year 
   October 31, 2022 
   Low   High 

Target GAAP expenses

  $3,778,000   $3,835,000 

Adjustments:

    

Amortization of intangible assets

   (80,000   (85,000

Stock compensation

   (465,000   (475,000

Restructuring charges

   (8,000   (20,000
  

 

 

   

 

 

 

Target non-GAAP expenses

  $3,225,000   $3,255,000 
  

 

 

   

 

 

 

 

                                      
   Range for Fiscal Year 
   October 31, 2022 
   Low   High 

Target GAAP earnings per share

  $5.39   $5.65 

Adjustments:

    

Amortization of intangible assets

   0.54    0.50 

Stock compensation

   3.00    2.93 

Restructuring charges

   0.13    0.05 

Tax adjustments

   (1.33   (1.33
  

 

 

   

 

 

 

Target non-GAAP earnings per share

  $7.73   $7.80 
  

 

 

   

 

 

 

Shares used in non-GAAP calculation (midpoint of targetrange)

   158,500    158,500 

 

(1)

Synopsys’ first fiscal quarter and fiscal year will end on January 29, 2022 and October 29,2022, respectively. For presentation purposes, we refer to the closest calendar month end.

Forward-Looking Statements

This press release contains forward-looking statements including, but not limited to, statements regarding Synopsys’ short-term and long-term financialtargets, expectations and objectives; business outlook, opportunities and strategies; customer demand and market expansion; strategies related to our products and technology; our planned product releases and capabilities; industry growth rates;software trends; planned acquisitions and buybacks; our expected tax rate; the expected impact of U.S. and foreign government action on our financial results; and the continued impact and duration of theCOVID-19 pandemic. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in ourforward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks from the continued impact of the COVID-19 pandemic on the global economy and on our business, operationsand financial condition; uncertainty in the growth of the semiconductor and electronics industries; macroeconomic conditions and uncertainty in the global economy; consolidation among our customers and our dependence on a relatively small number oflarge customers; risks and compliance obligations relating to the global nature of our operations as well as actions by the

 

8


U.S. or foreign governments, such as measures in response to the COVID-19 pandemic or the imposition of additional tariffs or export restrictions;fluctuation of our operating results; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys’ results is included in filings it makes with the Securities and Exchange Commission from timeto time, including in the sections entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended October 31, 2020 and in its latest Quarterly Report on Form 10-Q. The information provided herein is as of December 1, 2021. Synopsys undertakes no duty, and does not intend to update any forward-looking statement, whether as a result of new information, future eventsor otherwise, unless required by law.

###

 

9


SYNOPSYS, INC.

Unaudited Consolidated Statements of Operations (1)

(in thousands, except per share amounts)

 

   Three Months Ended  Twelve Months Ended 
   October 31,  October 31, 
   2021  2020  2021  2020 

Revenue:

     

Time-based products

  $688,116  $606,598  $2,633,763  $2,365,199 

Upfront products

   274,265   244,155   861,063   735,572 

Maintenance and service

   190,038   174,686   709,367   584,510 
  

 

 

  

 

 

  

 

 

  

 

 

 

Total revenue

   1,152,419   1,025,439   4,204,193   3,685,281 

Cost of revenue:

     

Products

   152,437   142,838   542,114   487,307 

Maintenance and service

   68,992   69,991   271,202   254,931 

Amortization of intangible assets

   13,297   11,720   48,461   52,452 
  

 

 

  

 

 

  

 

 

  

 

 

 

Total cost of revenue

   234,726   224,549   861,777   794,690 
  

 

 

  

 

 

  

 

 

  

 

 

 

Gross margin

   917,693   800,890   3,342,416   2,890,591 

Operating expenses:

     

Research and development

   413,864   339,566   1,504,823   1,279,022 

Sales and marketing

   197,681   176,499   712,491   632,010 

General and administrative

   88,960   79,796   322,988   284,530 

Amortization of intangible assets

   8,646   9,284   33,919   38,829 

Restructuring charges

   18,254   (387  33,405   36,059 
  

 

 

  

 

 

  

 

 

  

 

 

 

Total operating expenses

   727,405   604,758   2,607,626   2,270,450 
  

 

 

  

 

 

  

 

 

  

 

 

 

Operating income

   190,288   196,132   734,790   620,141 

Other income (expense), net

   8,790   (4,095  70,724   18,018 
  

 

 

  

 

 

  

 

 

  

 

 

 

Income before income taxes

   199,078   192,037   805,514   638,159 

Provision (benefit) for income taxes

   (2,059  (4,989  49,155   (25,288
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income

   201,137   197,026   756,359   663,447 

Net income (loss) attributed to non-controllinginterest

   (310  (429  (1,157  (900
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income attributed to Synopsys

  $201,447  $197,455  $757,516  $664,347 
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income per share:

     

Basic

  $1.32  $1.30  $4.96  $4.40 

Diluted

  $1.28  $1.26  $4.81  $4.27 

Shares used in computing per share amounts:

     

Basic

   152,932   152,349   152,698   151,135 
  

 

 

  

 

 

  

 

 

  

 

 

 

Diluted

   157,243   156,825   157,340   155,706 
  

 

 

  

 

 

  

 

 

  

 

 

 

 

(1)

Synopsys’ fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31,2020, respectively. For presentation purposes, we refer to the closest calendar month end.

 

10


SYNOPSYS, INC.

Unaudited Consolidated Balance Sheets (1)

(in thousands, except par value amounts)

 

   October 31, 2021  October 31, 2020 

ASSETS:

   

Current assets:

   

Cash and cash equivalents

  $1,432,840  $1,235,653 

Short-term investments

   147,949   —   
  

 

 

  

 

 

 

Total cash, cash equivalents & short-term investments

  $1,580,789  $1,235,653 

Accounts receivable, net

   568,501   780,709 

Inventories, net

   229,023   192,333 

Income taxes receivable and prepaid taxes

   32,411   32,355 

Prepaid and other current assets

   397,617   308,167 
  

 

 

  

 

 

 

Total current assets

   2,808,341   2,549,217 

Property and equipment, net

   472,398   483,818 

Operating leaseright-of-use assets, net

   493,251   465,818 

Goodwill

   3,575,785   3,365,114 

Intangible assets, net

   279,132   254,322 

Deferred income taxes

   612,655   497,546 

Other long-term assets

   510,698   414,227 
  

 

 

  

 

 

 

Total assets

  $8,752,260  $8,030,062 
  

 

 

  

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY:

   

Current liabilities:

   

Accounts payable and accrued liabilities

  $694,748  $623,664 

Operating lease liabilities, current

   79,678   73,173 

Accrued income taxes

   46,443   27,738 

Deferred revenue

   1,517,623   1,388,263 

Short-term debt

   74,992   27,084 
  

 

 

  

 

 

 

Total current liabilities

   2,413,484   2,139,922 

Operating lease liabilities, non-current

   487,003   462,411 

Long-term accrued income taxes

   27,893   25,178 

Long-term deferred revenue

   136,303   104,850 

Long-term debt

   25,094   100,823 

Other long-term liabilities

   363,540   284,511 
  

 

 

  

 

 

 

Total liabilities

   3,453,317   3,117,695 

Stockholders’ equity:

   

Preferred stock, $ 0.01 par value: 2,000 shares authorized; none outstanding

   —     —   

Common stock, $ 0.01 par value: 400,000 shares authorized; 153,062 and 152,618 shares outstanding,respectively

   1,531   1,528 

Capital in excess of par value

   1,576,363   1,653,166 

Retained earnings

   4,549,713   3,795,397 

Treasury stock, at cost: 4,198 and 4,643 shares, respectively

   (782,866  (488,613

Accumulated other comprehensive income (loss)

   (49,604  (54,074
  

 

 

  

 

 

 

Total Synopsys stockholders’ equity

   5,295,137   4,907,404 

Non-controlling interest

   3,806   4,963 
  

 

 

  

 

 

 

Total stockholders’ equity

   5,298,943   4,912,367 
  

 

 

  

 

 

 

Total liabilities and stockholders’ equity

  $8,752,260  $8,030,062 
  

 

 

  

 

 

 

 

(1)

Synopsys’ fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020,respectively. For presentation purposes, we refer to the closest calendar month end.

 

11


SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows (1)

(in thousands)

 

   Twelve Months Ended
October 31,
 
   2021  2020 

CASH FLOWS FROM OPERATING ACTIVITIES:

   

Net income attributed to Synopsys

  $ 757,516  $664,347 

Adjustments to reconcile net income to net cash provided by operating activities:

   

Amortization and depreciation

   203,676   209,986 

Reduction of operating leaseright-of-use assets

   86,645   82,895 

Amortization of capitalized costs to obtain revenue contracts

   64,698   61,185 

Stock-based compensation

   345,272   248,584 

Allowance for doubtful accounts

   18,515   20,875 

Deferred income taxes

   (128,583  (111,526

Other non-cash

   14,702   3,425 

Net changes in operating assets and liabilities, net of acquired assets and liabilities:

   

Accounts receivable

   201,706   (236,806

Inventories

   (48,046  (55,024

Prepaid and other current assets

   (102,174  (11,298

Other long-term assets

   (153,037  (83,367

Accounts payable and accrued liabilities

   125,133   113,773 

Operating lease liabilities

   (82,581  (78,578

Income taxes

   28,855   14,120 

Deferred revenue

   160,325   148,722 
  

 

 

  

 

 

 

Net cash provided by operating activities

   1,492,622   991,313 

CASH FLOWS FROM INVESTING ACTIVITIES:

   

Proceeds from sales and maturities of short-term investments

   12,850   —   

Purchases of short-term investments

   (161,732  —   

Proceeds from sales of long-term investments

   —     2,151 

Purchases of long-term investments

   (7,591  (2,762

Purchases of property and equipment

   (93,764  (154,717

Cash paid for acquisitions, net of cash acquired

   (296,017  (201,045

Capitalization of software development costs

   (1,976  (4,045

Other

   (800  —   
  

 

 

  

 

 

 

Net cash used in investing activities

   (549,030  (360,418

CASH FLOWS FROM FINANCING ACTIVITIES:

   

Proceeds from credit facilities

   —     276,489 

Repayment of debt

   (28,061  (288,879

Issuances of common stock

   210,719   197,403 

Payments for taxes related to net share settlement of equity awards

   (138,950  (82,225

Purchase of equity forward contract

   (35,000  —   

Purchases of treasury stock

   (753,081  (242,078

Other

   (4,375  (1,316
  

 

 

  

 

 

 

Net cash used in financing activities

   (748,748  (140,606

Effect of exchange rate changes on cash, cash equivalents and restricted cash

   2,369   17,154 
  

 

 

  

 

 

 

Net change in cash, cash equivalents and restricted cash

   197,213   507,443 

Cash, cash equivalents and restricted cash, beginning of year

   1,237,970   730,527 
  

 

 

  

 

 

 

Cash, cash equivalents and restricted cash, end of period

  $ 1,435,183  $1,237,970 
  

 

 

  

 

 

 

 

(1)

Synopsys’ fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020,respectively. For presentation purposes, we refer to the closest calendar month end.

 

12


SYNOPSYS, INC.

Business Segment Reporting (1)

(in millions)

 

   Three Months  Three Months  Twelve Months  Twelve Months 
   Ended  Ended  Ended  Ended 
   October 31, 2021 (3)  October 31, 2020 (3)  October 31, 2021 (3)  October 31, 2020 (3) 

Revenue by segment

     

- Semiconductor & System Design

  $1,042.4  $934.6  $3,810.4  $3,327.2 

% of Total

   90.5  91.1  90.6  90.3

- Software Integrity

  $110.0  $90.8  $393.8  $358.1 

% of Total

   9.5  8.9  9.4  9.7

Total segment revenue

  $1,152.4  $1,025.4  $4,204.2  $3,685.3 

Adjusted operating income by segment

     

- Semiconductor & System Design

  $326.6  $293.5  $1,243.1  $990.8 

- Software Integrity

  $13.3  $6.2  $38.3  $40.8 

Total adjusted segment operating income

  $339.9  $299.7  $1,281.4  $1,031.6 

Adjusted operating margin by segment

     

- Semiconductor & System Design

   31.3  31.4  32.6  29.8

- Software Integrity

   12.1  6.8  9.7  11.4

Total adjusted segment operating margin

   29.5  29.2  30.5  28.0

Total Adjusted Segment Operating Income Reconciliation(1)(2)

(in millions)

 

   Three Months   Three Months  Twelve Months  Twelve Months 
   Ended   Ended  Ended  Ended 
   October 31, 2021 (3)   October 31, 2020 (3)  October 31, 2021 (3)  October 31, 2020 (3) 

GAAP total operating income – as reported

  $190.3   $196.1  $734.8  $620.1 

Other expenses managed at consolidated level

      

-Amortization of intangible assets

   21.9    21.0   82.4   91.3 

-Stock compensation

   96.7    78.4   345.3   248.6 

-Non-qualified deferred compensation plan

   8.9    1.3   71.6   21.5 

-Acquisition-related costs

   3.8    3.3   15.4   14.1 

-Restructuring

   18.3    (0.4  33.4   36.1 

-Legal matters

   —      —     (1.5  —   
  

 

 

   

 

 

  

 

 

  

 

 

 

Total adjusted segment operating income

  $339.9   $299.7  $1,281.4  $1,031.6 
  

 

 

   

 

 

  

 

 

  

 

 

 

 

(1)

Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue andprofitability as normal elements of our business. Amounts may not foot due to rounding.

(2)

These segment results are consistent with the information required by ASC 280, Segment Reporting. Theyare presented to reflect the information that is considered by Synopsys’ chief operating decision makers (CODMs) to evaluate the operating performance of its segments. The CODMs do not allocate certain operating expenses managed at aconsolidated level to our reportable segments, and as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table above. Amounts may not foot due to rounding.

(3)

Synopsys’ fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020,respectively. For presentation purposes, we refer to the closest calendar month end.

 

13

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