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.

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Synopsys Posts Financial Results for Second Quarter Fiscal Year 2017

MOUNTAIN VIEW, Calif., May 17, 2017 --

Q2 2017 Financial Highlights

  • Revenue: $680.1 million
  • GAAP earnings per share: $0.34
  • Non-GAAP earnings per share: $0.88

Synopsys, Inc. (Nasdaq: SNPS) today reported results for its second quarter of fiscal year 2017.

Synopsys reported revenue of $680.1 million, compared to $605.0 million for the second quarter of fiscal year 2016, an increase of 12.4 percent.

"In the second fiscal quarter, we again delivered strong results across our portfolio, enhanced by the timing of hardware shipments. Consequently, we are increasing our annual revenue, non-GAAP earnings per share and operating cash flow targets. In addition, we executed a second $100 million share repurchase," said Aart de Geus, chairman and co-CEO of Synopsys. "Our priorities remain centered on generating long-term shareholder value. We do this by investing prudently for current and future operations, acquisitions, and returning capital to shareholders; scaling revenue and profitability throughout our business; and sustainably growing our bottom line."

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the second quarter of fiscal 2017 was $53.3 million, or $0.34 per share, compared to $69.4 million, or $0.45 per share, for the second quarter of fiscal 2016. GAAP results include $12.9 million, or $0.08 per share, in restructuring charges, and a $38 million, or $0.25 per share, accrual for a litigation contingency.

Non-GAAP Results

On a non-GAAP basis, net income was $135.8 million, or $0.88 per share, compared to non-GAAP net income of $125.6 million, or $0.81 per share, for the second quarter of fiscal 2016.

A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.

Financial Targets

Synopsys also provided its financial targets for the third quarter and full fiscal year 2017, which do not include any impact of future acquisition-related activities or costs. These targets constitute forward-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.

Third Quarter of Fiscal Year 2017 Targets:

  • Revenue: $685 million - $700 million
  • GAAP expenses: $574 million - $593 million
  • Non-GAAP expenses: $517 million - $527 million
  • Other income and expense: ($1) million - $1 million
  • Normalized annual tax rate applied in non-GAAP net income calculations: 19 percent
  • Fully diluted outstanding shares: 153 million - 156 million
  • GAAP earnings per share: $0.69 - $0.78
  • Non-GAAP earnings per share: $0.91 - $0.94

Full Fiscal Year 2017 Targets:

  • Revenue: $2.650 billion - $2.670 billion
  • Other income and expense: $2 million - $6 million
  • Normalized annual tax rate applied in non-GAAP net income calculations: 19 percent
  • Fully diluted outstanding shares: 153 million - 156 million
  • GAAP earnings per share: $1.84 - $1.97
  • Non-GAAP earnings per share: $3.24 - $3.29
  • Cash flow from operations: $580 million - $600 million