Q2 2021 Financial Highlights
MOUNTAIN VIEW, Calif., May 19, 2021 — (PRNewswire) — Synopsys, Inc. (Nasdaq: SNPS) today reported results for its second quarter fiscal year 2021. Revenue for the second quarter was $1,024.3 million, compared to $861.3 million for the second quarter of fiscal 2020."Synopsys continues to execute very well. We delivered outstanding second quarter results, exceeding all of our key guidance metrics, and business was robust across all product groups and geographies. Market demand is strong, and we see a new wave of growth on the horizon, driven by an increasing need for highly complex, connected, specialized, and secure chips and systems," said Aart de Geus, chairman and co-CEO of Synopsys. "Recent transformative technology innovations position us particularly well to enable this new era. And combined with our multi-year focus on accelerating growth and expanding non-GAAP operating margin, we continue to manage the business to drive significant long-term shareholder value. Our excellent year-to-date results, coupled with increased confidence in our business, lead us to raise our fiscal 2021 revenue, non-GAAP earnings and operating margin, and operating cash flow targets."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the second quarter of fiscal 2021 was $195.1 million, or $1.24 per share, compared to $109.9 million, or $0.71 per share, for the second quarter of fiscal 2020.
Non-GAAP Results
On a non-GAAP basis, net income for the second quarter of fiscal 2021 was $267.1 million, or $1.70 per share, compared to non-GAAP net income of $188.3 million, or $1.22 per share, for the second quarter of fiscal 2020.
For a reconciliation between GAAP and non-GAAP results, see "GAAP to Non-GAAP Reconciliation" and the accompanying tables below.
Business Segments
Synopsys reports revenue and operating income in two segments: (1) Semiconductor & System Design, which includes EDA tools, IP products, system integration solutions and associated services, and (2) Software Integrity, which includes security and quality solutions for software development across many industries. Further information regarding these segments is provided at the end of this press release.
Financial Targets
Synopsys also provided its consolidated financial targets for the third quarter and full fiscal year 2021. These financial targets assume that there are no further changes to the current U.S. government "Entity List" restrictions for the rest of the fiscal year. 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 and Fiscal Year 2021 Financial Targets | |||||
(in millions except per share amounts) | |||||
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| Q3 FY 2021 |
| FY 2021 | ||
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| Low | High |
| Low | High |
Revenue | $ 1,030 | $ 1,060 |
| $ 4,035 | $ 4,085 |
GAAP Expenses | $ 807 | $ 825 |
| $ 3,241 | $ 3,286 |
Non-GAAP Expenses | $ 707 | $ 717 |
| $ 2,835 | $ 2,865 |
Other Income (Expense) | $ (3) | $ (1) |
| $ (9) | $ (5) |
Normalized Annual Tax Rate (1) | 16% | 16% |
| 16% | 16% |
| Outstanding Shares (fully diluted) | 156 | 159 |
| 156 | 159 |
| GAAP EPS | $ 1.30 | $ 1.41 |
| $ 4.55 | $ 4.72 |
| Non-GAAP EPS | $ 1.75 | $ 1.80 |
| $ 6.38 | $ 6.45 |
| Operating Cash Flow |
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| $ 1,250 | $ 1,300 |
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| (1) Applied in non-GAAP net income calculations |
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