"Synopsys achieved record results in fiscal year 2022, substantially exceeding our original targets, with strength in all product groups and geographies. We enter fiscal year 2023 with excellent momentum and a resilient business model that provides stability during market cycles," said Aart de Geus, chairman and CEO of Synopsys. "We've delivered many game-changing innovations over the past several years, which continue to enable customers to meet the unrelenting quest for "smart everything" devices. Simultaneously, our execution and operational management continue to drive growth and margin expansion. For fiscal year 2023, we are targeting 14-15% revenue growth, continued non-GAAP operating margin expansion, and approximately 16% non-GAAP earnings per share growth."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2022 was $153.5 million, or $0.99 per diluted share, compared to $201.4 million, or $1.28 per diluted share, for the fourth quarter of fiscal year 2021. GAAP net income for fiscal year 2022 was $984.6 million, or $6.29 per diluted share, compared to $757.5 million, or $4.81 per diluted share, for fiscal year 2021.
Non-GAAP Results
On a non-GAAP basis, net income for the fourth quarter of fiscal year 2022 was $297.7 million, or $1.91 per diluted share, compared to non-GAAP net income of $285.8 million, or $1.82 per diluted share, for the fourth quarter of fiscal year 2021. Non-GAAP net income for fiscal year 2022 was $1.393 billion, or $8.90 per diluted share, compared to non-GAAP net income of $1.077 billion, or $6.84 per diluted share, for fiscal year 2021.
For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-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 tools, IP products, system integration solutions and other associated revenue categories, and (2) Software Integrity, which includes a comprehensive solution for building integrity—security, quality and compliance testing—into the customers' software development lifecycle and supply chain. 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 first quarter and full fiscal year 2023. These financial targets assume no further changes to export control restrictions or the current U.S. government "Entity List" restrictions. 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.
First Quarter and Fiscal Year 2023 Financial Targets(1) | |||||
(in millions except per share amounts) | |||||
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| Range for Three Months Ending |
| Range for Fiscal Year Ending | ||
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| January 31, 2023 |
| October 31, 2023 | ||
|
| Low | High |
| Low | High |
Revenue | $ 1,340 | $ 1,370 |
| $ 5,775 | $ 5,825 |
GAAP Expenses | $ 1,033 | $ 1,053 |
| $ 4,490 | $ 4,537 |
Non-GAAP Expenses | $ 875 | $ 885 |
| $ 3,810 | $ 3,840 |
Other Income (Expense) | $ (2) | $ - |
| $ (12) | $ (8) |
| Non-GAAP Tax Rate | 18 % | 18 % |
| 18 % | 18 % |
| Outstanding Shares (fully diluted) | 155 | 158 |
| 155 | 158 |
| GAAP EPS | $ 1.89 | $ 2.00 |
| $ 7.68 | $ 7.86 |
| Non-GAAP EPS | $ 2.48 | $ 2.53 |
| $ 10.28 | $ 10.35 |
| Operating Cash Flow |
|
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| ~ $1,700 | |
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| (1) Synopsys' first quarter of fiscal year 2023 and fiscal year 2023 will end on January 28, 2023 and October 28, 2023,
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