SYNOPSYS, INC.

Unaudited Consolidated Statements of Operations (1)

(in thousands, except per share amounts)

Three Months Ended 

Twelve Months Ended

October 31,

October 31,

2015

2014

2015

2014

Revenue:

  Time-based license

$   467,535

$   443,620

$    1,792,212

$    1,699,135

  Upfront license

57,654

33,894

197,325

135,757

  Maintenance and service

61,970

61,498

252,674

222,580

      Total revenue

587,159

539,012

2,242,211

2,057,472

Cost of revenue:

  License

84,983

69,648

303,633

268,348

  Maintenance and service

22,998

25,161

105,242

87,226

  Amortization of intangible assets

31,863

26,612

110,045

101,311

     Total cost of revenue

139,844

121,421

518,920

456,885

Gross margin

447,315

417,591

1,723,291

1,600,587

Operating expenses:

  Research and development

208,305

190,373

776,229

718,768

  Sales and marketing

130,671

120,232

474,407

453,079

  General and administrative

43,843

42,969

165,097

155,215

  Amortization of intangible assets 

6,938

6,517

26,004

24,808

  Restructuring charges

-

-

15,088

-

     Total operating expenses

389,757

360,091

1,456,825

1,351,870

Operating income

57,558

57,500

266,466

248,717

Other income (expense), net

(1,640)

4,628

15,144

23,425

Income before income taxes

55,918

62,128

281,610

272,142

Provision (benefit) for income taxes

6,156

(327)

55,676

13,018

Net income

$     49,762

$     62,455

$       225,934

$       259,124

Net income per share:

  Basic

$         0.32

$         0.40

$             1.46

$             1.67

  Diluted

$         0.31

$         0.39

$             1.43

$             1.64

Shares used in computing per share amounts:

  Basic

156,385

154,957

155,054

  Diluted

158,121

158,477

158,065

157,710

(1)  Synopsys'  fourth quarter of fiscal year 2015 and 2014 ended on October 31, 2015 and November 1, 2014, respectively. For presentation purposes, we refer to the closest calendar month end.