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 these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed below, as well as in Item 2.02 of the Current Report on Form 8-K filed on February 21, 2018 for additional information about the measures Synopsys uses to evaluate its core business operations.
Reconciliation of First Quarter Fiscal Year 2018 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per share for the periods indicated below.
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GAAP to Non-GAAP Reconciliation of First Quarter Fiscal Year 2018 Results | ||||
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(unaudited and in thousands, except per share amounts) | ||||
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Three Months Ended |
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January 31, |
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2018 |
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2017 |
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GAAP net income (loss) |
$ (3,691) |
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$ 86,588 |
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Adjustments: |
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Amortization of intangible assets |
28,547 |
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29,508 |
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Stock compensation |
32,323 |
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25,834 |
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Acquisition-related costs |
14,200 |
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3,299 |
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Restructuring charges |
(282) |
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12,105 |
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Income tax related to transition tax |
73,434 |
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- |
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Income tax related to tax rate change |
45,636 |
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- |
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Tax adjustments |
(20,612) |
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(12,257) |
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Non-GAAP net income |
$ 169,555 |
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$ 145,077 |
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Three Months Ended |
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January 31, |
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2018 |
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2017 |
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GAAP net income (loss) per share (1) |
$ (0.02) |
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$0.56 |
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Adjustments: |
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Amortization of intangible assets |
0.19 |
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0.19 |
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Stock compensation |
0.21 |
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0.17 |
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Acquisition-related costs |
0.09 |
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0.02 |
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Restructuring charges |
- |
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0.08 |
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Income tax related to transition tax |
0.47 |
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- |
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Income tax related to tax rate change |
0.29 |
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- |
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Tax adjustments |
(0.13) |
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(0.08) |
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Non-GAAP net income per share (1) |
$ 1.10 |
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$0.94 |
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Shares used in computing per share amounts: (1) |
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Basic - GAAP net loss |
149,441 |
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n/a |
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Diluted - Non-GAAP adjustments & net income |
154,068 |
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154,433 |
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(1) We provide both basic weighted-average outstanding shares and fully diluted weighted-average outstanding shares in net income (loss) per share calculation in the reconciliation of earnings per share amounts. If there is a GAAP net loss in a reporting period, we are required to use basic weighted-average outstanding shares to compute net loss per share to prevent anti-dilutive effect while we use fully diluted weighted-average outstanding shares to compute per share non-GAAP adjustments and net income. |
