Forward-Looking Statements
This press release contains forward-looking statements including, but not limited to, statements regarding Synopsys' short-term and long-term financial targets, expectations and objectives; business outlook, opportunities and strategies; customer demand and market expansion; strategies related to our products and technology; our planned product releases and capabilities; industry growth rates; software trends; planned acquisitions and buybacks; our expected tax rate; the expected impact of U.S. and foreign government action on our results; and the expected impact of the COVID-19 pandemic. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in our forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks from the effect of the COVID-19 pandemic and the associated economic downturn on our business, operations and financial condition; uncertainty in the growth of the semiconductor and electronics industries; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations as well as actions by the U.S. or foreign governments, such as measures in response to the COVID-19 pandemic or the imposition of additional tariffs or export restrictions; macroeconomic conditions and uncertainty in the global economy; fluctuation of our operating results; increased variability in our revenue due to the adoption of ASC 606, including the resulting increase in recognizing upfront revenue as a percentage of total revenue; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings it makes with the Securities and Exchange Commission from time to time, including in the sections entitled "Risk Factors" in its Annual Report on Form 10-K for the fiscal year ended October 31, 2020 and its latest Quarterly Report on Form 10-Q. The information provided herein is as of May 19, 2021. Synopsys undertakes no duty, and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law.
SYNOPSYS, INC. | |||||||
Unaudited Consolidated Statements of Operations(1) | |||||||
(in thousands, except per share amounts) | |||||||
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| Three Months Ended |
| Six Months Ended | ||||
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| April 30, |
| April 30, | ||||
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| 2021 |
| 2020 |
| 2021 |
| 2020 |
Revenue: |
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Time-based products | $ 648,794 |
| $ 590,097 |
| $ 1,280,084 |
| $ 1,146,536 |
Upfront products | 209,116 |
| 129,765 |
| 383,497 |
| 280,486 |
Maintenance and service | 166,413 |
| 141,465 |
| 331,063 |
| 268,686 |
Total revenue | 1,024,323 |
| 861,327 |
| 1,994,644 |
| 1,695,708 |
Cost of revenue: |
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Products | 134,738 |
| 108,207 |
| 262,085 |
| 225,991 |
Maintenance and service | 67,840 |
| 62,213 |
| 136,606 |
| 124,128 |
Amortization of intangible assets | 11,408 |
| 13,845 |
| 23,294 |
| 27,014 |
Total cost of revenue | 213,986 |
| 184,265 |
| 421,985 |
| 377,133 |
Gross margin | 810,337 |
| 677,062 |
| 1,572,659 |
| 1,318,575 |
Operating expenses: |
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| Research and development | 362,345 |
| 302,571 |
| 719,813 |
| 616,854 |
| Sales and marketing | 172,754 |
| 146,200 |
| 343,382 |
| 299,055 |
| General and administrative | 72,694 |
| 62,474 |
| 150,182 |
| 131,218 |
| Amortization of intangible assets | 8,313 |
| 10,250 |
| 16,703 |
| 19,614 |
| Restructuring charges | - |
| 29,672 |
| - |
| 38,423 |
| Total operating expenses | 616,106 |
| 551,167 |
| 1,230,080 |
| 1,105,164 |
| Operating income | 194,231 |
| 125,895 |
| 342,579 |
| 213,411 |
| Other income (expense), net | 21,764 |
| (15,729) |
| 50,520 |
| (3,672) |
| Income before income taxes | 215,995 |
| 110,166 |
| 393,099 |
| 209,739 |
| Provision (benefit) for income taxes | 21,193 |
| 246 |
| 36,269 |
| (4,242) |
| Net income | 194,802 |
| 109,920 |
| 356,830 |
| 213,981 |
| Net income (loss) attributed to non-controlling interest | (276) |
| - |
| (593) |
| - |
| Net income attributed to Synopsys | $ 195,078 |
| $ 109,920 |
| $ 357,423 |
| $ 213,981 |
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| Net income per share: |
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| Basic | $ 1.28 |
| $ 0.73 |
| $ 2.34 |
| $ 1.42 |
| Diluted | $ 1.24 |
| $ 0.71 |
| $ 2.27 |
| $ 1.39 |
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| Shares used in computing per share amounts: |
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| Basic | 152,725 |
| 150,597 |
| 152,612 |
| 150,421 |
| Diluted | 157,077 |
| 154,379 |
| 157,226 |
| 154,471 |
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| (1) Synopsys' second quarter of fiscal year 2021 and 2020 ended on May 1, 2021 and May 2, 2020, respectively. For presentation purposes, we refer to the closest calendar month end. | |||||||
