Earnings Call Open to Investors
Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys' corporate website at
www.investor.synopsys.com. Synopsys uses its website as a tool to disclose important information about Synopsys and comply with its disclosure obligations under Regulation Fair Disclosure. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the third quarter of fiscal year 2024 in August 2024.
Effectiveness of Information
The targets included in this press release, the statements made during the earnings conference call, the information contained in the financial supplement and the corporate overview presentation, each of which are available on Synopsys' corporate website at
www.synopsys.com (collectively, the "Earnings Materials"), represent Synopsys' expectations and beliefs as of May 22, 2024. Although these Earnings Materials will remain available on Synopsys' website through the date of the earnings call for the third quarter of fiscal year 2024, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty and does not intend to update any forward-looking statement, whether as a result of new information or future events, or otherwise update, the targets given in this press release unless required by law.
Availability of Final Financial Statements
Synopsys will include final financial statements for the second quarter of fiscal year 2024 in its quarterly report on Form 10-Q to be filed on or before June 13, 2024.
About Synopsys
Catalyzing the era of pervasive intelligence, Synopsys, Inc. (Nasdaq:
SNPS) delivers trusted and comprehensive silicon to systems design solutions, from electronic design automation to silicon IP and system verification and validation. We partner closely with semiconductor and systems customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at
www.synopsys.com.
Reconciliation of Second Quarter Fiscal Year 2024 Results for Continuing Operations
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income, earnings per diluted share, and tax rate for the periods indicated below.
GAAP to Non-GAAP Reconciliation of Second Quarter Fiscal Year 2024 Results(1) | ||||
(unaudited and 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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| 2024 | 2023 | 2024 | 2023 |
GAAP net income from continuing operations
| $ 299,111 | $ 275,602 | $ 736,561 | $ 545,286 |
Adjustments: |
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Amortization of acquired intangible assets | 16,925 | 11,387 | 32,526 | 23,640 |
Stock-based compensation | 162,346 | 130,114 | 327,487 | 252,352 |
Acquisition/divestiture related items | 25,256 | 2,641 | 57,188 | 4,975 |
Restructuring charges | — | (5,578) | — | 32,560 |
Gain on sale of strategic investments | — | — | (55,077) | — |
Tax adjustments | (36,694) | (45,878) | (106,261) | (106,033) |
Non-GAAP net income from continuing operations
| $ 466,944 | $ 368,288 | $ 992,424 | $ 752,780 |
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| Three Months Ended | Six Months Ended | ||
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| April 30, | April 30, | ||
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| 2024 | 2023 | 2024 | 2023 |
| GAAP net income from continuing operations per diluted share
| $ 1.92 | $ 1.78 | $ 4.73 | $ 3.52 |
| Adjustments: |
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| Amortization of acquired intangible assets | 0.11 | 0.07 | 0.21 | 0.15 |
| Stock-based compensation | 1.04 | 0.84 | 2.10 | 1.63 |
| Acquisition/divestiture related items | 0.16 | 0.02 | 0.37 | 0.03 |
| Restructuring charges | — | (0.04) | — | 0.21 |
| Gain on sale of strategic investments | — | — | (0.35) | — |
| Tax adjustments | (0.23) | (0.29) | (0.68) | (0.68) |
| Non-GAAP net income from continuing operations per diluted share
| $ 3.00 | $ 2.38 | $ 6.38 | $ 4.86 |
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| Shares used in computing net income per diluted share amounts: | 155,770 | 154,730 | 155,610 | 155,044 |
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| (1) Synopsys' second quarter of fiscal year 2024 and 2023 ended on May 4, 2024 and April 29, 2023, respectively. For
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