Fri, May 24, 8:32 PM (63 days ago)
Synopsys, Inc. (SNPS) reported strong financial performance for the fiscal quarter ended April 30, 2024, with a 15% year-over-year increase in total revenue to $1.45 billion, driven by growth across all product groups and geographies. Revenue from the Design Automation segment rose by 14%, while Design IP segment revenue increased by 19%. The company also saw a significant rise in upfront products revenue and maintenance and service revenue, which grew by 18% and 32%, respectively. Operating income for the quarter was $332.1 million, marking a 14% increase from the previous year. However, total cost of revenue and operating expenses also rose by 16%, primarily due to increases in employee-related costs, hardware-related costs, and professional fees associated with the pending acquisition of Ansys, Inc. Net income from continuing operations attributed to Synopsys was $299.1 million, up from $275.6 million in the same period last year. The company also noted a significant increase in its cash and cash equivalents to $1.5 billion. Synopsys has committed debt financing in place for $16.0 billion to fund the $19 billion cash consideration for the Ansys acquisition, expected to close in the first half of calendar year 2025. The company's backlog was approximately $7.9 billion, with 40% expected to be recognized as revenue over the next 12 months. Overall, Synopsys demonstrated strong growth and financial health, while also preparing for significant strategic acquisitions and divestitures that are expected to impact future operations.