Synopsys Posts Financial Results for Second Quarter Fiscal Year 2022

Rhea-AI Summary

Synopsys reported Q2 FY 2022 revenue of $1.279 billion, up from $1.024 billion in Q2 FY 2021. GAAP earnings per diluted share rose to $1.89, while non-GAAP EPS reached $2.50, compared to $1.24 and $1.70 respectively in the previous year.

CEO Aart de Geus noted strong demand and operational execution, leading to a raised revenue growth target of 20% for the fiscal year, exceeding $5 billion. The company aims to expand operating margins and achieve over 25% EPS growth.

Positive

• Revenue increased by approximately 25% YoY.
• GAAP EPS improved by 52% YoY to $1.89.
• Non-GAAP EPS rose by 47% YoY to $2.50.
• Full-year revenue growth target raised to 20%.
• Projected operating cash flow of approximately $1.6 billion.

Negative

• None.

Q2 FY 2022 Financial Highlights

• Revenue: $1.279 billion
• GAAP earnings per diluted share: $1.89
• Non-GAAP earnings per diluted share: $2.50

MOUNTAIN VIEW, Calif., May 18, 2022 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today reported results for its second quarter fiscal year 2022. Revenue for the second quarter of fiscal year 2022 was $1.279 billion, compared to $1.024 billion for the second quarter of fiscal year 2021.

"Synopsys delivered an outstanding fiscal second quarter, exceeding our guidance targets with strength across all product groups and geographies. Based on strong first half execution and confidence in our business, we are raising our full-year targets substantially," said Aart de Geus, chairman and CEO of Synopsys. "Our financial momentum builds on three drivers: an unmatched product portfolio with groundbreaking new innovations, robust semiconductor and electronics market demand, and excellent operational execution. Notwithstanding macroeconomic choppiness in an uncertain geopolitical environment, our customers continue to prioritize investments to enable the new "smart everything" era. For fiscal 2022, we expect to grow annual revenue approximately 20% and pass the $5 billion milestone, drive further operating margin expansion, grow earnings per share by more than 25%, and generate approximately $1.6 billion in operating cash flow."

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the second quarter of fiscal year 2022 was $294.8 million, or $1.89 per diluted share, compared to $195.1 million, or $1.24 per diluted share, for the second quarter of fiscal year 2021.

Non-GAAP Results

On a non-GAAP basis, net income for the second quarter of fiscal year 2022 was $390.8 million, or $2.50 per diluted share, compared to non-GAAP net income of $267.1 million, or $1.70 per diluted share, for the second quarter of fiscal year 2021.

For a reconciliation between GAAP and non-GAAP results, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below. 

Business Segments

Synopsys reports revenue and operating income in two segments: (1) Semiconductor & System Design, which includes EDA tools, IP products, system integration solutions and other associated revenue categories, and (2) Software Integrity, which includes a comprehensive solution for building integrity—security, quality and compliance testing—into the customers' software development lifecycle and supply chain. Further information regarding these segments is provided at the end of this press release.

Financial Targets

Synopsys also provided its consolidated financial targets for the third quarter and full fiscal year 2022. These financial targets assume that there are no further changes to the current U.S. government "Entity List" restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below. 

Third Quarter and Fiscal Year 2022 Financial Targets
(in millions except per share amounts)
	Range for Three Months			Range for Fiscal Year
	July 31, 2022			October 31, 2022
	Low	High		Low	High
Revenue	$             1,210	$             1,240		$             5,000	$             5,050
GAAP Expenses	$                981	$             1,001		$             3,928	$             3,975
Non-GAAP Expenses	$                830	$                840		$             3,350	$             3,380
Other Income (Expense)	$                  (2)	$                     -		$                     -	$                    4
Non-GAAP Tax Rate	18%	18%		18%	18%
Outstanding Shares (fully diluted)	156	159		156	159
GAAP EPS	$               1.32	$               1.44		$               6.22	$               6.40
Non-GAAP EPS	$               2.01	$               2.06		$               8.63	$               8.70
Operating Cash Flow				$             1,550	$             1,600

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.synopsys.com. A recording of the call will be available by calling +1-866-207-1041 (+1-402-970-0847 for international callers), access code 8770568, beginning at 5:00 p.m. Pacific Time today, until 11:59 p.m. Pacific Time on May 25, 2022. 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 2022 in August 2022.  Synopsys will post copies of the prepared remarks of Aart de Geus, chairman and chief executive officer, and Trac Pham, chief financial officer, on its website following today's call. In addition, Synopsys makes additional information available in a financial supplement and corporate overview presentation, also posted on the corporate website.

Effectiveness of Information

The targets included in this press release, the statements made during the earnings conference call and the information contained in the financial supplement and corporate overview presentation (available in the Investor Relations section of Synopsys' corporate website at www.synopsys.com) represent Synopsys' expectations and beliefs as of the date of this release only. Although this press release, copies of the prepared remarks of the chief executive officer and chief financial officer made during the call, the financial supplement, and the corporate overview presentation will remain available on Synopsys' website through the date of the third quarter of fiscal year 2022 earnings call in August 2022, 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 currently intend, to report on its progress during the third quarter of fiscal year 2022 or comment to analysts or investors on, or otherwise update, the targets given in this release.

Availability of Final Financial Statements

Synopsys will include final financial statements for the second quarter fiscal year 2022 in its quarterly report on Form 10-Q to be filed by June 9, 2022.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and offers the industry's broadest portfolio of application security testing tools and services. Whether you're a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing more secure, high-quality code, Synopsys has the solutions needed to deliver innovative products. Learn more at www.synopsys.com.      

GAAP to Non-GAAP Reconciliation

Synopsys continues to provide all information required in accordance with GAAP, but acknowledges evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys' operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal planning and forecasting purposes. Synopsys' management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Synopsys' management believes it is useful for itself and investors to review, as applicable, both GAAP financial measures that include: (i) the amortization of acquired intangible assets, (ii) the impact of stock compensation, (iii) acquisition-related costs, (iv) restructuring charges, (v) the effects of certain settlements, final judgments and loss contingencies related to legal proceedings, and (vi) the income tax effect of non-GAAP pre-tax adjustments; and the non-GAAP financial measures that exclude such information in order to assess the performance of Synopsys' business and for planning and forecasting in subsequent periods.

Synopsys adopted a three-year normalized non-GAAP tax rate of 16% for fiscal year 2019 through 2021 in calculating non-GAAP financial measures to provide better consistency across interim reporting periods by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency and not necessarily reflect our normal operations, and to more clearly align our tax rate with our expected geographic earnings mix.

Given the uncertainty surrounding corporate tax reform, Synopsys adopted an annual non-GAAP tax rate of 18% for fiscal year 2022 rather than a three-year normalized non-GAAP tax rate in calculating its non-GAAP financial measures. This annual non-GAAP tax rate is based on an evaluation of its historical and projected mix of U.S. and international profit before tax, taking into account the impact of non-GAAP adjustments, as well as other factors such as its current tax structure, existing tax positions and expected recurring tax incentives. Synopsys re-evaluates this rate on an annual basis for any significant events that could materially affect its projections, such as significant changes in its geographic earnings mix or significant tax law changes in major jurisdictions where Synopsys operates, and further consider the appropriateness of adopting a multi-year normalized non-GAAP tax rate.

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 Item 2.02 of the Current Report on Form 8-K filed on May 18, 2022 for additional information about the measures Synopsys uses to evaluate its core business operations.

Reconciliation of Second Quarter Fiscal Year 2022 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per diluted share for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Second Quarter Fiscal Year 2022 Results (1)
(unaudited and in thousands, except per share amounts)
	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2022		2021		2022		2021
GAAP net income	$     294,781		$     195,078		$     608,468		$     357,423
Adjustments:
Amortization of intangible assets	21,367		19,721		43,727		39,997
Stock compensation	110,061		79,586		205,832		163,368
Acquisition-related costs	4,023		2,344		6,100		5,892
Restructuring charges	311		-		12,057		-
Tax adjustments	(39,703)		(29,630)		(108,456)		(60,108)
Non-GAAP net income	$     390,840		$     267,099		$     767,728		$     506,572
	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2022		2021		2022		2021
GAAP net income per diluted share	$           1.89		$           1.24		$           3.88		$           2.27
Adjustments:
Amortization of intangible assets	0.14		0.13		0.28		0.25
Stock compensation	0.70		0.51		1.31		1.04
Acquisition-related costs	0.03		0.01		0.04		0.04
Restructuring charges	-		-		0.08		-
Tax adjustments	(0.26)		(0.19)		(0.69)		(0.38)
Non-GAAP net income per diluted share	$           2.50		$           1.70		$           4.90		$           3.22
Shares used in computing net income per diluted share amounts:	156,167		157,077		156,815		157,226
(1) Synopsys' second quarter of fiscal year 2022 and 2021 ended on April 30, 2022 and May 1, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.

Reconciliation of 2022 Targets
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Third Quarter Fiscal Year 2022 Targets (1)
(in thousands, except per share amounts)
		Range for Three Months
		July 31, 2022
		Low		High
Target GAAP expenses		$           981,000		$        1,001,000
Adjustments:
Amortization of intangible assets		(24,000)		(27,000)
Stock compensation		(127,000)		(134,000)
Target non-GAAP expenses		$           830,000		$           840,000
		Range for Three Months
		July 31, 2022
		Low		High
Target GAAP earnings per diluted share		$                 1.32		$                 1.44
Adjustments:
Amortization of intangible assets		0.17		0.15
Stock compensation		0.85		0.81
Tax adjustments		(0.33)		(0.34)
Target non-GAAP earnings per diluted share		$                 2.01		$                 2.06
Shares used in non-GAAP calculation (midpoint of target range)		157,500		157,500

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2022 Targets (1)
(in thousands, except per share amounts)
		Range for Fiscal Year
		October 31, 2022
		Low		High
Target GAAP expenses		$        3,928,157		$        3,975,157
Adjustments:
Amortization of intangible assets		(90,000)		(95,000)
Stock compensation		(470,000)		(482,000)
Acquisition-related costs		(6,100)		(6,100)
Restructuring charges		(12,057)		(12,057)
Target non-GAAP expenses		$        3,350,000		$        3,380,000
		Range for Fiscal Year
		October 31, 2022
		Low		High
Target GAAP earnings per diluted share		$                 6.22		$                 6.40
Adjustments:
Amortization of intangible assets		0.60		0.57
Stock compensation		3.06		2.98
Acquisition-related costs		0.04		0.04
Restructuring charges		0.08		0.08
Tax adjustments		(1.37)		(1.37)
Target non-GAAP earnings per diluted share		$                 8.63		$                 8.70
Shares used in non-GAAP calculation (midpoint of target range)		157,500		157,500

(1) Synopsys' third quarter of fiscal year 2022 and fiscal year 2022 will end on July 30, 2022 and October 29, 2022, respectively. For presentation purposes, we refer to the closest calendar month end.

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; strategies related to our products and technology; business and market outlook, opportunities and strategies; customer demand and market expansion; our planned product releases and capabilities; industry growth rates; software trends; planned acquisitions and stock repurchases; our expected tax rate; the expected impact of U.S. and foreign government actions and regulatory changes on our financial results; and the continued 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 continued impact of the COVID-19 pandemic on the global economy and on our business, operations and financial condition; macroeconomic conditions and uncertainty in the global economy; uncertainty in the growth of the semiconductor and electronics industries; the highly competitive industry we operate in; 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 the imposition of additional tariffs or export restrictions; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings we make with the Securities and Exchange Commission from time to time, including in the sections entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021 and in our latest Quarterly Report on Form 10-Q. The information provided herein is as of May 18, 2022. 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 Condensed Consolidated Statements of Income (1)
(in thousands, except per share amounts)
	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2022		2021		2022		2021
Revenue:
Time-based products	$           723,821		$           648,794		$        1,431,304		$        1,280,084
Upfront products	336,625		209,116		704,899		383,497
Maintenance and service	218,783		166,413		413,281		331,063
Total revenue	1,279,229		1,024,323		2,549,484		1,994,644
Cost of revenue:
Products	150,690		134,738		316,089		262,085
Maintenance and service	87,666		67,840		165,891		136,606
Amortization of intangible assets	14,455		11,408		27,815		23,294
Total cost of revenue	252,811		213,986		509,795		421,985
Gross margin	1,026,418		810,337		2,039,689		1,572,659
Operating expenses:
Research and development	389,964		362,345		773,935		719,813
Sales and marketing	191,573		172,754		372,083		343,382
General and administrative	73,957		72,694		154,965		150,182
Amortization of intangible assets	6,912		8,313		15,912		16,703
Restructuring charges	311		-		12,057		-
Total operating expenses	662,717		616,106		1,328,952		1,230,080
Operating income	363,701		194,231		710,737		342,579
Other income (expense), net	(23,913)		21,764		(43,706)		50,520
Income before income taxes	339,788		215,995		667,031		393,099
Provision for income taxes	45,896		21,193		59,798		36,269
Net income	293,892		194,802		607,233		356,830
Net income (loss) attributed to non-controlling interest and redeemable non-controlling interest	(889)		(276)		(1,235)		(593)
Net income attributed to Synopsys	$           294,781		$           195,078		$           608,468		$           357,423
Net income per share attributed to Synopsys:
Basic	$                 1.93		$                 1.28		$                 3.97		$                 2.34
Diluted	$                 1.89		$                 1.24		$                 3.88		$                 2.27
Shares used in computing per share amounts:
Basic	153,090		152,725		153,154		152,612
Diluted	156,167		157,077		156,815		157,226
(1) Synopsys' second quarter of fiscal year 2022 and 2021 ended on April 30, 2022 and May 1, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.

 

SYNOPSYS, INC.
Unaudited Condensed Consolidated Balance Sheets (1)
(in thousands, except par value amounts)
				April 30, 2022		October 31, 2021
ASSETS:
Current assets:
Cash and cash equivalents				$                   1,573,620		$                   1,432,840
Short-term investments				146,901		147,949
Total cash, cash equivalents & short-term investments				$                   1,720,521		$                   1,580,789
Accounts receivable, net				722,992		568,501
Inventories				213,532		229,023
Prepaid and other current assets				417,201		430,028
Total current assets				3,074,246		2,808,341
Property and equipment, net				491,641		472,398
Operating lease right-of-use assets, net				585,108		493,251
Goodwill				3,616,133		3,575,785
Intangible assets, net				333,321		279,132
Deferred income taxes				605,785		612,655
Other long-term assets				504,147		510,698
Total assets				$                   9,210,381		$                   8,752,260
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable and accrued liabilities				$                      612,221		$                      741,191
Operating lease liabilities, current				55,170		79,678
Deferred revenue				1,795,267		1,517,623
Short-term debt				-		74,992
Total current liabilities				2,462,658		2,413,484
Operating lease liabilities, non-current				601,317		487,003
Long-term deferred revenue				165,911		136,303
Long-term debt				23,775		25,094
Other long-term liabilities				345,774		391,433
Total liabilities				3,599,435		3,453,317
Redeemable non-controlling interest				43,516		-
Stockholders' equity:
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding				-		-
Common stock, $0.01 par value: 400,000 shares authorized; 152,955 and
153,062 shares outstanding, respectively				1,530		1,531
Capital in excess of par value				1,517,481		1,576,363
Retained earnings				5,157,633		4,549,713
Treasury stock, at cost: 4,306 and 4,198 shares, respectively				(999,234)		(782,866)
Accumulated other comprehensive income (loss)				(113,099)		(49,604)
Total Synopsys stockholders' equity				5,564,311		5,295,137
Non-controlling interest				3,119		3,806
Total stockholders' equity				5,567,430		5,298,943
Total liabilities, redeemable non-controlling interest and                stockholders' equity				$                   9,210,381		$                   8,752,260
(1) Synopsys' second quarter of fiscal year 2022 ended on April 30, 2022 and its fiscal year 2021 ended on October 30, 2021. For presentation purposes, we refer to the closest calendar month end.

 

SYNOPSYS, INC.
Unaudited Condensed Consolidated Statements of Cash Flows (1)
(in thousands)
	Six Months Ended
	April 30,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income attributed to Synopsys	$            608,468		$            357,423
Adjustments to reconcile net income to net cash provided by
operating activities:
Amortization and depreciation	111,962		100,066
Reduction of operating lease right-of-use assets	42,412		42,711
Amortization of capitalized costs to obtain revenue contracts	34,574		30,475
Stock-based compensation	205,832		163,368
Allowance for credit losses	(4,516)		10,051
Deferred income taxes	8,944		(16,461)
Other non-cash	6,244		(401)
Net changes in operating assets and liabilities, net of
acquired assets and liabilities:
Accounts receivable	(169,785)		157,637
Inventories	7,725		(38,305)
Prepaid and other current assets	(2,417)		(45,972)
Other long-term assets	(8,701)		(97,519)
Accounts payable and accrued liabilities	(181,008)		(96,798)
Operating lease liabilities	(43,963)		(41,105)
Income taxes	(34,246)		(8,386)
Deferred revenue	324,176		183,512
Net cash provided by operating activities	905,701		700,296
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales and maturities of short-term investments	43,653		-
Purchases of short-term investments	(45,158)		-
Proceeds from sales of long-term investments	582		-
Purchases of long-term investments	(7,000)		-
Purchases of property and equipment	(67,367)		(44,060)
Cash paid for acquisitions, net of cash acquired	(109,060)		(74,626)
Capitalization of software development costs	(1,065)		(1,264)
Other	(600)		(800)
Net cash used in investing activities	(186,015)		(120,750)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of debt	(75,938)		(13,194)
Issuances of common stock	120,710		103,203
Payments for taxes related to net share settlement of equity awards	(101,126)		(54,664)
Purchases of treasury stock	(500,000)		(398,082)
Other	(2,709)		(1,000)
Net cash used in financing activities	(559,063)		(363,737)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(19,955)		6,457
Net change in cash, cash equivalents and restricted cash	140,668		222,266
Cash, cash equivalents and restricted cash, beginning of year	1,435,183		1,237,970
Cash, cash equivalents and restricted cash, end of period	$         1,575,851		$         1,460,236
(1) Synopsys' second quarter of fiscal year 2022 and 2021 ended on April 30, 2022 and May 1, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.

 

SYNOPSYS, INC.
Business Segment Reporting (1)(3)
(in millions)
	Three Months		Three Months		Six Months		Six Months
	Ended		Ended		Ended		Ended
	April 30, 2022		April 30, 2021		April 30, 2022		April 30, 2021
Revenue by segment
- Semiconductor & System Design	$             1,166.4		$              930.4		$           2,329.1		$           1,808.8
% of Total	91.2%		90.8%		91.4%		90.7%
- Software Integrity	$                112.9		$                93.9		$              220.4		$              185.8
% of Total	8.8%		9.2%		8.6%		9.3%
Total segment revenue	$             1,279.2		$           1,024.3		$           2,549.5		$           1,994.6
Adjusted operating income by segment
- Semiconductor & System Design	$                457.2		$              308.8		$              904.5		$              587.7
- Software Integrity	$                  13.0		$                  8.4		$                25.0		$                16.4
Total adjusted segment operating income	$                470.2		$              317.2		$              929.5		$              604.1
Adjusted operating margin by segment
- Semiconductor & System Design	39.2%		33.2%		38.8%		32.5%
- Software Integrity	11.5%		9.0%		11.4%		8.8%
Total adjusted segment operating margin	36.8%		31.0%		36.5%		30.3%

Total Adjusted Segment Operating Income Reconciliation (1)(2)(3)
(in millions)
	Three Months		Three Months		Six Months		Six Months
	Ended		Ended		Ended		Ended
	April 30, 2022		April 30, 2021		April 30, 2022		April 30, 2021
GAAP total operating income – as reported	$                363.7		$             194.2		$             710.7		$              342.6
Other expenses managed at consolidated level
-Amortization of intangible assets	21.4		19.7		43.7		40.0
-Stock compensation	110.1		79.6		205.8		163.4
-Non-qualified deferred compensation plan	(29.3)		21.4		(48.9)		52.2
-Acquisition-related costs	4.0		2.3		6.1		5.9
-Restructuring charges	0.3		-		12.1		-
Total adjusted segment operating income	$                470.2		$             317.2		$             929.5		$              604.1
(1) Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue and profitability as normal elements of our business. Amounts may not foot due to rounding.
(2) These segment results are consistent with the information required by ASC 280, Segment Reporting. They are presented to reflect the information that is considered by Synopsys' chief operating decision makers (CODMs) to evaluate the operating performance of its segments. The CODMs were Synopsys' two Co-Chief Executive Officers. One of Synopsys' Co-Chief Executive Officers transitioned out of this role effective May 1, 2022. Starting with the third quarter of fiscal 2022, Synopsys' CODM will be our Chief Executive Officer. The CODMs do not allocate certain operating expenses managed at a consolidated level to our reportable segments, and as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table above. Amounts may not foot due to rounding.
(3) Synopsys' second quarter of fiscal year 2022 and 2021 ended on April 30, 2022 and May 1, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.

INVESTOR CONTACT: 
Lisa L. Ewbank 
Synopsys, Inc. 
650-584-1901 
Synopsys-ir@synopsys.com 

EDITORIAL CONTACT: 
Simone Souza 
Synopsys, Inc. 
650-584-6454 
simone@synopsys.com

View original content:https://www.prnewswire.com/news-releases/synopsys-posts-financial-results-for-second-quarter-fiscal-year-2022-301550428.html

SOURCE Synopsys, Inc.

FAQ

What were Synopsys' Q2 FY 2022 earnings results?

Synopsys reported Q2 FY 2022 revenue of $1.279 billion with a GAAP EPS of $1.89 and non-GAAP EPS of $2.50.

How did Synopsys' revenue compare to Q2 FY 2021?

Revenue increased from $1.024 billion in Q2 FY 2021 to $1.279 billion in Q2 FY 2022.

What growth targets did Synopsys raise for FY 2022?

Synopsys raised its revenue growth target to approximately 20% for FY 2022.

What is Synopsys' projected operating cash flow for FY 2022?

The company expects to generate approximately $1.6 billion in operating cash flow for FY 2022.

What were the key drivers of Synopsys' financial performance in Q2 FY 2022?

Key drivers included strong product demand, an unmatched product portfolio, and excellent operational execution.