Q1 2020 Financial Highlights
MOUNTAIN VIEW, Calif., Feb. 19, 2020 — (PRNewswire) — Synopsys, Inc. (Nasdaq: SNPS) today reported results for its first quarter fiscal year 2020. Revenue for the first quarter was $834.4 million, compared to $820.4 million for the first quarter of fiscal 2019."Our first quarter was a strong start to fiscal year 2020. We delivered financial results at or above our guidance targets and are reaffirming our outlook for the year," said Aart de Geus, chairman and co-CEO of Synopsys. "Even with caution around global markets, electronics companies continue to invest in critical chip and system designs, as well as substantially increasing amounts of sophisticated software. Synopsys is uniquely positioned to enable these designs from Silicon to Software. Our innovation engine is unrelenting, and this quarter we will be introducing a number of exciting new products and differentiating capabilities. We remain on-track towards our longer-term revenue and operating margin expansion targets."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal 2020 was $104.1 million, or $0.67 per share, compared to $153.5 million, or $1.01 per share, for the first quarter of fiscal 2019.
Non-GAAP Results
On a non-GAAP basis, net income for the first quarter of fiscal 2020 was $156.7 million, or $1.01 per share, compared to non-GAAP net income of $164.9 million, or $1.08 per share, for the first quarter of fiscal 2019.
For a reconciliation between GAAP and non-GAAP results, see "GAAP to Non-GAAP Reconciliation" and 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 associated services, and (2) Software Integrity, which includes security and quality solutions for software development across many industries. 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 second quarter and full fiscal year 2020. These financial targets do not assume any revenue from companies currently on the U.S. government's "Entity List." 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.
Second Quarter and Fiscal Year 2020 Financial Targets | |||||
(in millions except per share amounts) | |||||
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| Q2 FY2020 |
| FY 2020 | ||
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| Low | High |
| Low | High |
Revenue | $ 820 | $ 850 |
| $ 3,600 | $ 3,650 |
GAAP Expenses | $ 724 | $ 758 |
| $ 2,951 | $ 3,000 |
Non-GAAP Expenses | $ 645 | $ 665 |
| $ 2,630 | $ 2,660 |
Other Income (Expense) | $ (3) | $ (1) |
| $ (16) | $ (12) |
Normalized Annual Tax Rate (1) | 16% | 16% |
| 16% | 16% |
Outstanding Shares (fully diluted) | 153 | 156 |
| 153 | 156 |
GAAP EPS | $ 0.49 | $ 0.62 |
| $ 3.68 | $ 3.87 |
| Non-GAAP EPS | $ 0.96 | $ 1.01 |
| $ 5.18 | $ 5.25 |
| Operating Cash Flow |
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| $ 800 | $ 825 |
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| (1) Applied in non-GAAP net income calculations | |||||
