Q3 2020 Financial Highlights
MOUNTAIN VIEW, Calif., Aug. 19, 2020 — (PRNewswire) — Synopsys, Inc. (Nasdaq: SNPS) today reported results for its third quarter fiscal year 2020. Revenue for the third quarter was $964.1 million, compared to $853.0 million for the third quarter of fiscal 2019."Synopsys again executed very well in the third quarter, delivering record revenue, non-GAAP earnings per share and operating cash flow. We saw double-digit revenue growth across all product groups and strength in all geographies. Our intense, multi-year innovation push is driving increased momentum in product successes and production adoptions," said Aart de Geus, chairman and co-CEO of Synopsys. "Even as the world navigates through the pandemic and economic challenges, global design activity and customer engagements are flourishing. Due to our very strong fiscal third quarter, confidence in our outlook and resilient business model, we are raising 2020 revenue, operating margin, non-GAAP earnings-per-share and operating cash flow targets."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the third quarter of fiscal 2020 was $252.9 million, or $1.62 per share, compared to $99.9 million, or $0.65 per share, for the third quarter of fiscal 2019.
Non-GAAP Results
On a non-GAAP basis, net income for the third quarter of fiscal 2020 was $271.9 million, or $1.74 per share, compared to non-GAAP net income of $182.5 million, or $1.18 per share, for the third 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 fourth quarter and full fiscal year 2020. These financial targets assume that the current U.S. government "Entity List" restrictions remain in place for the rest of the fiscal year. 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.
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Fourth Quarter and Fiscal Year 2020 Financial Targets | |||||
(in millions except per share amounts) | |||||
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| Q4 FY2020 |
| FY 2020 | ||
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| Low | High |
| Low | High |
Revenue | $ 1,000 | $ 1,030 |
| $ 3,660 | $ 3,690 |
GAAP Expenses | $ 802 | $ 822 |
| $ 3,037 | $ 3,057 |
Non-GAAP Expenses | $ 717 | $ 727 |
| $ 2,645 | $ 2,655 |
Other Income (Expense) | $ (6) | $ (4) |
| $ (4) | $ (2) |
Normalized Annual Tax Rate (1) | 16% | 16% |
| 16% | 16% |
| Outstanding Shares (fully diluted) | 154 | 157 |
| 154 | 157 |
| GAAP EPS | $ 1.10 | $ 1.21 |
| $ 4.10 | $ 4.21 |
| Non-GAAP EPS | $ 1.51 | $ 1.56 |
| $ 5.48 | $ 5.53 |
| Operating Cash Flow |
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| approximately | $ 900 |
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| (1) Applied in non-GAAP net income calculations | |||||
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