"Synopsys delivered a solid start to the year. Building on our strength and momentum from 2022, we met or exceeded all of our guidance targets, and based on the continued robust design activity, we remain confident in our business," said Aart de Geus, Chair and CEO of Synopsys. "As a key technology catalyst in the 'Smart Everything' world, we are driving groundbreaking innovations that radically advance the design of complex chips and software. For FY'23, we are reaffirming our targets of 14-15% revenue growth and continued non-GAAP operating margin expansion, and expect to grow non-GAAP earnings per share by 18-19%."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal year 2023 was $271.5 million, or $1.75 per diluted share, compared to $313.7 million, or $1.99 per diluted share, for the first quarter of fiscal year 2022.
Non-GAAP Results
On a non-GAAP basis, net income for the first quarter of fiscal year 2023 was $406.7 million, or $2.62 per diluted share, compared to non-GAAP net income of $376.9 million, or $2.40 per diluted share, for the first quarter of fiscal year 2022.
For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.
Business Segments
Beginning in fiscal year 2023, Synopsys began reporting revenue and operating income in three segments: (1) Design Automation, which includes digital and custom integrated circuit (IC) design software, verification hardware and software products, manufacturing-related design products, field-programmable gate array (FPGA) design software, optical products, professional services, and other; (2) Design IP, which includes our Synopsys IP portfolio; and (3) Software Integrity, which includes solutions that test software code for security vulnerabilities and quality defects, as well as professional and managed services. 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 2023. These financial targets assume no further changes to export control restrictions or 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.
Second Quarter and Fiscal Year 2023 Financial Targets (1) | |||||
(in millions except per share amounts) | |||||
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| Range for Three Months Ending |
| Range for Fiscal Year Ending | ||
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| April 30, 2023 |
| October 31, 2023 | ||
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| Low | High |
| Low | High |
Revenue | $ 1,360 | $ 1,390 |
| $ 5,775 | $ 5,825 |
GAAP Expenses | $ 1,085 | $ 1,105 |
| $ 4,544 | $ 4,591 |
Non-GAAP Expenses | $ 917 | $ 927 |
| $ 3,810 | $ 3,840 |
Non-GAAP Other Income (Expense) | $ (1) | $ 1 |
| $ (12) | $ (8) |
Non-GAAP Tax Rate | 16 % | 16 % |
| 16 % | 16 % |
| Outstanding Shares (fully diluted) | 155 | 158 |
| 155 | 158 |
| GAAP EPS | $ 1.62 | $ 1.72 |
| $ 7.12 | $ 7.30 |
| Non-GAAP EPS | $ 2.45 | $ 2.50 |
| $ 10.53 | $ 10.60 |
| Operating Cash Flow |
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| ~ $1,650 | |
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| (1) Synopsys' second quarter of fiscal year 2023 and fiscal year 2023 will end on April 29, 2023 and October 28, 2023,
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