SNPS

SYNOPSYS INC

Technology | Large Cap

$2.55

EPS Forecast

$1,548

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-10-31
EX-99.1 2 d282332dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

PRESS RELEASE

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

Synopsys Posts Financial Results for First Quarter Fiscal Year 2022

Q1 FY 2022 Financial Highlights

 

Revenue: $1.270 billion

 

GAAP earnings per diluted share: $1.99

 

Non-GAAP earnings per diluted share: $2.40

MOUNTAIN VIEW, Calif. Feb. 16, 2022Synopsys, Inc. (Nasdaq: SNPS) today reported results for its first quarter fiscal year 2022. Revenue for the first quarter of fiscal year 2022 was $1.270 billion, compared to $970.3 million for the first quarter of fiscal year 2021.

“Synopsys began fiscal year 2022 with excellent momentum, supported by strength across all product groups and geographies. We delivered financial results at or above guidance targets, returned $250 million to shareholders through stock repurchases, and are raising our outlook for the year,” said Aart de Geus, chairman and co-CEO of Synopsys. “Our markets are strong, as companies across vertical segments intensify their investments to benefit from increased complexity in critical chips, system design, and immense amounts of software. Synopsys is at the heart of this wave of advanced technology. Our unique, game-changing innovations are driving excellent technical benefits for our customers and outstanding business results.”

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal year 2022 was $313.7 million, or $1.99 per diluted share, compared to $162.3 million, or $1.03 per diluted share, for the first quarter of fiscal year 2021.

 

1


Non-GAAP Results

On a non-GAAP basis, net income for the first quarter of fiscal year 2022 was $376.9 million, or $2.40 per diluted share, compared to non-GAAP net income of $239.5 million, or $1.52 per diluted share, for the first 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 second 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.

Second Quarter and Fiscal Year 2022 Financial Targets

(in millions except per share amounts)

 

     Range for Three Months     Range for Fiscal Year  
     April 30, 2022     October 31, 2022  
     Low     High     Low     High  

Revenue

   $ 1,240     $ 1,270     $ 4,775     $ 4,825  

GAAP Expenses

   $ 931     $ 951     $ 3,809     $ 3,856  

Non-GAAP Expenses

   $ 800     $ 810     $ 3,255     $ 3,285  

Other Income (Expense)

   $ —       $ 2     $ (8   $ (4

Annual non-GAAP Tax Rate

     18     18     18     18

Outstanding Shares (fully diluted)

     156       159       157       160  

GAAP EPS

   $ 1.67     $ 1.78     $ 5.53     $ 5.72  

Non-GAAP EPS

   $ 2.35     $ 2.40     $ 7.85     $ 7.92  

Operating Cash Flow

       $ 1,450     $ 1,500  

 

2


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 6376313, beginning at 5:45 p.m. Pacific Time today, until 11:59 p.m. Pacific Time on February 23, 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 second quarter of fiscal year 2022 in May 2022. Synopsys will post copies of the prepared remarks of Aart de Geus, chairman and co-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 co-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 second quarter of fiscal year 2022 earnings call in May 2022, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys does not currently intend to report on its progress during the second 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 first quarter fiscal year 2022 in its quarterly report on Form 10-Q to be filed by March 10, 2022.

 

3


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.

 

4


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 February 16, 2022 for additional information about the measures Synopsys uses to evaluate its core business operations.

 

5


Reconciliation of First 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 First Quarter Fiscal Year 2022 Results (1)

(unaudited and in thousands, except per share amounts)

 

     Three Months Ended  
     January 31,  
     2022     2021  

GAAP net income

   $ 313,687     $ 162,345  

Adjustments:

    

Amortization of intangible assets

     22,360       20,276  

Stock compensation

     95,771       83,782  

Acquisition-related costs

     2,077       3,548  

Restructuring charges

     11,746       —    

Tax adjustments

     (68,753     (30,478
  

 

 

   

 

 

 

Non-GAAP net income

   $ 376,888     $ 239,473  
  

 

 

   

 

 

 
     Three Months Ended  
     January 31,  
     2022     2021  

GAAP diluted net income per share

   $ 1.99     $ 1.03  

Adjustments:

    

Amortization of intangible assets

     0.14       0.13  

Stock compensation

     0.61       0.53  

Acquisition-related costs

     0.01       0.02  

Restructuring charges

     0.08       —    

Tax adjustments

     (0.43     (0.19
  

 

 

   

 

 

 

Non-GAAP diluted net income per share

   $ 2.40     $ 1.52  
  

 

 

   

 

 

 

Shares used in computing diluted net income per share amounts:

     157,273       157,277  

 

(1)

Synopsys’ first quarter of fiscal year 2022 and 2021 ended on January 29, 2022 and January 30, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.

 

6


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 Second Quarter Fiscal Year 2022 Targets (1)

(in thousands, except per share amounts)

 

     Range for Three Months  
     April 30, 2022  
     Low     High  

Target GAAP expenses

   $ 931,000     $ 951,000  

Adjustments:

    

Amortization of intangible assets

     (20,000     (23,000

Stock compensation

     (111,000     (118,000
  

 

 

   

 

 

 

Target non-GAAP expenses

   $ 800,000     $ 810,000  
  

 

 

   

 

 

 
     Range for Three Months  
     April 30, 2022  
     Low     High  

Target GAAP earnings per diluted share

   $ 1.67     $ 1.78  

Adjustments:

    

Amortization of intangible assets

     0.15       0.13  

Stock compensation

     0.75       0.70  

Tax adjustments

     (0.22     (0.21
  

 

 

   

 

 

 

Target non-GAAP earnings per diluted share

   $ 2.35     $ 2.40  
  

 

 

   

 

 

 

Shares used in non-GAAP calculation (midpoint of target range)

     157,500       157,500  

 

7


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

   $ 3,808,823     $ 3,855,823  

Adjustments:

    

Amortization of intangible assets

     (80,000     (85,000

Stock compensation

     (460,000     (472,000

Acquisition-related costs

     (2,077     (2,077

Restructuring charges

     (11,746     (11,746
  

 

 

   

 

 

 

Target non-GAAP expenses

   $ 3,255,000     $ 3,285,000  
  

 

 

   

 

 

 
     Range for Fiscal Year  
     October 31, 2022  
     Low     High  

Target GAAP earnings per diluted share

   $ 5.53     $ 5.72  

Adjustments:

    

Amortization of intangible assets

     0.54       0.50  

Stock compensation

     2.98       2.90  

Acquisition-related costs

     0.01       0.01  

Restructuring charges

     0.07       0.07  

Tax adjustments

     (1.28     (1.28
  

 

 

   

 

 

 

Target non-GAAP earnings per diluted share

   $ 7.85     $ 7.92  
  

 

 

   

 

 

 

Shares used in non-GAAP calculation (midpoint of target range)

     158,500       158,500  

 

(1)

Synopsys’ second fiscal quarter and fiscal year will end on April 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; business outlook, opportunities and strategies; customer demand and market expansion; strategies related to our products and technology; our planned product releases and capabilities; industry growth rates; software trends; planned acquisitions and buybacks; our expected tax rate; the expected impact of U.S. and foreign government action on our financial results; and the continued impact and duration 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,

 

8


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 it makes with the Securities and Exchange Commission from time to time, including in the sections entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended October 31, 2021 and in its latest Quarterly Report on Form 10-Q. The information provided herein is as of February 16, 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.

 

9


SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Income (1)

(in thousands, except per share amounts)

 

     Three Months Ended
January 31,
 
     2022     2021  

Revenue:

    

Time-based products

   $ 707,483     $  631,290  

Upfront products

     368,274       174,381  

Maintenance and service

     194,498       164,650  
  

 

 

   

 

 

 

Total revenue

     1,270,255       970,321  

Cost of revenue:

    

Products

     165,399       127,347  

Maintenance and service

     78,225       68,766  

Amortization of intangible assets

     13,360       11,886  
  

 

 

   

 

 

 

Total cost of revenue

     256,984       207,999  
  

 

 

   

 

 

 

Gross margin

     1,013,271       762,322  

Operating expenses:

    

Research and development

     383,971       357,468  

Sales and marketing

     180,510       170,628  

General and administrative

     81,008       77,488  

Amortization of intangible assets

     9,000       8,390  

Restructuring charges

     11,746       —    
  

 

 

   

 

 

 

Total operating expenses

     666,235       613,974  
  

 

 

   

 

 

 

Operating income

     347,036       148,348  

Other income (expense), net

     (19,793     28,756  
  

 

 

   

 

 

 

Income before income taxes

     327,243       177,104  

Provision for income taxes

     13,902       15,076  
  

 

 

   

 

 

 

Net income

     313,341       162,028  

Net income (loss) attributed to non-controlling interest

     (346     (317
  

 

 

   

 

 

 

Net income attributed to Synopsys

   $ 313,687     $ 162,345  
  

 

 

   

 

 

 

Net income per share:

    

Basic

   $ 2.05     $ 1.06  

Diluted

   $ 1.99     $ 1.03  

Shares used in computing per share amounts:

    

Basic

     153,218       152,498  
  

 

 

   

 

 

 

Diluted

     157,273       157,277  
  

 

 

   

 

 

 

 

(1)

Synopsys’ first quarter of fiscal year 2022 and 2021 ended on January 29, 2022 and January 30, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.

 

10


SYNOPSYS, INC.

Unaudited Condensed Consolidated Balance Sheets (1)

(in thousands, except par value amounts)

 

     January 31, 2022     October 31, 2021  
ASSETS:             

Current assets:

    

Cash and cash equivalents

   $ 1,124,299     $ 1,432,840  

Short-term investments

     147,748       147,949  
  

 

 

   

 

 

 

Total cash, cash equivalents & short-term investments

     1,272,047       1,580,789  

Accounts receivable, net

     1,038,749       568,501  

Inventories, net

     212,919       229,023  

Prepaid and other current assets

     423,782       430,028  
  

 

 

   

 

 

 

Total current assets

     2,947,497       2,808,341  

Property and equipment, net

     477,521       472,398  

Operating lease right-of-use assets, net

     481,526       493,251  

Goodwill

     3,592,788       3,575,785  

Intangible assets, net

     260,810       279,132  

Deferred income taxes

     628,879       612,655  

Other long-term assets

     512,325       510,698  
  

 

 

   

 

 

 

Total assets

   $ 8,901,346     $ 8,752,260  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY:

    

Current liabilities:

    

Accounts payable and accrued liabilities

   $ 540,733     $ 741,191  

Operating lease liabilities, current

     78,748       79,678  

Deferred revenue

     1,852,175       1,517,623  

Short-term debt

     —         74,992  
  

 

 

   

 

 

 

Total current liabilities

     2,471,656       2,413,484  

Operating lease liabilities, non-current

     477,487       487,003  

Long-term deferred revenue

     157,465       136,303  

Long-term debt

     24,370       25,094  

Other long-term liabilities

     380,135       391,433  
  

 

 

   

 

 

 

Total liabilities

     3,511,113       3,453,317  

Stockholders’ equity:

    

Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding

     —         —    

Common stock, $0.01 par value: 400,000 shares authorized; 153,256 and 153,062 shares outstanding, respectively

     1,533       1,531  

Capital in excess of par value

     1,430,226       1,576,363  

Retained earnings

     4,863,400       4,549,713  

Treasury stock, at cost: 4,005 and 4,198 shares, respectively

     (856,929     (782,866

Accumulated other comprehensive income (loss)

     (51,457     (49,604
  

 

 

   

 

 

 

Total Synopsys stockholders’ equity

     5,386,773       5,295,137  

Non-controlling interest

     3,460       3,806  
  

 

 

   

 

 

 

Total stockholders’ equity

     5,390,233       5,298,943  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 8,901,346     $ 8,752,260  
  

 

 

   

 

 

 

 

(1)

Synopsys’ first quarter of fiscal year 2022 ended on January 29, 2022 and its fiscal year 2021 ended on October 30, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.

 

11


SYNOPSYS, INC.

Unaudited Condensed Consolidated Statements of Cash Flows (1)

(in thousands)

 

     Three Months Ended  
     January 31,  
     2022     2021  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net income attributed to Synopsys

   $ 313,687     $ 162,345  

Adjustments to reconcile net income to net cash provided by operating activities:

    

Amortization and depreciation

     61,685       50,628  

Reduction of operating lease right-of-use assets

     21,010       20,974  

Amortization of capitalized costs to obtain revenue contracts

     16,737       15,008  

Stock-based compensation

     95,771       83,782  

Allowance for credit losses

     5,278       7,477  

Deferred income taxes

     (11,952     (20,222

Other non-cash

     4,486       (3,359

Net changes in operating assets and liabilities, net of acquired assets and liabilities:

    

Accounts receivable

     (466,684     (14,910

Inventories

     9,155       (37,764

Prepaid and other current assets

     (303     (12,289

Other long-term assets

     (11,969     (50,385

Accounts payable and accrued liabilities

     (223,223     (171,137

Operating lease liabilities

     (19,477     (20,707

Income taxes

     6,555       12,226  

Deferred revenue

     354,988       152,291  
  

 

 

   

 

 

 

Net cash provided by operating activities

     155,744       173,958  

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Proceeds from sales and maturities of short-term investments

     16,437       —    

Purchases of short-term investments

     (17,210     —    

Proceeds from sales of long-term investments

     582       —    

Purchases of long-term investments

     (5,000     —    

Purchases of property and equipment

     (41,751     (27,779

Cash paid for acquisitions, net of cash acquired

     (19,989     (74,670

Capitalization of software development costs

     (494     (1,011

Other

     (600     —    
  

 

 

   

 

 

 

Net cash used in investing activities

     (68,025     (103,460

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Repayment of debt

     (75,938     (5,694

Issuances of common stock

     30,835       15,092  

Payments for taxes related to net share settlement of equity awards

     (96,785     (49,591

Purchase of equity forward contract

     (40,000     (50,000

Purchases of treasury stock

     (210,000     (202,871

Other

     (2,709     —    
  

 

 

   

 

 

 

Net cash used in financing activities

     (394,597     (293,064

Effect of exchange rate changes on cash, cash equivalents and restricted cash

     (1,720     10,001  
  

 

 

   

 

 

 

Net change in cash, cash equivalents and restricted cash

     (308,598     (212,565

Cash, cash equivalents and restricted cash, beginning of year

     1,435,183       1,237,970  
  

 

 

   

 

 

 

Cash, cash equivalents and restricted cash, end of period

   $  1,126,585     $  1,025,405  
  

 

 

   

 

 

 

 

(1)

Synopsys’ first quarter of fiscal year 2022 and 2021 ended on January 29, 2022 and January 30, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.

 

12


SYNOPSYS, INC.

Business Segment Reporting (1)

(in millions)

 

     Three Months     Three Months  
     Ended     Ended  
     January 31, 2022 (3)     January 31, 2021 (3)  

Revenue by segment

    

- Semiconductor & System Design

   $ 1,162.7     $ 878.3  

% of Total

     91.5     90.5

- Software Integrity

   $ 107.6     $ 92.0  

% of Total

     8.5     9.5

Total segment revenue

   $ 1,270.3     $ 970.3  

Adjusted operating income by segment

    

- Semiconductor & System Design

   $ 447.4     $ 278.9  

- Software Integrity

   $ 12.0     $ 7.9  

Total adjusted segment operating income

   $ 459.4     $ 286.8  

Adjusted operating margin by segment

    

- Semiconductor & System Design

     38.5     31.8

- Software Integrity

     11.2     8.6

Total adjusted segment operating margin

     36.2     29.6

Total Adjusted Segment Operating Income Reconciliation (1)(2)

(in millions)

 

     Three
Months
    Three
Months
 
     Ended     Ended  
     January 31,
2022 (3)
    January 31,
2021 (3)
 

GAAP total operating income – as reported

   $ 347.0     $ 148.3  

Other expenses managed at consolidated level

    

-Amortization of intangible assets

     22.4       20.3  

-Stock compensation

     95.8       83.8  

-Non-qualified deferred compensation plan

     (19.6     30.9  

-Acquisition-related costs

     2.1       3.5  

-Restructuring charges

     11.7       —    
  

 

 

   

 

 

 

Total adjusted segment operating income

   $ 459.4     $ 286.8  
  

 

 

   

 

 

 

 

(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 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’ first quarter of fiscal year 2022 and 2021 ended on January 29, 2022 and January 30, 2021, respectively. For presentation purposes, we refer to the closest calendar month end.

 

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