News Releases

Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2021
Q4 FY 2021 Financial Highlights
- Revenue: $1.152 billion
- GAAP earnings per share: $1.28
- Non-GAAP earnings per share: $1.82
FY 2021 Financial Highlights
- Revenue: $4.204 billion
- GAAP earnings per share: $4.81
- Non-GAAP earnings per share: $6.84
- Cash flow from operations: $1.493 billion
- Cash, cash equivalents and short-term investments: $1.581 billion

MOUNTAIN VIEW, Calif., Dec. 1, 2021 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today reported results for its fourth quarter and fiscal year 2021. Revenue for the fourth quarter of fiscal year 2021 was $1.152 billion, compared to $1.025 billion for the fourth quarter of fiscal year 2020. Revenue for fiscal year 2021 was $4.204 billion, an increase of 14.1 percent from $3.685 billion in fiscal year 2020.

"Synopsys delivered another record fiscal year in 2021, substantially exceeding our original targets, with strength in all product groups and geographies. We are entering fiscal year 2022 with significant financial, technology and customer momentum," said Aart de Geus, chairman and co-CEO of Synopsys. "Over the past several years, we have delivered disruptive innovations that are enabling the new era of 'smart everything,' an era that brings with it many new market entrants and increased investments. As a result, we are seeing a growing number of substantially expanded customer commitments and collaborations. In addition to fiscal year 2022 expectations of strong double-digit revenue growth, continued operating margin expansion, EPS growth in the mid-teens range, and nearly $1.5 billion in operating cash flow, we are also raising our long-term financial objectives, with increased EDA and IP revenue growth expectations."

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2021 was $201.4 million, or $1.28 per share, compared to $197.5 million, or $1.26 per share, for the fourth quarter of fiscal year 2020. GAAP net income for fiscal year 2021 was $757.5 million, or $4.81 per share, compared to $664.3 million, or $4.27 per share, for fiscal year 2020. 

Non-GAAP Results

On a non-GAAP basis, net income for the fourth quarter of fiscal year 2021 was $285.8 million, or $1.82 per share, compared to non-GAAP net income of $247.7 million, or $1.58 per share, for the fourth quarter of fiscal year 2020. Non-GAAP net income for fiscal year 2021 was $1.077 billion, or $6.84 per share, compared to non-GAAP net income of $864.6 million, or $5.55 per share, for fiscal year 2020.

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 and IP products, system integration solutions and associated services, and (2) Software Integrity, which includes security and quality solutions for software development. 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 first 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.  

First Quarter and Fiscal Year 2022 Financial Targets

(in millions except per share amounts)








 Range for Three Months 


Range for Fiscal Year


January 31, 2022


October 31, 2022


Low

High


Low

High

Revenue

$            1,250

$            1,280


$            4,725

$            4,775

GAAP Expenses

$               934

$               964


$            3,778

$            3,835

Non-GAAP Expenses

$               802

$               812


$            3,225

$            3,255

Other Income (Expense)

$                  (5)

$                  (3)


$                (11)

$                  (7)

Annual non-GAAP Tax Rate

18%

18%


18%

18%

Outstanding Shares (fully diluted)

156

159


157

160

GAAP EPS

$              1.75

$              1.92


$              5.39

$              5.65

Non-GAAP EPS

$              2.35

$              2.40


$              7.73

$              7.80

Operating Cash Flow




$            1,400

$            1,500

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 6504511, beginning at 5:45 p.m. Pacific Time today, until 11:59 p.m. Pacific Time on December 8, 2021. 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 first quarter of fiscal year 2022 in February 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 first quarter of fiscal year 2022 earnings call in February 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 first 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 fiscal year 2021 in its annual report on Form 10-K to be filed by December 29, 2021.

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 believes 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, 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 information that includes: (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 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 the calculation of its 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 align our tax rate more clearly with our expected geographic earnings mix. Synopsys re-evaluated this rate on an annual basis for any significant events that could have materially affected its projections, such as significant changes in its geographic earnings mix or significant tax law changes in major jurisdictions where it operates.

Given the uncertainty surrounding corporate tax reform, Synopsys has elected to provide a projected annual non-GAAP tax rate for fiscal year 2022 rather than a three-year normalized non-GAAP tax rate in calculating its non-GAAP financial measures. Based on an evaluation of Synopsys' historical and projected mix of U.S. and international profit before tax, taking into account the impact of non-GAAP adjustments described above, as well as other factors such as its current tax structure, existing tax positions, and expected recurring tax incentives, its projected annual non-GAAP tax rate is 18% for fiscal 2022. Synopsys intends to re-evaluate the projected fiscal 2022 annual non-GAAP tax rate on an interim basis to determine 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 December 1, 2021 for additional information about the measures Synopsys uses to evaluate its core business operations.

Reconciliation of Fourth Quarter and Fiscal Year 2021 Results

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per share for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2021 Results (1)


(unaudited and in thousands, except per share amounts)












Three Months Ended


Twelve Months Ended



October 31,


October 31,



2021


2020


2021


2020


GAAP net income

$            201,447


$            197,455


$            757,516


$            664,347


Adjustments:









Amortization of intangible assets

21,943


21,004


82,380


91,281


Stock compensation

96,742


78,429


345,272


248,584


Acquisition-related costs

3,800


3,259


15,394


14,096


Restructuring charges

18,254


(387)


33,405


36,059


Legal matters

-


-


(1,455)


-


Tax adjustments

(56,430)


(52,084)


(155,727)


(189,798)


Non-GAAP net income

$            285,756


$            247,676


$         1,076,785


$            864,569






























Three Months Ended


Twelve Months Ended



October 31,


October 31,



2021


2020


2021


2020


GAAP diluted net income per share

$                   1.28


$                   1.26


$                   4.81


$                   4.27


Adjustments:









Amortization of intangible assets

0.14


0.13


0.52


0.59


Stock compensation

0.62


0.50


2.19


1.60


Acquisition-related costs

0.02


0.02


0.10


0.08


Restructuring charges

0.12


-


0.21


0.23


Legal matters

-


-


(0.01)


-


Tax adjustments

(0.36)


(0.33)


(0.98)


(1.22)


Non-GAAP diluted net income per share

$                   1.82


$                   1.58


$                   6.84


$                   5.55











Shares used in computing diluted net income per share amounts:

157,243


156,825


157,340


155,706











(1) Synopsys' fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, 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 First Quarter Fiscal Year 2022 Targets (1)

(in thousands, except per share amounts)











 Range for Three Months 



January 31, 2022



Low


High

Target GAAP expenses


$          934,000


$          964,000

Adjustments:





      Amortization of intangible assets


(22,000)


(25,000)

      Stock compensation


(102,000)


(107,000)

      Restructuring charges


(8,000)


(20,000)

Target non-GAAP expenses


$          802,000


$          812,000
















Range for Three Months



January 31, 2022



Low


High

Target GAAP earnings per share


$                1.75


$                1.92

Adjustments:





      Amortization of intangible assets


0.16


0.14

      Stock compensation


0.68


0.65

      Restructuring charges


0.13


0.05

      Tax adjustments


(0.37)


(0.36)

Target non-GAAP earnings per share


$                2.35


$                2.40






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


$      3,778,000


$      3,835,000

Adjustments:





      Amortization of intangible assets


(80,000)


(85,000)

      Stock compensation


(465,000)


(475,000)

      Restructuring charges


(8,000)


(20,000)

Target non-GAAP expenses


$      3,225,000


$      3,255,000
















Range for Fiscal Year



October 31, 2022



Low


High

Target GAAP earnings per share


$                5.39


$                5.65

Adjustments:





      Amortization of intangible assets


0.54


0.50

      Stock compensation


3.00


2.93

      Restructuring charges


0.13


0.05

      Tax adjustments


(1.33)


(1.33)

Target non-GAAP earnings per share


$                7.73


$                7.80






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


158,500


158,500






(1) Synopsys' first fiscal quarter and fiscal year will end on January 29, 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, 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; uncertainty in the growth of the semiconductor and electronics industries; macroeconomic conditions and uncertainty in the global economy; 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 measures in response to the COVID-19 pandemic or the imposition of additional tariffs or export restrictions; fluctuation of our operating results; 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, 2020 and in its latest Quarterly Report on Form 10-Q. The information provided herein is as of December 1, 2021. 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 Consolidated Statements of Operations(1)

(in thousands, except per share amounts)


















Three Months Ended 


Twelve Months Ended


October 31,


October 31,


2021


2020


2021


2020

Revenue:








  Time-based products

$                688,116


$                606,598


$              2,633,763


$              2,365,199

  Upfront products

274,265


244,155


861,063


735,572

  Maintenance and service

190,038


174,686


709,367


584,510

      Total revenue

1,152,419


1,025,439


4,204,193


3,685,281

Cost of revenue:








  Products

152,437


142,838


542,114


487,307

  Maintenance and service

68,992


69,991


271,202


254,931

  Amortization of intangible assets

13,297


11,720


48,461


52,452

     Total cost of revenue

234,726


224,549


861,777


794,690

Gross margin

917,693


800,890


3,342,416


2,890,591

Operating expenses:








  Research and development

413,864


339,566


1,504,823


1,279,022

  Sales and marketing

197,681


176,499


712,491


632,010

  General and administrative

88,960


79,796


322,988


284,530

  Amortization of intangible assets 

8,646


9,284


33,919


38,829

  Restructuring charges

18,254


(387)


33,405


36,059

     Total operating expenses

727,405


604,758


2,607,626


2,270,450

Operating income

190,288


196,132


734,790


620,141

Other income (expense), net

8,790


(4,095)


70,724


18,018

Income before income taxes

199,078


192,037


805,514


638,159

Provision (benefit) for income taxes

(2,059)


(4,989)


49,155


(25,288)

Net income

201,137


197,026


756,359


663,447

Net income (loss) attributed to non-controlling interest

(310)


(429)


(1,157)


(900)

Net income attributed to Synopsys

$                201,447


$                197,455


$                757,516


$                664,347









Net income per share:








  Basic

$                     1.32


$                     1.30


$                     4.96


$                     4.40

  Diluted

$                     1.28


$                     1.26


$                     4.81


$                     4.27









Shares used in computing per share amounts:








  Basic

152,932


152,349


152,698


151,135

  Diluted

157,243


156,825


157,340


155,706









(1) Synopsys' fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, respectively. For presentation purposes, we refer to the closest
calendar month end.

 

SYNOPSYS, INC.

Unaudited Consolidated Balance Sheets (1)

(in thousands, except par value amounts)












October 31, 2021


October 31, 2020

ASSETS:







Current assets:







  Cash and cash equivalents




$                     1,432,840


$                     1,235,653

  Short-term investments




147,949


-

          Total cash, cash equivalents & short-term investments


$                     1,580,789


$                     1,235,653

  Accounts receivable, net




568,501


780,709

  Inventories, net




229,023


192,333

  Income taxes receivable and prepaid taxes




32,411


32,355

  Prepaid and other current assets




397,617


308,167

          Total current assets




2,808,341


2,549,217

Property and equipment, net




472,398


483,818

Operating lease right-of-use assets, net




493,251


465,818

Goodwill




3,575,785


3,365,114

Intangible assets, net




279,132


254,322

Deferred income taxes




612,655


497,546

Other long-term assets




510,698


414,227

           Total assets




$                     8,752,260


$                     8,030,062








LIABILITIES AND STOCKHOLDERS' EQUITY:







Current liabilities:







  Accounts payable and accrued liabilities




$                        694,748


$                        623,664

  Operating lease liabilities, current




79,678


73,173

  Accrued income taxes




46,443


27,738

  Deferred revenue




1,517,623


1,388,263

  Short-term debt




74,992


27,084

           Total current liabilities




2,413,484


2,139,922

Operating lease liabilities, non-current




487,003


462,411

Long-term accrued income taxes




27,893


25,178

Long-term deferred revenue




136,303


104,850

Long-term debt




25,094


100,823

Other long-term liabilities




363,540


284,511

           Total liabilities




3,453,317


3,117,695

Stockholders' equity:







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

-


-

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



      152,618 shares outstanding, respectively




1,531


1,528

  Capital in excess of par value




1,576,363


1,653,166

  Retained earnings




4,549,713


3,795,397

  Treasury stock, at cost: 4,198 and 4,643 shares, respectively



(782,866)


(488,613)

  Accumulated other comprehensive income (loss) 




(49,604)


(54,074)

           Total Synopsys stockholders' equity




5,295,137


4,907,404

  Non-controlling interest




3,806


4,963

           Total stockholders' equity




5,298,943


4,912,367

           Total liabilities and stockholders' equity




$                     8,752,260


$                     8,030,062








(1) Synopsys' fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, respectively. For presentation purposes,
we refer to the closest calendar month end.

 

SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows (1)

(in thousands)






Twelve Months Ended


October 31,


2021


2020

CASH FLOWS FROM OPERATING ACTIVITIES:




Net income attributed to Synopsys

$             757,516


$             664,347

Adjustments to reconcile net income to net cash provided by




operating activities:




Amortization and depreciation

203,676


209,986

Reduction of operating lease right-of-use assets

86,645


82,895

Amortization of capitalized costs to obtain revenue contracts

64,698


61,185

Stock-based compensation

345,272


248,584

Allowance for doubtful accounts

18,515


20,875

Deferred income taxes

(128,583)


(111,526)

Other non-cash

14,702


3,425

Net changes in operating assets and liabilities, net of




acquired assets and liabilities:




Accounts receivable

201,706


(236,806)

Inventories

(48,046)


(55,024)

Prepaid and other current assets

(102,174)


(11,298)

Other long-term assets

(153,037)


(83,367)

Accounts payable and accrued liabilities

125,133


113,773

Operating lease liabilities

(82,581)


(78,578)

Income taxes

28,855


14,120

Deferred revenue

160,325


148,722

Net cash provided by operating activities

1,492,622


991,313





CASH FLOWS FROM INVESTING ACTIVITIES:




Proceeds from sales and maturities of short-term investments

12,850


-

Purchases of short-term investments

(161,732)


-

Proceeds from sales of long-term investments

-


2,151

Purchases of long-term investments

(7,591)


(2,762)

Purchases of property and equipment

(93,764)


(154,717)

Cash paid for acquisitions, net of cash acquired

(296,017)


(201,045)

Capitalization of software development costs

(1,976)


(4,045)

Other 

(800)


-

Net cash used in investing activities

(549,030)


(360,418)





CASH FLOWS FROM FINANCING ACTIVITIES:




Proceeds from credit facilities

-


276,489

Repayment of debt

(28,061)


(288,879)

Issuances of common stock

210,719


197,403

Payments for taxes related to net share settlement of equity awards

(138,950)


(82,225)

Purchase of equity forward contract

(35,000)


-

Purchases of treasury stock

(753,081)


(242,078)

Other

(4,375)


(1,316)

Net cash used in financing activities

(748,748)


(140,606)

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

2,369


17,154

Net change in cash, cash equivalents and restricted cash

197,213


507,443

Cash, cash equivalents and restricted cash, beginning of year

1,237,970


730,527

Cash, cash equivalents and restricted cash, end of period

$           1,435,183


$           1,237,970









(1) Synopsys' fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, respectively. For presentation purposes, we
refer to the closest calendar month end.

 

SYNOPSYS, INC.

Business Segment Reporting (1)

(in millions)










Three Months


Three Months


Twelve Months


Twelve Months


Ended


Ended


Ended


Ended


October 31, 2021 (3)


October 31, 2020 (3)


October 31, 2021 (3)


October 31, 2020 (3)

Revenue by segment








- Semiconductor & System Design

$                            1,042.4


$                               934.6


$                 3,810.4


$                 3,327.2

% of Total

90.5%


91.1%


90.6%


90.3%

- Software Integrity

$                               110.0


$                                 90.8


$                    393.8


$                    358.1

% of Total

9.5%


8.9%


9.4%


9.7%

Total segment revenue

$                            1,152.4


$                            1,025.4


$                 4,204.2


$                 3,685.3









Adjusted operating income by segment








- Semiconductor & System Design

$                               326.6


$                               293.5


$                 1,243.1


$                    990.8

- Software Integrity

$                                 13.3


$                                   6.2


$                      38.3


$                      40.8

Total adjusted segment operating income

$                               339.9


$                               299.7


$                 1,281.4


$                 1,031.6









Adjusted operating margin by segment








- Semiconductor & System Design

31.3%


31.4%


32.6%


29.8%

- Software Integrity

12.1%


6.8%


9.7%


11.4%

Total adjusted segment operating margin

29.5%


29.2%


30.5%


28.0%









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

(in millions)










Three Months


Three Months


Twelve Months


Twelve Months


Ended


Ended


Ended


Ended


October 31, 2021 (3)


October 31, 2020 (3)


October 31, 2021 (3)


October 31, 2020 (3)

GAAP total operating income – as reported

$                              190.3


$                              196.1


$                   734.8


$                   620.1

Other expenses managed at consolidated level








-Amortization of intangible assets

21.9


21.0


82.4


91.3

-Stock compensation

96.7


78.4


345.3


248.6

-Non-qualified deferred compensation plan

8.9


1.3


71.6


21.5

-Acquisition-related costs

3.8


3.3


15.4


14.1

-Restructuring

18.3


(0.4)


33.4


36.1

-Legal matters

-


-


(1.5)


-

Total adjusted segment operating income

$                              339.9


$                              299.7


$             1,281.4


$                 1,031.6









(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' fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, 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

SOURCE Synopsys, Inc.