Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2018
MOUNTAIN VIEW, Calif., Dec. 5, 2018 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today reported results for its fourth quarter and fiscal year 2018. Revenue for the fourth quarter was $795.1 million, compared to $696.6 million for the fourth quarter of fiscal 2017. Revenue for fiscal year 2018 was $3.121 billion, an increase of 14.5 percent from $2.725 billion in fiscal year 2017.
"Fiscal 2018 was another excellent year for Synopsys. We delivered double-digit revenue and earnings growth, with strength across all product groups and all geographies," said Aart de Geus, chairman and co-CEO of Synopsys. "Notwithstanding expectations of more modest semiconductor industry growth in 2019, design activity across the Silicon to Software spectrum continues unabated. Over the past five years we've made significant investments in developing next-generation EDA platforms, elevating the impact of our IP portfolio, and diversifying into an exciting new software security and quality market. As we look to our next phase of growth to $4 billion in revenue and beyond, we are raising our long-term financial objectives. Our objective is to drive annual double-digit non-GAAP earnings per share growth, through a mix of continued solid revenue growth and expansion of non-GAAP operating margins to the high 20s over time, with a goal of ~26% in 2021."
GAAP Results
On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal 2018 was $254.3 million, or $1.66 per share, compared to net loss of $120.1 million, or $(0.80) per share, for the fourth quarter of fiscal 2017. GAAP net income for fiscal year 2018 was $432.5 million, or $2.82 per share, compared to $136.6 million, or $0.88 per share, for fiscal year 2017.
Non-GAAP Results
On a non-GAAP basis, net income for the fourth quarter of fiscal 2018 was $119.6 million, or $0.78 per share, compared to non-GAAP net income of $106.5 million, or $0.69 per share, for the fourth quarter of fiscal 2017. Non-GAAP net income for fiscal year 2018 was $599.7 million, or $3.91 per share, compared to non-GAAP net income of $529.1 million, or $3.42 per share, for fiscal year 2017. Reconciliation between GAAP and non-GAAP results is provided later in this press release.
Financial Targets
Synopsys also provided its financial targets for the first quarter and full fiscal year 2019, which do not include any impact of future acquisition-related activities or costs. 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.
Synopsys will adopt new revenue recognition requirements under ASC 606, "Revenue from Contracts with Customers," in the first fiscal quarter of 2019. Using the modified retrospective method, the cumulative effect of initially applying the new recognition standards is recognized at the date of initial application. Revenue during the fiscal 2019 transition year is estimated to be approximately $40 million lower under ASC 606 than it would be under ASC 605, "Revenue Recognition," and the impact is expected to decline to roughly neutral within two years. Throughout the 2019 transition year, actual results will be presented under both ASC 606 and ASC 605 revenue recognition rules. Synopsys is providing both official targets under ASC 606 and comparable numbers under ASC 605 for ease of comparison to prior periods. Additional details are available in the financial supplement on Synopsys' corporate website.
First Quarter and Fiscal Year 2019 Financial Targets - ASC 606
(in millions except per share amounts)
Q1'19 Q1'19
FY'19
FY'19
Low High
Low
High
---
Revenue $775 $810 $3,290 $3,340
GAAP Expenses $677 $693 $2,787 $2,817
Non-GAAP Expenses $612 $622 $2,530 $2,550
Other Income or
Expense $(5) $(3) $(14) $(10)
Normalized Annual
Tax Rate (1) 16% 16% 16% 16%
Outstanding Shares
(fully diluted) 153 156 153 156
GAAP EPS $0.56 $0.64 $2.80 $2.90
Non-GAAP EPS $0.95 $1.00 $4.20 $4.27
Operating Cash Flow ~ $700 million
(1) Applied in non-GAAP net
income calculations
For reference, below are key comparative metrics under ASC 605 rules.
Q1'19
FY'19
Revenue
$790 million - $820 million
$3.34 billion - $3.37 billion
GAAP EPS
$0.60 - $0.67
$3.01 - $3.11
Non-GAAP
EPS
$0.99 - $1.03
$4.40 - $4.47
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 +1-800-475-6701 (+1-320-365-3844 for international callers), access code 456657, beginning at 4:00 p.m. Pacific Time today, until 11:59 p.m. Pacific Time on December 12, 2018. A webcast replay will also be available on the website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the first quarter of fiscal year 2019 in February 2019. 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 2019 earnings call in February 2019, 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 2019 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 2018 in its annual report on Form 10-K to be filed by January 2, 2019.
About Synopsys
Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software(TM) partner for innovative companies developing the electronic products and software applications we rely on every day. As the world's 15th largest software company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and is also growing its leadership in software security and quality solutions. Whether you're a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing applications that require the highest security and quality, Synopsys has the solutions needed to deliver innovative, high-quality, secure 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, (vi) the various income tax impacts prompted by the Tax Cut and Jobs Act of 2017 enacted on December 22, 2017 ("U.S. Tax Reform"), including the income tax related to transition tax, the tax rate change, and tax restructuring, (vii) the tax impact of repatriation, and (viii) 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 utilizes a normalized annual non-GAAP tax rate in the calculation of its non-GAAP 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. In projecting this rate, we evaluate our historical and projected mix of U.S. and international profit before tax, excluding the impact of stock-based compensation, the amortization of purchased intangibles and other non-GAAP adjustments described above. We also consider other factors including our current tax structure, our existing tax positions, and expected recurring tax incentives, such as the U.S. federal research and development tax credit. On an annual basis we re-evaluate this rate for significant events that may materially affect our projections and, as a result of U.S. Tax Reform, which lowered the U.S. statutory rate from 35% to 21%, we adjusted our normalized annual non-GAAP tax rate from 19% in fiscal years 2016 and 2017 to 13% for fiscal 2018. We expect our annual non-GAAP tax rate to be 16% in fiscal 2019 based upon our projected normalized non-GAAP annual tax rate through fiscal 2021. We will re-evaluate this rate on an annual basis, but further regulatory guidance regarding specific parts of Tax Reform could materially change our projections. Notwithstanding the foregoing, we excluded from the normalized annual non-GAAP tax rate in fiscal year 2017 the impact of $166 million tax expense related to the repatriation of offshore cash and, in fiscal year 2018, certain impacts of U.S. Tax Reform described above, as such events are unusual and infrequent.
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 6, 2018 for additional information about the measures Synopsys uses to evaluate its core business operations.
Reconciliation of Fourth Quarter and Fiscal Year 2018 Results
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income (loss) and earnings (loss) per share for the periods indicated below.
GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2018 Results
(unaudited and in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
October 31, October 31,
2018 2017 2018 2017
---
GAAP net income (loss) $254,328 $(120,082) $432,518 $136,563
Adjustments:
Amortization of intangible
assets 35,126 24,197 125,664 107,723
Stock compensation 37,492 28,597 140,032 108,294
Acquisition-related costs 1,557 3,627 21,179 9,880
Restructuring charges 11,028 5,548 12,945 36,586
Legal matters (30,400) 26,000 7,600
Income tax related to
transition tax (10,327) 63,107 -
Income tax related to tax
rate change 5,439 51,075 -
Income tax related to tax
restructuring (171,979) (171,979) -
Tax impact of repatriation 166,152 166,152
Tax adjustments (43,082) 28,872 (100,796) (43,721)
---
Non-GAAP net income $119,582 $106,511 $599,745 $529,077
Three Months Ended Twelve Months Ended
October 31, October 31,
2018 2017 2018 2017
---
GAAP net income (loss) per
share (1) $1.66 $(0.80) $2.82 $0.88
Adjustments:
Amortization of intangible
assets 0.23 0.16 0.82 0.70
Stock compensation 0.24 0.20 0.91 0.70
Acquisition-related costs 0.01 0.03 0.14 0.06
Restructuring charges 0.07 0.04 0.08 0.24
Legal matters (0.20) 0.17 0.05
Income tax related to
transition tax (0.07) 0.41 -
Income tax related to tax
rate change 0.04 0.33 -
Income tax related to tax
restructuring (1.12) (1.12) -
Tax impact of repatriation 1.07 1.07
Tax adjustments (0.28) 0.19 (0.65) (0.28)
Non-GAAP net income per
share(1) $0.78 $0.69 $3.91 $3.42
Shares used in computing per share amounts: (1)
Basic -GAAP net loss
n/a 150,448
n/a
n/a
Diluted - Non-GAAP
adjustments & net income 153,038 154,543 153,393 154,874
(1) We provide both basic
weighted-average outstanding
shares and fully diluted
weighted-average outstanding
shares in net income (loss) per
share calculation in the
reconciliation of earnings per
share amounts. If there is a
GAAP net loss in a reporting
period, we are required to use
basic weighted-average
outstanding shares to compute
net loss per share to prevent
anti-dilutive effect while we
use fully diluted weighted-
average outstanding shares to
compute per share non-GAAP
adjustments and net income.
Reconciliation of 2019 Targets - ASC 606
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets under ASC 606 for the periods indicated below.
GAAP to Non-GAAP Reconciliation of First Quarter Fiscal Year 2019 Targets (1)
(in thousands, except per share amounts)
ASC 606
Range for Three Months
Ending January 31, 2019 (2)
Low
High
---
Target GAAP expenses $677,000 $693,000
Adjustments:
Estimated impact of amortization of intangible assets (28,000) (31,000)
Estimated impact of stock compensation (37,000) (40,000)
Target non-GAAP expenses $612,000 $622,000
===
ASC 606
Range for Three Months
Ending January 31, 2019 (2)
Low
High
---
Target GAAP earnings per share $0.56 $0.64
Adjustments:
Estimated impact of amortization of intangible assets 0.20 0.18
Estimated impact of stock compensation 0.26 0.24
Estimated impact of tax adjustments (0.07) (0.06)
Target non-GAAP earnings per share $0.95 $1.00
===
Shares used in non-GAAP calculation (midpoint of target range) 154,500 154,500
GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2019 Targets (1)
(in thousands, except per share amounts)
ASC 606
Range for Fiscal Year
October 31, 2019 (2)
Low
High
---
Target GAAP expenses $2,787,000 $2,817,000
Adjustments:
Estimated impact of amortization of intangible assets (99,000) (104,000)
Estimated impact of stock compensation (158,000) (163,000)
Target non-GAAP expenses $2,530,000 $2,550,000
ASC 606
Range for Fiscal Year
October 31, 2019 (2)
Low
High
---
Target GAAP earnings per share $2.80 $2.90
Adjustments:
Estimated impact of amortization of intangible assets 0.79 0.77
Estimated impact of stock compensation 0.93 0.91
Estimated impact of tax adjustments (0.32) (0.31)
Target non-GAAP earnings per share $4.20 $4.27
===
Shares used in non-GAAP calculation (midpoint of target range) 154,500 154,500
(1) Synopsys will adopt new
revenue recognition guidance
ASC 606, Revenue from Contracts
with Customers, at the
beginning of fiscal 2019 under
the modified retrospective
method.
(2) Synopsys' first fiscal
quarter and fiscal year will
end on February 2, 2019 and
November 2, 2019, respectively.
For presentation purposes, we
refer to the closest calendar
month end.
Reconciliation of Certain 2019 Comparative Metrics - ASC 605
The following tables reconcile the specific items excluded from GAAP in the calculation of certain ASC 605-based non-GAAP comparative metrics for the periods indicated below.
GAAP to Non-GAAP Reconciliation of ASC 605 Comparative Metrics (1)
(in thousands, except per share amounts)
ASC 605
Range for Three Months
Ending January 31, 2019 (2)
Low
High
---
Target GAAP expenses $677,000 $693,000
Adjustments:
Estimated impact of amortization of intangible assets (28,000) (31,000)
Estimated impact of stock compensation (37,000) (40,000)
Target non-GAAP expenses $612,000 $622,000
===
ASC 605
Range for Three Months
Ending January 31, 2019 (2)
Low
High
---
Target GAAP earnings per share $0.60 $0.67
Adjustments:
Estimated impact of amortization of intangible assets 0.20 0.18
Estimated impact of stock compensation 0.26 0.24
Estimated impact of tax adjustments (0.07) (0.06)
Target non-GAAP earnings per share $0.99 $1.03
===
Shares used in non-GAAP calculation (midpoint of target range) 154,500 154,500
ASC 605
Range for Fiscal Year
October 31, 2019 (2)
Low
High
---
Target GAAP expenses $2,787,000 $2,817,000
Adjustments:
Estimated impact of amortization of intangible assets (99,000) (104,000)
Estimated impact of stock compensation (158,000) (163,000)
Target non-GAAP expenses $2,530,000 $2,550,000
ASC 605
Range for Fiscal Year
October 31, 2019 (2)
Low
High
---
Target GAAP earnings per share $3.01 $3.11
Adjustments:
Estimated impact of amortization of intangible assets 0.79 0.77
Estimated impact of stock compensation 0.93 0.91
Estimated impact of tax adjustments (0.33) (0.32)
Target non-GAAP earnings per share $4.40 $4.47
===
Shares used in non-GAAP calculation (midpoint of target range) 154,500 154,500
(1) Synopsys will adopt new
revenue recognition guidance
ASC 606, Revenue from Contracts
with Customers, at the
beginning of fiscal 2019 under
the modified retrospective
method. For comparison
purposes, we provide
comparative metrics under old
revenue guidance ASC 605,
Revenue Recognition.
(2) Synopsys' first fiscal
quarter and fiscal year will
end on February 2, 2019 and
November 2, 2019, respectively.
For presentation purposes, we
refer to the closest calendar
month end.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including, but not limited to, financial targets for the first quarter and full fiscal year 2019, their comparative metrics under ASC 605, and GAAP to non-GAAP reconciliations of such targets, as well as statements related to our long-term revenue, non-GAAP EPS and non-GAAP operating margin objectives, and the expected impact of ASC 606 on our results. These statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. Accordingly, we caution stockholders and prospective investors not to place undue reliance on these statements. Such risks, uncertainties and factors include, but are not limited to: uncertainty in the growth of the semiconductor and electronics industry; consolidation among our customers and our dependence on a relatively small number of large customers; uncertainty in the global economy; fluctuation of our operating results; increased variability in our revenue due to the adoption of ASC 606; our highly competitive industries and our ability to meet our customers' demand for innovative technology at lower costs; risks and compliance obligations relating to the global nature of our operations; cybersecurity threats or other security breaches; our ability to protect our proprietary technology; our ability to realize the potential financial or strategic benefits of acquisitions we complete; our ability to carry out our new product and technology initiatives; investments of more resources in research and development than anticipated; increased risks resulting from an increase in sales of our hardware products, including increased variability in upfront revenue; changes in accounting principles or standards; changes in our effective tax rate; liquidity requirements in our U.S. operations; claims that our products infringe on third-party intellectual property rights; litigation; product errors or defects; the ability to obtain licenses to third-party software and intellectual property on reasonable terms or at all; the ability to timely recruit and retain senior management and key employees; the inherent limitations on the effectiveness of our controls and compliance programs; the impairment of our investment portfolio by the deterioration of capital markets; the accuracy of certain assumptions, judgments and estimates that affect amounts reported in our financial statements; and the impact of catastrophic events. More 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, 2017 and its latest Quarterly Report on Form 10-Q. The information provided herein is as of December 5, 2018. 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,
---
2018 2017 2018 2017
---
Revenue:
Time-based products $605,561 $527,821 $2,303,317 $2,021,812
Upfront products 66,555 74,894 357,698 338,204
Maintenance and
service 122,966 93,929 460,043 364,864
---
Total revenue 795,082 696,644 3,121,058 2,724,880
Cost of revenue:
Products 113,400 108,221 448,430 413,203
Maintenance and
service 52,760 42,254 203,434 164,872
Amortization of
intangible assets 24,422 16,389 84,034 76,109
Total cost of
revenue 190,582 166,864 735,898 654,184
Gross margin 604,500 529,780 2,385,160 2,070,696
Operating expenses:
Research and
development 290,875 244,515 1,084,822 908,841
Sales and marketing 167,325 154,006 622,978 549,248
General and
administrative 63,043 26,190 262,560 196,844
Amortization of
intangible assets 10,704 7,808 41,630 31,614
Restructuring
charges 11,028 5,548 12,945 36,586
Total operating
expenses 542,975 438,067 2,024,935 1,723,133
Operating income 61,525 91,713 360,225 347,563
Other income
(expense), net (9,277) 8,213 3,318 35,535
---
Income before income
taxes 52,248 99,926 363,543 383,098
Provision (benefit)
for income taxes (202,080) 220,008 (68,975) 246,535
Net income $254,328 $(120,082) $432,518 $136,563
Net income per share:
Basic $1.71 $(0.80) $2.90 $0.91
Diluted $1.66 $(0.80) $2.82 $0.88
Shares used in computing per share amounts:
Basic 149,148 150,448 149,036 150,457
===
Diluted 153,038 150,448 153,393 154,874
===
(1) Synopsys' fourth quarter of
fiscal year 2018 and 2017 ended
on November 3, 2018 and October
28, 2017, 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, 2018
October 31, 2017
ASSETS:
Current assets:
Cash and cash equivalents $723,115 $1,048,356
Accounts receivable, net 554,217 451,144
Inventory 122,407 61,884
Income taxes receivable and prepaid
taxes 76,525 48,257
Prepaid and other current assets 67,533 72,952
Total current assets 1,543,797 1,682,593
Property and equipment, net 309,310 266,014
Goodwill 3,143,249 2,706,974
Intangible assets, net 360,404 253,843
Long-term prepaid taxes 138,312 20,157
Long-term deferred income taxes 404,166 243,989
Other long-term assets 246,736 222,844
Total assets $6,145,974 $5,396,414
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable and accrued liabilities $578,326 $499,846
Accrued income taxes 27,458 39,811
Deferred revenue 1,152,862 1,064,528
Short-term debt 343,769 9,924
Total current liabilities 2,102,415 1,614,109
Long-term accrued income taxes 50,590 33,239
Long-term deferred revenue 116,859 83,252
Long-term debt 125,535 134,063
Other long-term liabilities 265,560 252,027
Total liabilities 2,660,959 2,116,690
Stockholders' equity:
Preferred stock, $0.01 par value: 2,000
shares authorized; none outstanding
Common stock, $0.01 par value: 400,000
shares authorized; 149,265 and 150,445
shares outstanding, respectively 1,493 1,505
Capital in excess of par value 1,644,830 1,622,429
Retained earnings 2,543,688 2,143,873
Treasury stock, at cost: 7,996 and 6,817
shares, respectively (597,682) (426,208)
Accumulated other comprehensive income
(loss) (113,177) (65,979)
Total Synopsys stockholders' equity 3,479,152 3,275,620
Non-controlling interest 5,863 4,104
Total stockholders' equity 3,485,015 3,279,724
Total liabilities and stockholders'
equity $6,145,974 $5,396,414
(1) Synopsys' fiscal year 2018
ended on November 3, 2018, and
fiscal year 2017 ended on
October 28, 2017. For
presentation purposes, we refer
to the closest calendar month
end.
SYNOPSYS, INC.
Unaudited Consolidated Statements of Cash Flows (1)
(in thousands)
Year Ended October 31,
2018 2017
---
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $432,518 $136,563
Adjustments to reconcile net income to net cash provided by operating
activities:
Amortization and depreciation 209,207 189,442
Stock compensation 140,032 108,294
Allowance for doubtful accounts 3,368 2,149
(Gain) loss on sale of property and
investments (93) 8
Write-down of long-term investments 1,300
Deferred income taxes (210,310) 123,052
Net changes in operating assets and liabilities, net of acquired
assets and liabilities:
Accounts receivable (95,785) 2,296
Inventory (66,509) (20,137)
Prepaid and other current assets (12,835) (8,818)
Other long-term assets (25,892) (40,236)
Accounts payable and accrued liabilities 49,043 137,631
Income taxes (103,841) 19,665
Deferred revenue 105,329 (16,644)
---
Net cash provided by operating activities 424,232 634,565
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales and maturities of
short-term investments 12,449 295,633
Purchases of short-term investments (155,098)
Proceeds from sales of long-term
investments 494 839
Purchases of long-term investments (3,561)
Proceeds from sales of property and
equipment 1,662
Purchases of property and equipment (98,976) (70,328)
Cash paid for acquisitions and intangible
assets, net of cash acquired (652,643) (259,202)
Capitalization of software development
costs (2,950) (3,226)
Other 2,100
Net cash used in investing activities (743,525) (189,282)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facility 620,635 320,000
Repayment of debt (295,313) (380,625)
Issuances of common stock 123,829 126,337
Payments for taxes related to net share
settlement of equity awards (45,772) (36,730)
Purchase of equity forward contract (20,000)
Purchases of treasury stock (400,000) (380,000)
Other 1,759 (2,102)
Net cash provided by (used in) financing
activities 5,138 (373,120)
Effect of exchange rate changes on cash
and cash equivalents (11,086) (427)
Net change in cash and cash equivalents (325,241) 71,736
Cash and cash equivalents, beginning of
the year 1,048,356 976,620
Cash and cash equivalents, end of the
period $723,115 $1,048,356
===
(1) Synopsys' fiscal year 2018
ended on November 3, 2018, and
fiscal year 2017 ended on
October 28, 2017. 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
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SOURCE Synopsys, Inc.
