Synopsys Inc. Files 2024 10-K Report

Ticker: SNPS · Form: 10-K · Filed: 2024-12-19T00:00:00.000Z

Sentiment: neutral

Topics: 10-K, annual-report, software

TL;DR

SNPS 2024 10-K is in! Full year financials and biz details out now.

AI Summary

Synopsys Inc. filed its 10-K for the fiscal year ending October 31, 2024, reporting on its financial performance and business operations. The company, headquartered in Sunnyvale, California, is a key player in the software industry, specifically in prepackaged software services. The filing details its financial results, business segments, and risk factors, providing a comprehensive overview for investors.

Why It Matters

This filing provides investors with a detailed look at Synopsys's financial health and strategic direction for the fiscal year 2024, crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: medium — The filing likely contains standard business risks for a software company, including competition, technological changes, and economic downturns, which warrant a medium risk assessment.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Synopsys Inc. as indicated in the filing?

Synopsys Inc. is primarily involved in Services - Prepackaged Software, with the SIC code 7372.

What is the reporting period for this 10-K filing?

The Conformed Period of Report is for the fiscal year ending October 31, 2024.

When was this 10-K filing submitted to the SEC?

The filing was submitted on December 19, 2024.

What is the company's headquarters location?

Synopsys Inc.'s business and mail address is 675 Almanor Ave, Sunnyvale, CA 94085.

What is the SEC file number for Synopsys Inc.?

The SEC file number for Synopsys Inc. is 000-19807.

Filing Stats: 4,324 words · 17 min read · ~14 pages · Grade level 16.5 · Accepted 2024-12-18 21:23:35

Key Financial Figures

Filing Documents

Business

Item 1. Business 3

Risk Factors

Item 1A. Risk Factors 14

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 31 Item 1C. Cybersecurity 31

Properties

Item 2. Properties 32

Legal Proceedings

Item 3. Legal Proceedings 33

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 33 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34

[Reserved]

Item 6. [Reserved] 35

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 36

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 52

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 54

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 105

Controls and Procedures

Item 9A. Controls and Procedures 105

Other Information

Item 9B. Other Information 106

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 106 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 107

Executive Compensation

Item 11. Executive Compensation 107

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 107

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 107

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 107 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 108 Item 16. Form 10-K Summary 111

SIGNATURES

SIGNATURES 112 i Table of Contents Cautionary Note Regarding Forward-Looking Statements This Annual Report on Form 10-K (this Form 10-K or this Annual Report) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and the Private Securities Litigation Reform Act of 1995. Any statements herein that are not statements of historical fact are forward-looking statements. Words such as "may," "will," "could," "would," "can," "should," "anticipate," "expect," "intend," "believe," "estimate," "project," "continue," "forecast," "likely," "potential," "seek," or the negatives of such terms and similar expressions are intended to identify forward-looking statements. This Form 10-K includes, among others, forward-looking statements regarding: business and market outlook, opportunities, strategies and technological trends, such as artificial intelligence; planned acquisitions and their expected impact, including our pending acquisition of ANSYS, Inc. (the Ansys Merger); the potential impact of the uncertain macroeconomic environment on our financial results, including, but not limited to, the effects of sustained global inflationary pressures and interest rates, potential economic slowdowns or recessions, supply chain disruptions and geopolitical pressures; the expected impact of U.S. and foreign government trade restrictions and regulatory changes, including export control restrictions and tariffs, on our financial results; customer license renewals and the expected realization and timing of recognition of our contracted but unsatisfied or partially unsatisfied performance obligations (backlog); demand and market expansion for our products and our customers' products; our ability to successfully compete in the markets in which we serve; our license mix, business model and variability in our revenue; t

Business

Item 1. Business Company and Segment Overview Synopsys, Inc. (Synopsys, we, our or us) delivers trusted and comprehensive silicon to systems design solutions, from electronic design automation (EDA), including system verification and validation solutions, to silicon intellectual property (IP). We partner closely with semiconductor and systems customers across a wide range of industries to maximize their engineering and research and development capacity. We are catalyzing the era of pervasive intelligence, powering innovation today that ignites the ingenuity of tomorrow. We are a global leader in supplying the mission-critical EDA software that engineers use to design and test integrated circuits (ICs), also known as chips or silicon, and we are pioneering artificial intelligence (AI) driven chip design across the full-stack EDA suite to improve efficiency and accelerate the design, verification testing and manufacturing of advanced digital and analog chips. We provide software and hardware used to validate the electronic systems that incorporate chips and the software that runs on them, including cloud-based digital design flow to boost chip-design development productivity. We also provide technical services and support to help our customers develop advanced chips and electronic systems. These products and services are part of our Design Automation segment. We also offer a broad and comprehensive portfolio of semiconductor IP solutions, which are pre-designed circuits that engineers use as components of larger chip designs to reduce integration risk and speed time to market. Our high quality, silicon-proven semiconductor IP includes logic libraries, embedded memories, analog IP, wired and wireless interface IP, security IP, embedded processors and subsystems. To accelerate IP integration and silicon bring-up, our IP Accelerated initiative provides architecture design expertise, hardening, and signal and power integrity analysis. These products and services are

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