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Apr 30, 2020

Synopsys Q2 2020 Earnings Report

Synopsys reported second quarter fiscal year 2020 results, with revenue and non-GAAP EPS exceeding targets.

Key Takeaways

Synopsys reported Q2 2020 revenue of $861.3 million and GAAP earnings per share of $0.71. The company reaffirmed its 2020 revenue and non-GAAP operating margin guidance and raised its non-GAAP earnings-per-share and operating cash flow targets.

Revenue for the second quarter was $861.3 million, compared to $836.2 million for the second quarter of fiscal 2019.

GAAP earnings per share was $0.71, compared to $0.77 per share for the second quarter of fiscal 2019.

Non-GAAP earnings per share was $1.22, compared to $1.16 per share for the second quarter of fiscal 2019.

Net income for the second quarter of fiscal 2020 was $109.9 million, compared to $118.2 million for the second quarter of fiscal 2019.

Total Revenue
$861M
Previous year: $836M
+3.0%
EPS
$1.22
Previous year: $1.16
+5.2%
Gross Profit
$677M
Previous year: $646M
+4.9%
Cash and Equivalents
$856M
Previous year: $631M
+35.7%
Free Cash Flow
$354M
Previous year: $313M
+13.1%
Total Assets
$7.32B
Previous year: $6.19B
+18.2%

Synopsys

Synopsys

Synopsys Revenue by Segment

Forward Guidance

Synopsys provided its consolidated financial targets for the third quarter and full fiscal year 2020, assuming that the current U. S. government “Entity List” restrictions remain in place for the rest of the fiscal year.

Positive Outlook

  • Q3 2020 Revenue: $875 million - $905 million
  • Q3 2020 GAAP EPS: $1.12 - $1.22
  • Q3 2020 Non-GAAP EPS: $1.33 - $1.38
  • FY 2020 Revenue: $3,600 million - $3,650 million
  • FY 2020 Non-GAAP EPS: $5.21 - $5.28

Challenges Ahead

  • Q3 2020 GAAP Expenses: $721 million - $737 million
  • Q3 2020 Non-GAAP Expenses: $640 million - $650 million
  • Q3 2020 Other Income (Expense): $(5) million - $(3) million
  • FY 2020 GAAP Expenses: $2,991 million - $3,031 million
  • FY 2020 Non-GAAP Expenses: $2,630 million - $2,660 million