Synopsys, Inc. has recently released its 10-Q report, providing a detailed look at the company's financial performance. Synopsys is a provider of electronic design automation software products used to design and test integrated circuits. The company operates in three segments: Design Automation, Design IP, and Software Integrity.
In the third quarter of fiscal 2024, Synopsys reported revenues of $1.5 billion, an increase of $171.3 million or 13% compared to the same period in fiscal 2023. The company's operating income for the quarter was $360.2 million, marking a 20% increase from the previous year. For the nine months ended July 31, 2024, Synopsys reported revenues of $4.5 billion, an increase of $640.9 million or 17% compared to the same period in fiscal 2023. The operating income for the nine-month period was $1.0 billion, marking a 23% increase from the previous year.
Synopsys has consistently grown its revenue since 2005, despite periods of global economic uncertainty. The company attributes its growth to solid execution, leading technologies, strong customer relationships, and its revenue recognition policy, which typically spans three years. The company's growth strategy is based on maintaining and building on its leadership in Design Automation products, expanding and proliferating its Design IP offerings, and continuing to expand its product portfolio and total addressable market.
In addition to its financial performance, Synopsys announced its pending acquisition of Ansys, Inc., a provider of broad engineering simulation and analysis software and services. The acquisition is valued at approximately $35.0 billion and is expected to close in the first half of calendar year 2025, subject to customary closing conditions.
Synopsys is actively monitoring the uncertain macroeconomic environment, including the effects of sustained global inflationary pressures and interest rates, potential economic slowdowns or recessions, supply chain disruptions, geopolitical pressures, and fluctuations in foreign exchange rates. The company expects growth across its geographies in fiscal 2024 but anticipates a challenging near-term growth environment in China due to macroeconomic factors and trade restrictions.
Synopsys continues to focus on maximizing research and development capability and productivity for its semiconductor and systems customers across a wide range of industries. The company aims to catalyze the era of pervasive intelligence to power innovation today and ignite the ingenuity of tomorrow. The market has reacted to these announcements by moving the company's shares -1.6% to a price of $539.39. Check out the company's full 10-Q submission here.
