Synopsys, Inc. has recently released its 10-K report, detailing its financial performance and strategic developments. The company provides electronic design automation software products used to design and test integrated circuits, operating in three segments: Design Automation, Design IP, and Software Integrity. In fiscal 2024, Synopsys reported $6.1 billion in revenue, a 15% increase from fiscal 2023, driven by revenue growth across all products and geographies.
The company's operating expenses and cost of revenue increased by 18% from the previous year, primarily due to investments in its workforce and research and development capabilities. Synopsys reported an operating income of $1.4 billion in fiscal 2024, a 6% increase from the previous year.
Synopsys has consistently grown its revenue since 2005, despite periods of global economic uncertainty. The company's growth strategy is based on maintaining and building on its leadership in Design Automation products, expanding its Design IP offerings, and continuing to expand its product portfolio and total addressable market.
In a significant development, Synopsys entered into an Agreement and Plan of Merger to acquire all outstanding shares of Ansys, a provider of engineering simulation and analysis software and services, in a cash-and-stock transaction valued at approximately $35.0 billion. The acquisition is anticipated to close in the first half of calendar year 2025, subject to customary closing conditions.
The company also completed the sale of its Software Integrity business to entities controlled by funds affiliated with Clearlake Capital Group, L.P. and Francisco Partners. Additionally, Synopsys is actively monitoring the impact of the current macroeconomic and geopolitical environment, including global economic uncertainty, supply chain disruptions, and geopolitical pressures, which could potentially affect its business, operations, and financial condition.
Furthermore, Synopsys is closely monitoring developments in export control regulations, including potential additional trade restrictions and regulatory or policy changes by the U.S. and foreign governments. The company anticipates growth across its geographies in fiscal 2025, despite expecting a challenging near-term growth environment, particularly in China, due to macroeconomic factors and global trade restrictions. Today the company's shares have moved 0.6% to a price of $497.2. If you want to know more, read the company's complete 10-K report here.
