Company: SNPS
Filing Date: 2025-05-28
Form Type: 10-Q
Source: 0000883241-25-000017
Chunk: 196

Company: SYNOPSYS INC
Filing Date: 2025-05-28
Form: 10-Q
Item: Item 8
Chunk 196
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 millions)Three months endedAdjusted operating income$458.8 $418.2 $40.6 10 %Adjusted operating margin41 %40 %1 %3 %Six months endedAdjusted operating income$863.4 $777.7 $85.7 11 %Adjusted operating margin40 %38 %2 %5 %

The increase in adjusted operating income for the three and six months ended April 30, 2025 compared to the same periods in fiscal 2024 was primarily due to an increase in revenue from arrangements booked in prior periods.

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Design IP Segment

 April 30,   20252024Change% Change (dollars in millions)Three months endedAdjusted operating income$150.5 $124.8 $25.7 21 %Adjusted operating margin31 %31 %— %— %Six months endedAdjusted operating income$277.1 $370.5 $(93.4)(25)%Adjusted operating margin30 %40 %(10)%(25)%

The increase in adjusted operating income for the three months ended April 30, 2025 compared to the same period in fiscal 2024 was primarily due to an increase in the revenue of IP products driven by timing of customer demands.

The decrease in adjusted operating income for the six months ended April 30, 2025 compared to the same period in fiscal 2024 was primarily due to an increase in employee-related costs due to headcount increases.

Income Taxes

Our effective tax rate decreased in the three and six months ended April 30, 2025, as compared to the same periods in fiscal 2024, primarily due to capital loss on the sale of our ownership in OpenLight in the first quarter of 2025.

See Note 19. Income Taxes of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for further discussion. 

Liquidity and Capital Resources

Our principal sources of liquidity are funds generated from our business operations and funds that may be drawn down under our revolving credit and term loan facilities. 

As of April 30, 2025, we held $14.3 billion in cash, cash equivalents and short-term investments. We also held $4.3 million in restricted cash primarily associated with deposits for office leases and employee loan programs. Our cash equivalents consisted primarily of taxable money market mutual funds, time deposits and highly liquid