Company: SNPS
Filing Date: 2025-05-28
Form Type: 10-Q
Source: 0000883241-25-000017
Chunk: 90

Company: SYNOPSYS INC
Filing Date: 2025-05-28
Form: 10-Q
Item: Item 1
Chunk 90
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The increase in maintenance revenue 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 the volume of arrangements that include maintenance.

The decrease in professional service and other revenue for the three and six months ended April 30, 2025 compared to the same periods in fiscal 2024 was primarily due to the timing of IP customization projects.

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Cost of Revenue

 April 30,   20252024$ Change% Change (dollars in millions)Three months endedCost of products revenue$216.2 $198.7 $17.5 9 %Cost of maintenance and service revenue94.4 88.2 6.2 7 %Amortization of acquired intangible assets7.7 13.5 (5.8)(43)%Total$318.3 $300.4 $17.9 6 %Percentage of total revenue20 %21 %Six months endedCost of products revenue$385.0 $374.2 $10.8 3 %Cost of maintenance and service revenue187.0 178.7 8.3 5 %Amortization of acquired intangible assets16.3 26.7 (10.4)(39)%Total$588.3 $579.6 $8.7 2 %Percentage of total revenue19 %20 %

We divide cost of revenue into three categories: cost of products revenue, cost of maintenance and service revenue, and amortization of acquired intangible assets.

Cost of products revenue. Cost of products revenue includes costs related to products sold and software licensed, hardware-related costs including inventory provisions, allocated operating costs related to product support and distribution, and royalties paid to third-party vendors.

Cost of maintenance and service revenue. Cost of maintenance and service revenue includes costs to deliver our maintenance services, such as hotline and on-site support, production services and documentation of maintenance updates.

Amortization of acquired intangible assets. Amortization of acquired intangible assets, included in cost of revenue, consists of the amortization and impairment charges of core/developed technology and certain contract rights intangible assets related to acquisitions.

The increase in cost of revenue for the three months ended April 30, 2025 compared to the same period in fiscal 2024 was primarily due to increases