Company: SNPS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0000883241-25-000014
Chunk: 221

Company: SYNOPSYS INC
Filing Date: 2025-02-26
Form: 10-Q
Item: Item 2
Chunk 221
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 non-cancellable FSA commitments from customers where actual product selection and quantities of specific products or services are to be determined by customers at a later date. We have elected to exclude future sales-based royalty payments from the remaining performance obligations. Approximately 42% of the backlog as of January 31, 2025, excluding non-cancellable FSA, is expected to be recognized as revenue over the next 12 months, with the remainder recognized thereafter. The majority of the remaining backlog is expected to be recognized in the following three years.

The amount and composition of unsatisfied performance obligations will fluctuate period to period. We do not believe the amount of unsatisfied performance obligations is indicative of future sales or revenue, or that such obligations at the end of any given period correlates with actual sales performance of a particular geography or particular products and services. For more information regarding our revenue during the three months ended January 31, 2025, including our contract balances as of such date, see Note 5. Revenue of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report.

The decrease in total revenues for the three months ended January 31, 2025 compared to the same period in fiscal 2024 was primarily due to the impact of the extra week in the first quarter of fiscal 2024 of approximately $63.2 million, as well as a decrease in the revenue of IP and hardware products of approximately $74.0 million driven by the timing of customer spending and strong IP revenue in the first quarter of fiscal 2024. 

For a discussion of revenue by geographic areas, see Note 17. Segment Disclosure of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report.

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Time-Based Products Revenue

 January 31,   20252024$ Change% Change (dollars in millions)Three months ended$828.2 $805.1 $23.1 3 %Percentage of total revenue57 %53 %

The increase in time-based products revenue for the three months ended January 31, 2025 compared to the same period in fiscal 2024 was primarily attributable to an increase in TSL license revenue from arrangements booked in prior periods, partially offset by the impact of the extra week in the first quarter of fiscal 2024.

Upfront Products Revenue

 January 31,   20252024$ Change% Change (dollars in millions)Three months ended$368.