Company: SNPS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0000883241-25-000014
Chunk: 157

Company: SYNOPSYS INC
Filing Date: 2025-02-26
Form: 10-Q
Item: Item 8
Chunk 157
---
 first quarter of fiscal 2025, our results reflect continued strong execution, with our revenue and operating income reflecting a challenging comparison against the strength of our results and the impact of the extra week in the first quarter of fiscal 2024, as well as the timing of customer spending for hardware and IP and lower revenue in China in the first quarter of fiscal 2025. The following table sets forth some of our key quarterly unaudited financial information: 

Three Months Ended January 31,20252024(in millions, except per share amounts)Revenue$1,455.3 $1,511.0 Cost of revenue$270.0 $279.2 Operating expenses$933.5 $879.2 

28

Operating income$251.8 $352.6 Net income from continuing operations attributed to Synopsys$295.7 $437.5 Net income from discontinued operations attributed to Synopsys$— $11.7 Diluted net income per share attributed to Synopsys:Continuing operations$1.89 $2.82 Discontinued operations$— $0.07 

Financial performance summary for the three months ended January 31, 2025 compared to the same period of fiscal 2024: 

•Revenues were $1.5 billion, a decrease of $55.7 million or 4%, 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. 

•Total cost of revenue and operating expenses was $1.2 billion, an increase of $45.1 million or 4%, primarily due to an increase of $34.4 million in legal, consulting and other professional fees mainly in connection with the Ansys Merger, and $27.1 million in employee-related costs resulting from headcount increases through organic growth and acquisitions.

•Operating income was $251.8 million, a decrease of $100.8 million or 29%.

Business Summary

Synopsys delivers trusted and comprehensive silicon to systems design solutions, from EDA, including system verification and validation solutions, to silicon IP. We partner closely with semiconductor and systems customers across a wide range of industries to maximize their engineering and research