Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 2

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 4
Chunk 2
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 management resources and other factors.

We regularly review the status of each significant matter and assess its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount is estimable, we accrue a liability for the estimated loss. Legal proceedings are inherently uncertain and as circumstances change, it is possible that the amount of any accrued liability may increase, decrease or be eliminated. 

We are not aware of any legal proceedings that would materially impact our business, operating results or financial condition.

58

Item 1A.Risk Factors

Risk Factor Summary

Our business is subject to numerous risks and uncertainties. These risks include, but are not limited to, the following: 

Industry Risks

•Uncertainty in the macroeconomic environment, and its potential impact on the semiconductor and electronics industries, may negatively affect our business, operating results and financial condition.

•The growth of our business depends primarily on the semiconductor and electronics industries.

•We operate in highly competitive industries, and if we do not continue to meet our customers’ demand for innovative technology at lower costs, our products may not be competitive or may become obsolete.

•We are subject to governmental export and import requirements that could subject us to liability and restrict our ability to sell our products and services, which could impair our ability to compete in international markets.

•Consolidation among our customers and within the industries in which we operate, as well as our dependence on a relatively small number of large customers, may negatively impact our operating results.

Business Operations Risks

•The global nature of our operations exposes us to increased risks and compliance obligations.

•Our operating results may fluctuate in the future, which may adversely affect our stock price.

•We may not realize the potential financial or strategic benefits of the transactions we complete, including the Ansys Merger, or find suitable target businesses and technology to acquire.

•Cybersecurity threats or other security breaches could compromise sensitive information belonging to us or our customers and could harm our business and our reputation.

•If we fail to protect our proprietary technology, our business will be harmed.

•We may not be successful in our AI initiatives, which could adversely affect our business, operating results or financial condition.

•If we fail to timely recruit and/or retain senior management and key employees globally, our business may be harmed.

•We may pursue new product and technology initiatives or expand into adjacent markets, and if we fail to successfully carry out these initiatives, we could be adversely impacted.

•We may have to invest more resources in research and