Company: SNPS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0000883241-25-000014
Chunk: 69

Company: SYNOPSYS INC
Filing Date: 2025-02-26
Form: 10-Q
Item: Item 1
Chunk 69
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Revenue$1,455.3 $1,511.0 Cost of revenue$270.0 $279.2 Operating expenses$933.5 $879.2 

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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 and development capacity. We are catalyzing the era of pervasive intelligence, powering innovation today that ignites the ingenuity of tomorrow. For more information about our business segments and product groups, see Part I, Item 1, Business in our Annual Report.

We have consistently grown our revenue since 2005, despite periods of global economic uncertainty. We achieved these results because of our solid execution, leading technologies and strong customer relationships, and because we generally recognize our revenue for software licenses over the arrangement period, which typically approximates three years. See