Company: SNPS
Filing Date: 2025-02-26
Form Type: 10-Q
Source: 0000883241-25-000014
Chunk: 79

Company: SYNOPSYS INC
Filing Date: 2025-02-26
Form: 10-Q
Item: Item 1
Chunk 79
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$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$368.1 $442.4 $(74.3)(17)%Percentage of total revenue25 %29 %

Changes in upfront products revenue are generally attributable to normal fluctuations in the extent and timing of customer requirements, which can drive the amount of upfront orders and revenue in any particular period.

The decrease in upfront products revenue for the three months ended January 31, 2025 compared to the same period in fiscal 2024 was primarily due to a decrease in the sale of IP and hardware products, driven by the timing of customer spending.

Upfront products revenue as a percentage of total revenue will likely fluctuate based on the timing of IP and hardware product sales. Such fluctuations will continue to be impacted by the timing of shipments and FSA drawdowns due to customer requirements.

Maintenance and Service Revenue

 January 31,   20252024$ Change% Change (dollars in millions)Three months endedMaintenance revenue$117.2 $101.4 $15.8 16 %Professional service and other revenue141.8 162.1 (20.3)(13)%Total$259.0 $263.5 $(4.5)(2)%Percentage of total revenue18 %18 %

The increase in maintenance revenue for the three months ended January 31, 2025 compared to the same period 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 months ended January 31, 2025 compared to the same period in fiscal 2024 was primarily due to the timing of IP customization projects.

35

Cost of Revenue

 January 31,   20252024$ Change% Change (dollars in millions)Three months endedCost of products revenue$168.