<PAGE>
--------------------------------------------------------------------------------

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
                                -----------------
                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For quarterly period ended SEPTEMBER 30, 1997    Commission file number 0-19730
                           ------------------                           -------

                             VIEWLOGIC SYSTEMS, INC.
                             -----------------------
             (Exact Name of Registrant as Specified in Its Charter)

                  DELAWARE                                    04-2830649
                  --------                                    ----------
         (State or Other Jurisdiction of                    (IRS Employer
         Incorporation or Organization)                  Identification No.)

           293 BOSTON POST ROAD WEST
           MARLBORO, MASSACHUSETTS                      01752-4615
           -----------------------                      ----------          
           (Address of Principal Executive Offices)     (Zip Code)

       Registrant's Telephone Number, Including Area Code: (508) 480-0881


         --------------------------------------------------------------

         Indicate  by check  mark  whether  the  registrant:  (1) has  filed all
reports  required to be filed by Section 13 or 15(d) of the Securities  Exchange
Act of 1934 during the preceding 12 months (or for such shorter  period that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

         YES     X                     NO
            -----------                  -----------

         The number of shares outstanding of each of the issuer's classes of
common stock, as of:

           DATE                         CLASS                 OUTSTANDING SHARES
    September 30, 1997       Common Stock, $.01 par value         17,078,760

                                     1

<PAGE>

                             VIEWLOGIC SYSTEMS, INC.

                                    FORM 10-Q

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                        PAGE
                                                                        ----
<S>        <C>                                                           <C>
PART I     FINANCIAL INFORMATION                                      

ITEM 1.    FINANCIAL STATEMENTS.

           Condensed Consolidated Statements of Income for the            3
           Quarter and Nine Months Ended September 30, 1997 and 1996

           Condensed Consolidated Balance Sheets as of                    4
           September 30, 1997 and December 31, 1996

           Condensed Consolidated Statements of Cash Flows for            5
           the Nine Months Ended September 30, 1997 and 1996

           Notes to Condensed Consolidated Financial Statements           6

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL              9
           CONDITION AND RESULTS OF OPERATIONS.



PART II    OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS.                                            15

ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K.                             15

           SIGNATURES                                                    16
</TABLE>

                                   2

<PAGE>

PART I              FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.


                    VIEWLOGIC SYSTEMS, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                      (In thousands, except per share data)
                                   (unaudited)

<TABLE>
<CAPTION>
                                      Quarter Ended          Nine Months Ended
                                      September 30,             September 30,
                                     ---------------        -------------------
                                     1997      1996            1997      1996
                                     ----      ----            ----      ----

<S>                                 <C>      <C>             <C>       <C>    
Revenue:
       Software                    $24,103   $21,023         $66,581   $58,589
       Services and other           16,334    13,404          44,037    37,137
                                   --------  --------        --------  --------

            Total revenue           40,437    34,427         110,618    95,726
                                   --------  --------        --------  --------

Costs and expenses:
       Cost of software              2,713     2,943           8,339     8,065
       Cost of services and other    4,165     3,353          11,633     9,926
       Selling and marketing        16,116    14,406          45,938    42,360
       Research and development      8,308     7,081          24,234    20,071
       Purchased research and 
         development                                           5,500
       General and administrative    3,037     3,374           7,772     8,578
                                   --------  --------        --------  --------

         Total operating expenses   34,339    31,157         103,416    89,000
                                   --------  --------        --------  --------

Income from operations               6,098     3,270           7,202     6,726
                                   --------  --------        --------  --------

Other income:
       Interest income, net            662       598           1,791     1,437
       Other income, net                 6     1,212           2,721     1,225
                                   --------  --------        --------  --------
            Total other income         668     1,810           4,512     2,662
                                   --------  --------        --------  --------

Income before income taxes           6,766     5,080          11,714     9,388

Provision for income taxes           2,605     1,956           6,628     3,613
                                   --------  --------        --------  --------
                               
Net income                          $4,161    $3,124          $5,086    $5,775
                                   ========  ========        ========  ========


Income per common share:

Primary:
       Net income                    $0.23     $0.18            $0.29    $0.33
                                   ========  ========        ========  ========
       Weighted average number  
         of common and common
         equivalent shares
         outstanding                18,321    17,403           17,805   17,250
                                   ========  ========        =========  =======

Fully diluted:
       Net income                    $0.22     $0.18            $0.27    $0.33
                                   ========  ========        =========  =======
       Weighted average number
         of common and common 
         equivalent shares 
         outstanding                19,060    17,403           18,841   17,259
                                   ========  ========        =========  =======
</TABLE>

     See Notes to Condensed Consolidated Financial Statements.

                                        3
<PAGE>

                    VIEWLOGIC SYSTEMS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (In thousands, except share data)
                                   (unaudited)
<TABLE>
<CAPTION>
                                                September 30,      December 31,
                                                    1997               1996
                                              ----------------   ---------------
<S>                                               <C>                <C>    
Assets:
  Current assets:
     Cash and cash equivalents                     $48,136            $41,297
     Marketable securities                          23,924             20,482
     Accounts receivable (less allowance
       for doubtful accounts, $1,761 in
       1997 and $1,503 in 1996)                     31,081             32,507
     Prepaid expenses and other                      7,501              6,779
     Deferred income taxes                             302                302
                                               ------------       ------------
        Total current assets                       110,944            101,367
                                               ------------       ------------

  Marketable securities - non-current                6,226              5,565
                                               ------------       ------------
  Property and equipment:
     Equipment                                      29,677             25,360
     Furniture and fixtures                          4,035              3,625
                                               ------------       ------------
        Total                                       33,712             28,985
     Less accumulated depreciation                  18,336             15,236
                                               ------------       ------------
        Property and equipment - net                15,376             13,749
                                               ------------       ------------
  Other assets:
     Capitalized software costs - net                6,172              5,724
     Purchased technology - net                      2,857              2,261
     Goodwill - net                                  2,500              1,582
     Deposits and other                              1,422                961
                                               ------------       ------------
        Total other assets                          12,951             10,528
                                               ------------       ------------
        Total                                     $145,497           $131,209
                                               ============       ============

Liabilities and stockholders' equity:

  Current liabilities:
     Current portion of capital lease 
       obligations                                     $56                $32
     Accounts payable                                4,539              3,232
     Accrued compensation                            9,271             10,684
     Accrued expenses                                9,189              8,551
     Deferred revenue                               25,132             20,323
     Deferred income taxes                                              1,304
                                               ------------       ------------
        Total current liabilities                   48,187             44,126
                                               ------------       ------------

Deferred income taxes                                4,153              4,609
Capital lease obligations                              195

Stockholders' equity:
     Common stock, $.01 par value                      181                174
     Additional paid-in capital                     80,651             73,944
     Retained earnings                              23,500             18,414
     Unrealized holding gains, net of tax               46              1,470
     Cumulative translation adjustment                (848)              (960)
                                               ------------       ------------
                                                   103,530             93,042
      Less: Treasury stock, at cost                (10,568)           (10,568)
                                               ------------       ------------
        Total stockholders' equity                  92,962             82,474
                                               ------------       ------------
        Total                                     $145,497           $131,209
                                               ============       ============
</TABLE>
                                         
        See Notes to Condensed Consolidated Financial Statements.

                                        4
<PAGE>

                    VIEWLOGIC SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                   (unaudited)
<TABLE>
<CAPTION>
                                                 Nine Months Ended September 30,
                                                 -------------------------------
                                                       1997             1996
                                                       ----             ----
<S>                                                  <C>              <C>    
Cash flows from operating activities:
Net income                                            $5,086           $5,775
Adjustments to reconcile net income to net
  cash provided by operating activities:
     Purchased research and development                5,500
     Depreciation                                      4,059            3,812
     Gain on sale of investment                       (2,431)          (1,173)
     Amortization of capitalized software 
         and purchased technology                      2,818            2,210
     Amortization of goodwill                            321              175
     Change in assets and liabilities:
       Accounts receivable                             1,426            1,035
       Prepaid expense and other                        (678)          (3,184)
       Accounts payable                                1,305              255
       Accrued compensation                           (1,469)           1,597
       Accrued expenses                                  491            3,285
       Deferred revenue                                4,209            2,539
                                                -------------     ------------
          Net cash provided by operating
             activities                               20,637           16,326
                                                -------------     ------------
Cash flows from investing activities:
     Purchase of marketable securities               (26,720)         (17,674)
     Proceeds from sale of marketable
        securities                                    22,768           17,090
     Expenditures for property and equipment          (5,266)          (5,336)
     Capitalized software costs                       (2,527)          (2,075)
     Purchased technology                               (335)
     Decrease (increase) in deposits and other          (458)              83
     Purchase of Eagle Design Automation, Inc.,
        net of cash                                   (6,573)
     Purchase of Silerity, Inc., net of cash            (306)
                                                -------------     ------------
          Net cash used in investing activities      (19,417)          (7,912)
                                                -------------     ------------
Cash flows from financing activities:
     Proceeds from issuance of common stock            1,970            1,533
     Proceeds from exercise of stock options           4,744            1,793
     Repurchase of common stock                                        (3,466)
     Principal payment of capital lease 
        obligations                                      (77)             (70)
     Repayment of notes to former
        Silerity shareholders                                          (2,805)
     Repayment of foreign tax grant                   (1,304)
                                                -------------     ------------
          Net cash provided by (used in)
             financing activities                      5,333           (3,015)
                                                -------------     ------------
Effect of exchange rate changes on cash                  286              151
                                                -------------     ------------
Net increase in cash and cash equivalents              6,839            5,550

Cash and cash equivalents, beginning of
     the period                                       41,297           34,387
                                                -------------     ------------
Cash and cash equivalents, end of the period         $48,136          $39,937
                                                =============     ============
</TABLE>

      See Notes to Condensed Consolidated Financial Statements.

                                        5
<PAGE>

                             VIEWLOGIC SYSTEMS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                   (UNAUDITED)

1.       Basis of Presentation
         ---------------------
         
         The accompanying  unaudited condensed consolidated financial statements
         have been prepared by Viewlogic Systems,  Inc. (the "Company") pursuant
         to the rules and regulations of the Securities and Exchange  Commission
         regarding interim financial reporting. Accordingly, they do not include
         all of the  information  and footnotes  required by generally  accepted
         accounting  principles  for complete  annual  financial  statements and
         should be read in  conjunction  with the audited  financial  statements
         included in the Company's Annual Report on Form 10-K for the year ended
         December 31, 1996.

         In the  opinion of  management  the  accompanying  unaudited  condensed
         consolidated  financial statements have been prepared on the same basis
         as the  audited  financial  statements  and  include  all  adjustments,
         consisting only of normal recurring  adjustments,  necessary for a fair
         presentation of the interim periods  presented.  The operating  results
         for the interim periods presented are not necessarily indicative of the
         results expected for the full fiscal year.

2.       Income per Common Share
         -----------------------

         Income per common share is computed  using the weighted  average number
         of common and common equivalent shares  outstanding  during each period
         presented.

         In February 1997,  the Financial  Accounting  Standards  Board ("FASB")
         issued SFAS No. 128,  "Earnings per Share," which will become effective
         for the Company for annual and interim  reporting  periods ending after
         December 15, 1997.  SFAS No. 128 replaces the  presentation  of primary
         earnings  per share with a basic  earnings  per share  (which  excludes
         dilution) and a diluted  earnings per share. Had SFAS No. 128 been used
         for the periods  presented,  basic and diluted earnings per share would
         have  been  $0.25  and  $0.23,  respectively,  for  the  quarter  ended
         September 30, 1997 and $0.19 and $0.18,  respectively,  for the quarter
         ended  September 30, 1996.  Basic and diluted  earnings per share would
         have been  $0.31 and $0.29,  respectively,  for the nine  months  ended
         September  30,  1997 and $0.35 and  $0.33,  respectively,  for the nine
         months ended September 30, 1996.

3.       New Accounting Pronouncements
         -----------------------------

         Comprehensive Income

         In June  1997,  FASB  issued  SFAS No.  130,  "Reporting  Comprehensive
         Income,"  which  establishes  standards  for  reporting  and display of
         comprehensive income and its components (revenues,  expenses, gains and
         losses) in a full set of general-purpose financial statements. SFAS No.
         130 is effective for fiscal years  beginning  after  December 15, 1997.
         The Company has not determined  the effects,  if any, that SFAS No. 130
         will have on its consolidated financial statements.

         Segments of an Enterprise

         In June 1997, FASB issued SFAS No. 131,  "Disclosures about Segments of
         an Enterprise and Related Information," which establishes standards for
         the  way  that  public  companies  report  selected  information  about
         operating segments.  SFAS No. 131 is effective for financial 

                                        6

<PAGE>

         statements for periods  beginning  after  December 15,  1997.  The 
         Company has not determined  the  effects,  if any,  that SFAS No.  131
         will have on the disclosures in its consolidated financial statements.

4.       Eagle Design Automation, Inc. Acquisition
         -----------------------------------------

         On February  19,  1997,  the Company  purchased  the 80% of the capital
         stock of Eagle Design  Automation,  Inc. ("Eagle") not previously owned
         for $5,788 in cash and assumption of net liabilities.  This acquisition
         was accounted for as a purchase and the total purchase price of $6,597,
         including  acquisition  expenses,  was allocated to the assets acquired
         and the liabilities  assumed based on their  estimated fair values.  Of
         the total,  $5,500 was allocated to purchased  research and development
         and was charged to expense as of the acquisition  date. This allocation
         resulted in goodwill of $907 which is being  amortized over seven years
         and purchased  software of $1,000 to be amortized  over five years.  In
         addition,  the Company is required  to pay the former  shareholders  of
         Eagle  additional  payments based on the sale by the Company of Eagle's
         products  over the three year  period  beginning  after  certain  sales
         targets have been met.  There are no minimum or maximum  payments based
         on the sale of Eagle's products,  however, if current sales projections
         are met, such additional payments could total approximately $5,500.

         The unaudited  consolidated  results of operations on a pro forma basis
         as though the  acquisition  had  occurred  as of the  beginning  of the
         periods presented are as follows:
<TABLE>
<CAPTION>
                                                 Nine months ended September 30,
                                                 -------------------------------
                                                       1997              1996
                                                       ----              ----
         <S>                                         <C>               <C>    
         Revenue                                     $110,618          $95,726
         Net income                                     4,673            4,345

         Net income per share - primary              $   0.26          $  0.25
         Net income per share - fully diluted        $   0.25          $  0.25
</TABLE>

         The pro forma  financial  information  is presented  for  informational
         purposes only and is not indicative of the operating results that would
         have occurred had the Eagle acquisition been consummated as of the
         above  dates, nor are they necessarily indicative of future operating 
         results.

5.       Legal Proceedings
         -----------------

         On or about April 25, 1997,  Deutsch  Technology  Research  ("Deutsch")
         filed a Demand for Arbitration  under the Commercial  Arbitration Rules
         of the American  Arbitration  Association  pursuant to the terms of the
         OEM Agreement  dated June 16, 1993 between Deutsch and the Company (the
         "OEM Agreement"). Under the terms of the OEM Agreement, the arbitration
         must be held in San Jose,  California before a single  arbitrator.  The
         arbitration  is scheduled to begin on November 3, 1997.  The Demand for
         Arbitration  alleges  infringement  of copyright,  misappropriation  of
         trade secrets and failure to pay royalties and other sums under the OEM
         Agreement.  Recently,  Deutsch's accountants,  hired in connection with
         this dispute,  submitted a report  stating that,  based on  assumptions
         provided  by  Deutsch,  royalties  in excess of  $53,000  are due.  The
         Company denies these allegations, disputes the assumptions on which the
         accountants'  report  is based  and  intends  to  defend  these  claims
         vigorously.  The  Company  has  also  asserted  counterclaims  in  this
         arbitration seeking damages in excess of $500.  The ultimate outcome of
         this matter is not determinable, and an adverse outcome could have a 
         material adverse effect on the Company's financial position and results
         of operations.

                                        7

<PAGE>

6.       Proposed Merger with Synopsys, Inc.
         -----------------------------------

         On October 14, 1997, the Company entered into the Agreement and Plan of
         Merger by and among the Company,  Synopsys,  Inc. ("Synopsys") and Post
         Acquisition  Corp.  ("Sub"),  whereby  Sub will be merged with and into
         Viewlogic  (the  "Merger")  and,  among other  things,  Viewlogic  will
         survive the Merger and become a wholly-owned subsidiary of Synopsys. In
         connection  with the Merger,  (1) each share of Viewlogic  Common Stock
         issued and  outstanding  at the  effective  time of the Merger  will be
         converted  into  0.6521 (the  "Exchange  Ratio") of a share of Synopsys
         Common Stock and (2) each stock option to purchase  shares of Viewlogic
         Common Stock will be assumed by Synopsys and  converted  into an option
         to  purchase  Synopsys  Common  Stock  based upon the  Exchange  Ratio.
         Consummation  of the  Merger is  subject  to  customary  conditions  to
         closing including the approval of the stockholders of Viewlogic and the
         stockholders of Synopsys and certain regulatory  approvals.  The Merger
         is  intended  to be treated as a pooling of  interests  for  accounting
         purposes  and is intended to qualify as a tax-free  reorganization  for
         federal income tax purposes.

7.       Radiant Design Tools, Inc. Acquisition
         --------------------------------------

         On October 22, 1997, the Company  purchased all of the capital stock of
         Radiant Design Tools,  Inc.  ("Radiant").  Pursuant to the terms of the
         purchase,  the Company paid the sole shareholder of Radiant $1,000. The
         Company is also required to pay that  shareholder an additional $500 on
         or before  April 22,  1998,  and up to an  additional  $3,500  based on
         future sales of certain of the Company's products.

                                        8
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS.

         This discussion may contain certain  forward looking  statements  which
involve risks and  uncertainties,  and the Company's  actual  results may differ
materially  from those  discussed.  Some of the factors  that might cause such a
difference are discussed below. (See "Factors That May Affect Future Results and
Financial Condition.")

PROPOSED MERGER WITH SYNOPSYS, INC.

         On October 14, 1997, the Company entered into the Agreement and Plan of
Merger  by  and  among  the  Company,   Synopsys,  Inc.  ("Synopsys")  and  Post
Acquisition  Corp.  ("Sub"),  whereby Sub will be merged with and into Viewlogic
(the "Merger")  and,  among other things,  Viewlogic will survive the Merger and
become a wholly-owned subsidiary of Synopsys. In connection with the Merger, (1)
each share of Viewlogic  Common Stock issued and  outstanding  at the  effective
time of the Merger will be  converted  into 0.6521 (the  "Exchange  Ratio") of a
share of Synopsys  Common Stock and (2) each stock option to purchase  shares of
Viewlogic  Common Stock will be assumed by Synopsys and converted into an option
to purchase Synopsys Common Stock based upon the Exchange Ratio. Consummation of
the Merger is subject to customary  conditions to closing including the approval
of the  stockholders  of Viewlogic and the  stockholders of Synopsys and certain
regulatory  approvals.  The  Merger is  intended  to be  treated as a pooling of
interests  for  accounting  purposes  and is  intended  to qualify as a tax-free
reorganization for federal income tax purposes.

RESULTS OF OPERATIONS

         The  Company's  revenue  and net  income  increased  17.5% and 33.2% to
$40,437,000  and $4,161,000,  respectively,  for the quarter ended September 30,
1997 as compared to the quarter ended  September 30, 1996. Net income  increased
73.2% from the third quarter of 1996 to the same period in 1997 after  excluding
$1,173,000  pre-tax gains from the sale of an investment in the third quarter of
1996.  Revenue increased 15.6% to $110,618,000 and net income decreased 11.9% to
$5,086,000 for the nine months ended September 30, 1997, both as compared to the
same  period of the  previous  year.  Excluding  the  non-recurring  charge  for
in-process  research and  development  of $5,500,000  associated  with the first
quarter  1997  acquisition  of  Eagle  Design  Automation,  Inc.  ("Eagle")  and
$2,431,000 pre-tax gains from the sales of an investment in 1997, net income for
the nine months ended  September  30, 1997 was  $9,091,000,  or $0.51 per share.
This  represents a 79.9%  increase over the  $5,054,000  net income in the first
nine months of 1996,  excluding  $1,173,000  pre-tax  gains from the sales of an
investment  in 1996.  Operating  income  before  the  non-recurring  item,  as a
percentage  of  revenue,  was 15.1% and 11.5%  for the  quarter  and nine  month
periods  ended  September  30,  1997,  as compared to 9.5% and 7.0% for the same
periods in 1996.  These increases in operating income as a percentage of revenue
were mainly due to the larger  increase in revenues over  operating  expenses in
the third quarter and first nine months of 1997.

         On February 19, 1997, the Company  acquired Eagle.  The acquisition has
been accounted for as a purchase,  and accordingly,  the condensed  consolidated
financial  statements  and  management's  discussion  and  analysis  reflect the
combined operations only after the February 19, 1997 closing date.

                                        9
<PAGE>

         The  following  table  sets  forth,  for  the  periods  indicated,  the
percentage of revenue of certain items in the Company's  Condensed  Consolidated
Statements of Income.

<TABLE>
<CAPTION>
                                    Quarter Ended         Nine Months Ended 
                                    September 30,           September 30,
                                    -------------         -----------------   
                                    1997      1996          1997      1996
                                    ----      ----          ----      ----
<S>                                <C>       <C>            <C>      <C>   
Revenue:                           100.0%    100.0%         100.0%   100.0%
  Software                          59.6      61.1           60.2     61.2
  Services and other                40.4      38.9           39.8     38.8

Costs and expenses:
  Cost of software                   6.7       8.5            7.6      8.4
  Cost of services and other        10.3       9.7           10.5     10.4
  Selling and marketing             39.9      41.9           41.5     44.2
  Research and development          20.5      20.6           21.9     21.0
  Purchased research and
    development                                               5.0
  General and administrative         7.5       9.8            7.0      9.0
                                   -----     -----          -----    -----
    Total operating expenses        84.9      90.5           93.5     93.0
                                   -----     -----          -----    -----

Income from operations              15.1       9.5            6.5      7.0
Total other income                   1.6       5.3            4.1      2.8
                                   -----     -----          -----    -----
Income  before income taxes         16.7      14.8           10.6      9.8
Provision for income taxes           6.4       5.7            6.0      3.8
                                   -----     -----          -----    -----
Net income                          10.3%      9.1%           4.6%     6.0%
                                   =====     =====          =====    =====
</TABLE>

Revenue
-------

         The Company's total revenue increased 17.5% to $40,437,000 in the third
quarter of 1997 from  $34,427,000  in the third  quarter  of 1996 and  increased
15.6% to $110,618,000  in the first nine months of 1997 from  $95,726,000 in the
first nine months of 1996.  The increase in total revenue was primarily due to a
54.2%  year-over-year  increase in revenues from the Company's ASIC verification
solutions,  including the Chronologic VCS(TM) simulator,  Quad Motive(TM) timing
analysis  tool  and  Sunrise  TestGen(TM)  tool  suite.  The ASIC  product  line
accounted for 60.0% of the  Company's  total third  quarter 1997  revenues.  The
growth in ASIC  product  sales was  partially  offset by a 14.8%  decline in the
Company's  sales  of its  Systems  product  line.  The  Systems  segment  of the
Electronic  Design  Automation  ("EDA") market is the slower growing  segment of
that market.

         Software  product revenue  increased 14.7% and 13.6% to $24,103,000 and
$66,581,000  for the third quarter and first nine months of 1997,  respectively,
up from  $21,023,000 and $58,589,000 for the same periods in 1996. The Company's
percentage of total revenue  attributable to software product licenses was 59.6%
and 60.2%,  respectively,  for the three months and nine months ended  September
30, 1997  compared  to 61.1% and 61.2%,  respectively,  for the same  periods in
1996.  Services and other revenue  increased  21.9% to $16,334,000  and 18.6% to
$44,037,000  for the third quarter and first nine months of 1997,  respectively.
These  increases  were due to the increase in maintenance  and customer  support
revenue  from a  growing  installed  base of  products,  as  well  as  increased
consulting and customization services and training programs.

         International  revenue, as a percentage of total revenue,  increased to
44.6%  and  37.7%  for  the  third  quarter  and  first  nine  months  of  1997,
respectively,  from 37.5% and 34.9%, respectively, for the same periods in 1996.
The increase for the quarter was due primarily to a significant  sale to a major
customer  in Canada in the third  quarter  of 1997.  The  increase  for the nine
months ended  September  30,
                                       10

<PAGE>

1997 was  primarily  due to strong sales in Europe, where revenues increased 
35.6% from the first nine months of 1996.

Cost of Revenue
---------------

         Cost  of  software  revenue   decreased  7.8%  and  increased  3.4%  to
$2,713,000 and  $8,339,000 for the three months and nine months ended  September
30, 1997,  respectively,  as compared to the same periods of the prior year. The
decrease in the third quarter was due primarily to decreased  royalty costs. The
increase for the nine month period was primarily  due to increased  amortization
of  capitalized  software  and  purchased  research and  development,  offset by
decreased  royalty costs.  Cost of software as a percentage of software  revenue
decreased  from 14.0% and 13.8% in the third  quarter  and first nine  months of
1996, respectively, to 11.3 % and 12.5% for the same periods in 1997.

         Cost of services and other revenue  increased  24.2% to $4,165,000  and
17.2% to  $11,633,000  in the quarter and nine months ended  September 30, 1997,
respectively,  as compared to the same periods of the prior year.  The increases
in both periods were due to higher  personnel-related costs incurred in order to
grow the Company's consulting business,  partially offset by the absence in 1997
of subcontracting  costs associated with a major outsourcing  contract.  Cost of
services and other  revenue as a percentage  of services and other  revenue were
25.5% and 26.4% in the third  quarter  and first nine months of 1997 as compared
to 25.0% and 26.7% for the same periods in 1996.

Selling and Marketing Expenses
------------------------------

         Selling and marketing  expenses increased 11.9% and 8.4% to $16,116,000
and  $45,938,000  for the three month and nine month periods ended September 30,
1997, respectively,  up from $14,406,000 and $42,360,000 for the same periods of
1996.  The  increases in 1997 were  primarily  due to an increase in  commission
expense on higher revenues and the result of higher  personnel-related costs due
to an increase in the number of worldwide sales and marketing personnel from 271
in September 1996 to 298 in September 1997. Selling and marketing expenses, as a
percentage of revenue,  decreased  from 41.9% and 44.2% in the third quarter and
first nine months of 1996 to 39.9% and 41.5% for the same  periods of 1997.  The
reduction of selling and marketing expenses, as a percentage of revenue, results
from increasing productivity of the Company's sales force.

Research and Development Expenses
---------------------------------

         Research and development  costs increased 17.3% to $8,308,000 and 20.7%
to $24,234,000  for the third quarter and nine months ended  September 30, 1997,
respectively,  as compared to the same periods of the prior year.  The increases
in research and development  expenses for both periods  primarily reflect higher
personnel-related  costs  associated  with the  development  of new products and
enhancement of existing products,  including the establishment of a research and
development  facility in India in the fourth  quarter of 1996.  The increase for
the nine months ended  September 30, 1997 was also due the inclusion of research
and development  costs associated with the Eagle acquisition which closed during
the first quarter of 1997. Research and development  expenses as a percentage of
revenues  were 20.5% and 21.9% in the third  quarter  and first  nine  months of
1997, respectively, compared to 20.6% and 21.0% for the same period of 1996.

         The Company  capitalized  software  development  costs of $859,000  and
$2,527,000 for the third quarter and first nine months of 1997, respectively, as
compared to $685,000 and  $2,075,000  for the  corresponding  periods of 1996 in
accordance with Statement of Financial  Accounting Standards No. 86, "Accounting
for the Costs of Computer Software to be Sold,  Leased, or Otherwise  Marketed."
The amounts  capitalized  represent 9.4% of total product  development costs for
both  the  three  month  and  nine  month  periods  ended  September  30,  1997,
respectively,  as  compared  to 8.8%  and 9.4 % for the  same  periods  of 1996.
Capitalized  software costs are amortized over the estimated life of the product
(in most cases four  years.)  The  amortization  of software  development  costs
included in cost of software revenue

                                       11

<PAGE>

was $702,000 and  $2,079,000 for the third quarter and first nine months of 
1997, respectively, compared to $578,000 and $1,558,000 for the same periods of
1996.

Purchased Research and Development Expenses
-------------------------------------------

         The Company recorded a non-recurring expense of $5,500,000 in the first
quarter of 1997 for purchased research and development associated with the Eagle
acquisition.

General and Administrative Expenses
-----------------------------------

         General  and  administrative  expenses  decreased  10.0%  and  9.4%  to
$3,037,000 and $7,772,000 for the third quarter and nine months ended  September
30, 1997,  respectively,  as compared to $3,374,000  and $8,578,000 for the same
periods of the previous  year. The decrease in both periods was primarily due to
the  elimination of the Company's  share of losses of Eagle which was recognized
under the equity method of accounting  during 1996.  General and  administrative
expenses as a percentage  of revenue  decreased  from 9.8% and 9.0% in the third
quarter  and first nine  months of 1996,  respectively,  to 7.5% and 7.0% in the
same periods of 1997.

Income from Operations
----------------------

         Income from  operations  increased by 86.5% and 7.1% to $6,098,000  and
$7,202,000  for the three  months and nine  months  ended  September  30,  1997,
respectively,  as compared to the corresponding  periods in 1996.  Excluding the
non-recurring   costs  associated  with  the  Eagle  acquisition,   income  from
operations  for the nine months  ended  September  30, 1997  increased  88.8% to
$12,702,000.  Both  increases in  operating  income  primarily  reflect a larger
increase in revenues offset by a lesser increase in operating expenses from 1996
to 1997.  Income from operations as a percentage of revenue  increased from 9.5%
and 7.0% in the third  quarter and first nine months of 1996,  respectively,  to
15.1% and 11.5% in the same periods of 1997,  excluding the non-recurring  costs
associated with the Eagle acquisition.

Total Other Income
------------------

         Total other income  decreased  63.1% to $668,000 and increased 69.5% to
$4,512,000 for the three month and nine month periods ended  September 30, 1997,
respectively,  from  $1,810,000 and $2,662,000 for the same periods of 1996. The
decrease  from the third quarter of 1996 to the same period in 1997 is primarily
due to the inclusion of $1,173,000  pre-tax gains from the sale of an investment
in the third  quarter of 1996,  offset by an increase in interest  income in the
third quarter of 1997 due to larger cash balances in 1997 compared to 1996.  The
increase  from the  first  nine  months  of 1996 to the same  period  in 1997 is
primarily  due to a larger  gain on the sale of an  investment  in 1997  than in
1996, the impact of foreign exchange gains and an increase in interest income on
higher cash balances.

Income Taxes
------------

         The provision for federal and state income taxes  increased  33.2% from
$1,956,000  for the third quarter of 1996 to $2,605,000 for the third quarter of
1997,  representing  effective tax rates of 38.5% in both of those periods.  For
the nine months ended September 30 1997, the provision was $6,628,000,  an 83.4%
increase from $3,613,000 in the same period of 1996,  representing effective tax
rates of 38.5% in both of those periods  (excluding the  non-recurring  costs of
$5,500,000 in 1997 related to the purchased research and development  associated
with the Eagle acquisition, which is not tax deductible).

                                       12
<PAGE>

Net Income
----------

         Net income in the third  quarter of 1997 was  $4,161,000,  or $0.23 per
share, an increase of 73.2% from the $2,403,000,  or $0.14 per share, net income
earned in the third quarter of 1996, excluding $1,173,000 pre-tax gains from the
sale of an investment  in the third  quarter of 1996.  For the nine months ended
September 30, 1997 net income was $5,086,000,  or $0.29 per share, a decrease of
11.9% from the  $5,775,000,  or $0.33 per share,  net income  earned in the same
period  of  1996.   Excluding  the  after-tax  effect  of  non-recurring   items
($5,500,000  purchased  research and development  expense and $2,431,000 pre-tax
gains on the sale of an investment,  both in 1997, and $1,173,000  pre-tax gains
on the  sale  of an  investment  in  1996),  net  income  increased  79.9%  from
$5,054,000,  or $0.29 per share, for the nine months ended September 30, 1996 to
$9,091,000, or $0.51 per share, for the same period of 1997.


Factors That May Affect Future Results and Financial Condition
--------------------------------------------------------------

         Future  financial  results  are  difficult  or  impossible  to predict,
despite the Company's past financial performance.  Intense competition and rapid
technological  changes are inherent in the EDA  industry.  The Company faces the
many risks and uncertainties posed by that competition and technological change,
including  the risks and  uncertainties  affecting  and  relating  to success in
continuously  developing and marketing new products;  protection of its products
by  effective  utilization  of  intellectual  property  laws;  product  quality,
reliability,  ease of use,  feature set and price;  diversity  of product  line;
general  economic  and  business  conditions;  the  ability to hire,  retain and
motivate highly qualified  personnel;  business conditions and growth in the EDA
industry;  industry-wide price erosion; and customer acceptance of the Company's
products.

         The Company's  products are in various stages of their life cycles. The
Company's success is dependent on its ability to develop complex and competitive
new products,  to introduce them to the marketplace ahead of the competition and
to have them  selected  by  customers.  The  Company  is  striving  to bring new
products to market to meet  customer  needs,  but there is no assurance  that it
will succeed in doing so. Since  product  life cycles are  continually  becoming
shorter,  if new product  introductions  are  delayed or if new  products do not
address  market needs then revenues and profits for current and future  products
may  be  affected  as  customers  may  shift  to   competitors   to  meet  their
requirements.  The Company's  competitors  consist of large  companies,  many of
which have greater market share and  substantially  greater  financial and other
resources  than  the  Company;   emerging  companies  with  new  and  innovative
technology; and customers who develop their own EDA tools.

         As is common in the software  industry,  the Company  frequently  ships
more  product in the third month of each quarter than in either of the first two
months of the quarter, and shipments in the third month are higher at the end of
that month.  This pattern is likely to continue.  The  concentration of sales in
the last month of the quarter makes the Company's  quarterly  financial  results
difficult to predict.  Also, if sufficient  business does not  materialize  or a
disruption  in the  Company's  production  or shipping  occurs near the end of a
quarter, the Company's revenues for that quarter may be materially reduced.

         A  substantial  portion of the  Company's  revenue is derived  from its
international  operations.  As a result, the Company's  operations and financial
results could be significantly  affected by international  factors, such as weak
economic  conditions  in foreign  markets and  differing  technology  or product
preferences in different countries.

         The highly technical nature of the Company's  products and services and
the  intense  competition  in the  Company's  markets  heightens  the  need  and
importance  of hiring,  retaining  and  motivating  highly  qualified  technical
personnel.  The intense competition in the EDA industry increases the difficulty
in doing so and has created a shortage of highly qualified engineering and sales
personnel.
                                       13
<PAGE>

         Because of these and other factors, past financial results may not be a
useful predictor of future results and any forward looking  statements about the
Company's financial performance, business operations and other factors should be
viewed with caution.  Also,  the  Company's  participation  in a highly  dynamic
industry often results in significant  volatility of the Company's  common stock
price.

LIQUIDITY AND CAPITAL RESOURCES

         The Company has funded its operations to date  primarily  through sales
of equity  securities,  equipment  financing  leases and positive cash flow from
operations.  As of September 30, 1997,  the Company had  $78,286,000 of cash and
marketable  securities compared to $67,344,000 of cash and marketable securities
as of December 31, 1996.  These balances  included  $6,226,000 and $5,565,000 of
non-current  marketable  securities  in 1997  and  1996,  respectively.  Working
capital as of September 30, 1997 was $62,757,000.  As of September 30, 1997, the
Company had $48,187,000 in current liabilities and $195,000 of commitments under
long-term capital lease obligations.

         Based on its operating  plan, the Company  currently  believes that its
available cash and cash generated from operations will be sufficient to fund the
Company's operations for the foreseeable future.

         On October 22, 1997, the Company  purchased all of the capital stock of
Radiant Design Tools, Inc.  ("Radiant").  Pursuant to the terms of the purchase,
the Company paid the sole shareholder of Radiant $1,000,000. The Company is also
required to pay that  shareholder an additional  $500,000 on or before April 22,
1998, and up to an additional of $3,500,000  based on future sales of certain of
the Company's products.

         In February 1997, the Financial  Accounting Standards Board issued SFAS
No. 128,  "Earnings  per Share" which will become  effective for the Company for
annual and interim  reporting  periods ending after December 15, 1997.  SFAS No.
128  replaces  the  presentation  of  primary  earnings  per share  with a basic
earnings per share (which excludes  dilution) and a diluted  earnings per share.
Had SFAS No. 128 been used for the periods presented, basic and diluted earnings
per share would have been $0.25 and $0.23,  respectively,  for the quarter ended
September  30, 1997 and $0.19 and $0.18,  respectively,  for the  quarter  ended
September 30, 1996.  Basic and diluted  earnings per share would have been $0.31
and $0.29, respectively,  for the nine months ended September 30, 1997 and $0.35
and $0.33, respectively, for the nine months ended September 30, 1996.

         In June  1997,  FASB  issued  SFAS No.  130,  "Reporting  Comprehensive
Income," which establishes  standards for reporting and display of comprehensive
income and its components (revenues,  expenses,  gains and losses) in a full set
of general-purpose  financial  statements.  SFAS No. 130 is effective for fiscal
years  beginning  after  December 15, 1997.  The Company has not  determined the
effects,  if any,  that  SFAS No.  130 will have on its  consolidated  financial
statements.

         In June 1997, FASB issued SFAS No. 131,  "Disclosures about Segments of
an Enterprise and Related  Information," which establishes standards for the way
that public companies report selected information about operating segments. SFAS
No. 131 is  effective  for  financial  statements  for periods  beginning  after
December 15, 1997. The Company has not determined the effects, if any, that SFAS
No. 131 will have on the disclosures in its consolidated financial statements.

                                       14

<PAGE>

PART II           OTHER INFORMATION


ITEM 1.   LEGAL PROCEEDINGS

         On or about April 25, 1997,  Deutsch  Technology  Research  ("Deutsch")
filed a Demand for  Arbitration  under the Commercial  Arbitration  Rules of the
American  Arbitration  Association  pursuant  to the terms of the OEM  Agreement
dated June 16, 1993 between Deutsch and the Company (the "OEM Agreement"). Under
the  terms  of the OEM  Agreement,  the  arbitration  must be held in San  Jose,
California before a single arbitrator.  The arbitration is scheduled to begin on
November 3, 1997. The Demand for Arbitration alleges  infringement of copyright,
misappropriation  of trade  secrets and failure to pay  royalties and other sums
under the OEM Agreement.  Recently,  Deutsch's accountants,  hired in connection
with  this  dispute,  submitted  a report  stating  that,  based on  assumptions
provided by Deutsch,  royalties  in excess of  $53,000,000  are due. The Company
denies these  allegations,  disputes the  assumptions on which the  accountants'
report is based and intends to defend these claims  vigorously.  The Company has
also asserted  counterclaims  in this  arbitration  seeking damages in excess of
$500,000.  The ultimate outcome of this matter is not determinable, and an 
adverse outcome could have a material adverse effect on the Company's financial 
position and results of operations.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.
<TABLE>
<CAPTION>

         <S>     <C>   
         (a)     Exhibits

                 10.1 -  Merger Agreement between the Company and Synopsys, Inc.
                         and the other agreements referenced therein

                 10.2 -  Retention  Agreement  dated July 1, 1997  between
                         the Company and each of its executive officers

                 11   -  Statement Regarding Computation of Per Share Earnings

                 27   -  Financial Data Schedule

         (b)     Reports on Form 8-K

                 No reports on Form 8-K have been filed  during the quarter for
                 which this report is filed.
</TABLE>

                                       15
<PAGE>

                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


         Date: October 29, 1997             Viewlogic Systems, Inc.
                                            -----------------------
                                            (Registrant)



                                        By: /s/ William J. Herman
                                            ---------------------
                                            William J. Herman, President, Chief
                                            Executive Officer and Director



         Date: October 29, 1997         By: /s/ Ronald R. Benanto
                                            ---------------------
                                            Ronald R. Benanto, Senior Vice 
                                            President of Finance, Chief 
                                            Financial Officer and Treasurer

                                       16
<PAGE>

                             VIEWLOGIC SYSTEMS, INC.
                                  EXHIBIT INDEX
<TABLE>
<CAPTION>

Exhibit                                                                   Page
-------                                                                   ----

<S>        <C>                                                             <C>               
10.1(1)    Merger Agreement between the Company and Synopsys, Inc.         --
           and the other agreements referenced therein

10.2       Retention Agreement dated July 1, 1997 between the Company      18
           and each of its executive officers

11         Statement Regarding Computation of Per Share Earnings           42

27(2)      Financial Data Schedule                                         --


<FN>

(1)      Incorporated herein by reference to the Synopsys, Inc.
         Registration Statement on Form S-4 as filed with The
         Securities and Exchange Commission on October 29, 1997.

(2)      In electronic version only.
</FN>
</TABLE>

                                       17