Synopsys is actively working towards the acquisition of Ansys, with the merger anticipated to close in the first half of calendar year 2025, subject to regulatory approvals and other conditions.

Synopsys has entered into an agreement to sell its Software Integrity business for up to $2.1 billion, with the divestiture expected to close in the second half of 2024.

Research and development expenses increased by 7% YoY to $493.1 million for the three months ended April 30, 2024, reflecting ongoing investment in new technologies and product development.

Operating expenses increased by 14% YoY to $822.2 million for the three months ended April 30, 2024, primarily due to higher employee-related costs and acquisition-related expenses.

Management is actively monitoring geopolitical pressures, macroeconomic conditions, and regulatory changes, and is working to mitigate their impact on the business.

Management is focused on managing liquidity and capital resources, and has suspended its stock repurchase program due to the pending Ansys Merger.

The company acknowledges the potential impact of macroeconomic conditions, geopolitical pressures, and trade restrictions on its business and financial results.

The company highlights the risks associated with the Ansys Merger, including the potential for delays, increased costs, and failure to achieve anticipated synergies, as well as risks related to the divestiture of the Software Integrity business.

The company acknowledges the increasing risk of cybersecurity threats and data breaches, which could compromise sensitive information and harm its business and reputation.

Synopsys acknowledges the presence of strong competitors in the EDA and IP markets, including both established players and new entrants.

Synopsys emphasizes its focus on innovation, leading technologies, and strong customer relationships as key drivers of its success in a competitive market.

The company recognizes the need to balance investments in new technologies and product development with the need to maintain profitability and manage costs.

Cost of revenue increased by 21% YoY to $300.4 million for the three months ended April 30, 2024, primarily due to higher hardware-related costs and costs to fulfill IP consulting arrangements.

Operating expenses increased by 14% YoY to $822.2 million for the three months ended April 30, 2024, driven by higher employee-related costs, acquisition-related expenses, and investments in new technologies.

The company emphasizes its focus on managing expenses and improving efficiency, while also investing in growth opportunities.

Research and development expenses increased by 7% YoY to $493.1 million for the three months ended April 30, 2024, reflecting ongoing investment in new technologies and product development.

Synopsys is focused on developing new technologies and solutions, including AI-driven solutions, to meet the evolving needs of its customers.

Synopsys recognizes the need to adapt to new technology trends, such as cloud computing and AI, and is investing in solutions to address these trends.

The company has suspended its stock repurchase program due to the pending Ansys Merger and the need to reduce expected debt levels.

The company is focused on managing its liquidity and capital resources in preparation for the Ansys Merger and its associated financing needs.

The company is actively pursuing strategic acquisitions, such as the Ansys Merger, to expand its business and enhance its technology portfolio.

The company acknowledges the increasing focus on ESG matters and the evolving regulatory landscape, which could require additional resources and expenses.

The company is working to meet the expectations of its stakeholders on ESG matters, including environmental, social, and governance initiatives.

The company is focused on improving its ESG reporting and data collection processes to ensure accuracy and completeness.

The company acknowledges the potential impact of macroeconomic conditions, geopolitical pressures, and trade restrictions on its business and financial results.

The company is actively monitoring changes in trade regulations, including those related to China and Russia, and is working to mitigate their potential impact on its business.

The company is subject to a complex and evolving regulatory landscape, including export controls, tax regulations, and accounting standards, and is working to ensure compliance.