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    SYNOPSYS (SNPS)

    Synopsys, Inc. is a global leader in electronic design automation (EDA) software, providing products and services that enable the design and testing of integrated circuits (ICs) and electronic systems . The company offers a comprehensive portfolio of semiconductor intellectual property (IP) products, as well as software tools and services aimed at improving software security and quality . Synopsys' business is organized into three main segments: Design Automation, Design IP, and Software Integrity, each contributing to its record revenue of $5.8 billion in fiscal 2023 .

    1. Design Automation - Provides EDA solutions including digital, custom, and FPGA IC design software, verification software and hardware products, and system integration products and services .
    2. Design IP - Offers a broad portfolio of pre-designed circuits used as components in larger chip designs, significantly contributing to the company's revenue .
    3. Software Integrity - Focuses on solutions that test software code for security vulnerabilities and quality defects, along with professional and managed services .

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    NamePositionExternal RolesShort Bio

    Sassine Ghazi

    ExecutiveBoard

    President and CEO

    None

    Joined Synopsys in 1998; became CEO in January 2024 after serving as COO and President. Has 25+ years of experience at Synopsys, driving innovation and operational excellence.

    View Report →

    John F. Runkel, Jr.

    Executive

    General Counsel and Secretary

    None

    General Counsel and Corporate Secretary since May 2014. Previously held legal leadership roles at Affymetrix, Intuitive Surgical, and VISX.

    Richard Mahoney

    Executive

    Chief Revenue Officer (CRO)

    None

    Joined Synopsys in May 2022 as Special Projects Advisor; became CRO in November 2022. Previously held senior roles at ANSYS and Global Foundries.

    Shelagh Glaser

    Executive

    Chief Financial Officer (CFO)

    Board Member at PubMatic, Inc.

    Joined Synopsys in December 2022. Previously CFO at Zendesk and held senior finance roles at Intel. Brings extensive financial leadership experience.

    Aart J. de Geus

    Board

    Executive Chair of the Board

    Board Member at Applied Materials, Inc.

    Co-founded Synopsys in 1986; served as CEO until December 2023. Transitioned to Executive Chair in January 2024. Pioneer in the EDA industry with extensive leadership experience.

    Bruce R. Chizen

    Board

    Director

    Board Member at ChargePoint Holdings, Informatica Corporation, and Oracle Corporation; Senior Adviser at Permira Advisers LLP

    Joined Synopsys Board in April 2001. Former CEO of Adobe, with extensive experience in managing global technology organizations.

    Janice D. Chaffin

    Board

    Director

    Board Member at Informatica Corporation and PTC Inc.

    Joined Synopsys Board in December 2014. Former Group President of Symantec’s Consumer Business Unit. Brings expertise in cybersecurity, governance, and executive compensation.

    Jeannine P. Sargent

    Board

    Director

    Board Member at Fortive Corporation; Senior Advisor at Breakthrough Energy Ventures and Generation Investment Management LLP

    Joined Synopsys Board in August 2020. Former President at Flex Ltd. Brings expertise in innovation, ESG, and global operations.

    John G. Schwarz

    Board

    Lead Independent Director

    Chairman of Visier, Inc.; Board Member at Teradata Corporation and Mambu BD

    Joined Synopsys Board in May 2007. Co-founder and former CEO of Visier, Inc. Brings expertise in analytics, cybersecurity, and global operations.

    Luis Borgen

    Board

    Director

    Board Member at Carter’s, Inc. and Eastern Bankshares, Inc.

    Joined Synopsys Board in May 2022. Former CFO of athenahealth, VistaPrint, and DAVIDsTEA. Brings 25+ years of financial leadership experience.

    Marc N. Casper

    Board

    Director

    President, CEO, and Chairman of Thermo Fisher Scientific Inc.; Board Member at Wesleyan University, Mass General Brigham, and U.S.-China Business Council

    Joined Synopsys Board in May 2022. Extensive leadership experience as CEO of Thermo Fisher Scientific, driving growth and innovation.

    Mercedes Johnson

    Board

    Director

    Board Member at Analog Devices, Inc. and Teradyne, Inc.

    Joined Synopsys Board in February 2017. Former CFO of Avago Technologies and Lam Research. Brings financial expertise and semiconductor industry experience.

    Robert G. Painter

    Board

    Director

    President, CEO, and Board Member at Trimble Inc.

    Joined Synopsys Board in August 2023. CEO of Trimble Inc., with expertise in global business strategy, M&A, and finance.

    1. Given the significant second-half weighting in your fiscal '25 revenue guidance, what specific factors give you confidence in achieving these targets, especially considering potential customer delays in hardware installations and IP pull-downs?
    2. How might the recent updates from the Department of Commerce on U.S. semiconductor and EDA software export restrictions impact your fiscal '25 outlook, particularly with customers added to the entity list, and what measures are you taking to mitigate potential revenue risks?
    3. Your operating margin guidance of 40% for fiscal '25 suggests higher profitability despite a slowdown in projected revenue growth; is this primarily driven by cost-cutting measures, reduced M&A activity, or other factors, and how sustainable are these margin improvements long term?
    4. With an ending backlog of $8.1 billion, flat year-over-year, and considering geopolitical uncertainties and potential delays in foundry investments, how do you plan to drive revenue growth in fiscal '25 without significantly drawing down backlog, and what risks do you foresee to backlog progression?
    5. Given the rapid expansion of AI and hyperscaler investments as growth drivers, how might capacity constraints like space and power limitations for hardware installations affect your hardware business growth in fiscal '25, and what strategies are you employing to address these challenges?

    Research analysts who have asked questions during SYNOPSYS earnings calls.

    Jason Celino

    KeyBanc Capital Markets

    5 questions for SNPS

    Also covers: ADSK, AZPN, BSY +11 more

    Jay Vleeschhouwer

    Griffin Securities, Inc.

    5 questions for SNPS

    Also covers: ADBE, ADSK, BSY +2 more

    Joshua Tilton

    Wolfe Research

    5 questions for SNPS

    Also covers: ADSK, ALTR, BSY +13 more

    Lee Simpson

    Morgan Stanley

    4 questions for SNPS

    Also covers: ARM, CDNS, IFNNY +1 more

    Gary Mobley

    Loop Capital

    3 questions for SNPS

    Also covers: ALGM, CDNS, CRUS +7 more

    Joseph Vruwink

    Baird

    3 questions for SNPS

    Also covers: ADSK, ANSS, BSY +13 more

    Nay Soe Naing

    Berenberg Capital Markets LLC

    3 questions for SNPS

    Also covers: CDNS, PTC

    Blair Abernethy

    Rosenblatt Securities Inc.

    2 questions for SNPS

    Also covers: ALTR, BSY, CDNS +4 more

    Charles Shi

    Needham & Company

    2 questions for SNPS

    Also covers: ACLS, ACMR, ALTR +18 more

    Gianmarco Conti

    Deutsche Bank AG

    2 questions for SNPS

    Also covers: CDNS

    Harlan Sur

    JPMorgan Chase & Co.

    2 questions for SNPS

    Also covers: ADI, ALAB, AMAT +15 more

    Joe Vruwink

    Baird

    2 questions for SNPS

    Also covers: ADSK, BSY, CDNS +10 more

    Liam Pharr

    Bank of America Securities

    2 questions for SNPS

    Also covers: AMBA, SWKS

    Ruben Roy

    Stifel Financial Corp.

    2 questions for SNPS

    Also covers: CDNS, CIEN, CLS +12 more

    Siti Panigrahi

    Mizuho Securities

    2 questions for SNPS

    Also covers: ADSK, BSY, CDNS +13 more

    Vivek Arya

    Bank of America Corporation

    2 questions for SNPS

    Also covers: ADI, ALGM, AMAT +22 more

    Joseph Quatrochi

    Wells Fargo Securities, LLC

    1 question for SNPS

    Also covers: AEIS, ALGM, AMAT +10 more

    Sitikantha Panigrahi

    Mizuho

    1 question for SNPS

    Also covers: ADSK, BSY, CDNS +13 more

    Yu Shi

    Susquehanna International Group, LLP

    1 question for SNPS

    Also covers: ACLS, ACMR, AMAT +11 more
    Program DetailsProgram 1
    Approval DateFiscal 2022
    End Date/DurationN/A
    Total additional amount$1.5 billion
    Remaining authorization$194.3 million
    DetailsProgram suspended due to pending Ansys Merger until debt levels are reduced
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2029 and beyond$15.6 Credit Facility in ChinaLPR + 0.74 100% = ($15.6M / $15.6M) * 100

    Competitors mentioned in the company's latest 10K filing.

    CompanyDescription

    In the Design Automation segment, the company competes against other EDA vendors and against customers' own design tools and internal design capabilities. The EDA industry is highly competitive, and the company competes principally on technology leadership, product quality and features, license terms, price and payment terms, post-contract customer support, flexibility of tool use, and interoperability with its own and other vendors' products. The company also competes in the Design IP segment against numerous other IP providers, including this competitor, and customers' internally developed IP. The competition is based on product quality, reliability, features, availability of titles for new manufacturing processes, ease of integration with customer designs, compatibility with design tools, license terms, price and payment terms, and customer support.

    Siemens EDA

    In the Design Automation segment, the company competes against other EDA vendors and against customers' own design tools and internal design capabilities. The EDA industry is highly competitive, and the company competes principally on technology leadership, product quality and features, license terms, price and payment terms, post-contract customer support, flexibility of tool use, and interoperability with its own and other vendors' products.

    NameStart DateEnd DateReason for Change
    KPMG LLP1992 PresentCurrent auditor

    Notable M&A activity and strategic investments in the past 3 years.

    CompanyYearDetails

    Ansys

    2025

    Planned Acquisition: Synopsys is acquiring Ansys to enhance its Electronic Design Automation (EDA) and Simulation & Analysis software capabilities, with key regulatory approvals (from the EC, CMA, FTC, and SAMR) and a divestiture of Ansys’ PowerArtist business to Keysight Technologies as a condition for clearance, expected to close in the first half of 2025.

    Multiple Companies

    2023

    Completed Acquisitions: In 2023, Synopsys executed several acquisitions with an aggregate purchase consideration of $295.4 million (plus two additional deals worth $48.6 million net of cash), aimed at boosting its Design Automation segment through the acquisition and amortization of identified intangible assets and goodwill.

    WhiteHat Security

    2022

    Completed Acquisition: Synopsys acquired WhiteHat Security for $330.1 million in cash to expand its SaaS-based application security testing portfolio, with $249.9 million allocated to goodwill and $97.5 million to intangible assets, aligning with its strategy to enhance application security offerings and drive incremental revenue.

    OpenLight Photonics, Inc.

    2022

    Completed Acquisition: In Q2 2022, Synopsys purchased a 75% equity stake in OpenLight Photonics for $90.0 million in cash—with additional redemption features bringing total consideration to $100.1 million—allocating approximately $94.0 million to intangible assets and about $45.1–46.7 million to goodwill, to support expansion into new markets in the Semiconductor & System Design segment.

    Unnamed (Semiconductor & System Design)

    2022

    Completed Acquisition: In Q1 2022, Synopsys executed a non-material acquisition in its Semiconductor & System Design segment for $20.0 million net of cash, with a purchase price allocation of $4.3 million to identifiable intangible assets and $15.7 million to goodwill (which was not tax-deductible).

    Recent press releases and 8-K filings for SNPS.

    Synopsys expands partnership with TSMC to accelerate AI chip design
    ·$SNPS
    New Projects/Investments
    • Synopsys’ analog and digital design flows are now certified on TSMC’s N2P and A16 processes, enhancing power distribution and system performance.
    • The 3DIC Compiler platform supports end-to-end design for 3D stacked and chiplet solutions using TSMC’s CoWoS packaging, enabling multiple customer tape-outs.
    • Synopsys will provide automotive IP for TSMC’s N5A and N3A nodes, extending its offerings for advanced automotive applications.
    3 days ago
    Synopsys collaborates with TSMC on AI-driven and multi-die design innovations
    ·$SNPS
    New Projects/Investments
    • Certified digital and analog EDA flows for TSMC N2P and A16™ processes optimize performance, power, and analog design migration using AI-driven and pattern-based methodologies.
    • The 3DIC Compiler platform supports TSMC’s SoIC™ and CoWoS® 3D stacking technologies, enabling multiple customer tape-outs with automated UCIe and HBM routing, TSV planning, and unified sign-off.
    • An AI-optimized photonic IC flow for TSMC-COUPE™ enhances system design performance, addressing multi-wavelength and thermal requirements in advanced multi-die and AI applications.
    • Expansion of the IP portfolio across TSMC nodes (N2P/N2, A16, N5A, N3A) includes Foundation and Interface IP, automotive solutions, and support for HBM4, PCIe 7.0, UCIe, and other high-performance standards.
    3 days ago
    Synopsys shares plunge following Q3 2025 results
    ·$SNPS
    Guidance Update
    Legal Proceedings
    • 36% drop in SNPS shares on September 10, 2025, after reporting Q3 results that highlighted issues with a major foundry customer.
    • Management guided Q4 2025 GAAP EPS of negative $0.27 to negative $0.16, citing underperformance in its IP business due to the foundry challenges.
    • Hagens Berman initiated a shareholder investigation into whether Synopsys misled investors about the risks of its customer concentration.
    Sep 19, 2025, 1:45 PM
    Synopsys Q3 2025 Results Trigger Share Collapse and Investigation
    ·$SNPS
    Profit Warning
    Legal Proceedings
    • On September 9, 2025, Synopsys reported Q3 2025 results and guided Q4 GAAP EPS of –$0.27 to –$0.16, causing shares to plunge 36% on September 10, its largest one-day drop since 1992.
    • Management disclosed significant underperformance in its IP business due to challenges at a major foundry customer, highlighting customer concentration risks.
    • National shareholder rights firm Hagens Berman opened an investigation into whether Synopsys misled investors about risks posed by its largest customer and growth prospects.
    • The firm is soliciting affected investors to submit loss claims and whistleblowers with non-public information to come forward.
    Sep 17, 2025, 12:58 PM
    Synopsys reports Q3 2025 results; shares plunge 36% amid foundry issues
    ·$SNPS
    Earnings
    Profit Warning
    Legal Proceedings
    • Synopsys shares fell 36% (over $216) on Sept. 10, 2025 after disclosing significant problems with a major foundry customer in its Q3 2025 results.
    • The company guided Q4 2025 GAAP EPS of –$0.27 to –$0.16, citing underperformance in its IP business due to challenges at that customer.
    • This drop marked Synopsys’ worst single-day percentage decline since its 1992 IPO.
    • Hagens Berman has opened an investigation into whether Synopsys misled investors about customer concentration risks.
    Sep 12, 2025, 6:12 PM
    Synopsys updates regulatory clearance status for Ansys acquisition
    ·$SNPS
    M&A
    • Synopsys and Ansys have received merger clearance in all jurisdictions except China based on the merits of the transaction and its expected benefits.
    • The companies are at an advanced stage of obtaining final approval from China’s State Administration for Market Regulation.
    • The statement includes a cautionary note addressing forward-looking risks related to regulatory approvals and the completion of the proposed transaction.
    Jun 30, 2025, 1:00 PM
    Synopsys accelerates AI and multi-die design innovation on Samsung Foundry processes
    ·$SNPS
    Product Launch
    New Projects/Investments
    • Synopsys and Samsung Foundry achieved a successful tape-out of an HBM3 customer design on Samsung’s SF2 process using Synopsys 3DIC Compiler, cutting turnaround time by 10×, reducing HBM routing time to 4 hours, and improving worst-case eye opening by 6%.
    • Synopsys’ AI-driven digital and analog EDA flows, certified for Samsung’s SF2P process with hypercells and across SF2/SF4 generations, enable PPA optimization and faster development of advanced SoCs.
    • A broad IP portfolio—including 224G, UCIe, MIPI, and LPDDR6—optimized for SF2P and SF4X delivers a low-risk path to silicon success and accelerates time-to-market for next-generation designs.
    Jun 16, 2025, 4:00 PM
    Synopsys Addresses Regulatory Challenges and AI Innovation at Global Tech Conference
    ·$SNPS
    Guidance Update
    Product Launch
    • Regulatory Impact: Synopsys detailed receiving a BIS letter that forced them to halt shipping certain products to China, while emphasizing active discussions with regulators to clarify allowable sales ( ).
    • Market Guidance: The company acknowledged that the restrictions have already affected its quarterly revenue performance and indicated that revised guidance will be issued once regulatory implications are fully understood ( ).
    • AI Strategy: Synopsys outlined significant enhancements in its EDA tools through AI-driven optimization and co-pilot features, projecting efficiency gains for design engineers and laying the groundwork for future autonomous design capabilities ( ).
    Jun 4, 2025, 10:46 PM
    Synopsys Suspends Financial Guidance for Q3 and FY2025
    ·$SNPS
    Guidance Update
    • Synopsys filed an 8-K report on May 29, 2025, announcing the suspension of financial guidance for Q3 fiscal 2025 and the full fiscal year [index1].
    • The company is assessing the impact of new export restrictions from a BIS Letter related to China [index2].
    May 29, 2025, 12:00 AM
    Synopsys suspends forecasts after US China export controls
    ·$SNPS
    Guidance Update
    Profit Warning
    • The US administration imposed licensing requirements on EDA and semiconductor exports to China, including sales to subsidiaries, heightening US-China tech tensions.
    • Major EDA providers, such as Synopsys, Cadence, and Siemens EDA, have suspended services and new orders for mainland China clients in response.
    • Synopsys has suspended its Q3 and full-year 2025 financial forecasts amid uncertainty from the new controls.
    • The measures aim to block military use and maintain US technological leadership, while Beijing labels them discriminatory and accelerates self-reliance efforts.
    May 28, 2025, 7:32 PM