PR Newswire | Dec 1, 2021 04:06PM EST

12/01 15:05 CST

Synopsys Posts Financial Results for Fourth Quarter and Fiscal Year 2021Q4 FY 2021 Financial Highlights- Revenue: $1.152 billion- GAAP earnings per share: $1.28- Non-GAAP earnings per share: $1.82FY 2021 Financial Highlights- Revenue: $4.204 billion- GAAP earnings per share: $4.81- Non-GAAP earnings per share: $6.84- Cash flow from operations: $1.493 billion- Cash, cash equivalents and short-term investments: $1.581 billion MOUNTAIN VIEW, Calif., Dec. 1, 2021

MOUNTAIN VIEW, Calif., Dec. 1, 2021/PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today reported results for its fourth quarter and fiscal year 2021. Revenue for the fourth quarter of fiscal year 2021 was $1.152 billion, compared to $1.025 billion for the fourth quarter of fiscal year 2020. Revenue for fiscal year 2021 was $4.204 billion, an increase of 14.1 percent from $3.685 billion in fiscal year 2020.

"Synopsys delivered another record fiscal year in 2021, substantially exceeding our original targets, with strength in all product groups and geographies. We are entering fiscal year 2022 with significant financial, technology and customer momentum," said Aart de Geus, chairman and co-CEO of Synopsys. "Over the past several years, we have delivered disruptive innovations that are enabling the new era of 'smart everything,' an era that brings with it many new market entrants and increased investments. As a result, we are seeing a growing number of substantially expanded customer commitments and collaborations. In addition to fiscal year 2022 expectations of strong double-digit revenue growth, continued operating margin expansion, EPS growth in the mid-teens range, and nearly $1.5 billion in operating cash flow, we are also raising our long-term financial objectives, with increased EDA and IP revenue growth expectations."

GAAP Results

On a generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2021 was $201.4 million, or $1.28 per share, compared to $197.5 million, or $1.26 per share, for the fourth quarter of fiscal year 2020. GAAP net income for fiscal year 2021 was $757.5 million, or $4.81 per share, compared to $664.3 million, or $4.27 per share, for fiscal year 2020.

Non-GAAP Results

On a non-GAAP basis, net income for the fourth quarter of fiscal year 2021 was $285.8 million, or $1.82 per share, compared to non-GAAP net income of $247.7 million, or $1.58 per share, for the fourth quarter of fiscal year 2020. Non-GAAP net income for fiscal year 2021 was $1.077 billion, or $6.84 per share, compared to non-GAAP net income of $864.6 million, or $5.55 per share, for fiscal year 2020.

For a reconciliation between GAAP and non-GAAP results, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.

Business Segments

Synopsys reports revenue and operating income in two segments: (1) Semiconductor & System Design, which includes EDA and IP products, system integration solutions and associated services, and (2) Software Integrity, which includes security and quality solutions for software development. Further information regarding these segments is provided at the end of this press release.

Financial Targets

Synopsys also provided its consolidated financial targets for the first quarter and full fiscal year 2022. These financial targets assume that there are no further changes to the current U.S. government "Entity List" restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.

First Quarter and Fiscal Year 2022 Financial Targets

(in millions except per share amounts)

Range for Three Months Range for Fiscal Year

January 31, 2022 October 31, 2022

Low High Low High

Revenue $ 1,250 $ 1,280 $ 4,725 $ 4,775

GAAP Expenses $ 934 $ 964 $ 3,778 $ 3,835

Non-GAAP Expenses $ 802 $ 812 $ 3,225 $ 3,255

Other Income (Expense) $ (5) $ (3) $ (11) $ (7)

Annual non-GAAP Tax Rate 18% 18% 18% 18%

Outstanding Shares (fully diluted) 156 159 157 160

GAAP EPS $ 1.75 $ 1.92 $ 5.39 $ 5.65

Non-GAAP EPS $ 2.35 $ 2.40 $ 7.73 $ 7.80

Operating Cash Flow $ 1,400 $ 1,500

Earnings Call Open to Investors

Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys' corporate website at www.synopsys.com. A recording of the call will be available by calling +1-866-207-1041 (+1-402-970-0847 for international callers), access code 6504511, beginning at 5:45 p.m. Pacific Time today, until 11:59 p.m. Pacific Time on December 8, 2021. A webcast replay will also be available on the corporate websitefrom approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the first quarter of fiscal year 2022 in February 2022. Synopsys will post copies of the prepared remarks of Aart de Geus, chairman and co-chief executive officer, and Trac Pham, chief financial officer, on its website following today's call. In addition, Synopsys makes additional information available in a financial supplement and corporate overview presentation, also posted on the corporate website.

Effectiveness of Information

The targets included in this press release, the statements made during the earnings conference call and the information contained in the financial supplement and corporate overview presentation (available in the Investor Relations section of Synopsys' corporate website at www.synopsys.com) represent Synopsys' expectations and beliefs as of the date of this release only. Although this press release, copies of the prepared remarks of the co-chief executive officer and chief financial officer made during the call, the financial supplement, and the corporate overview presentation will remain available on Synopsys' website through the date of the first quarter of fiscal year 2022 earnings call in February 2022, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys does not currently intend to report on its progress during the first quarter of fiscal year 2022 or comment to analysts or investors on, or otherwise update, the targets given in this release.

Availability of Final Financial Statements

Synopsys will include final financial statements for fiscal year 2021 in its annual report on Form 10-K to be filed by December 29, 2021.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software(tm) partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and offers the industry's broadest portfolio of application security testing tools and services. Whether you're a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing more secure, high-quality code, Synopsys has the solutions needed to deliver innovative products. Learn more at www.synopsys.com.

GAAP to Non-GAAP Reconciliation

Synopsys continues to provide all information required in accordance with GAAP but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys' operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal planning and forecasting purposes. Synopsys' management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Synopsys' management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes: (i) the amortization of acquired intangible assets, (ii) the impact of stock compensation, (iii) acquisition-related costs, (iv) restructuring charges, (v) the effects of certain settlements, final judgments and loss contingencies related to legal proceedings, and (vi) the income tax effect of non-GAAP pre-tax adjustments; and the non-GAAP measures that exclude such information in order to assess the performance of Synopsys' business and for planning and forecasting in subsequent periods.

Synopsys adopted a three-year normalized non-GAAP tax rate of 16% for fiscal year 2019 through 2021 in the calculation of its non-GAAP financial measures to provide better consistency across interim reporting periods by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency and not necessarily reflect our normal operations, and to align our tax rate more clearly with our expected geographic earnings mix. Synopsys re-evaluated this rate on an annual basis for any significant events that could have materially affected its projections, such as significant changes in its geographic earnings mix or significant tax law changes in major jurisdictions where it operates.

Given the uncertainty surrounding corporate tax reform, Synopsys has elected to provide a projected annual non-GAAP tax rate for fiscal year 2022 rather than a three-year normalized non-GAAP tax rate in calculating its non-GAAP financial measures. Based on an evaluation of Synopsys' historical and projected mix of U.S. and international profit before tax, taking into account the impact of non-GAAP adjustments described above, as well as other factors such as its current tax structure, existing tax positions, and expected recurring tax incentives, its projected annual non-GAAP tax rate is 18% for fiscal 2022. Synopsys intends to re-evaluate the projected fiscal 2022 annual non-GAAP tax rate on an interim basis to determine the appropriateness of adopting a multi-year normalized non-GAAP tax rate.

Whenever Synopsys uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed below, as well as Item 2.02 of the Current Report on Form 8-K filed on December 1, 2021 for additional information about the measures Synopsys uses to evaluate its core business operations.

Reconciliation of Fourth Quarter and Fiscal Year 2021 Results

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income and earnings per share for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2021 Results ^(1) (unaudited and in thousands, except per share amounts) Three Months Ended Twelve Months Ended October 31, October 31, 2021 2020 2021 2020 GAAP net income $ 201,447 $ 197,455 $ 757,516 $ 664,347 Adjustments: Amortization of intangible assets 21,943 21,004 82,380 91,281 Stock compensation 96,742 78,429 345,272 248,584 Acquisition-related costs 3,800 3,259 15,394 14,096 Restructuring charges 18,254 (387) 33,405 36,059 Legal matters - - (1,455) - Tax adjustments (56,430) (52,084) (155,727) (189,798) Non-GAAP net income $ 285,756 $ 247,676 $ 1,076,785 $ 864,569 Three Months Ended Twelve Months Ended October 31, October 31, 2021 2020 2021 2020 GAAP diluted net income per share $ 1.28 $ 1.26 $ 4.81 $ 4.27 Adjustments: Amortization of intangible assets 0.14 0.13 0.52 0.59 Stock compensation 0.62 0.50 2.19 1.60 Acquisition-related costs 0.02 0.02 0.10 0.08 Restructuring charges 0.12 - 0.21 0.23 Legal matters - - (0.01) - Tax adjustments (0.36) (0.33) (0.98) (1.22) Non-GAAP diluted net income per share $ 1.82 $ 1.58 $ 6.84 $ 5.55 Shares used in computing diluted net income per share amounts: 157,243 156,825 157,340 155,706 (1) Synopsys' fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, respectively. For presentation purposes, we refer to the closest calendar month end.

Reconciliation of 2022 Targets

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.

GAAP to Non-GAAP Reconciliation of First Quarter Fiscal Year 2022 Targets ^(1)

(in thousands, except per share amounts)

Range for Three Months

January 31, 2022

Low High

Target GAAP expenses $ 934,000 $ 964,000

Adjustments:

Amortization of intangible assets (22,000) (25,000)

Stock compensation (102,000) (107,000)

Restructuring charges (8,000) (20,000)

Target non-GAAP expenses $ 802,000 $ 812,000

Range for Three Months

January 31, 2022

Low High

Target GAAP earnings per share $ 1.75 $ 1.92

Adjustments:

Amortization of intangible assets 0.16 0.14

Stock compensation 0.68 0.65

Restructuring charges 0.13 0.05

Tax adjustments (0.37) (0.36)

Target non-GAAP earnings per share $ 2.35 $ 2.40

Shares used in non-GAAP calculation (midpoint of target range) 157,500 157,500

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2022 Targets^(1)

(in thousands, except per share amounts)

Range for Fiscal Year

October 31, 2022

Low High

Target GAAP expenses $ 3,778,000 $ 3,835,000

Adjustments:

Amortization of intangible assets (80,000) (85,000)

Stock compensation (465,000) (475,000)

Restructuring charges (8,000) (20,000)

Target non-GAAP expenses $ 3,225,000 $ 3,255,000

Range for Fiscal Year

October 31, 2022

Low High

Target GAAP earnings per share $ 5.39 $ 5.65

Adjustments:

Amortization of intangible assets 0.54 0.50

Stock compensation 3.00 2.93

Restructuring charges 0.13 0.05

Tax adjustments (1.33) (1.33)

Target non-GAAP earnings per share $ 7.73 $ 7.80

Shares used in non-GAAP calculation (midpoint of target range) 158,500 158,500

(1) Synopsys' first fiscal quarter and fiscal year will end on January 29, 2022and October 29, 2022, respectively. For presentation purposes,we refer to the closest calendar month end.

Forward-Looking Statements

This press release contains forward-looking statements including, but not limited to, statements regarding Synopsys' short-term and long-term financial targets, expectations and objectives; business outlook, opportunities and strategies; customer demand and market expansion; strategies related to our products and technology; our planned product releases and capabilities; industry growth rates; software trends; planned acquisitions and buybacks; our expected tax rate; the expected impact of U.S. and foreign government action on our financial results; and the continued impact and duration of the COVID-19 pandemic. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in our forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks from the continued impact of the COVID-19 pandemic on the global economy and on our business, operations and financial condition; uncertainty in the growth of the semiconductor and electronics industries; macroeconomic conditions and uncertainty in the global economy; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations as well as actions by the U.S. or foreign governments, such as measures in response to the COVID-19 pandemic or the imposition of additional tariffs or export restrictions; fluctuation of our operating results; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings it makes with the Securities and Exchange Commission from time to time, including in the sections entitled "Risk Factors" in its Annual Report on Form 10-K for the fiscal year ended October 31, 2020 and in its latest Quarterly Report on Form 10-Q. The information provided herein is as of December 1, 2021. Synopsys undertakes no duty, and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law.

SYNOPSYS, INC. Unaudited Consolidated Statements of Operations^(1) (in thousands, except per share amounts) Three Months Ended Twelve Months Ended October 31, October 31, 2021 2020 2021 2020 Revenue: Time-based products $ 688,116 $ 606,598 $ 2,633,763 $ 2,365,199 Upfront products 274,265 244,155 861,063 735,572 Maintenance and service 190,038 174,686 709,367 584,510 Total revenue 1,152,419 1,025,439 4,204,193 3,685,281 Cost of revenue: Products 152,437 142,838 542,114 487,307 Maintenance and service 68,992 69,991 271,202 254,931 Amortization of intangible assets 13,297 11,720 48,461 52,452 Total cost of revenue 234,726 224,549 861,777 794,690 Gross margin 917,693 800,890 3,342,416 2,890,591 Operating expenses: Research and development 413,864 339,566 1,504,823 1,279,022 Sales and marketing 197,681 176,499 712,491 632,010 General and administrative 88,960 79,796 322,988 284,530 Amortization of intangible assets 8,646 9,284 33,919 38,829 Restructuring charges 18,254 (387) 33,405 36,059 Total operating expenses 727,405 604,758 2,607,626 2,270,450 Operating income 190,288 196,132 734,790 620,141 Other income (expense), net 8,790 (4,095) 70,724 18,018 Income before income taxes 199,078 192,037 805,514 638,159 Provision (benefit) for income taxes (2,059) (4,989) 49,155 (25,288) Net income 201,137 197,026 756,359 663,447 Net income (loss) attributed to non-controlling interest (310) (429) (1,157) (900) Net income attributed to Synopsys $ 201,447 $ 197,455 $ 757,516 $ 664,347 Net income per share: Basic $ 1.32 $ 1.30 $ 4.96 $ 4.40 Diluted $ 1.28 $ 1.26 $ 4.81 $ 4.27 Shares used in computing per share amounts: Basic 152,932 152,349 152,698 151,135 Diluted 157,243 156,825 157,340 155,706 (1) Synopsys' fourth quarter of fiscal year 2021 and 2020 ended on October 30, 2021 and October 31, 2020, respectively. For presentation purposes, we refer to the closest calendar month end.

SYNOPSYS, INC.

Unaudited Consolidated Balance Sheets ^(1)

(in thousands, except par value amounts)

October 31, 2021 October 31, 2020

ASSETS:

Current assets:

Cash and cash equivalents $ 1,432,840 $ 1,235,653

Short-term investments 147,949 -

Total cash, cash equivalents & short-term investments $ 1,580,789 $ 1,235,653

Accounts receivable, net 568,501 780,709

Inventories, net 229,023 192,333

Income taxes receivable and prepaid taxes 32,411 32,355

Prepaid and other current assets 397,617 308,167

Total current assets 2,808,341 2,549,217

Property and equipment, net 472,398 483,818

Operating lease right-of-use assets, net 493,251 465,818

Goodwill 3,575,785 3,365,114

Intangible assets, net 279,132 254,322

Deferred income taxes 612,655 497,546

Other long-term assets 510,698 414,227

Total assets $ 8,752,260 $ 8,030,062

LIABILITIES AND STOCKHOLDERS' EQUITY:

Current liabilities:

Accounts payable and accrued liabilities $ 694,748 $ 623,664

Operating lease liabilities, current 79,678 73,173

Accrued income taxes 46,443 27,738

Deferred revenue 1,517,623 1,388,263

Short-term debt 74,992 27,084

Total current liabilities 2,413,484 2,139,922

Operating lease liabilities, non-current 487,003 462,411

Long-term accrued income taxes 27,893 25,178

Long-term deferred revenue 136,303 104,850

Long-term debt 25,094 100,823

Other long-term liabilities 363,540 284,511

Total liabilities 3,453,317 3,117,695

Stockholders' equity:

Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding - -

Common stock, $0.01 par value: 400,000 shares authorized; 153,062 and

152,618 shares outstanding, respectively 1,531 1,528

Capital in excess of par value 1,576,363 1,653,166

Retained earnings 4,549,713 3,795,397

Treasury stock, at cost: 4,198 and 4,643 shares, respectively (782,866) (488,613)

Accumulated other comprehensive income (loss) (49,604) (54,074)

Total Synopsys stockholders' equity 5,295,137 4,907,404

Non-controlling interest 3,806 4,963

Total stockholders' equity 5,298,943 4,912,367

Total liabilities and stockholders' equity $ 8,752,260 $ 8,030,062

(1) Synopsys' fiscal year 2021 and 2020 ended on October 30, 2021 and October31, 2020, respectively. For presentation purposes,we refer to the closest calendar month end.

SYNOPSYS, INC.

Unaudited Consolidated Statements of Cash Flows ^(1)

(in thousands)

Twelve Months Ended

October 31,

2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income attributed to Synopsys $ 757,516 $ 664,347

Adjustments to reconcile net income to net cash provided by

operating activities:

Amortization and depreciation 203,676 209,986

Reduction of operating lease right-of-use assets 86,645 82,895

Amortization of capitalized costs to obtain revenue contracts 64,698 61,185

Stock-based compensation 345,272 248,584

Allowance for doubtful accounts 18,515 20,875

Deferred income taxes (128,583) (111,526)

Other non-cash 14,702 3,425

Net changes in operating assets and liabilities, net of

acquired assets and liabilities:

Accounts receivable 201,706 (236,806)

Inventories (48,046) (55,024)

Prepaid and other current assets (102,174) (11,298)

Other long-term assets (153,037) (83,367)

Accounts payable and accrued liabilities 125,133 113,773

Operating lease liabilities (82,581) (78,578)

Income taxes 28,855 14,120

Deferred revenue 160,325 148,722

Net cash provided by operating activities 1,492,622 991,313

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and maturities of short-term investments 12,850 -

Purchases of short-term investments (161,732) -

Proceeds from sales of long-term investments - 2,151

Purchases of long-term investments (7,591) (2,762)

Purchases of property and equipment (93,764) (154,717)

Cash paid for acquisitions, net of cash acquired (296,017) (201,045)

Capitalization of software development costs (1,976) (4,045)

Other (800) -

Net cash used in investing activities (549,030) (360,418)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from credit facilities - 276,489

Repayment of debt (28,061) (288,879)

Issuances of common stock 210,719 197,403

Payments for taxes related to net share settlement of equity awards (138,950) (82,225)

Purchase of equity forward contract (35,000) -

Purchases of treasury stock (753,081) (242,078)

Other (4,375) (1,316)

Net cash used in financing activities (748,748) (140,606)

Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,369 17,154

Net change in cash, cash equivalents and restricted cash 197,213 507,443

Cash, cash equivalents and restricted cash, beginning of year 1,237,970 730,527

Cash, cash equivalents and restricted cash, end of period $ 1,435,183 $ 1,237,970

(1) Synopsys' fiscal year 2021 and 2020 ended on October 30, 2021 and October31, 2020, respectively. For presentation purposes, werefer to the closest calendar month end.

SYNOPSYS, INC.

Business Segment Reporting ^(1)

(in millions)

Three Months Three Months Twelve Months Twelve Months

Ended Ended Ended Ended

October 31, 2021 ^(3) October 31, 2020 ^(3) October 31, 2021 ^(3) October 31, 2020 ^(3)

Revenue by segment

- Semiconductor & System Design $ 1,042.4 $ 934.6 $ 3,810.4 $ 3,327.2

% of Total 90.5% 91.1% 90.6% 90.3%

- Software Integrity $ 110.0 $ 90.8 $ 393.8 $ 358.1

% of Total 9.5% 8.9% 9.4% 9.7%

Total segment revenue $ 1,152.4 $ 1,025.4 $ 4,204.2 $ 3,685.3

Adjusted operating income by segment

- Semiconductor & System Design $ 326.6 $ 293.5 $ 1,243.1 $ 990.8

- Software Integrity $ 13.3 $ 6.2 $ 38.3 $ 40.8

Total adjusted segment operating income $ 339.9 $ 299.7 $ 1,281.4 $ 1,031.6

Adjusted operating margin by segment

- Semiconductor & System Design 31.3% 31.4% 32.6% 29.8%

- Software Integrity 12.1% 6.8% 9.7% 11.4%

Total adjusted segment operating margin 29.5% 29.2% 30.5% 28.0%

Total Adjusted Segment Operating Income Reconciliation ^(1)(2)

(in millions)

Three Months Three Months Twelve Months Twelve Months

Ended Ended Ended Ended

October 31, 2021 ^(3) October 31, 2020 ^(3) October 31, 2021 ^(3) October 31, 2020 ^(3)

GAAP total operating income - as reported $ 190.3 $ 196.1 $ 734.8 $ 620.1

Other expenses managed at consolidated level

-Amortization of intangible assets 21.9 21.0 82.4 91.3

-Stock compensation 96.7 78.4 345.3 248.6

-Non-qualified deferred compensation plan 8.9 1.3 71.6 21.5

-Acquisition-related costs 3.8 3.3 15.4 14.1

-Restructuring 18.3 (0.4) 33.4 36.1

-Legal matters - - (1.5) -

Total adjusted segment operating income $ 339.9 $ 299.7 $ 1,281.4 $ 1,031.6

(1) Synopsys manages the business on a long-term, annual basis, and considersquarterly fluctuations of revenue and profitability as normal elements of ourbusiness. Amounts may not footdue to rounding.

(2) These segment results are consistent with the information required by ASC280, Segment Reporting. They are presented to reflect the information that isconsidered by Synopsys' chiefoperating decision makers (CODMs) to evaluate the operating performance of itssegments. The CODMs do not allocate certain operating expenses managed at aconsolidated level to ourreportable segments, and as a result, the reported operating income andoperating margin do not include these unallocated expenses as shown in thetable above. Amounts may not foot due torounding.

(3) Synopsys' fourth quarter of fiscal year 2021 and 2020 ended on October 30,2021 and October 31, 2020, respectively. For presentation purposes, we refer tothe closest calendar month end.

INVESTOR CONTACT:

Lisa L. EwbankSynopsys, Inc.650-584-1901Synopsys-ir@synopsys.com

EDITORIAL CONTACT:

Simone SouzaSynopsys, Inc.650-584-6454simone@synopsys.com

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SOURCE Synopsys, Inc.