Synopsys Inc Stock Price, News & Analysis

Synopsys, Inc. (Nasdaq: SNPS) announced an increase in its stock repurchase program, authorizing the purchase of up to $1.5 billion of its common stock. This move reflects the company's commitment to enhancing shareholder value while balancing strategic investments to foster business growth. CFO Trac Pham emphasized the importance of sustainable long-term value for shareholders. The repurchase program is discretionary and may be suspended or terminated at any time by the company's executives.

Synopsys has announced an accelerated share repurchase agreement (ASR) with Bank of America to buy back $240 million of its stock. The initial delivery will be around 535,000 shares, with final settlements expected by November 18, 2022. This buyback aims to enhance shareholder value and reflect the company’s strong market position in electronic design automation. Investors should monitor the impact of Synopsys’ stock price fluctuations during the repurchase period, as it will determine the total shares repurchased.

Synopsys has partnered with Inclusively, a workforce inclusion platform, to enhance its recruitment of candidates with disabilities. This initiative aims to tap into the underemployed disabled community in the U.S., which comprises over 60 million individuals. Inclusively's technology helps streamline the hiring process by providing relevant candidate information to hiring teams, enabling an inclusive experience from the start. Synopsys acknowledges that this collaboration will significantly improve access to a previously overlooked talent pool, leading to a more diverse workforce.

Synopsys reported impressive Q3 FY 2022 results with revenue reaching $1.248 billion, a significant increase from $1.057 billion in Q3 FY 2021. GAAP earnings per diluted share rose to $1.43, compared to $1.27 last year. Non-GAAP earnings per diluted share reached $2.10, up from $1.81. The company anticipates crossing the $5 billion revenue mark for FY 2022, supported by over 20% revenue growth and strong operating cash flow exceeding $1.6 billion. Synopsys attributes this success to robust demand for complex chips and a resilient business model.

Synopsys (Nasdaq: SNPS) released research by Enterprise Strategy Group revealing that 73% of organizations have enhanced their software supply chain security measures due to recent high-profile attacks like Log4Shell. Key findings indicate 34% of firms experienced exploits from known vulnerabilities in open source software in the past year, highlighting ongoing risks. Additionally, 39% of respondents find compiling Software Bills of Materials (SBOMs) challenging. Nearly all (99%) organizations are using or planning to use open source software, though concerns remain about its scale and security.

Synopsys, Inc. (Nasdaq: SNPS) will report its third-quarter fiscal year 2022 results on August 17, 2022, after market close. A conference call featuring CEO Aart de Geus and CFO Trac Pham will commence at 2:00 p.m. PT (5:00 p.m. ET). Participants can find financial information on the corporate website before the call. A replay will be available post-call until the announcement of the fourth-quarter results in November 2022.

Synopsys (Nasdaq: SNPS) has launched an RF design reference flow and design solutions kit (DSK) to support advanced-node RF designs for 5G/6G applications using Samsung Foundry's 8nm RF low-power FinFET process. The new offerings are aimed at enhancing productivity and speeding design closure. Key features include in-design parasitic analysis and on-chip inductor design, promising faster layout turnaround and improved design quality. This collaboration is expected to meet rising complexities in semiconductor design for high-performance computing and telecommunications.

Synopsys (Nasdaq: SNPS) has announced enhancements to its design, verification, and IP solutions, optimized for Arm's latest Cortex CPUs and GPUs based on the Armv9 architecture. These improvements aim to deliver superior performance and energy efficiency for high-performance computing applications, particularly in mobile devices. The collaboration enables early adopters to meet demanding performance-per-watt targets, leveraging Synopsys technologies including the Digital Design Family and Verification Family. The QuickStart Implementation Kits (QIKs) are now available to streamline time-to-market for developers.

Synopsys (NASDAQ: SNPS) has completed the acquisition of WhiteHat Security for $330 million in cash, enhancing its application security SaaS capabilities. This acquisition adds WhiteHat's dynamic application security testing (DAST) technology to Synopsys’ portfolio, which is among the industry’s broadest. The integration is expected to be neutral to FY2022 non-GAAP earnings per share. Synopsys aims to leverage WhiteHat's expertise to accelerate the development of SaaS-based security testing solutions, reinforcing its mission to improve software security.