Synopsys Issues Statement in Connection with BIS Letter

Rhea-AI Summary

Synopsys (NASDAQ: SNPS) has suspended its financial guidance for Q3 FY2025 and full FY2025 following a letter from the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce. The letter, received on May 29, 2025, after the company's Q2 FY2025 earnings announcement, outlines new export restrictions related to China. The company is currently evaluating how these restrictions might affect its business operations, financial results, and overall financial condition.

Positive

• None.

Negative

• Suspension of Q3 FY2025 and full FY2025 financial guidance indicates significant uncertainty
• New export restrictions to China could potentially impact revenue and market access
• Business operations and financial condition may be adversely affected by the restrictions

News Market Reaction – SNPS

-1.61%

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-1.61% News Effect

On the day this news was published, SNPS declined 1.61%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

SUNNYVALE, Calif., May 29, 2025 /PRNewswire/ -- Today, Synopsys, Inc. (Nasdaq: SNPS) has suspended its financial guidance for the third quarter of fiscal year 2025 and full fiscal year 2025. The company issued the below statement:

On May 29, 2025, following the announcement of Synopsys' financial results of its second fiscal quarter ended April 30, 2025, Synopsys received a letter from the Bureau of Industry and Security of the U.S. Department of Commerce informing Synopsys of new export restrictions related to China (the "BIS Letter"). Synopsys is currently assessing the potential impact of the BIS Letter on its business, operating results and financial condition.

About Synopsys
Catalyzing the era of pervasive intelligence, Synopsys, Inc. (Nasdaq: SNPS) delivers trusted and comprehensive silicon to systems design solutions, from electronic design automation to silicon IP and system verification and validation. We partner closely with semiconductor and systems customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow.  Learn more at www.synopsys.com.

INVESTOR CONTACT:
Trey Campbell
Synopsys, Inc.
650-584-4289
Synopsys-ir@synopsys.com

EDITORIAL CONTACT:
Cara Walker
Synopsys, Inc.
650-584-5000
corp-pr@synopsys.com

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding Synopsys' assessment of the potential impact of the BIS Letter. These statements involve risks, uncertainties and other factors, including those factors listed in Synopsys' most recent reports on Form 10-K and Form 10-Q, that could cause our actual results, time frames or assessment to differ materially from those expressed or implied in such forward-looking statements. The information provided herein is as of May 29, 2025. Synopsys undertakes no duty to, 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.

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SOURCE Synopsys, Inc.

FAQ

Why did Synopsys (SNPS) suspend its 2025 financial guidance?

Synopsys suspended its Q3 and full-year 2025 guidance after receiving a letter from the Bureau of Industry and Security (BIS) regarding new export restrictions related to China, which could potentially impact its business operations and financial results.

What are the new export restrictions for Synopsys (SNPS) in China?

The specific details of the new export restrictions were not disclosed in the press release. Synopsys is currently assessing the potential impact of these restrictions on its business operations and financial condition.

How will the BIS restrictions affect Synopsys' (SNPS) business in China?

The impact is currently unknown as Synopsys is still evaluating the implications of the BIS Letter. However, the suspension of financial guidance suggests the restrictions could have a significant effect on the company's operations and financial results.

When did Synopsys (SNPS) receive the BIS export restriction letter?

Synopsys received the BIS Letter on May 29, 2025, following the announcement of their second fiscal quarter results ended April 30, 2025.