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Market participants once again scooped up risk assets after some disappointing economic data solidified bets that the Federal Reserve will continue to cut rates at a gradual pace later this month. Markets gapped higher at Wednesday's open and remained in positive territory throughout the session, bolstered by a couple of economic reports supportive of current Fed policy. "The Santa Rally is gaining steam, thanks to weaker-than-expected economic data pointing to decelerating but still solid employment conditions," writes José Torres, senior economist at Interactive Brokers . Subscribe to Kiplinger’s Personal Finance Be a smarter, better informed investor. Sign up for Kiplinger’s Free E-Newsletters Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of expert advice - straight to your e-mail. This morning's "one-two punch" featured a modest miss on a proprietary payrolls report, the economist says, as well as a services sector report that came in well below estimates. "The results are weighing on interest rates while serving to increasingly cement another quarter-point cut at the next Fed meeting," adds Torres. Econ data disappoints The ADP National Employment Report showed that private sector employment increased by 146,000 jobs in November and annual pay was up 4.8% year over year. "While the ADP measure of job growth slowed, we expect workers returning from strikes and the reversing drag from recent hurricanes – which did not appear to have a meaningful impact on ADP either this month or last – to boost the official payroll figures this Friday ," Goldman Sachs Chief Economist Jan Hatzius wrote in a note to clients. Meanwhile, the Institute for Supply Management (ISM) Services Purchasing Managers Index (PMI) registered 52.1% in November, expanding for the fifth consecutive month. However, it was down 3.9 percentage points from October's reading of 56%. "Although the U.S. services sector is expected to continue fueling the economic expansion , momentum has faded this quarter," writes Priscilla Thiagamoorthy, senior economist at BMO Capital Markets . "That, along with a still-subdued ISM manufacturing index, suggests growth is likely moderating. Markets will now await Chair Powell's remarks this afternoon for clues on the Fed's December decision, before turning to Friday's jobs report." In other news, factory orders increased 0.2% to $586.7 billion, according to the U.S. Census Bureau . Taken together, the economic data were supportive of current Fed policy and helped increase the odds of a quarter-point cut coming later this month. As of December 4, interest rate traders assigned a 78% probability to the Federal Open Market Committee (FOMC) cutting the short-term federal funds rate by 25 basis points (bps), or 0.25%, at the next Fed meeting , according to CME Group's FedWatch Tool . That's up from 67% a week ago. At the closing bell, the blue chip Dow Jones Industrial Average was up 0.7% at 45,014, while the broader S&P 500 added 0.6% to 6,086. The tech-heavy Nasdaq Composite rose 1.3% to end at 19,735. Stocks on the move UnitedHealth Group ( UNH ) stock rose 0.9% despite the healthcare giant abruptly canceling its investor day presentation following news that the CEO of its insurance unit had been fatally shot . Ahead of the presentation, UNH provided its outlook for fiscal 2025, calling for revenue in the range of $450 billion to $455 billion and earnings per share between $29.50 to $30. "Overall, the outlook is in-line with expectations and represents a solid starting point for a company that guides conservatively, though the devil will be in the details," said Oppenheimer analyst Michael Wiederhorn, who has an Outperform (Buy) rating on UNH. UNH, a Buy-rated Dow Jones stock , has the greatest influence in the price-weighted benchmark. The healthcare giant also routinely makes the list of analysts' top S&P 500 stocks to buy now . Dollar Tree ( DLTR ) stock increased 1.9% after the discount retailer beat top- and bottom-line expectations for its third quarter and raised the low end of its revenue forecast for the full year. The company now expects to achieve revenue in the range of $30.7 billion to $30.9 billion and earnings per share (EPS) of $5.31 to $5.51. DLTR had previously called for revenue in the range of $30.6 billion to $30.9 billion and EPS of between $5.20 to $5.60. It added that it continues to anticipate comparable-store sales growth in the low-single-digits. In addition, Dollar Tree announced that its chief financial officer, Jeff Davis, is stepping down and an external search for his replacement is underway. Pure Storage ( PSTG ) stock soared almost 22% after the data storage company beat expectations for its fiscal 2025 third quarter and announced it had been awarded a design win from a "top-four hyperscaler." As a result of its strong financial performance in the first nine months of its current fiscal year, Pure Storage raised its full-year outlook. The company now anticipates revenue of approximately $3.15 billion and operating income of roughly $540 million. That's up from its previous forecast for revenue of approximately $3.1 billion and operating income of about $532 million. CRM pops on Agentforce AI AI came to the rescue for software-as-a-service (SaaS) provider Salesforce ( CRM ) in its most recent quarter, making CRM the top-performing stock in the Dow Industrials on Wednesday. CRM stock popped 11% after the software provider beat revenue expectations for its fiscal 2025 third quarter and provided a strong revenue forecast for its fourth quarter and full year. CEO Marc Benioff noted the company's artificial intelligence (AI) system, Agentforce, is leading a transformation at Salesforce. "The rise of autonomous AI agents is revolutionizing global labor, reshaping how industries operate and scale," Benioff said in a statement . "With Agentforce, we're not just witnessing the future – we're leading it, unleashing a new era of digital labor for every business and every industry." CRM stock lags the broader market by a couple of percentage points for the year to date – but it's gaining momentum heading into 2025. Shares are up by a third over the past three months vs an increase of almost 10% for the broader market. As for CRM's prospects going forward, the 50 analysts covering the stock surveyed by S&P Global Market Intelligence give it a consensus recommendation of Buy with high conviction. Related content Best Dividend Stocks to Buy for Dependable Dividend Growth Best Bargain Stocks: Stocking Stuffers for the Holidays Is Nvidia Stock on Sale?KitchenAid's viral Evergreen stand mixer keeps selling out, but it's finally back in stock ahead of the holidays
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Innovative Tools for Nutrition Education and Climate ActionEASTON, Pa. (AP) — Nehemiah Benson's 28 points helped Binghamton defeat LIU 75-70 in overtime on Saturday. Benson had seven rebounds for the Bearcats (3-6). Tymu Chenery shot 7 for 12, including 3 for 5 from beyond the arc to add 18 points. Wes Peterson had 10 points and shot 3 of 4 from the field and 4 for 6 from the line. Gavin Walsh's layup with 2 seconds remaining in regulation tied it for Binghamton. Javascript is required for you to be able to read premium content. Please enable it in your browser settings. Get updates and player profiles ahead of Friday's high school games, plus a recap Saturday with stories, photos, video Frequency: Seasonal Twice a week
Results Summary 1 SUNNYVALE, Calif. , Dec. 4, 2024 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS ) today reported results for its fourth quarter and fiscal year 2024. Revenue for the fourth quarter of fiscal year 2024 was $1.636 billion , compared to $1.467 billion for the fourth quarter of fiscal year 2023. Revenue for fiscal year 2024 was $6.127 billion , an increase of approximately 15% from $5.318 billion in fiscal year 2023. "The fourth quarter was a strong finish to a transformational year for Synopsys. We achieved record financial results while doubling down on our strategy with the sale of our Software Integrity business and the pending acquisition of Ansys," said Sassine Ghazi , president and CEO of Synopsys. "Looking ahead, the AI-driven reinvention of compute is accelerating the pace, scale and complexity of technology R&D, which expands our opportunity to solve engineering challenges from silicon to systems." "Continued strong execution drove excellent Q4 results, which exceeded the midpoint of our guidance targets and capped a year of 15% revenue growth for the company," said Shelagh Glaser , CFO of Synopsys. "The combination of our execution focus, operating discipline, and the critical nature of our industry-leading technology positions us well for the future. In 2025, we expect to deliver double-digit revenue growth grounded in pragmatism given continued macro uncertainties and the impact of our fiscal year calendar change." Synopsys' previously announced acquisition of Ansys is expected to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. This week marked the expiration of the Hart-Scott-Rodino (HSR) Act waiting period, and Synopsys is working cooperatively with Federal Trade Commission (FTC) staff to conclude the investigation and the staff's review of Synopsys' proposed remedies. _______________________________________________ 1 On September 30, 2024, Synopsys completed the sale of its Software Integrity business. Synopsys' Software Integrity business has been presented as a discontinued operation in the consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis unless otherwise noted. Continuing Operations On September 30, 2024 , Synopsys completed the sale of its Software Integrity business. Unless otherwise noted, Synopsys' Software Integrity business has been presented as a discontinued operation in the Synopsys' consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis. GAAP Results On a U.S. generally accepted accounting principles (GAAP) basis, net income for the fourth quarter of fiscal year 2024 was $279.3 million , or $1.79 per diluted share, compared to $346.1 million , or $2.23 per diluted share, for the fourth quarter of fiscal year 2023. GAAP net income for fiscal year 2024 was $1.442 billion , or $9.25 per diluted share, compared to $1.227 billion , or $7.91 per diluted share, for fiscal year 2023. Non-GAAP Results On a non-GAAP basis, net income for the fourth quarter of fiscal year 2024 was $529.9 million , or $3.40 per diluted share, compared to non-GAAP net income of $464.1 million , or $3.00 per diluted share, for the fourth quarter of fiscal year 2023. Non-GAAP net income for fiscal year 2024 was $2.058 billion , or $13.20 per diluted share, compared to non-GAAP net income of $1.636 billion , or $10.54 per diluted share, for fiscal year 2023. For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below. Business Segments Synopsys reports revenue and operating income in two segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, system integration products and services, digital, custom and field programmable gate array IC design software, verification software and hardware products, manufacturing software products and other and (2) Design IP, which includes our interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services. Financial Targets Synopsys also provided its consolidated financial targets for the first quarter and full fiscal year 2025. These targets reflect a change in Synopsys' fiscal year from a 52/53-week period ending on the Saturday nearest to October 31 of each year to October 31 of each year. As a result of this change, there will be ten fewer days in the first half of fiscal year 2025 and two extra days in the second half of fiscal year 2025, which results in eight fewer days in the aggregate in Synopsys' fiscal year 2025 as compared to its fiscal year 2024. These targets also assume no further changes to export control restrictions or 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 Full Fiscal Year 2025 Financial Targets (1) (in millions except per share amounts) Range for Three Months Ending Range for Fiscal Year Ending January 31, 2025 October 31, 2025 Low High Low High Revenue $ 1,435 $ 1,465 $ 6,745 $ 6,805 GAAP Expenses $ 1,142 $ 1,162 $ 4,926 $ 4,983 Non-GAAP Expenses $ 945 $ 955 $ 4,045 $ 4,085 Non-GAAP Interest and Other Income (Expense), net $ 20 $ 22 $ 94 $ 98 Non-GAAP Tax Rate 16 % 16 % 16 % 16 % Outstanding Shares (fully diluted) 156 158 157 159 GAAP EPS $ 1.81 $ 1.95 $ 10.42 $ 10.63 Non-GAAP EPS $ 2.77 $ 2.82 $ 14.88 $ 14.96 Operating Cash Flow ~ $1,800 Free Cash Flow (2) ~ $1,600 Capital Expenditures ~ $170 (1) Synopsys' first quarter of fiscal year 2025 will end on January 31, 2025 and its fiscal year 2025 will end on October 31, 2025. (2) Free cash flow is calculated as cash provided from operating activities less capital expenditures. For a reconciliation of Synopsys' first quarter and fiscal year 2025 targets, including expenses, earnings per diluted share and other measures on a GAAP and non-GAAP basis and a discussion of the financial targets that we are not able to reconcile without unreasonable efforts, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below. 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 investor.synopsys.com . Synopsys uses its website as a tool to disclose important information about Synopsys and comply with its disclosure obligations under Regulation Fair Disclosure. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the first quarter of fiscal year 2025 in February 2025. Effectiveness of Information The targets included in this press release, the statements made during the earnings conference call, the information contained in the financial supplement and the corporate overview presentation, each of which are available on Synopsys' corporate website at www.synopsys.com (collectively, the " Earnings Materials "), represent Synopsys' expectations and beliefs as of December 4, 2024 . Although these Earnings Materials will remain available on Synopsys' website through the date of the earnings call for the first quarter of fiscal year 2025, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty and does not intend to update any forward-looking statement, whether as a result of new information or future events, or otherwise update, the targets given in this press release unless required by law. Availability of Final Financial Statements Synopsys will include final financial statements for the fiscal year 2024 in its annual report on Form 10-K to be filed on or before January 2, 2025 . 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 . Reconciliation of Fourth Quarter and Fiscal Year 2024 Results The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income, earnings per diluted share, and tax rate for the periods indicated below. GAAP to Non-GAAP Reconciliation of Fourth Quarter and Fiscal Year 2024 Results (1) (unaudited and in thousands, except per share amounts) Three Months Ended Twelve Months Ended October 31, October 31, 2024 2023 2024 2023 GAAP net income from continuing operations attributed to Synopsys $ 279,281 $ 346,051 $ 1,441,710 $ 1,227,045 Adjustments: Amortization of acquired intangible assets 54,258 14,886 104,220 50,477 Stock-based compensation 165,116 128,286 656,632 511,730 Acquisition/divestiture related items 62,428 4,016 172,638 13,831 Restructuring charges — (1,348) — 53,091 Gain on sale of strategic investments — — (55,077) — Tax settlement — — — (23,752) Tax adjustments (31,158) (27,753) (262,322) (196,471) Non-GAAP net income from continuing operations attributed to Synopsys $ 529,925 $ 464,138 $ 2,057,801 $ 1,635,951 Three Months Ended Twelve Months Ended October 31, October 31, 2024 2023 2024 2023 GAAP net income from continuing operations per diluted share attributed to Synopsys $ 1.79 $ 2.23 $ 9.25 $ 7.91 Adjustments: Amortization of acquired intangible assets 0.35 0.10 0.67 0.33 Stock-based compensation 1.06 0.83 4.21 3.30 Acquisition/divestiture related items 0.40 0.03 1.11 0.09 Restructuring charges — (0.01) — 0.34 Gain on sale of strategic investments — — (0.35) — Tax settlement — — — (0.15) Tax adjustments (0.20) (0.18) (1.69) (1.28) Non-GAAP net income from continuing operations per diluted share attributed to Synopsys $ 3.40 $ 3.00 $ 13.20 $ 10.54 Shares used in computing net income per diluted share amounts: 155,991 154,845 155,944 155,195 (1) Synopsys' fourth quarter of fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation purposes, we refer to the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter. GAAP to Non-GAAP Tax Rate Reconciliation (1)(2) (unaudited) Twelve Months Ended October 31, 2024 GAAP effective tax rate 6.6 % Stock-based compensation 2.9 % Income tax adjustments (3) 5.5 % Non-GAAP effective tax rate 15.0 % (1) Synopsys' fiscal year 2024 ended on November 2, 2024. For presentation purposes, we refer to the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter. (2) Presented on a continuing operations basis. (3) The adjustments are primarily related to the differences in the tax rate effect of certain deductions, such as the deduction for foreign-derived intangible income and credits. GAAP to Non-GAAP Reconciliation of 2025 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 2025 Targets (in thousands, except per share amounts) Range for Three Months Ending January 31, 2025 Low High Target GAAP expenses $ 1,142,000 $ 1,162,000 Adjustments: Amortization of acquired intangible assets (12,000) (15,000) Stock-based compensation (185,000) (192,000) Target non-GAAP expenses $ 945,000 $ 955,000 Range for Three Months Ending January 31, 2025 Low High Target GAAP earnings per diluted share attributed to Synopsys $ 1.81 $ 1.95 Adjustments: Amortization of acquired intangible assets 0.10 0.08 Stock-based compensation 1.22 1.18 Acquisition/divestiture related items (1) 0.08 0.06 Tax adjustments (0.44) (0.45) Target non-GAAP earnings per diluted share attributed to Synopsys $ 2.77 $ 2.82 Shares used in non-GAAP calculation (midpoint of target range) 157,000 157,000 GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2025 Targets (in thousands, except per share amounts) Range for Fiscal Year Ending October 31, 2025 Low High Target GAAP expenses $ 4,926,000 $ 4,983,000 Adjustments: Amortization of acquired intangible assets (46,000) (51,000) Stock-based compensation (835,000) (847,000) Target non-GAAP expenses $ 4,045,000 $ 4,085,000 Range for Fiscal Year Ending October 31, 2025 Low High Target GAAP earnings per diluted share attributed to Synopsys $ 10.42 $ 10.63 Adjustments: Amortization of acquired intangible assets 0.32 0.29 Stock-based compensation 5.36 5.28 Acquisition/divestiture related items (1) 0.29 0.26 Tax adjustments (1.51) (1.50) Target non-GAAP earnings per diluted share attributed to Synopsys $ 14.88 $ 14.96 Shares used in non-GAAP calculation (midpoint of target range) 158,000 158,000 (1) Adjustments reflect certain contractually obligated financing fees and related amortization expenses, and do not fully reflect all potential adjustments for future periods for the reasons set forth in "GAAP to Non-GAAP Reconciliation" below. Forward-Looking Statements This press release and the investor conference call contain forward-looking statements, including, but not limited to, statements regarding short-term and long-term financial targets, expectations and objectives including, among others, our long-term financial objectives, which include the anticipated effects of our pending acquisition of ANSYS, Inc. (the Ansys Merger); business and market outlook, opportunities, strategies and technological trends, such as artificial intelligence; planned acquisitions and their expected impact, including the Ansys Merger; the potential impact of the uncertain macroeconomic and geopolitical environment on our financial results; the expected impact of U.S. and foreign government trade restrictions and regulatory changes, including export control restrictions and tariffs on our financial results; customer license renewals and the expected realization and timing of our contracted but unsatisfied or partially unsatisfied performance obligations (backlog); planned dispositions and their expected impact; customer demand and market expansion for our products and our customers' products; our ability to successfully compete in the markets we serve; our planned product releases and capabilities; industry growth rates; software trends; planned stock repurchases; our expected tax rate; and the impact and result of pending legal, regulatory, administrative and tax proceedings. 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 such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: macroeconomic conditions and geopolitical uncertainty in the global economy; uncertainty in the growth of the semiconductor and electronics industries; the highly competitive industry we operate in; actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs; 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; failure to complete the Ansys Merger on the terms described in our filings with the SEC, if at all; failure to obtain required governmental approvals related to the Ansys Merger or the imposition of conditions to such governmental approvals that may have an adverse effect on us; failure to realize the benefits expected from the Ansys Merger; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our latest Annual Report on Form 10-K and in our latest Quarterly Report on Form 10-Q. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in Synopsys' most recent reports on Forms 10-K and 10-Q, each as may be amended from time to time. Synopsys' financial results for its fourth quarter and fiscal year 2024 are not necessarily indicative of Synopsys' operating results for any future periods. The information provided herein is as of December 4, 2024 . 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. SYNOPSYS, INC. Unaudited Consolidated Statements of Income (1) (in thousands, except per share amounts) Three Months Ended Twelve Months Ended October 31, October 31, 2024 2023 2024 2023 Revenue: Time-based products $ 834,375 $ 780,725 $ 3,224,299 $ 3,016,256 Upfront products 520,939 441,494 1,802,222 1,400,125 Total products revenue 1,355,314 1,222,219 5,026,521 4,416,381 Maintenance and service 280,672 245,164 1,100,915 901,633 Total revenue 1,635,986 1,467,383 6,127,436 5,318,014 Cost of revenue: Products 216,485 197,540 770,238 697,686 Maintenance and service 91,707 76,043 367,055 287,876 Amortization of acquired intangible assets 66,831 12,598 107,996 45,281 Total cost of revenue 375,023 286,181 1,245,289 1,030,843 Gross margin 1,260,963 1,181,202 4,882,147 4,287,171 Operating expenses: Research and development 554,818 465,815 2,082,360 1,849,935 Sales and marketing 219,225 186,953 859,342 724,934 General and administrative 172,032 102,271 568,496 376,677 Amortization of acquired intangible assets 4,086 3,346 16,238 9,295 Restructuring charges — (1,348) — 53,091 Total operating expenses 950,161 757,037 3,526,436 3,013,932 Operating income 310,802 424,165 1,355,711 1,273,239 Interest and other income (expense), net 12,077 (20,400) 158,147 32,231 Income before income taxes 322,879 403,765 1,513,858 1,305,470 Provision (benefit) for income taxes 62,084 60,409 99,718 90,188 Net income from continuing operations 260,795 343,356 1,414,140 1,215,282 Income from discontinued operations, net of income taxes 834,825 3,139 821,670 2,843 Net income 1,095,620 346,495 2,235,810 1,218,125 Less: Net income (loss) attributed to non-controlling interest and redeemable non-controlling interest (18,486) (2,695) (27,570) (11,763) Net income attributed to Synopsys $ 1,114,106 $ 349,190 $ 2,263,380 $ 1,229,888 Net income attributed to Synopsys Continuing operations $ 279,281 $ 346,051 $ 1,441,710 $ 1,227,045 Discontinued operations 834,825 3,139 821,670 2,843 Net income $ 1,114,106 $ 349,190 $ 2,263,380 $ 1,229,888 Net income per share attributed to Synopsys - basic: Continuing operations $ 1.81 $ 2.28 $ 9.41 $ 8.06 Discontinued operations 5.43 0.02 5.37 0.02 Basic net income per share $ 7.24 $ 2.30 $ 14.78 $ 8.08 Net income per share attributed to Synopsys - diluted: Continuing operations $ 1.79 $ 2.23 $ 9.25 $ 7.91 Discontinued operations 5.35 0.03 5.26 0.01 Diluted net income per share $ 7.14 $ 2.26 $ 14.51 $ 7.92 Shares used in computing per share amounts: Basic 153,916 151,972 153,138 152,146 Diluted 155,991 154,845 155,944 155,195 (1) Synopsys' fourth quarter of fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation purposes, we refer to the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter. SYNOPSYS, INC. Unaudited Consolidated Balance Sheets (1) (in thousands, except par value amounts) October 31, 2024 October 31, 2023 ASSETS: Current assets: Cash and cash equivalents $ 3,896,532 $ 1,433,966 Short-term investments 153,869 151,639 Total cash, cash equivalents and short-term investments 4,050,401 1,585,605 Accounts receivable, net 934,470 856,660 Inventories 361,849 325,590 Prepaid and other current assets 1,122,946 548,115 Current assets of discontinued operations — 114,654 Total current assets 6,469,666 3,430,624 Property and equipment, net 563,006 549,837 Operating lease right-of-use assets, net 565,917 559,923 Goodwill 3,448,850 3,346,065 Intangible assets, net 195,164 239,577 Deferred income taxes 1,247,258 853,526 Other long-term assets 583,700 444,820 Long-term assets of discontinued operations — 908,759 Total assets $ 13,073,561 $ 10,333,131 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable and accrued liabilities $ 1,163,592 $ 1,059,914 Operating lease liabilities 94,791 79,832 Deferred revenue 1,391,737 1,559,461 Current liabilities of discontinued operations — 286,244 Total current liabilities 2,650,120 2,985,451 Long-term operating lease liabilities 574,065 579,686 Long-term deferred revenue 340,831 150,827 Long-term debt 15,601 18,078 Other long-term liabilities 469,738 381,531 Long-term liabilities of discontinued operations — 33,257 Total liabilities 4,050,355 4,148,830 Redeemable non-controlling interest 30,000 31,043 Stockholders' equity: Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding — — Common stock, $0.01 par value: 400,000 shares authorized; 154,112 and 152,053 shares outstanding, respectively 1,541 1,521 Capital in excess of par value 1,211,206 1,276,152 Retained earnings 8,984,105 6,741,699 Treasury stock, at cost: 3,148 and 5,207 shares, respectively (1,025,770) (1,675,650) Accumulated other comprehensive income (loss) (180,380) (196,414) Total Synopsys stockholders' equity 8,990,702 6,147,308 Non-controlling interest 2,504 5,950 Total stockholders' equity 8,993,206 6,153,258 Total liabilities, redeemable non-controlling interest and stockholders' equity $ 13,073,561 $ 10,333,131 (1) Synopsys' fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation purposes, we refer to the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter. SYNOPSYS, INC. Unaudited Consolidated Statements of Cash Flows (1) (in thousands) Twelve Months Ended 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 2,235,810 $ 1,218,125 Adjustments to reconcile net income to net cash provided by operating activities: Amortization and depreciation 295,065 247,120 Reduction of operating lease right-of-use assets 97,273 97,705 Amortization of capitalized costs to obtain revenue contracts 73,587 82,190 Stock-based compensation 692,316 563,292 Allowance for credit losses 19,724 19,932 Gain on sale of strategic investments (55,077) — Gain on divestitures, net of transaction costs (868,830) — Amortization of bridge financing costs 33,677 — Deferred income taxes (407,649) (211,045) Other (1,295) 13,295 Net changes in operating assets and liabilities, net of effects from acquisitions and dispositions: Accounts receivable (103,460) (178,432) Inventories (51,449) (123,752) Prepaid and other current assets (410,432) (106,396) Other long-term assets (168,255) (100,618) Accounts payable and accrued liabilities 187,564 170,496 Operating lease liabilities (96,966) (73,281) Income taxes (73,215) 198,078 Deferred revenue 8,641 (113,435) Net cash provided by operating activities 1,407,029 1,703,274 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from maturities and sales of short-term investments 138,961 130,435 Purchases of short-term investments (136,821) (131,079) Proceeds from sales of strategic investments 55,696 8,492 Purchases of strategic investments (1,293) (435) Purchases of property and equipment, net (123,161) (189,618) Acquisitions, net of cash acquired (156,947) (297,692) Proceeds from business divestiture, net of cash divested 1,446,578 — Capitalization of software development costs — (2,204) Net cash provided by (used in) investing activities 1,223,013 (482,101) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of debt (2,607) (2,603) Payment of bridge financing and term loan costs (72,265) — Issuances of common stock 232,212 252,986 Payments for taxes related to net share settlement of equity awards (337,541) (241,408) Purchase of equity forward contract — (45,000) Purchases of treasury stock — (1,160,724) Other (1,096) (122) Net cash used in financing activities (181,297) (1,196,871) Effect of exchange rate changes on cash, cash equivalents and restricted cash 8,797 (2,979) Net change in cash, cash equivalents and restricted cash 2,457,542 21,323 Cash, cash equivalents and restricted cash, beginning of year, including cash from discontinued operations 1,441,187 1,419,864 Cash, cash equivalents and restricted cash, end of period, including cash from discontinued operations 3,898,729 1,441,187 Less: Cash, cash equivalents and restricted cash from discontinued operations — 4,947 Cash, cash equivalents and restricted cash from continuing operations $ 3,898,729 $ 1,436,240 (1) Synopsys' fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation purposes, we refer to the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter. Synopsys provides segment information, namely revenue, adjusted segment operating income and adjusted segment operating margin, in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 280, Segment Reporting. Synopsys' chief operating decision maker (" CODM ") is our Chief Executive Officer. In evaluating our business segments, the CODM considers the income and expenses that the CODM believes are directly related to those segments. The CODM does not allocate certain operating expenses managed at a consolidated level to our business segments and, as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table below. These unallocated expenses are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income from continuing operations: SYNOPSYS, INC. Business Segment Reporting (1)(2)(5) (in millions) Three Months Ended October 31, 2024 Three Months Ended October 31, 2023 Twelve Months Ended October 31, 2024 Twelve Months Ended October 31, 2023 Revenue by segment - Design Automation $ 1,118.2 $ 953.7 $ 4,221.1 $ 3,775.3 % of Total 68.3 % 65.0 % 68.9 % 71.0 % - Design IP $ 517.8 $ 513.7 $ 1,906.3 $ 1,542.7 % of Total 31.7 % 35.0 % 31.1 % 29.0 % Adjusted operating income by segment - Design Automation $ 413.3 $ 311.1 $ 1,631.9 $ 1,413.9 - Design IP $ 189.9 $ 236.4 $ 730.2 $ 514.1 Adjusted operating margin by segment - Design Automation 37.0 % 32.6 % 38.7 % 37.5 % - Design IP 36.7 % 46.0 % 38.3 % 33.3 % Total Adjusted Segment Operating Income Reconciliation (1)(2)(5) (in millions) Three Months Ended October 31, 2024 Three Months Ended October 31, 2023 Twelve Months Ended October 31, 2024 Twelve Months Ended October 31, 2023 GAAP total operating income – as reported $ 310.8 $ 424.2 $ 1,355.7 $ 1,273.2 Other expenses managed at consolidated level -Amortization of acquired intangible assets (3) 70.9 15.9 124.2 54.6 -Stock-based compensation (3) 165.4 128.6 657.9 513.1 -Non-qualified deferred compensation plan 9.2 (23.9) 85.4 20.2 -Acquisition/divestiture related items (4) 47.0 4.0 138.7 13.8 -Restructuring charges — (1.3) — 53.1 Total adjusted segment operating income $ 603.2 $ 547.5 $ 2,362.1 $ 1,928.0 (1) Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue and profitability as normal elements of our business. Amounts may not foot due to rounding. (2) Synopsys' fourth quarter of fiscal year 2024 and 2023 ended on November 2, 2024 and October 28, 2023, respectively. For presentation purposes, we refer to the closest calendar month end. Fiscal year 2024 was a 53-week year, which included an extra week in the first quarter. (3) The adjustment includes non-GAAP expenses attributable to non-controlling interest and redeemable non-controlling interest. (4) The adjustment excludes the amortization of bridge financing costs entered into in connection with the pending acquisition of Ansys, that was recorded in interest and other income (expense), net, in our unaudited condensed consolidated statements of income. (5) Presented on a continuing operations basis. GAAP to Non-GAAP Reconciliation Synopsys continues to provide all information required in accordance with GAAP but acknowledges 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 budgeting and resource allocation purposes. This press release includes non-GAAP earnings per diluted share, non-GAAP net income and non-GAAP tax rate for the periods presented. It also includes future estimates for non-GAAP expenses, non-GAAP interest and other income (expense), non-GAAP tax rate, non-GAAP earnings per diluted share and free cash flow. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. When possible, Synopsys provides a reconciliation of non-GAAP financial measures to their most closely applicable GAAP financial measures. Synopsys is unable to provide a full reconciliation of certain first quarter and full fiscal year 2025 non-GAAP financial targets to the corresponding GAAP financial measures on a forward-looking basis because Synopsys believes that it would not be possible for it to have the required information necessary to quantitatively reconcile such measures with sufficient precision without unreasonable efforts due to, among other things, the potential variability and limited predictability of the excluded adjustment items necessary for a full reconciliation such as certain acquisition/divestiture related items, restructuring charges, tax deduction variability, changes in the fair value of non-qualified deferred compensation plan, and gains (losses) on the sale of strategic investments. For the same reasons, Synopsys is unable to address the probable significance of the unavailable information. Synopsys' management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, as superior to, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, the corresponding GAAP financial measures. Synopsys' management believes presentation of non-GAAP financial measures, when shown in conjunction with the corresponding GAAP financial measures, provides useful information to investors allowing them to view financial and business trends relating to our financial condition and results of operations through the eyes of management. Synopsys' management evaluates and makes decisions about our business operations using both GAAP financial measures and non-GAAP financial measures to help facilitate internal comparisons to Synopsys' historical operating results and forecasted targets, planning and forecasting in subsequent periods and comparisons to competitors' operating results. The following are descriptions of the adjustments made to reconcile non-GAAP financial measures (other than free cash flow, which is defined in the footnote to the Financial Targets table above) to the most directly comparable GAAP financial measures: (i) Amortization of acquired intangible assets. We incur expenses from amortization of acquired intangible assets, which may include impairment charges from write-downs of acquired intangible assets. Acquired intangible assets include, among other things, core/developed technology, customer relationships, contract rights, trademarks and trade names, and other intangibles related to acquisitions. We amortize the intangible assets over their estimated useful lives. We do not enter into acquisitions on a predictable cycle. The amount of an acquisition's purchase price allocated to intangible assets and their estimated useful lives can vary significantly and are unique to each acquisition. From time to time, we incur impairment charges due to write-downs of acquired intangible assets. We believe that the presentation of non-GAAP financial measures that adjust for the amortization of intangible assets, including impairment charges, provides investors and others with a consistent basis for comparison across accounting periods. We also exclude this item because such expenses are non-cash in nature and we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our core operational performance and liquidity, and ability to invest in research and development and fund future acquisitions and capital expenditures. (ii) Stock-based compensation . Stock-based compensation expenses consist primarily of expenses related to restricted stock units, stock options, employee stock purchase rights and other stock awards, including such expenses associated with acquisitions. We exclude stock-based compensation expense from our non-GAAP financial measures primarily because it is not an expense that typically requires or will require cash settlement by us. Further, the expense for the fair value of the stock-based instruments we utilize may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards and, therefore, is not used by management to assess the core profitability of our business operations. (iii) Acquisition/divestiture related items. In connection with certain of our business combinations and/or divestitures, we incur significant expenses that we would not have otherwise incurred as part of our business operations. These expenses include, among other things, compensation expenses, professional fees and other direct expenses, concurrent restructuring activities and divestiture activities, including employee severance and other exit costs, bridge financing costs, costs related to integration activities, changes to the fair value of contingent consideration related to the acquired company, and amortization of the fair value difference of below-market value assets arising from arrangements entered into or acquired in conjunction with an acquisition. We also recognize the gains and losses from the mark-up of equity or cost method investments to fair value upon obtaining control through acquisition. We exclude these items because they are related to acquisitions and have no direct correlation to the core operation of our business. Further, because we do not acquire businesses on a predictable cycle and the terms of each transaction can vary significantly and are unique to each transaction, we believe it is useful to exclude such expenses when looking for a consistent basis for comparison across accounting periods. (iv) Restructuring charges. We initiate restructuring activities to align our costs to our operating plans and business strategies based on then-current economic conditions, and such activities have a specific and defined term. Restructuring costs generally include severance and other termination benefits related to voluntary retirement programs, involuntary headcount reductions and facilities closures. Such restructuring costs include elimination of operational redundancy, permanent reductions in workforce and facilities closures and, therefore, are not considered by us to be a part of the core operation of our business and are not used by management when assessing the core profitability and performance of our business operations. (v) Gains (losses) on the sale of strategic investments. We exclude gains and losses on the sale of equity investments in privately held companies because we do not believe they are reflective of our core business and operating results. (vi) Deferred compensation . We exclude changes in the fair value of our non-qualified deferred compensation plan because we do not use these to assess the core profitability of our business operations. (vii) Income tax effect of non-GAAP pre-tax adjustments . Excluding the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes assists investors in understanding the tax provision associated with those adjustments and the effect on net income. We utilize an annual non-GAAP tax rate in calculating non-GAAP financial measures to provide better consistency across interim reporting periods by eliminating the effects of certain non-recurring and other period-specific items, which can vary in size and frequency and do not necessarily reflect our normal operations, and to more closely align our tax rate with our expected geographic earnings mix. This annual non-GAAP tax rate is based on an evaluation of our historical and projected mix of U.S. and international profit before tax, taking into account the impact of non-GAAP adjustments, U.S. tax law changes, as well as other factors such as our current tax structure, existing tax positions and expected recurring tax incentives. Based on these considerations, we have elected to adopt a non-GAAP tax rate of 16% for fiscal year 2025. 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 View original content to download multimedia: https://www.prnewswire.com/news-releases/synopsys-posts-financial-results-for-fourth-quarter-and-fiscal-year-2024-302322901.html SOURCE Synopsys, Inc.INDIANAPOLIS (AP) — Jared Goff and the Detroit Lions spent three months scoring at a historic rate. Now with the weather changing outside, they’re winning with old school football, too. , David Montgomery added a third TD run and Detroit's increasingly stingy defense kept the Indianapolis Colts out of the end zone on Sunday, leading the Lions to their ninth straight win, 24-6. “This is, whatever it is, 10 quarters without allowing a touchdown and the three last games in the second half we're not allowing it,” coach Dan Campbell said. “We talk about it all the time — limiting points, play physical style, shut down the run — we were able to do that.” They've been doing it all season in their greatest run in decades, but have been more effective lately and it has shown. The Lions improved to 10-1 for the first time since 1934, their inaugural season in the Motor City. They own the league's longest active winning streak and are 6-0 on the road this season. While the Lions have scored points by the dozens all season, Campbell's preference for physical football means they're equally capable of grinding out wins with the combination of a ball-control offense and an ascending defense that propelled them to this win. Gibbs finished with 21 carries for 90 yards on a day Goff went 26 of 36 with 269 yards and no touchdowns. And for the third straight week, all against AFC South foes, the Lions had a second-half shutout. “If you can win on the road, you're normally a pretty damn good team,” Campbell said. “And we can win on the road.” The Colts (5-7) found out the hard way by losing their second straight home game and for the fourth time in their past five games. , going 11 of 28 with 172 yards while rushing 10 times for 61 yards. But it was Indy's inability to finish drives with touchdowns that again cost the team. That flaw was evident right from the start when Richardson took the Colts inside the Lions 5-yard line on the game's first series and settled for a short field goal when they couldn't punch it in. “We've got to take advantage of our opportunities,” Colts coach Shane Steichen said. “This league comes down to inches, it comes down to yards and you've got to take advantage of those opportunities. We've had issues down in the red zone and you have to look at the tape and clean it up.” Detroit made Indy pay dearly for its offensive miscues. Gibbs' 1-yard TD run on the Lions' second series made it 7-3 early in the second quarter and after Indy settled for another short field goal, for a 6-yard TD and a 14-6 lead. Detroit's defense made sure that was all the scoring punch it needed. “Those players, we've been around each other long enough, they've been around each other to know exactly what we're looking for,” Campbell said. “We have an identity about us. We know the critical factors as they pertain to winning, and those guys take that stuff serious.” Gibbs' 5-yard TD run late in the third quarter gave Detroit a 21-6 lead and they closed it out with a 56-yard field goal midway through the fourth. Amon-Ra St. Brown caught six passes for 62 yards for Detroit while Michael Pittman Jr. had six catches for 96 yards for Indy despite leaving briefly in the first half with an injured shoulder. Gibbs' first score extended Detroit's league record to 25 consecutive games with a TD run, including the playoffs. He's also the third Lions player with 1,000 scrimmage yards and 10 TDs in each of his first two pro seasons with Detroit, joining Billy Sims and Barry Sanders. Gibbs and Montgomery have each scored at least one TD in the same game nine times. Lions: Things got ugly during a third-quarter flurry. Receiver-punt returner Kalif Raymond (foot), left tackle Taylor Decker (right leg) and Montgomery (shoulder) all left in quick succession. Raymond and Montgomery did not return. Decker did. CB Carlton Davis II left early in the fourth with what appeared to be a left knee injury. Colts: Indy deactivated left tackle Bernhard Raimann (knee), forcing the Colts to again use three rookie linemen. Receivers Ashton Dulin (ankle) and Josh Downs (shoulder) both left in the second half. Downs returned, Dulin did not. Lions: Host Chicago in its traditional Thanksgiving Day game. Colts: Visit New England next Sunday. AP NFL:
Schedule subject to change and/or blackouts Monday, Nov. 25 COLLEGE BASKETBALL (MEN’S) 2:30 p.m. ESPN2 — Maui Invitational: Memphis vs. UConn, Quarterfinal, Maui, Hawaii 4 p.m. CBSSN — Sunshine Slam Beach Bracket: Fordham vs. Penn St., Semifinal, Daytona Beach, Fla. 5 p.m. ESPN2 — Maui Invitational: Colorado vs. Michigan St., Quarterfinal, Maui, Hawaii 6 p.m. FS1 — Fort Myers Tip-Off: Michigan vs. Virginia Tech, Semifinal, Fort Myers, Fla. 6:30 p.m. CBSSN — Sunshine Slam Beach Bracket: Clemson vs. San Francisco, Semifinal, Daytona Beach, Fla. 7 p.m. BTN — Green Bay at Ohio St. 8:30 p.m. FS1 — Fort Myers Tip-Off: Xavier vs. South Carolina, Semifinal, Fort Myers, Fla. 9 p.m. BTN — Little Rock at Illinois ESPNU — Maui Invitational: Iowa St. vs. Auburn, Quarterfinal, Maui, Hawaii 11:30 p.m. ESPN2 — Maui Invitational: Dayton vs. North Carolina, Quarterfinal, Maui, Hawaii COLLEGE BASKETBALL (WOMEN’S) Noon ESPN2 — Battle 4 Atlantis: TBD, Championship, Nassau, Bahamas 2:30 p.m. ESPNU — Battle 4 Atlantis: TBD, Third-Place Game, Nassau, Bahamas HIGH SCHOOL BASKETBALL (BOY’S) 7 p.m. ESPNU — The Five for the Fight National Hoopfest: Montverde Academy (Fla.) vs. Wasatch Academy (Utah), Pleasant Grove, Utah NBA BASKETBALL 7:30 p.m. NBATV — Dallas at Atlanta 10 p.m. NBATV — Oklahoma City at Sacramento NFL FOOTBALL 8:15 p.m. ABC — Baltimore at L.A. Chargers ESPN — Baltimore at L.A. Chargers ESPN2 — Baltimore at L.A. Chargers (MNF with Peyton and Eli) SOCCER (MEN’S) 3 p.m. USA — Premier League: West Ham United at Newcastle United The Associated Press created this story using technology provided by Data Skrive TV listings provided by LiveSportsOnTV .
WASHINGTON (AP) — Carmelo Pacheco's 18 points helped Mount St. Mary's defeat Howard 79-75 on Saturday. Pacheco shot 6 for 8 from beyond the arc for the Mountaineers (5-2). Dallas Hobbs shot 5 of 16 from the field, including 1 for 8 from 3-point range, and went 6 for 7 from the line to add 17 points. Terrell Ard Jr. had 16 points and shot 4 of 6 from the field and 8 of 8 from the free-throw line. Anwar Gill finished with 18 points for the Bison (3-5). Blake Harper added 15 points, seven rebounds and two steals for Howard. Joshua Strong also had 12 points. ___ The Associated Press created this story using technology provided by and data from . The Associated PressIsraeli strikes on a Gaza tent camp kill at least 21 people, hospital says
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