Company Quick10K Filing
Synopsys
Price137.13 EPS3
Shares154 P/E40
MCap21,144 P/FCF49
Net Debt-610 EBIT557
TEV20,534 TEV/EBIT37
TTM 2019-10-31, in MM, except price, ratios
10-Q 2020-04-30 Filed 2020-05-22
10-Q 2020-01-31 Filed 2020-02-21
10-K 2019-10-31 Filed 2019-12-20
10-Q 2019-07-31 Filed 2019-08-26
10-Q 2019-04-30 Filed 2019-05-24
10-Q 2019-01-31 Filed 2019-02-25
10-K 2018-10-31 Filed 2018-12-17
10-Q 2018-07-31 Filed 2018-08-24
10-Q 2018-04-30 Filed 2018-05-25
10-Q 2018-01-31 Filed 2018-02-23
10-K 2017-10-31 Filed 2017-12-14
10-Q 2017-07-31 Filed 2017-08-18
10-Q 2017-04-30 Filed 2017-05-19
10-Q 2017-01-31 Filed 2017-02-17
10-K 2016-10-31 Filed 2016-12-12
10-Q 2016-07-31 Filed 2016-08-22
10-Q 2016-04-30 Filed 2016-05-24
10-Q 2016-01-31 Filed 2016-02-22
10-K 2015-10-31 Filed 2015-12-14
10-Q 2015-07-31 Filed 2015-08-24
10-Q 2015-04-30 Filed 2015-05-22
10-Q 2015-01-31 Filed 2015-02-24
10-K 2014-10-31 Filed 2014-12-15
10-Q 2014-07-31 Filed 2014-08-26
10-Q 2014-04-30 Filed 2014-05-28
10-Q 2014-01-31 Filed 2014-02-26
10-K 2013-10-31 Filed 2013-12-20
10-Q 2013-04-30 Filed 2013-05-31
10-Q 2013-01-31 Filed 2013-03-04
10-K 2012-10-31 Filed 2012-12-20
10-Q 2012-07-31 Filed 2012-08-31
10-Q 2012-04-30 Filed 2012-06-04
10-Q 2012-01-31 Filed 2012-03-06
10-K 2011-10-31 Filed 2011-12-16
10-Q 2011-07-31 Filed 2011-09-02
10-Q 2011-04-30 Filed 2011-05-27
10-Q 2011-01-31 Filed 2011-03-02
10-K 2010-10-31 Filed 2010-12-17
10-Q 2010-07-31 Filed 2010-09-08
10-Q 2010-04-30 Filed 2010-06-04
10-Q 2010-01-31 Filed 2010-03-09
8-K 2020-06-19
8-K 2020-05-20
8-K 2020-04-09
8-K 2020-02-27
8-K 2020-02-19
8-K 2019-12-19
8-K 2019-12-04
8-K 2019-08-29
8-K 2019-08-21
8-K 2019-08-21
8-K 2019-06-14
8-K 2019-06-04
8-K 2019-05-22
8-K 2019-04-08
8-K 2019-02-28
8-K 2019-02-20
8-K 2018-12-05
8-K 2018-12-05
8-K 2018-08-22
8-K 2018-07-03
8-K 2018-05-31
8-K 2018-05-23
8-K 2018-04-05
8-K 2018-04-05
8-K 2018-02-21

SNPS 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1. Description of Business
Note 2. Summary of Significant Accounting Policies
Note 3. Revenue
Note 4. Business Combinations
Note 5. Goodwill and Intangible Assets
Note 6. Financial Assets and Liabilities
Note 7. Fair Value Measures
Note 8. Liabilities and Restructuring Charges
Note 9. Credit and Term Loan Facilities
Note 10. Leases
Note 11. Accumulated Other Comprehensive Income (Loss)
Note 12. Stock Repurchase Program
Note 13. Stock - Based Compensation
Note 14. Net Income per Share
Note 15. Segment Disclosure
Note 16. Other Income (Expense), Net
Note 17. Income Taxes
Note 18. Contingencies
Note 19. Effect of New Accounting Pronouncements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 ex311043020.htm
EX-31.2 ex312043020.htm
EX-31.3 ex313043020.htm
EX-32.1 ex321043020.htm

Synopsys Earnings 2020-04-30

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
0.90.70.50.20.0-0.22012201420172020
Rev, G Profit, Net Income
0.40.2-0.0-0.3-0.5-0.72012201420172020
Ops, Inv, Fin

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
 
FORM 10-Q
 
 
 
(MARK ONE)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM                      TO
COMMISSION FILE NUMBER: 000-19807
 
 
 
synopsyslogoa20.jpg
SYNOPSYS, INC.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
 
56-1546236
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification Number)
690 EAST MIDDLEFIELD ROAD
MOUNTAIN VIEW, CA 94043
(Address of principal executive offices, including zip code)
(650) 584-5000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
($0.01 par value)
SNPS
Nasdaq Global Select Market
 
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
ý
  
Accelerated Filer
 
Non-accelerated filer
 
¨  
  
Smaller reporting company
 
 
 
 
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ý
As of May 20, 2020, there were 150,788,707 shares of the registrant’s common stock outstanding.




SYNOPSYS, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE FISCAL QUARTER ENDED APRIL 30, 2020
TABLE OF CONTENTS
 
 
 
 
 
Page
PART I.
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
PART II.
Item 1.
Item 1A.
Item 2.
Item 6.





PART I. FINANCIAL INFORMATION
 
 
 
Item 1.
 
Financial Statements
SYNOPSYS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value amounts)
 
April 30, 2020
 
 October 31,
2019*
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
856,424

 
$
728,597

Accounts receivable, net
634,807

 
553,895

Inventories
166,437

 
141,518

Income taxes receivable and prepaid taxes
18,809

 
24,855

Prepaid and other current assets
284,278

 
290,052

Total current assets
1,960,755

 
1,738,917

Property and equipment, net
470,412

 
429,532

Operating lease right-of-use assets, net
462,778

 

Goodwill
3,311,243

 
3,171,179

Intangible assets, net
279,311

 
279,374

Long-term prepaid taxes
15,068

 
15,503

Deferred income taxes
430,105

 
390,129

Other long-term assets
392,794

 
380,526

Total assets
$
7,322,466

 
$
6,405,160

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued liabilities
$
447,055

 
$
506,459

Operating lease liabilities, current
72,465

 

Accrued income taxes
16,754

 
15,904

Deferred revenue
1,396,511

 
1,212,476

Short-term debt
121,412

 
17,614

Total current liabilities
2,054,197

 
1,752,453

Operating lease liabilities, non-current
462,094

 

Long-term accrued income taxes
24,589

 
29,911

Long-term deferred revenue
125,153

 
90,102

Long-term debt
114,370

 
120,093

Other long-term liabilities
261,114

 
323,725

Total liabilities
3,041,517

 
2,316,284

Stockholders’ equity:
 
 
 
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding

 

Common stock, $0.01 par value: 400,000 shares authorized; 150,908 and 150,331 shares outstanding, respectively
1,509

 
1,503

Capital in excess of par value
1,655,787

 
1,635,455

Retained earnings
3,356,489

 
3,164,144

Treasury stock, at cost: 6,353 and 6,930 shares, respectively
(634,669
)
 
(625,642
)
Accumulated other comprehensive income (loss)
(104,030
)
 
(92,447
)
Total Synopsys stockholders’ equity
4,275,086

 
4,083,013

Non-controlling interest
5,863

 
5,863

Total stockholders’ equity
4,280,949

 
4,088,876

Total liabilities and stockholders’ equity
$
7,322,466

 
$
6,405,160

*
Derived from audited financial statements.
See accompanying notes to unaudited condensed consolidated financial statements.

1



SYNOPSYS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 
Three Months Ended 
 April 30,
 
Six Months Ended 
 April 30,
 
2020
 
2019
 
2020
 
2019
Revenue:
 
 
 
 
 
 
 
Time-based products
$
590,097

 
$
558,305

 
$
1,146,536

 
$
1,112,021

Upfront products
129,765

 
143,401

 
280,486

 
273,914

Maintenance and service
141,465

 
134,536

 
268,686

 
270,708

Total revenue
861,327

 
836,242

 
1,695,708

 
1,656,643

Cost of revenue:
 
 
 
 
 
 
 
Products
108,207

 
116,010

 
225,991

 
232,630

Maintenance and service
62,213

 
59,788

 
124,128

 
118,617

Amortization of intangible assets
13,845

 
14,881

 
27,014

 
32,324

Total cost of revenue
184,265

 
190,679

 
377,133

 
383,571

Gross margin
677,062

 
645,563

 
1,318,575

 
1,273,072

Operating expenses:
 
 
 
 
 
 
 
Research and development
302,571

 
290,299

 
616,854

 
561,625

Sales and marketing
146,200

 
158,652

 
299,055

 
314,611

General and administrative
62,474

 
56,351

 
131,218

 
98,412

Amortization of intangible assets
10,250

 
10,316

 
19,614

 
21,100

Restructuring charges
29,672

 
14,443

 
38,423

 
14,408

Total operating expenses
551,167

 
530,061

 
1,105,164

 
1,010,156

Operating income
125,895

 
115,502

 
213,411

 
262,916

Other income (expense), net
(15,729
)
 
18,415

 
(3,672
)
 
18,056

Income before income taxes
110,166

 
133,917

 
209,739

 
280,972

Provision (benefit) for income taxes
246

 
15,707

 
(4,242
)
 
9,248

Net income
$
109,920

 
$
118,210

 
$
213,981

 
$
271,724

Net income per share:
 
 
 
 
 
 
 
Basic
$
0.73

 
$
0.79

 
$
1.42

 
$
1.82

Diluted
$
0.71

 
$
0.77

 
$
1.39

 
$
1.77

Shares used in computing per share amounts:
 
 
 
 
 
 
 
Basic
150,597

 
149,712

 
150,421

 
149,500

Diluted
154,379

 
153,904

 
154,471

 
153,383

See accompanying notes to unaudited condensed consolidated financial statements.


2



SYNOPSYS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
 
Three Months Ended 
 April 30,
 
Six Months Ended 
 April 30,
 
2020
 
2019
 
2020
 
2019
Net income
$
109,920

 
$
118,210

 
$
213,981

 
$
271,724

Other comprehensive income (loss):
 
 
 
 
 
 
 
Change in foreign currency translation adjustment
(10,965
)
 
(3,327
)
 
(4,003
)
 
2,056

Cash flow hedges:
 
 
 
 
 
 
 
Deferred gains (losses), net of tax of $2,763 and $2,346, for the three and six months ended April 30, 2020, respectively, and of $(123) and $(1,714) for each of the same periods in fiscal 2019, respectively.
(10,085
)
 
447

 
(8,434
)
 
5,914

Reclassification adjustment on deferred (gains) losses included in net income, net of tax of $(32) and $(128), for the three and six months ended April 30, 2020, respectively, and of $(1,050) and $(2,286) for each of the same periods in fiscal 2019, respectively.
331

 
4,012

 
854

 
8,487

Other comprehensive income (loss), net of tax effects
(20,719
)
 
1,132

 
(11,583
)
 
16,457

Comprehensive income
$
89,201

 
$
119,342

 
$
202,398

 
$
288,181

See accompanying notes to unaudited condensed consolidated financial statements.


3



SYNOPSYS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)
 
 
 
Capital in
Excess of
Par
Value
 
Retained
Earnings
 
Treasury
Stock
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total 
Synopsys
Stockholders’
Equity
 
Non-controlling
Interest
 
Stockholders'
Equity
 
Common Stock
 
 
Shares
 
Amount
 
Balance at January 31, 2020
150,202

 
$
1,502

 
$
1,626,783

 
$
3,268,205

 
$
(664,352
)
 
$
(83,311
)
 
$
4,148,827

 
$
5,863

 
$
4,154,690

Net income
 
 
 
 
 
 
109,920

 
 
 
 
 
109,920

 
 
 
109,920

Other comprehensive income (loss), net of tax effects
 
 
 
 
 
 
 
 
 
 
(20,719
)
 
(20,719
)
 
 
 
(20,719
)
Purchases of treasury stock
(652
)
 
(7
)
 
7

 
 
 
(100,000
)
 
 
 
(100,000
)
 
 
 
(100,000
)
Equity forward contract
 
 
 
 

 
 
 


 
 
 

 
 
 

Common stock issued, net of shares withheld for employee taxes
1,358

 
14

 
(27,438
)
 
(21,636
)
 
129,683

 
 
 
80,623

 
 
 
80,623

Stock-based compensation
 
 
 
 
56,435

 
 
 
 
 
 
 
56,435

 
 
 
56,435

Balance at April 30, 2020
150,908

 
$
1,509

 
$
1,655,787

 
$
3,356,489

 
$
(634,669
)
 
$
(104,030
)
 
$
4,275,086

 
$
5,863

 
$
4,280,949

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at October 31, 2019
150,331

 
$
1,503

 
$
1,635,455

 
$
3,164,144

 
$
(625,642
)
 
$
(92,447
)
 
$
4,083,013

 
$
5,863

 
$
4,088,876

Net income
 
 
 
 
 
 
213,981

 
 
 
 
 
213,981

 
 
 
213,981

Other comprehensive income (loss), net of tax effects
 
 
 
 
 
 
 
 
 
 
(11,583
)
 
(11,583
)
 
 
 
(11,583
)
Purchases of treasury stock
(1,231
)
 
(12
)
 
12

 
 
 
(180,000
)
 
 
 
(180,000
)
 
 
 
(180,000
)
Equity forward contract
 
 
 
 
(20,000
)
 
 
 

 
 
 
(20,000
)
 
 
 
(20,000
)
Common stock issued, net of shares withheld for employee taxes
1,808

 
18

 
(67,998
)
 
(21,636
)
 
170,973

 
 
 
81,357

 
 
 
81,357

Stock-based compensation
 
 
 
 
108,318

 
 
 
 
 
 
 
108,318

 
 
 
108,318

Balance at April 30, 2020
150,908

 
$
1,509

 
$
1,655,787

 
$
3,356,489

 
$
(634,669
)
 
$
(104,030
)
 
$
4,275,086

 
$
5,863

 
$
4,280,949

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital in
Excess of
Par
Value
 
Retained
Earnings
 
Treasury
Stock
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total 
Synopsys
Stockholders’
Equity
 
Non-controlling
Interest
 
Stockholders'
Equity
 
Common Stock
 
 
Shares
 
Amount
 
Balance at January 31, 2019
149,276

 
$
1,493

 
$
1,654,363

 
$
2,820,910

 
$
(600,112
)
 
$
(97,852
)
 
$
3,778,802

 
$
5,863

 
$
3,784,665

Net income
 
 
 
 
 
 
118,210

 
 
 
 
 
118,210

 
 
 
118,210

Other comprehensive income (loss), net of tax effects
 
 
 
 
 
 
 
 
 
 
1,132

 
1,132

 
 
 
1,132

Purchases of treasury stock
(780
)
 
(8
)
 
8

 
 
 
(80,000
)
 
 
 
(80,000
)
 
 
 
(80,000
)
Equity forward contract
 
 
 
 
(20,000
)
 
 
 
 
 
 
 
(20,000
)
 
 
 
(20,000
)
Common stock issued, net of shares withheld for employee taxes
1,486

 
15

 
(11,795
)
 
(26,309
)
 
112,609

 
 
 
74,520

 
 
 
74,520

Stock-based compensation
 
 
 
 
36,908

 
 
 
 
 
 
 
36,908

 
 
 
36,908

Balance at April 30, 2019
149,982

 
$
1,500

 
$
1,659,484

 
$
2,912,811

 
$
(567,503
)
 
$
(96,720
)
 
$
3,909,572

 
$
5,863

 
$
3,915,435

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at October 31, 2018
149,265

 
$
1,493

 
$
1,644,830

 
$
2,543,688

 
$
(597,682
)
 
$
(113,177
)
 
$
3,479,152

 
$
5,863

 
$
3,485,015

Net income
 
 
 
 
 
 
271,724

 
 
 
 
 
271,724

 
 
 
271,724

Retained earnings adjustment due to adoption of accounting standards related to revenue(1)
 
 
 
 
 
 
$
257,594

 
 
 
 
 
257,594

 
 
 
257,594

Retained earnings adjustment due to adoption of an accounting standard related to income taxes(2)
 
 
 
 
 
 
$
(130,544
)
 
 
 
 
 
(130,544
)
 
 
 
(130,544
)
Other comprehensive income (loss), net of tax effects
 
 
 
 
 
 
 
 
 
 
16,457

 
16,457

 
 
 
16,457

Purchases of treasury stock
(1,126
)
 
(11
)
 
11

 
 
 
(109,185
)
 
 
 
(109,185
)
 
 
 
(109,185
)
Equity forward contract
 
 
 
 
(20,000
)
 
 
 
 
 
 
 
(20,000
)
 
 
 
(20,000
)
Common stock issued, net of shares withheld for employee taxes
1,843

 
18

 
(39,531
)
 
(29,651
)
 
139,364

 
 
 
70,200

 
 
 
70,200

Stock-based compensation
 
 
 
 
74,174

 
 
 
 
 
 
 
74,174

 
 
 
74,174

Balance at April 30, 2019
149,982

 
$
1,500

 
$
1,659,484

 
$
2,912,811

 
$
(567,503
)
 
$
(96,720
)
 
$
3,909,572

 
$
5,863

 
$
3,915,435

(1) 
See Note 2. Summary of Significant Accounting Policies in the Company's Annual Report on Form 10-K for the year ended October 31, 2019 for additional information on the retained earnings adjustment due to adoption of Accounting Standards Codification (ASC) 606 and ASC 340, "Other Assets and Deferred Costs".
(2) 
See Note 11. Income Taxes in the Company's Annual Report on Form 10-K for the year ended October 31, 2019 for additional information on the retained earnings adjustment due to adoption of Accounting Standard Update (ASU) 2016-16.
See accompanying notes to unaudited condensed consolidated financial statements.


4



SYNOPSYS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
Six Months Ended 
 April 30,
 
2020
 
2019
Cash flows from operating activities:
 
 
 
Net income
$
213,981

 
$
271,724

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Amortization and depreciation
105,078

 
102,841

Reduction of operating lease right-of-use assets
39,513

 

Amortization of capitalized costs to obtain revenue contracts
28,279

 
28,425

Stock-based compensation
108,318

 
75,374

Allowance for doubtful accounts
9,982

 
3,950

(Gain) loss on sale of property and investments

 
(3,744
)
Deferred income taxes
(37,681
)
 
(23,486
)
Net changes in operating assets and liabilities, net of acquired assets and liabilities:
 
 
 
Accounts receivable
(84,533
)
 
23,478

Inventories
(24,096
)
 
(50,358
)
Prepaid and other current assets
(5,889
)
 
(18,547
)
Other long-term assets
(39,422
)
 
(91,271
)
Accounts payable and accrued liabilities
(78,989
)
 
(160,492
)
Operating lease liabilities
(32,432
)
 

Income taxes
1,270

 
(32,059
)
Deferred revenue
186,360

 
82,966

Net cash provided by operating activities
389,739

 
208,801

Cash flows from investing activities:
 
 
 
Proceeds from sales of long-term investments

 
4,176

Purchases of long-term investments
(2,762
)
 

Purchases of property and equipment
(80,663
)
 
(68,962
)
Cash paid for acquisitions and intangible assets, net of cash acquired
(151,178
)
 

Capitalization of software development costs
(2,130
)
 
(1,491
)
Net cash used in investing activities
(236,733
)
 
(66,277
)
Cash flows from financing activities:
 
 
 
Proceeds from credit facilities
276,490

 
188,760

Repayment of debt
(178,437
)
 
(366,562
)
Issuances of common stock
98,361

 
83,352

Payments for taxes related to net share settlement of equity awards
(17,105
)
 
(13,173
)
Purchase of equity forward contract
(20,000
)
 
(20,000
)
Purchases of treasury stock
(180,000
)
 
(109,185
)
Other

 
(762
)
Net cash used in financing activities
(20,691
)
 
(237,570
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(4,424
)
 
3,093

Net change in cash, cash equivalents and restricted cash
127,891

 
(91,953
)
Cash, cash equivalents and restricted cash, beginning of year
730,527

 
725,001

Cash, cash equivalents and restricted cash, end of period
$
858,418

 
$
633,048

See accompanying notes to unaudited condensed consolidated financial statements.

5



SYNOPSYS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Description of Business
Synopsys, Inc. (Synopsys o