Synopsys pulls full-year guidance, citing new China export restrictions
Synopsys pulled its guidance for the full fiscal year on Thursday, citing a letter it received from the U.S. Commerce Department on restrictions of sales of its products in China. The stock dropped about 3%.
The announcement comes one day after Synopsys CEO Sassine Ghazi disputed a report that the White House told the company, as well as rivals Cadence and Siemens, to stop selling to clients in China. He said he had wanted to address the swirling of speculation.
"Synopsys is currently assessing the potential impact of the BIS Letter on its business, operating results and financial condition," the company said in a statement on Thursday.
On a conference call with analysts on Wednesday, Ghazi had said the company saw a slowdown in China during its fiscal second quarter, which ended on April 30.
"Recall as we started sometime in FY 2024 communicating that we are seeing both a cumulative impact of the restrictions in China as well as the macro situation inside China have caused us to continue on communicating that this deceleration will continue, and that headwind has gotten stronger as we go through the each quarter over the last year, year and a half," he said.
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