Latest news with #ElectronicDesignAutomation
Yahoo
29-05-2025
- Business
- Yahoo
Synopsys Stock Gains 4% as Q2 Earnings and Revenues Beat Estimates
Synopsys SNPS shares rose 3.7% during Wednesday's extended trading session after the company reported better-than-expected results for the second quarter of fiscal 2025. The company reported non-GAAP earnings of $3.67 per share for the second quarter, surpassing the Zacks Consensus Estimate of $3.39 and the guided range of $3.37-$3.42. The bottom line increased 22.3% due to a year-over-year increase in earnings beat the Zacks Consensus Estimate in each of the trailing four quarters the average surprise being 6%.Synopsys' second-quarter revenues jumped 10.3% year over year to $1.604 billion, which marginally surpassed the Zacks Consensus Estimate of $1.602 billion. The top line was primarily driven by an increase in revenues of Time-Based Product and Upfront Product businesses. In the license-type revenue group, Time-Based Product revenues (51.6% of the total revenues) of $828.3 million were up 6% year over year. Upfront Product revenues (31.8%) increased 28.7% to $510.7 million. Maintenance and Service revenues (16.5%) decreased 4.1% to $265.3 million from the year-ago quarter's $276.6 million. Synopsys, Inc. price-consensus-eps-surprise-chart | Synopsys, Inc. Quote Segment-wise, Electronic Design Automation (EDA) revenues (66.9% of revenues) were $1073.1 million, up 6.5% year over year. Design IP revenues (30% of revenues) amounted to $482 million, up from the year-ago quarter's $399.8. million. Other revenues were $49.2 million, which represented 3.1% of the total revenues and increased 4% year over Synopsys' revenues in North America (41% of the total) and Europe (12%) were $655.1 million and $194.8 million, respectively. Revenues from Korea (16%), China (10%) and Other (21%) were $257.6 million, $157.5 million and $339.2 million, non-GAAP operating margin was 38%, up 70 basis points (bps) year over EDA's adjusted operating margin showed improvement of 130 bps to 40.9%. The Design IP segment's margin remained unchanged at 31.2% on a year-over-year basis. Synopsys had cash and short-term investments of $14.26 billion as of April 30, 2025, compared with $3.81 billion as of Jan. 31, total long-term debt was $10.03 billion at the end of the reported quarter, higher than $14 million reported in the previous the second quarter, Synopsys generated operating cash flow of $275 million. In the first half of fiscal 2025, it generated operating cash flow of $210 million. For fiscal 2025, SNPS still expects revenues between $6.745 billion and $6.805 billion. Non-GAAP earnings are still expected in the range of $15.11-$15.19. The Zacks Consensus Estimate for revenues is pegged at $6.77 billion and the consensus mark for earnings is pinned at $14.88 per expenses are expected in the range of $4.045-$4.085 the third quarter of fiscal 2025, Synopsys expects revenues between $1.755 billion and $1.785 billion. The Zacks Consensus Estimate for revenues is pegged at $1.77 billion. Management estimates non-GAAP earnings per share between $3.82 and $3.87. The consensus mark for earnings is pegged at $3.90. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Currently, SNPS carries a Zacks Rank #4 (Sell).Paylocity Holding PCTY, StoneCo STNE and BlackBerry BB are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology STNE and BB sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks shares have declined 2.8% year to date. The Zacks Consensus Estimate for PCTY's full-year 2025 earnings is pegged at $6.95 per share, up by 4.51% over the past 30 days, indicating an increase of 0.99% from the year-ago quarter's reported shares have surged 67.4% year to date. The Zacks Consensus Estimate for STNE's full-year 2025 earnings is pegged at $1.43 per share, up by 3.62% over the past 30 days, indicating a gain of 5.93% from the year-ago quarter's reported shares have gained 8.2% year to date. The Zacks Consensus Estimate for BB's full-year 2025 earnings per share is pegged at 10 cents, unchanged over the past 30 days, indicating a gain of 400% from the year-ago quarter's reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synopsys, Inc. (SNPS) : Free Stock Analysis Report Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
U.S. May Tighten China Export Rules on Cadence (CDNS), Synopsys (SNPS)
On Thursday, Reuters reported that the U.S. Commerce Department has issued notification letters to several Electronic Design Automation (EDA) software companies, including Cadence Design Systems Inc. (NASDAQ:CDNS), Synopsys Inc. (NASDAQ:SNPS) and Siemens EDA, asking them to halt the supply of their technologies to China. Although no official statement or formal order has been issued, the report cites two individuals familiar with the matter as its source. The report added that companies seeking to continue exporting their EDA tools to China may be required to obtain new export licenses. The Commerce Department has not confirmed whether these notifications were sent, but told Reuters it is reviewing exports that are considered strategically important to China. In some cases, the Department has already suspended existing export licenses or imposed additional requirements while the review is underway. Both Synopsys and Cadence have denied receiving such notifications. However, if implemented, these restrictions could have a notable financial impact as China currently accounts for 12% to 14% of their annual revenue. Despite the uncertainty, Synopsys released strong second-quarter results for fiscal year 2025 and reaffirmed its full-year revenue guidance of approximately $6.8 billion. The company's management stated that they have received no new communication from the Bureau of Industry and Security (BIS), and their guidance reflects their current understanding of the export landscape. Synopsys provides end-to-end solutions for silicon-to-systems design, including EDA software, silicon IP, and system verification and validation. Cadence Design Systems specializes in computational software for semiconductor and systems design, and is a key player in the electronic systems design space. While we acknowledge the potential of CDNS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CDNS and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
Synopsys gets conditional FTC approval for Ansys acquisition
Chip designer Synopsys has received conditional approval from the US Federal Trade Commission (FTC) for its $35bn acquisition of software developer Ansys. In January 2024, the companies signed a definitive agreement to execute the deal. As per the latest conditions set forward by the FTC, Synopsys and Ansys must divest certain assets to Keysight Technologies to address antitrust concerns. This divestiture aims to maintain competition in software tool markets essential for semiconductor and light simulation device design. The FTC's proposed divestiture order seeks to protect consumers from potential price increases for products such as cars, smartphones, and televisions. FTC Bureau of Competition director Daniel Guarnera said: 'The FTC's action today protects Americans from higher costs for the countless everyday products that use computer chips, LED screens, fibre optic cables, and many other high-tech components. 'The FTC's divestiture order ensures that competition can thrive across software markets that are critical to designing the digital products that power Americans' daily lives.' Synopsys develops Electronic Design Automation software for semiconductor design, while Ansys offers Simulation & Analysis software for product testing, including semiconductors. Under the proposed consent order, Synopsys will divest its optical software tools used for designing and simulating optical devices such as LED screens and lenses. Additionally, Synopsys will divest its photonic software tools, which aid in designing devices using photons, like fibre optic cables and solar panels. Ansys will divest its PowerArtist tool, which measures and optimises power consumption of digital chips during the Register Transfer Level design stage. The consent order addresses FTC allegations of anticompetitive behaviour in optical, photonic, and RTL power consumption analysis tool markets. The consent order mandates that Synopsys and Ansys complete divestitures within ten days of the acquisition's closure. The order also requires Synopsys and Ansys to provide transition services and technological support to enable Keysight to compete with the merged entity. A monitor will oversee the consent order's implementation, and a divestiture trustee will be appointed if divestitures are not completed, it said. "Synopsys gets conditional FTC approval for Ansys acquisition" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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Business Standard
29-05-2025
- Business
- Business Standard
Trump admin tightens China chip curbs by targeting design software
The Trump administration this year banned Nvidia from selling its H20 chips to Chinese customers, the third round of such restrictions since 2022 Bloomberg By Jenny Leonard and Mackenzie Hawkins The Trump administration is moving to restrict the sale of chip design software to China, people familiar with the matter said, as the US government evaluates a broader policy announcement on the issue. The Commerce Department's Bureau of Industry and Security sent letters to some of the leading providers of electronic design automation, or EDA, last Friday telling them to halt shipments to Chinese customers, said the people, asking not to be identified because the policy isn't yet public. Top makers of the technology include Cadence Design Systems Inc., Synopsys Inc. and Germany's Siemens AG. 'The Commerce Department is reviewing exports of strategic significance to China,' an agency spokesperson said. 'In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending.' Shares of Cadence fell 10.7 per cent to $288.61 in New York trading, the worst single-day drop since the start of the pandemic in March 2020. Synopsys fell 9.6 per cent to $462.43, its steepest decline since December. It's unclear how broad the restrictions will be, although it could mean an effective ban on doing business in China, according to one of the people. Synopsys gets about 16 per cent of its revenue from China, while Cadence gets about 12 per cent. 'On May 23, the US Government informed the Electronic Design Automation (EDA) industry about new export controls on EDA software to China and Chinese military end users globally,' a Siemens spokesperson said via email. 'Siemens has supported customers in China for more than 150 years and will continue to work with our customers globally to mitigate the impact of these new restrictions.' Synopsys Chief Executive Officer Sassine Ghazi acknowledged reports about the letter but said the company hadn't gotten a notice from BIS. 'We cannot speculate about any potential impact to a notice that we have not received,' he said on a conference call Wednesday to discuss the company's latest results. Cadence declined to comment. The Financial Times reported earlier on the letters. Washington has employed an escalating approach to curbing Beijing's ambitions to build a domestic semiconductor industry. It started by cutting China off from equipment used to make the most advanced electronic components then gradually broadened the scope of the rules. Software from Cadence and Synopsys is used to design everything from the highest-end processors for the likes of Nvidia Corp. and Apple Inc. to simple parts like power-regulation components. The US has also moved to keep the most advanced semiconductors out of China. Nvidia has been the main target of increasingly strict US export controls — in part because its chips are the gold standard for training artificial intelligence models. Export controls by the US have emerged as a flashpoint in trade negotiations between Washington and Beijing. Chinese officials claiming that US restrictions — along with efforts to pressure allies not to use Huawei Technologies Co.'s latest Ascend chip — violated the spirit of recent discussions in Geneva aimed at defusing broader tensions over tariffs on the world's second largest economy by President Donald Trump.
NDTV
28-05-2025
- Business
- NDTV
Trump Tells US Chip Designers To Stop Selling To China: Reports
Washington: President Donald Trump's administration has ordered U.S. firms that offer software used to design semiconductors to stop selling their services to Chinese groups, the Financial Times reported on Wednesday, citing several people familiar with the move. Electronic Design Automation groups, which include Cadence, Synopsys and Siemens EDA, were told by the Commerce Department to stop supplying their tech, the report added. The Bureau of Industry and Security issued the directive to the companies, according to people cited in the Financial Times report.
