UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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(MARK ONE) |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTERLY PERIOD ENDED JULY 31, 2004 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE TRANSITION PERIOD FROM TO |
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COMMISSION FILE NUMBER: 0-19807
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SYNOPSYS, INC. |
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(Exact name of registrant as specified in its charter) |
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DELAWARE |
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56-1546236 |
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(State
or other jurisdiction of |
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(I.R.S.
Employer |
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700 EAST MIDDLEFIELD ROAD |
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(Address of principal executive offices, including zip code) |
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TELEPHONE: (650) 584-5000 |
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(Registrant’s telephone number, including area code) |
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Indicate by check mark whether the registrant (l) 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 o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
152,099,509 shares of Common Stock as of September 4, 2004
SYNOPSYS, INC.
QUARTERLY REPORT ON FORM 10-Q
JULY 31, 2004
TABLE OF CONTENTS
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SYNOPSYS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
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JULY 31, |
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OCTOBER
31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
499,234 |
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$ |
524,308 |
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Short-term investments |
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200,111 |
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174,049 |
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Total cash, cash equivalents and short-term investments |
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699,345 |
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698,357 |
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Accounts receivable, net of allowances of $7,848 and $8,295, respectively |
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143,006 |
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200,998 |
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Deferred income taxes |
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243,106 |
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248,425 |
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Income taxes receivable |
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49,223 |
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72,124 |
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Prepaid expenses and other current assets |
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30,081 |
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19,302 |
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Total current assets |
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1,164,761 |
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1,239,206 |
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Property and equipment, net |
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180,081 |
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184,313 |
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Long-term investments |
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13,458 |
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8,595 |
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Goodwill |
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570,047 |
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550,732 |
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Intangible assets, net |
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213,155 |
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285,583 |
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Other assets |
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80,054 |
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38,924 |
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Total assets |
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$ |
2,221,556 |
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$ |
2,307,353 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
159,407 |
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$ |
204,226 |
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Accrued income taxes |
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182,569 |
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201,855 |
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Deferred revenue |
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385,302 |
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398,878 |
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Total current liabilities |
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727,278 |
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804,959 |
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Deferred compensation and other liabilities |
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51,521 |
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47,390 |
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Long-term deferred revenue |
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29,215 |
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21,594 |
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Stockholders’ equity: |
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Common stock, $0.01 par value per share; 400,000 shares authorized; 154,779 and 155,837 shares outstanding, respectively |
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1,548 |
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1,560 |
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Additional paid-in capital |
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1,240,384 |
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1,198,421 |
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Retained earnings |
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249,844 |
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251,979 |
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Treasury stock, at cost; 2,350 and 662 shares, respectively |
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(74,834 |
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(20,733 |
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Deferred stock compensation |
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(3,543 |
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(7,170 |
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Accumulated other comprehensive income |
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143 |
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9,353 |
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Total stockholders’ equity |
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1,413,542 |
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1,433,410 |
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Total liabilities and stockholders’ equity |
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$ |
2,221,556 |
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$ |
2,307,353 |
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See accompanying notes to unaudited condensed consolidated financial statements.
3
SYNOPSYS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
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THREE MONTHS ENDED |
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NINE MONTHS ENDED |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenue: |
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Upfront license |
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$ |
62,352 |
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$ |
74,709 |
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$ |
197,654 |
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$ |
211,229 |
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Time-based license |
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164,398 |
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160,875 |
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497,942 |
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450,165 |
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Service |
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54,931 |
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64,782 |
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165,953 |
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199,136 |
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Total revenue |
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281,681 |
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300,366 |
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861,549 |
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860,530 |
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Cost of revenue: |
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Upfront license |
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3,277 |
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3,536 |
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17,473 |
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11,134 |
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Time-based license |
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15,550 |
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13,792 |
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31,305 |
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40,050 |
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Service |
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19,929 |
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16,974 |
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65,043 |
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56,744 |
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Amortization of intangible assets and deferred stock compensation |
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25,562 |
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23,856 |
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76,517 |
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68,959 |
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Total cost of revenue |
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64,318 |
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58,158 |
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190,338 |
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176,887 |
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Gross margin |
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217,363 |
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242,208 |
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671,211 |
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683,643 |
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