Synopsys, Inc. · NASDAQ:SNPS
Synopsys — NASDAQ 32nd Investor Program (June 2015)
24 slides from Synopsys's conference presentation, Jun 30, 2015
Slide 1: NASDAQ 32nd Investor Program
NASDAQ 32nd Investor Program Brian Beattie, EVP and Chief Administrative Officer Trac Pham, Chief Financial Officer June 30, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements under the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, including statements regarding projected financial results and long-term growth rates. For a discussion of important factors that c
Slide 3: Synopsys: The Market & Technology Leader
Synopsys: The Market & Technology Leader FY14 FY15 (Target*) Revenue: $2.057B $2.210 – $2.235B (7-9%) NG EPS: $2.53 $2.76 – $2.81 (9-11%) Business Model: ~90% time-based Revenue Sources: ~½ International Employees: ~9,450 Market Cap: ~$7.8B Founded: 1986 Patents Granted: 2,404 * These targets were p
Slide 4: Uniquely Positioned for Stability and Growth
Synopsys: The Market & Technology Leader Uniquely Positioned for Stability and Growth • Dynamic markets • Clear technology leadership • Financial strength and growth © 2015 Synopsys, Inc. 4
Slide 5: Synopsys: The Market & Technology Leader – Dynamic markets
Synopsys: The Market & Technology Leader Uniquely Positioned for Stability and Growth • Dynamic markets • Clear technology leadership • Financial strength and growth © 2015 Synopsys, Inc. 5
Slide 6: Helping Design the Chips Inside
Helping Design the Chips Inside Impacting Everyone, Everything, Everywhere, Every Day Mobile Computing & Peripherals Medical Data Center & Networking Automotive Military / Aerospace Cloud Infrastructure Digital Home Internet of Things Industrial © 2015 Synopsys, Inc. 6
Slide 7: Semiconductor Design Complexity
Semiconductor Design Complexity • An advanced design today will take 18-24 months to complete, and can cost up to $200M • Complexity of designs has increased exponentially, requiring more, and more advanced, EDA tools • As IC design complexity grows, there is the need to embed an increasing amount o
Slide 8: Synopsys: The Market & Technology Leader – Clear technology leadership
Synopsys: The Market & Technology Leader Uniquely Positioned for Stability and Growth • Dynamic markets • Clear technology leadership • Financial strength and growth © 2015 Synopsys, Inc. 8
Slide 9: Leading the Way in FinFET
Leading the Way in FinFET 250 FinFET 200 22 16 14 10 150 Tracking nearly 100 220 FinFET designs and tape- 50 outs worldwide 0 Q4'09 Q3'12 Q2'09 Q3'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Synopsys is integral to
Slide 10: Broadest Portfolio of Best-in-Class Technology
Broadest Portfolio of Best-in-Class Technology Multi-Year Upgrade Cycle © 2015 Synopsys, Inc. 10
Slide 11: IC Compiler II
IC Compiler II Game-Changer in Place & Route • Tremendous demand and excellent business momentum. Rebuild Rethink Reuse • Fastest-ever ramp-up in orders for a new product. New New Engines Best of IC • Currently serving Infrastructure Data Model Compiler I 33 customers; >70 Multi Multi in-progress de
Slide 12: Verification Continuum
Verification Industry’s #1 Continuum • Game-changing Planning & Coverage new platform launched in 2014 Debug #1 • Seamless integration • Built around best- #1 #1 #1 in-class engines; Virtual Static & FPGA adding unified Simulation Emulation Prototype Formal Prototype debug, compile • Goal: speed sof
Slide 13: #2 IP Vendor
#2 IP Vendor Leader in Interface, Analog & Memory IP Leadership Enables Investment in Quality, Support, Features and Processes Design IP Revenue, Worldwide (in Millions)* Design IP Revenue, Wired Interface Design IP Revenue, Wired Interface 2014 2013 Rank Company Rank Company 20142013 ShareShare 1 1
Slide 14: Third-Party IP – Synopsys Differentiator
Third-Party IP – Synopsys Differentiator Specialty I/O Application Application Graphic CPU CPU RAM RAM ROM Core(s) LVDS, Etc Established Provider 15+ years of investment and Flash Flash Storage execution RAM RAM RAM RAM Interface Resource On-Chip Bus DDR DDR memory Commitment Interface (UARTs/Timers
Slide 15: Synopsys Expands TAM with Coverity
Synopsys Expands TAM w/ Coverity • Acquired Coverity for $375M ($334M net of cash acquired) Synopsys Enters Software Quality and Security Market with Coverity Acquisition • Leading provider of Software Coverity Improves Code Quality and Security, Resulting in Better Quality, Testing and Security Sof
Slide 16: Current Synopsys Customers Plus Brand New Customer Base
Current Synopsys Customers Plus Brand New Customer Base Current Semis/Systems Customers New Verticals, Customers Banking, Financial Services, Energy, Different Users, Different Budgets Aerospace/Defense, Software, Internet, Industrial, etc. Naturally adjacent Core competencies: • Algorithm-based tec
Slide 17: Acquisitions to Expand Security Offering
Acquisitions to Expand Security Offering • Announced intent to acquire Codenomicon (April 20) Synopsys Enters Software Quality and Security Market with Coverity Acquisition • Independent discoverer of Coverity Improves Code Quality and Security, Resulting in Better Heartbleed bug; security testing S
Slide 18: Synopsys: The Market & Technology Leader – Financial strength and growth
Synopsys: The Market & Technology Leader Uniquely Positioned for Stability and Growth • Dynamic markets • Clear technology leadership • Financial strength and growth © 2015 Synopsys, Inc. 18
Slide 19: Long-term Operating Model
Long-term Operating Model* Primary long-term objective is to drive high-single- digit EPS growth through a mix of the following elements: • Organically grow traditional EDA revenue generally in the low-to-mid single digit range • Organically grow IP/Systems/SW Integrity revenue generally in the low
Slide 20: Growth and Predictability
Growth and Predictability Revenue ($M) $2,500 $2,057 $2,223 • Predictable, time-based $1,962 $2,000 $1,536 $1,756 revenue model $1,500 • Entered FY15 with ~80% of $1,000 $500 revenue in hand; enter each $0 quarter with ~90% in hand FY11 FY12 FY13 FY14 FY15 Guide-Mid* • Non-cancellable backlog: 12% 5
Slide 21: Strong Operating Cash Flow
Strong Operating Cash Flow Annual Operating Cash Flow • Roughly tracks EBITDA less $600 $551 cash taxes over time $486 $497 $500 $450 • OCF is lumpy $400 ‒ Difficult to forecast period to period $ Millions $300 ‒ Timing of large contracts $200 ‒ Disbursements (affected by M&A) $100 • Goal is to opti
Slide 22: Returning Cash to Shareholders
Returning Cash to Shareholders Annual Share Buybacks • Since 2010, spent $1.1B on $500 $435 buybacks $400 o $180M in 1H 2015 $ Millions $300 • $200M remaining on our $200 $185 $180 current share repurchase $145 $120 authorization* $100 $40 • Goal is to optimize the use of $0 our strong cash flow, th
Slide 23: Summary
Summary • Dynamic markets – World’s leading EDA supplier and #2 IP vendor • Clear technology leadership – Broadest portfolio of best-in-class technology with multi-year upgrade cycle • Financial strength and growth – Excellent financial position and execution © 2015 Synopsys, Inc. 23
Slide 24: Thank You
Synopsys n to Software” Thank You