Q2 2025 Synopsys Inc Earnings Call Transcript
Key Points
- Synopsys Inc (SNPS) reported a strong second quarter with a 10% year-over-year revenue increase, exceeding the midpoint of their guidance.
- The company maintained its full-year revenue guidance, demonstrating the strength and resilience of its business model.
- Design IP segment revenue increased by 21% year over year, driven by strong demand for high-speed SerDes IP and other interface IP.
- Synopsys Inc (SNPS) is leading in AI for chip design, with significant customer adoption of its AI capabilities, including DSO.ai and VSO.ai.
- The company is confident in closing its pending acquisition of Ansys, which will enhance its AI-powered silicon to system design solutions.
- Synopsys Inc (SNPS) is experiencing a decline in revenue from China due to macroeconomic conditions and export restrictions.
- The company faces potential regulatory challenges in securing China regulatory clearance for its Ansys acquisition.
- There is uncertainty regarding the impact of potential BIS export restrictions on Synopsys Inc (SNPS)'s sales to China.
- The macroeconomic environment remains dynamic, with non-AI end market demand remaining subdued.
- The company has issued a $10 billion bond, which has resulted in net interest expenses impacting its financials.
Ladies and gentlemen, welcome to the Synopsys earnings conference call for the second quarter fiscal year 2025. (Operator Instructions) As a reminder, today's call is being recorded.
At this time, I would like to turn the conference over to Trey Campbell, Senior Vice President, Investor Relations. Please go ahead, sir.
Good afternoon, everyone, with us today are Sassine Ghazi, President and CEO of Synopsys; and Shelagh Glaser, CFO.
Before we begin, I'd like to remind everyone, during the course of this conference call, Synopsys will discuss forecasts, targets, and other forward-looking statements regarding the company and its financial results.
With these statements -- while these statements represent our best current judgment about future results and performance as of today, our actual results are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect.
In addition to any risks that we highlight
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