SYNOPSYS, INC.

Unaudited Consolidated Statements of Operations (1)

(in thousands, except per share amounts)

  Three Months Ended April 30,

Six Months Ended April 30,

2012

2011

2012

2011

Revenue:

  Time-based license

$ 363,580

$ 318,762

$ 719,474

$ 614,371

  Upfront license

22,333

25,014

50,845

51,549

  Maintenance and service

46,648

49,894

87,738

92,394

      Total revenue

432,561

393,670

858,057

758,314

Cost of revenue:

  License

57,592

51,146

115,314

101,669

  Maintenance and service

19,215

19,974

37,959

40,521

  Amortization of intangible assets

23,699

14,908

37,087

28,143

     Total cost of revenue

100,506

86,028

190,360

170,333

Gross margin

332,055

307,642

667,697

587,981

Operating expenses:

  Research and development

151,230

123,169

284,105

243,909

  Sales and marketing

108,836

99,562

204,240

178,886

  General and administrative

49,948

29,470

83,787

59,335

  Amortization of intangible assets 

4,905

3,756

8,426

7,504

     Total operating expenses

314,919

255,957

580,558

489,634

Operating income

17,136

51,685

87,139

98,347

Other income, net

6,353

5,574

10,179

11,244

Income before income taxes

23,489

57,259

97,318

109,591

Provision (benefit) for income taxes

2,518

(23,855)

19,653

(19,749)

Net income

$   20,971

$   81,114

$   77,665

$ 129,340

Net income per share:

  Basic

$       0.14

$       0.55

$       0.54

$       0.87

  Diluted

$       0.14

$       0.53

$       0.52

$       0.84

Shares used in computing per share amounts:

  Basic

145,948

148,461

144,877

148,738

  Diluted

149,297

152,593

148,259

153,198