SYNOPSYS, INC.

Unaudited Reconciliation of Consolidated Statements of Operations

Under ASC 606 & ASC 605 ⁽¹⁾

(in thousands, except per share amounts)

Nine Months Ended 

July 31, 2019

As reported under
ASC 606

Adjustments

Balances under
ASC 605

Revenue:

  Time-based products

$            1,649,590

$     158,222

$       1,807,812

  Upfront products

451,466

(151,110)

300,356

  Maintenance and service

408,557

(57,707)

350,850

      Total revenue

2,509,613

(50,595)

2,459,018

Cost of revenue:

-

  Products

346,163

346,163

  Maintenance and service

178,113

178,113

  Amortization of intangible assets

45,927

45,927

     Total cost of revenue

570,203

-

570,203

Gross margin

1,939,410

(50,595)

1,888,815

Operating expenses:

-

  Research and development

846,429

846,429

  Sales and marketing

471,720

10,395

482,115

  General and administrative

165,794

165,794

  Amortization of intangible assets 

31,211

31,211

  Restructuring 

33,746

33,746

     Total operating expenses

1,548,900

10,395

1,559,295

Operating income

390,510

(60,990)

329,520

Other income (expense), net

23,373

-

23,373

Income before income taxes

413,883

(60,990)

352,893

Provision (benefit) for income taxes

42,230

(12,198)

30,032

Net income (loss)

$               371,653

$      (48,792)

$          322,861

Net income (loss) per share:

  Basic

$                     2.48

$          (0.33)

$                2.16

  Diluted

$                     2.42

$          (0.32)

$                2.10

Shares used in computing per share amounts:

  Basic

149,708

149,708

  Diluted

153,859

153,859

(1)  Synopsys' third quarter of fiscal year 2019 ended on August 3, 2019. For presentation purposes, we refer to the closest calendar month end.