Synopsys, Inc.

Ladies and gentlemen, welcome to the Synopsis Earnings Conference Call for the third quarter of fiscal year 2023. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. If you would like to ask a question at that time, you may press star 1 on your telephone keypad. To remove yourself from that queue, it is star 1 again. If you should request assistance during the call, please press star 0 and an operator will assist you. Today's call will last one hour, and 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.

Thanks, Lisa. Good afternoon, everyone. With us today are Art DeGias, Chair and CEO of Synopsys, Sassine Ghazi, President and COO, and Sheila Glazer, CFO. Before we begin, I'd like to remind everyone that during the course of this conference call, Synopsys will discuss forecasts, targets, and other forward-looking statements regarding the company and its financial results. 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 during this call, important factors that may affect our future results are described in our most recent SEC reports and today's earnings press release. In addition, we will refer to certain non-GAAP financial measures during the discussion. Reconciliations to their most directly comparable GAAP financial measures and supplemental financial information can be found in the earnings press release, financial supplement, and 8K that we released earlier today. All of these items, plus the most recent investor presentation, are available on our website at www.synopsys.com. In addition, the prepared remarks will be posted on our website at the conclusion of the call. With that, I'll turn the call over to Art.

Good afternoon. We delivered outstanding results in the third quarter, exceeding the midpoint of all our guidance targets while reaching another quarterly revenue record. Revenue of $1.487 billion was in the high end of our guidance with non-GAAP operating margin at 35.3%. GAAP earnings per share was $2.17, while non-GAAP earnings per share was above our target range at $2.88. We generated $560 million of operating cash flow and ended Q3 with a backlog of $7.1 billion. By now, you have all seen our other news. So before I address our segment results in Outlook, let me warmly welcome Sassine Ghazi to the call. Today, we announced that the Synopsys Board has named Sasin as Synopsys President and CEO starting January 2024, and that I will take the role of Executive Chair of Synopsys Board at the same time. I'm absolutely thrilled with this transition into the CEO role for Sasin. Sasin is uniquely qualified. He's a proven operational leader, a technology innovator, and a trusted partner to our customers and ecosystem friends. But he needs so much more than that. He embodies our values and culture and inspires our company, including me, with his results-focused leadership. Sassine, welcome to your first of many Synopsys earning calls.